Going back to school is a lot to think about, especially for older adults that are dealing with the other responsibilities of life. However, a lot of them don’t realize that they have many of the same monetary advantages as younger students do which can lessen the anxiety. Below is some information that may help those returning to the classroom better understand some of their options.
The most important thing to note is that Nontraditional students should submit the FASFA just like younger students. This is the first step in the financial aid process. Federal student aid generally does not have any age restrictions.
There will be some restrictions when it comes to aid in regards to educational background. A student who has already earned a bachelor's degree or first professional degree is no longer considered an undergraduate student and is ineligible for the Pell Grant. (There is an exception for post baccalaureate programs necessary for teacher certification or licensing credentials as required by the state.) However, such a student is still eligible for federal education loans and work-study.
Students who are age 24 or older as of December 31 of the award year are considered automatically independent. Independent undergraduate students are eligible for increased unsubsidized Stafford loan limits -- an additional $4,000 per year during the freshman and sophomore years and an additional $5,000 per year during the junior and later years -- since their parents cannot borrow from the PLUS loan program.
This yields annual loan limits of $7,500 during the freshman year, $8,500 during the sophomore year, and $10,500 during the junior and later years. The aggregate limit increases by $23,000 for a total of $46,000. Graduate and professional students are eligible for up to $20,500 in Stafford loans per year, no more than $8,500 of which can be subsidized. They are also eligible for the Grad PLUS loan.
Nontraditional students who will be quitting a job to go back to school should ask the college financial aid office for a "professional judgment" review to adjust the income from prior tax year income to estimated award year income.
If you are currently employed, ask your employer's human resources office about the availability of employer tuition assistance. About 7/8 of large employers provide some form of tuition assistance. Up to $5,250 in such assistance is excluded from gross income (in some cases more).
They may require you to keep working or agree to work for the company for a set number of years after graduation. They may require you to maintain a minimum GPA in order to get the assistance. Often the assistance is provided as a reimbursement after the fact, so you'll need to budget for your cash flow needs.
Unfortunately, many nontraditional students will find that the colleges are less willing to adjust for other expenses, such as married student housing, supporting a family or providing family health insurance. This is why many families will have one spouse working while the other is in school, and then switch off so that the other spouse can earn a degree later.
Even though nontraditional students may be eligible for increased loan limits, they should avoid over borrowing. Do not borrow more than your expected starting salary after you graduate. It may be tempting to borrow more for your living costs, but this will make it more difficult for you to repay the debt after you graduate.
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