Janice Lozano
Returning to college as an older student can be intimidating, especially if you don't plan on working while you attend. Luckily, there are plenty of ways to finance your education as an adult learner, from scholarships and grants to student loans and tax breaks. Here are some tips to help you get started on funding your postsecondary certificate or college degree.
| Characteristics | Values |
|---|---|
| Complete the FAFSA | Students who are 25 or older are considered independent and can qualify for more financial aid |
| Scholarships | Thousands of scholarships are available for adult learners, including the Return2College Scholarship and the Unigo $10K Scholarship |
| Grants | Federal Pell Grant, state-specific grants, and grants based on financial need |
| Student Loans | Federal student loans have no upper age limit and may have better terms for adult learners with good credit history |
| Work-Study Programs | Federal Work-Study provides part-time jobs for students to earn money while paying for educational expenses |
| Part-time Work | Babysitting, dog walking, food delivery, freelancing, and paid internships |
| Savings | 529 plans, savings accounts, and retirement accounts |
| Tax Breaks |
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Complete the FAFSA
Completing the FAFSA (Free Application for Federal Student Aid) is the first step to paying for college as an older student. The FAFSA is the official application to receive government-provided financial assistance for college. This application covers work-study program eligibility, grants, and federally-backed student loans.
Students who are 25 years old and above are considered independent on the FAFSA. This means that parental information is not required to determine federal student aid eligibility. However, some institutions, such as medical schools, may require parental income information for institutional aid.
To complete the FAFSA, you will need to provide recent tax returns, bank statements, and other financial information. You can fill out the FAFSA online or meet with your school's financial aid office for assistance. It is important to note that the FAFSA may require you to include your parents' financial information if you are under 25 years old and still dependent on them.
By submitting the FAFSA, you can determine your eligibility for federal grants, such as the Federal Pell Grant, which is the most popular type of grant awarded by the federal government. The amount you receive depends on your financial need, the cost of your schooling, and your enrolment status (part-time or full-time).
In addition to grants, completing the FAFSA also makes you eligible for federal student loans, which offer benefits such as income-based repayment plans. It is worth noting that federal student aid is not age-limited, so you can access these opportunities regardless of your age.
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Scholarships and grants
- The James and Patricia Sood Scholarship: a $2,500 award for students seeking a degree in education to become a teacher.
- The Unigo $10K Scholarship: for students interested in history and technology, this scholarship awards $10,000 to the winner of a written submission.
- The Senior Citizens Scholarship: for students 65 or older planning to attend Methodist University in North Carolina, this scholarship covers tuition fees.
- The Return to Learning Scholarship: administered by the American Association of University Women, this scholarship is for students returning to undergraduate or graduate school after a significant delay, and ranges from $1,300 to $2,500.
- The Keep Your Chin Up Scholarship Fund: this scholarship is for Arizona residents age 25 and older who demonstrate financial need.
- The ANSWER Scholarship: this provides up to $5,500, mentorship, and professional development to mothers in the Carolinas.
- The Women on Par scholarship: this provides financial assistance to "non-traditional" female students over 30 pursuing higher education for the first time.
Grants are usually awarded based on financial need. They are most commonly awarded by the government and are funds that you do not need to pay back. To apply for grants, you must fill out the Free Application for Federal Student Aid (FAFSA). The FAFSA will determine your eligibility for grants and federal student loans.
- Federal Pell Grant: this is the most popular type of grant awarded by the federal government, with a maximum payout of $7,395 for the 2024-2025 school year.
- Adult Student Grant: administered by the Indiana Commission for Higher Education, this $2,000 grant is for older students starting or completing a college degree or certificate.
- Return2College Scholarship program: this program awards up to $1,000 to help with college costs.
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Student loans
Older students are eligible for the same types of financial aid as younger students. They may also benefit from having savings and longer credit histories, which can help them qualify for lower student loan interest rates.
