A look at how to pay for continuing education including loans, employee assistance programs, and potential tax benefits.
Did you know that over 40% of adult learners rely on financial aid to fund their education? However, the type of program matters - 3 of 4 graduate students received federal aid, while less than 1 in 5 community college students received aid. And for those seeking professional certifications, the cost may be as low as $0.
For many, pursuing continuing education often involves balancing financial responsibilities - such as mortgages, family expenses, and retirement savings - while finding a way to cover the cost of tuition and fees. Fortunately, numerous funding options can make continuing education more accessible without derailing long-term financial goals.
Budgeting for Low or No-Cost Programs
Before exploring financing options, it's worth exploring low- or no-cost educational opportunities. Many adults overlook these options, assuming they won't provide quality education. However, with the rise of online learning platforms and open educational resources, this couldn't be further from the truth. Paying for these options may be as simple as starting a savings plan or adjusting your monthly budget to cover the costs.
Many community colleges, technical schools, and online platforms offer affordable courses that can provide significant value without requiring a major financial investment. Additionally, some programs offer free resources or courses to help you get started in a new field, allowing you to build foundational skills before committing to a paid program. Platforms like Coursera, edX, and Udacity offer university-level courses for free or at a fraction of the cost of traditional education. These courses can lead to verifiable certificates that may boost career prospects or raise salaries.
Further, some state-funded programs allow adults to return to community college at little or no cost, particularly if they are training for in-demand jobs in healthcare, technology, or trades. These programs are designed to address workforce shortages while helping adults upskill or reskill without accumulating significant debt.
Exploring Student Loans
When free or low-cost options aren't enough to cover the cost of your education, student loans can bridge the gap. However, not all student loans are created equal, and it's essential to carefully consider the types of loans you take on.
Federal student loans are often the best option for adult learners. They come with lower interest rates, flexible repayment plans, and the potential for loan forgiveness under certain conditions.
Federal loans also offer options like income-driven repayment plans, which cap monthly payments based on income. This makes it easier to manage loan payments while balancing other financial priorities. Additionally, federal loans typically don't require a credit check, which can be a major advantage for adult learners who may not have a strong credit history.
You must complete the Free Application for Federal Student Aid (FAFSA) to apply for federal student loans. Even if you think you won't qualify for aid, it's worth applying, as many schools use the FAFSA to determine eligibility for institutional aid.
Education Tax Benefits
The U.S. tax code offers several benefits for adult learners that can help offset the cost of education. Here are two key tax credits to be aware of:
In addition to tax credits, you may also be able to deduct up to $2,500 of student loan interest paid during the tax year. Always consult with a tax professional or use reputable tax software to ensure you take advantage of all available education-related tax benefits.
Employer-Sponsored Learning Opportunities
Another valuable resource for funding adult education is employer-sponsored programs. Many employers recognize the value of having a more educated workforce and are willing to invest in their employees through tuition reimbursement or other professional development funds.
Common types of employer-sponsored learning opportunities include:
If you're currently employed, check with your HR department to see if your company offers tuition assistance. Some companies will reimburse a portion or all of your tuition costs if you are pursuing a degree or certification relevant to your current job or future career within the company.
In addition to tuition reimbursement, some employers offer direct funding for certifications or training to help you advance in your role. These funds can benefit those looking to gain new skills quickly without taking on personal financial risk.
If your employer offers education benefits, be sure to understand the terms. Some may require you to maintain a certain GPA or commit to staying with the company for a set period after completing your education.
The Takeaway
Continuing education is an investment in your future, and with the right funding strategy, it can be affordable and rewarding. From exploring low-cost programs to maximizing employer support and taking advantage of tax benefits and loan forgiveness, many ways exist to reduce the financial burden of returning to school as an adult.
Dort Financial Credit Union is a not-for-profit financial cooperative whose mission is enriching people’s lives… members, employees, community. Unlike other financial institutions, credit union ‘profits’ are returned to the membership in the form of lower loan rates, higher dividend rates, and affordable services.
