August 2011

Thinking of Going Back to School?
Help is Available to Fund the College Experience

Funding School
Education isn’t just for kids anymore. Today’s grim unemployment statistics have many adults contemplating a return to school, whether it is to pursue work in a different field or to make themselves more marketable to employers during a tight labor market. When money is a factor, however, the big question many may be asking is, “How can I afford to go back to school?”
For those who may be pondering this question, there is safety in numbers: 40 percent of American college students – nearly 6 million people – are 25 years of age or older, according to the U.S. Department of Education. The Federal Student Aid Programs, the largest source of student aid in America, provides more than $150 billion a year in grants, loans and work-study assistance. In addition to these programs there are other sources of federal, state and private funding available if you know where to look.

Get to know FAFSA. The Free Application for Federal Student Aid (FAFSA) is used by virtually all two and four-year colleges, universities and career schools for the awarding of federal student aid and most state and college aid. Anyone even thinking about heading back to school should submit a FAFSA at http://www.fafsa.ed.gov/.

Think federal aid first. Federal aid can come in the form of grants, subsidized and unsubsidized loans and work-study assistance.

Federal grants are available for students attending colleges, including career colleges and universities. Grants, unlike loans, do not have to be repaid.

Federal student loans typically offer borrowers lower interest rates than loans from banks or other private sources, and have more flexible repayment plans. Generally, repayment of a federal loan does not begin until after the student leaves school. Federal loans may be used to cover the cost of tuition and fees, books, supplies and transportation. For full-time students room and board is also covered.

State aid is also an option. Even if you're not eligible for federal aid, you might be eligible for financial assistance from your state. Contact your state higher education agency for more information, or visit http://wdcrobcolp01.ed.gov/Programs/EROD/org_list.cfm?category_ID=SHE for a list of agencies by state.

How much will all this cost? In 2008-2009, the average in-state full-time tuition per year for an undergraduate student attending a four-year public university was $12,075, according to the National Center for Education Statistics, Higher Education General Information Survey. Federal student loan limits for undergraduate students range from $5,500 to $12,500 per year; graduate students can borrow up to $20,500 each year. To get a handle on what the true cost will be to pursue an education, the FAFSA4caster provides students with an early estimate of their eligibility for federal student aid. To access FAFSA4caster, visit www.fafsa4caster.ed.gov.

The U.S. Department of Education provides free information at http://studentaid.ed.gov/PORTALSWebApp/students/english/index.jsp to help people prepare for and fund their education beyond high school, including the free booklet, Funding Education Beyond High School: The Guide to Federal Student Aid, which answers many frequently asked questions about federal student aid. The booklet is available in English and Spanish.