Financial Aid for College Isn’t Just for Kids

When most of us think of financial aid recipients, we picture fresh-faced high school graduates with the tune of "Pomp and Circumstance" stuck in their heads. Surprise, surprise: There are almost as many aid opportunities for non-traditional students as there are reasons to go back to school. From traditional scholarships and grants to alternative awards funded by employers, older students have a wide array of educational assistance options to help propel them to professional success. Here’s how to enroll without getting rolled over by debt.

Investigate State and Private Funds

Those who believe scholarships are only for recent high school grads should talk to Bill Smithem. A 54-year-old South Carolina-based software engineer for 20 years, Smithem decided to return to school after getting laid off, almost all on the state’s tab.

“The South Carolina lottery funds a scholarship and almost all of my tuition was paid for by that,” Smithem explains. “I also got an additional $500 scholarship my last semester to help cover books and supplies.” Smithem used his associate degree in graphic design to start CBS Web Design, a web development firm.

While certain states like South Carolina and Georgia offer tuition assistance for those attending public colleges, private organizations like the Jeanette Rankin Foundation and Talbot’s offer funds for older, nontraditional students. Information on state funding is available through each state’s higher education department.

You can also find information on private scholarships offered by your school of choice by contacting their program director and financial aid officer. The biggest mistake many adult learners make is not inquiring about aid because they assume they won’t qualify. In fact, even online learners are cashing in on scholarships these days, as more and more institutions are offering online degree programs, and – like Pennsylvania State University – scholarships for online students only. In addition, online students who attend an accredited Title IV-eligible school can reap the same federal aid opportunities as their traditional-learning counterparts.

Get Credit

Thanks to the stimulus bill and the new American Opportunity Tax Credit (formerly called the Hope credit), adults returning to school during the 2009 and 2010 tax years can write off up to $2,500 in tuition expenses per year. According to the IRS, students must spend at least $4,000 in order to get the full credit, but that includes any “qualified educational expense” like tuition, books, and course materials. Income restrictions apply as well. To be eligible for the full American Opportunities Credit, single-filers must earn under $80,000 per year and joint-filers must earn under $160,000.

All college students should also investigate the tuition and fees deduction and the lifetime learning credit. The tuition and fees deduction reduces the amount of your income subject to tax by up to $4,000. The lifetime learning credit, which does not have an enrollment requirement, is a tax credit of up to 20 percent of the first $10,000 paid for qualified expenses. This option is great for students who just want to take a few courses outside of a full-fledged degree program.

Make Your Experience Work Toward Your Education

Aimee Cirucci is proof that on-the-job can pay dividends to your educational endeavor – so long as you ask around. This 31-year-old graduate student in communications management at Temple University in Philadelphia landed a paid teaching assistantship position before she attended her first class.

"I wanted to go back to school full-time, so I just started asking people, including my program director: 'Where can I find work?," she says. "Temple offered me an adjunct teaching position the summer before I started."

Cirucci chalks her financial aid luck up to her eight years of public relations and previous teaching experience. While not all schools offer new students teaching positions, program directors and aid officers can help students find paid work positions, unadvertised scholarships, and tuition discount programs. Work experience may also help students test out of introductory classes. While some schools grant Life Experience credits, adults can also test out through placement testing or by passing Advanced Placement (AP) or CLEP tests administered by The College Board.

Cirucci adds that the most important part of the aid process is just letting people know you're looking for assistance. "Once I started researching and got the word out, everything started coming together," she says."It's surprising how much comes up when you just ask."

Beg the Boss

That also means asking your boss. One of the fastest ways working adults can land education assistance is by inquiring about their employer’s tuition reimbursement program. “About 85 percent of mid-sized and large companies offer education assistance, but there are usually stipulations on the amount of aid available or what kinds of classes employees can take,” says Mark Kantrowitz, publisher of the financial aid web site, Finaid.org.

In addition to restrictions on applicable classes and the award amount, many companies require employees to stick with the company for a few years after attending school. Visit your human resources representative to figure out the exact requirements of the program.

Tap the Government

If your boss won’t cough up the cash, maybe the government will. The largest provider of financial aid in the country, Uncle Sam provides grants, loans and work-study jobs to both traditional and older students.

“Adults are still eligible for gift aid like grants, but if they’re working, their income will subtract from the amount they’re eligible for,” says Kantrowitz. “One way to minimize that is by maximizing their retirement plan contribution and putting money in home equity the year before they apply for aid.”

Kantrowitz adds that while working adults probably won’t meet the income restrictions for grant aid, this year the government will give special consideration to dislocated workers. In addition, all students are eligible for up to $32,500 in low-interest student loans to help get through school. Students can apply for federal aid or investigate government-funded scholarships for dislocated workers.