If you think you cannot afford to go back to school, think again. There are many different avenues to take when seeking out financial assistance to continue your education. Whether you tap employer, state or federal resources, you will be pleasantly surprised to find that returning to school is not as expensive as you may believe.
Help From Your Employer
Employers will often contribute funds for employees who desire more education. The National Center for Education Statistics Adult Education Participation of National Household Education Surveys Program found that more respondents (32 percent) reported receiving financial support than reported being offered a program through their workplace (12 percent).
Eleven percent of respondents had been paid by their employer during their program attendance. The survey also found that more full-time employed adults got financial aid from their employer than part-time working adults. The average out-of-pocket tuition and fees paid by adults enrolled in part-time educational programs was reported to be $1,144.
The Education for Employee Education Benefits provision allows workers to exclude from their taxable income up to $5,250 per year in tuition assistance, provided by the employer. The provision applies to both undergraduate and graduate students. Section 132 of the provision provides exclusion for study at any level, and with no dollar limit, as long as the education being sought directly relates to the retention of the current job.
Check with your human resources department to find out about your company's financial assistance programs. You may find your company provides scholarships, distance training or partnerships with universities that subsidize the cost of tuition. Many employers are well aware of the benefits of employees engaged in lifelong learning.
Tax Credits
If you are in need of higher education financial aid, you will find several tax credits available to you. The Lifetime Learning tax credit picks up the tab for 20 percent of the first $10,000 of tuition and fees paid each year. Penalty-free IRA withdrawals are limited to net postsecondary expenses for tuition, fees, books, equipment and room and board. Deductions for student loan interest can be paid in the first 60 months on any loan used for college expenses.
Another option is the Hope Scholarship tax credit, which provides a full tax credit for the first $1,000 of tuition and fees. This tax credit also provides a 50 percent tax credit on the second $1,000 spent on tuition and fees. The Hope Scholarship tax credit is available during the first two years of postsecondary education, for students enrolled in at least a half-time degree or certificate program.
Scholarships and Other Types of Aid
The federal government offers work-study programs which provide undergraduate and graduate students with employment to earn money towards paying educational expenses. You may also find scholarships through international and national unions. To investigate union scholarships, visit http://66.109.241.150/unionplus/scholarship.html .
Veterans of the military are often provided with scholarships for education. State aid is available as well, and funding varies from state-to-state. Log onto http://www.ed.gov/Programs/bastmp/SHEA.htm to investigate what funding your state has to offer.
How to Get Started
When seeking out financial aid, there are several steps you can take to explore your funding resources. First, you need to hammer out a financial plan for yourself. Include any and all costs that will relate to your educational goals, such as tuition costs, books, child care, transportation and housing.
Get your consumer debt paid off. This will lighten your load and allow you to see what you have to work with. Fill out the U.S. Department of Education's Free Application for Federal Student Aid , which will help you figure out your options. Do not automatically assume you cannot afford to further your education.
Ask your institution whether it offers tuition payment-plans. Some colleges actually offer older students bargain tuition rates. In addition, you can sometimes save money by earning credit for past learning through taking exams or providing a portfolio of your past experiences. After all, the fewer classes you need to take, the less expensive your education will be.
And most importantly, apply early. Early application will enable you to prepare your finances and to seek out all possible financial aid. You should also apply to several different schools, even if you believe some may be out of your price range. The U.S. Department of Education offers a great Financial Estimator Tool, FAFSA4caster which will enable you to calculate your need and eligibility for financial assistance.
With today's aging workforce and trends of later retirement, the continuing education of adults is a hot topic. Continuing your education can afford you a better job or promotion, cutting-edge job skills or a new career entirely-all results which make the cost of education worth it. No matter what your financial situation, continuing your education is not out of reach.
