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Corporate Reimbursement Programs Help Ease Students' College Tuition Woes

As the deadline to apply for financial aid at U.S. colleges and universities draws near, a vast number of students find themselves pondering how they will pay for the rising cost of tuition.

Even news that the U.S. Department of Education has provisions for a $1.9 billion increase for the Pell Grant program in its proposed budget for fiscal year 2004 is not enough to ease the financial uncertainty felt by countless American students, especially those who do not meet Pell's strict need-based criteria.

Milton Little, Jr., executive vice president and chief operating officer of the National Urban League - an organization dedicated to ensuring that African-Americans are well-educated and equipped for economic self reliance in the 21st Century - says students should look beyond traditional sources, such as athletic and academic scholarships, federally insured student loans, and college work-study jobs, and research companies that offer tuition assistance programs to their employees.

"The competitive nature of the times we live in demand that as the availability of federal funding diminishes, students and their families must be more resourceful when seeking financial assistance," Little said. "Fortunately, there are several U.S. corporations that provide stipends and diverse types of financial aid to help their employees earn a college education."

One corporation that has an innovative program for its employees is UPS. Since 1999, through its Earn and Learn program, the company has provided its part-time employees in participating locations with thousands of dollars each year. Employees are eligible for $3,000 in tuition assistance and $2,000 in forgivable loans per calendar year, with a lifetime cap of $23,000. The funds can be used towards tuition, approved mandatory fees and book fees of up to $65 per class.

Cal Darden, senior vice president of UPS's U.S. Operations and the company's highest-ranking African-American executive, said UPS has disbursed $60 million in tuition assistance for the Earn and Learn program and $25 million in forgivable loans since 1999.

"Earn and Learn provides part-time employees with the educational means to work toward their personal and professional goals," Darden said. "Through UPS's promotion from within policy, many part-time employees are promoted to part-time supervisors and then some move on to management positions. Earning a college degree is an important part of that process."

To date, more than 32,000 part-time UPS employees have participated in the program, he said. Among them have been several African-Americans including:

• Denver native Melody Horton, 37, a human resources supervisor majoring in business management at Metro State College
• Pittsburgh native Lynette Sanders, 27, a communications major at Penn State University
• Randy Brisket, 25, is earning his master's in business at the University of North Florida with help from the program
• Andre Anderson, 21, a psychology major at Fisk University in Nashville
• Lisa Hayden, 19, a communications major at University of Wisconsin Milwaukee

Scott Smith, Director of Tuition Assistance and Employee Programs at Edcor, the nation's leading administrator of corporate educational programs, said that corporate tuition assistance programs like UPS's are growing in popularity.

"Even in these tough economic times, companies are concerned with the recruitment and retention of skilled employees," Smith said. "So, it makes good business sense to have education assistance programs in place that cater to the changing needs of the workforce."

The National Urban League publishes a scholarship guide that lists dozens of scholarships available to African-American students and their families. More information on financing a college education can be found at www.nul.org/programs/education/index.htm, www.collegeboard.org and www.blackexcel.org. More information on UPS's Earn and Learn program can be found at www.upsjobs.com.