College as an Adult: A Different Financial Experience
There are a variety of reasons people delay college, and just as many reasons that people decide to go back to school as an adult. The big question remains the same no matter what life stage you’re in when you decide to go back to school, how can I afford it? The team at Broussard Poché, LLP can help you explore a few options.
Talk to Your Employer
If you plan to work while attending school, many employers offer continuing education options. There probably will be contingencies such as staying with the company a certain amount of time or assuring them your degree will benefit their bottom line. The main thing to remember about this type of financial assistance is that it is tax-free.
Financial Aid
Financial aid is available if you qualify. You should start with your school’s financial aid office.
- Loans: The drawback of student loans is that you’ll need to repay them at a later date. Keep in mind, graduate and professional students are eligible to borrow the full cost of their education under the federal PLUS Loan program.
- Grants: This type of aid does not need to be repaid and is usually available to undergrads.
- Work-study: The federal work-study program helps find jobs for undergraduate and graduate students. Qualified students can use the hours worked to subsidize college costs.
- Military aid: If you are a veteran, contact your local veteran’s office about the options available to you.
No Aid Available
If you don’t qualify for financial aid, you may need to borrow money to continue your education. It’s important to note that rates on private loans are a bit higher than on financial aid student loans. Use personal assets (or cash under the mattress)
Education Tax Credits
There are several other tax incentives that can help make later-in-life collage more affordable:
- American Opportunity credit: This credit is typically worth up to $2,500 and can be used towards tuition and related expenses for the first four years of undergraduate education. You must meet financial guidelines to take advantage of the credit and those guidelines can be in flux from year to year. Talk with your tax professional to see if you qualify.
- Lifetime Learning credit: This credit is generally worth up to $2,000 towards tuition and fees. The American Opportunity credit and Lifetime Learning credit can’t be claimed in the same year–it’s one or the other.
Just remember, there are options out there, you just need a little planning to take advantage of them. Contact the financial professionals at Broussard Poché, LLP for more information. We are happy to help walk you through the option that will create a brighter future for you and your family.
Education Tax Credits
There are several other tax incentives that can help make later-in-life collage more affordable:
- American Opportunity credit: This credit is typically worth up to $2,500 and can be used towards tuition and related expenses for the first four years of undergraduate education. You must meet financial guidelines to take advantage of the credit and those guidelines can be in flux from year to year. Talk with your tax professional to see if you qualify.
- Lifetime Learning credit: This credit is generally worth up to $2,000 towards tuition and fees. The American Opportunity credit and Lifetime Learning credit can’t be claimed in the same year–it’s one or the other.
Just remember, there are options out there, you just need a little planning to take advantage of them. Contact the financial professionals at Broussard Poché, LLP for more information. We are happy to help walk you through the option that will create a brighter future for you and your family.