Financial tips for adults returning to college - Quincy Herald-Whig | Illinois & Missouri News, Sports

Financial tips for adults returning to college

Updated: Nov 18, 2013 10:03 AM
© Zoonar / Thinkstock © Zoonar / Thinkstock

By Andrew Housser

Nearly 4 million adults ages 35 and older are currently pursuing a degree, according to the National Center for Education Statistics. Most have a goal of landing a better-paying job or advancing their careers. Indeed, individuals with an associate's degree earn about $500,000 more over the length of their careers than high school graduates. People with a bachelor's degree earn an additional $500,000 more, on average.

Of course, returning to school requires an upfront financial commitment. Tapping into savings or retirement accounts, or going into major debt, is generally not a good idea. But college can be affordable when you put these tasks on your personal syllabus.

1. Apply for financial aid. Almost all schools require students to complete the Free Application for Federal Student Aid (FAFSA) to receive financial assistance. The U.S. Department of Education (DOE) and individual colleges use this information to determine financial aid eligibility. There is no age restriction for FAFSA, and it is available for full- or part-time college students. You can submit the application from Jan. 1 to June 30 every year. You must re-apply annually.

2. Research aid options. The DOE supplies more than 60 percent of student aid. Most of that aid is awarded via low-interest loans. As with any loan, credit history can affect eligibility. You may need someone to co-sign if your credit score is low. Grants, unlike loans, do not have to be repaid as long as you fulfill agreed-upon terms, such as staying enrolled in a program. Individual state education departments also may offer financial help in the forms of loans, grants and scholarships to older or nontraditional students. Visit scholarship websites like and to search for scholarships that are based on individual characteristics, such as age and geographic location.

3. Take advantage of tax breaks. With the Lifetime Learning Credit, students can offset 20 percent of tuition and fees. This credit can reduce taxes owed by up to $2,000. To claim the maximum credit, modified adjusted gross income must be less than $62,000 for singles, or $124,000 for married couples filing jointly. You also may want to consider setting up a 529 college savings plan for yourself. Many states allow tax-deductible 529 plan contributions. You also can tap unused money in your child's 529 plan for your own college expenses if you are listed as a beneficiary.

4. Explore employer and military assistance. Some employers offer tuition-reimbursement programs. Employees can exclude up to $5,250 of tuition reimbursements from taxable income each year. You also may be able to deduct some expenses, such as buying a laptop, for work-related education. For veterans, the Post 9/11 GI Bill may cover all tuition and fees for eligible service members. It also provides a housing stipend and covers some books and supplies. The U.S. Department of Veteran Affairs has a list of education benefits programs available for active and inactive military personnel.

5. Be smart about your schooling. An advanced degree may or may not be right for you. Before investing in an education program, learn more about job opportunities and pay scales in the field that interests you. In addition to community and traditional colleges, you also may find online schools, professional and trade programs, certifications and apprenticeships that suit your needs. Also, some colleges and universities offer a life experience credit. This type of program combines past work experience with college credits, enabling you to earn a degree faster.

Remember that more education does not automatically equate to more money in your paycheck. In fact, it could mean less money in your bank account if you make the mistake of over-borrowing. Those who are fewer than 10 years away from retirement, in particular, will want to take out as few loans as possible. Whatever route you choose, doing your homework before you enroll in school can help you find a more lucrative, more satisfying career, even as an adult.


Andrew Housser is a co-founder and CEO of, a free one-stop online portal where consumers can educate themselves about personal finance issues and compare financial products and services. He also is co-CEO of Freedom Financial Network, LLC providing comprehensive consumer credit advocacy and debt relief services. Housser holds a Master of Business Administration degree from Stanford University and Bachelor of Arts degree from Dartmouth College.
INFORMATIONAL DISCLAIMER The information contained on or provided through this site is intended for general consumer understanding and education only and is not intended to be and is not a substitute for professional financial or accounting advice. Always seek the advice of your accountant or other qualified personal finance advisor for answers to any related questions you may have. Use of this site and any information contained on or provided through this site is at your own risk and any information contained on or provided through this site is provided on an "as is" basis without any representations or warranties.
Powered by WorldNow
All content © Copyright 2000 - 2015 WorldNow and Quincy Herald-Whig. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service and Mobile Privacy Policy & Terms of Service.