What’s so hard about going back to school? Paying for it!

In light of the challenging job market, many people are wondering if now is the right time to go back to school. Whether to finish an undergraduate degree or enter into an advanced degree program, deciding to seek additional education may be the easiest part of the task. Much more challenging, particularly in these economic times, is finding a way to pay for it.

If you are currently working and up to the task of juggling school and office responsibilities, you may want to find out if your employer offers any type of tuition assistance program. Many companies are willing to either pay part or all of the tuition costs associated with higher education, or reimburse you for tuition at a later date if you remain with the company for a required period of time. If that option is available to you, college will be much more affordable, though it will require you to arrange your class schedule around your working hours.

Other funding options

If you have been laid off, check to see if there are funding opportunities in your community, your state or through the educational institution you plan to attend. In some cases, there may be education grants available to those who have lost their jobs and are seeking to further their educations in order to improve future hiring prospects. Some communities have special programs to help adults fund education efforts. As you consider your options, be sure to contact the financial aid office of the educational institution you are attending.

Standard college funding programs, such as grants, loans and even scholarships are available to nontraditional students as well as professionals who are looking to earn an advanced degree. The availability of grants (money that does not have to be repaid) is typically based on financial need, but you should consider applying to determine your eligibility. Be sure to check all of your options, starting with a visit to the government’s education funding website, www.fafsa.org.
Other common ways to finance graduate education include trading out your services as a teacher, researcher or advising assistant in return for tuition and other expenses. You may find that your relevant experience and previous education are marketable skills a university can use in exchange for free or reduced tuition.

Plan ahead if you can

If you plan to return to school in the future, put yourself in a better position to make it happen by starting to save money toward that goal today. One option is a 529 education savings plan. The money you put away in a 529 plan is invested in mutual funds or similar products. You can choose among several investment options.

Earnings generated in the account are not subject to current taxation, and when you take money out to pay for qualified education expenses, no federal income taxes are assessed (state taxes may or may not apply). If you change your mind and don’t go back to school, you can choose to apply the funds for the benefit of your children or others to help them pay for education expenses.

AJ Jugan and Brian Stumpf are financial advisors and Certified Financial Planner™ professionals. Andrew (AJ) can be reached by calling 412-635-5813 or emailing andrew.m.jugan@ampf.com. Brian can be reached by calling 724-799-2782 or emailing brian.d.stumpf@ampf.com.