When the financial crisis of 2008 first arrived, many people found themselves in the unemployment line. For some, unemployment proved a brief bump in the road, while others endured several years of unemployment before landing on their feet. Some men and women who lost their jobs as a result of the economic downturn have still not found gainful employment.
Many individuals who find themselves out of work or unsatisfied by their current professions consider going back to school to pursue an advanced degree or to begin studies in an entirely new field. An advanced degree can help men and women further their careers, while changing careers is often facilitated by a degree in a different course of study. But the decision to return to school involves more than a person’s career goals, especially if that person has a family or other significant financial obligations. The cost of a college education is considerable, but men and women can take steps prior to enrolling to determine if returning to school makes financial sense for them.
• Determine your eligibility for aid. Adults thinking of going back to school may be eligible for financial aid. Older students returning to school won’t have to worry about their parents’ income disqualifying them from financial aid, and they may even be more eligible for need-based aid when returning to school than they were when they initially enrolled as young students. Older independent students may also be allowed to borrow more than younger students who are considered dependent. Rules regarding eligibility for financial aid varies depending on where a person lives, but those in the United States can visit www.fafsa.ed.gov for more information, while Canadians can learn about financial aid at www.canlearn.ca.
• Discuss financial aid with the university you plan to attend. Unlike high school students who apply to multiple colleges, adults going back to school typically value proximity when looking for a college or university in which to enroll. So it’s easy for adults to visit their local college or university’s financial aid office in person to discuss opportunities for grants or scholarships. Financial aid officers can point you in the right direction if you decide to fill out loan applications or help you find any scholarships that might be available to adult students. Financial aid departments can be invaluable resources to students of all ages, and gaining a greater understanding of the grants and scholarships available to you can help you determine if returning to school makes financial sense for you and your family.
• Determine how quickly you can repay student loans. Few students can afford to attend college without borrowing money. While younger students have a lifetime to repay student loans, older students don’t have that luxury. As a result, older students must determine when they can realistically expect to pay off their loans before they borrow any money. If loans can be repaid long before retirement, then a return to school might make financial sense. But men and women who crunch the numbers and realize they will be forced to make loan payments during their retirement years might want to reconsider. A good rule of thumb for adults considering a return to school is to borrow less the closer you are to retirement.
Many adults decide to return to school years after they established themselves in the professional arena. But as much as such decisions can reignite a forgotten passion or lead men and women down an exciting new path, returning to school must also make financial sense.