To get started, you should fill out the FAFSA (Free Application for Federal Student Aid). This application covers work-study program eligibility, grants, and federally-backed student loans. Students aged 25 and older are considered independent on the FAFSA, so parental information is not needed to determine federal student aid eligibility.
After submitting the FAFSA, you can explore scholarships, grants, and student loans to fill any remaining funding gaps. Student loans are not inherently bad; they can be a good option if used wisely to invest in your education. Just be sure to only take out what you need to cover the cost of your education.
As an older student, you may also want to consider the potential for lost income while completing your degree and the impact on your intended career path. Student loan debt can pose significant challenges to retirement security, so it's important to manage your debt wisely and explore repayment options, such as loan consolidation or forgiveness programs.
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Part-time work
Some employers also offer hourly employees tuition assistance. For example, Starbucks, in partnership with Arizona State University, offers employees the chance to earn an undergraduate degree online. Pizza Hut and White Castle have launched similar programs. Additionally, some fast-food companies with hourly employees offer tuition reimbursement for on-campus degrees and online programs.
Research or teaching assistantships are another option for graduate students, as they usually cover part of the tuition and pay. These positions are often awarded through individual departments at a college or university.
Students can also take on part-time work in the gig economy, which is known for its flexible jobs. These on-demand jobs include running errands or completing small jobs via TaskRabbit, making deliveries for Postmates, or driving for ride-booking services such as Uber and Lyft. Students can typically earn more through on-demand work, which experts say ranges from $10 to $20 an hour, compared to hourly wages earned in retail or the food and beverage industry.
It is important to note that part-time work may not always be enough to cover the full cost of college, and older students may need to combine it with financial aid, student loans, and tax breaks to manage expenses.
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Tax breaks
As a college student, you may be eligible for tax credits and deductions that can help you pay for your education. Here are some tax breaks that you may be able to take advantage of:
American Opportunity Tax Credit (AOTC)
The AOTC is a tax credit for qualified education expenses paid for an eligible student during their first four years of higher education. The maximum annual credit is $2,500 per eligible student, and it applies to expenses such as tuition and required course materials. To be eligible, you must not have a felony drug conviction at the end of the tax year.
Lifetime Learning Credit
The Lifetime Learning Credit is worth up to $2,000 and is available to students who are not undergraduates, such as those returning to the classroom to improve their job skills. The credit is worth 20% of the first $10,000 spent each year on education expenses. To be eligible, you must have received Form 1098-T, Tuition Statement, from an eligible educational institution.
Tuition and Fees Deduction
This deduction is worth up to $4,000 and can be claimed for tuition, fees, and required course materials. You don't need to file an itemized return to claim this deduction. The full or partial deduction is available for single filers with a Modified Adjusted Gross Income (MAGI) of up to $80,000 and joint filers with a MAGI of up to $160,000.
Student Loan Interest Deduction
You may be able to deduct the interest paid on your student loans from your taxable income. This can help reduce the amount of tax you owe.
529 College Savings Plans
Money invested in a state-sponsored 529 plan grows tax-sheltered and can be withdrawn tax-free to pay for eligible education expenses. Some states offer income tax breaks to residents contributing to their home-state 529 plan.
It's important to note that tax laws can be complex and may vary depending on your location and specific circumstances. Be sure to consult with a tax professional or the IRS website for the most accurate and up-to-date information regarding tax breaks for college students.
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Frequently asked questions
There are several ways to pay for college as an older student. These include scholarships, grants, student loans, part-time work, and savings.
Scholarships are awarded based on a student's background, interests, or achievements. They can be provided by colleges, universities, or private organizations. Grants, on the other hand, are usually awarded by the government and are based on financial need. To apply for grants, you can fill out the Free Application for Federal Student Aid (FAFSA) or meet with your school's financial aid office.
Some scholarships aimed at older students include the Adult Skills Education Program, the Jeannette Rankin Women's Scholarship Fund, and the Job-Applications.com Working Parent College Scholarship Award. There are also state-specific grants, such as Indiana's Adult Student Grant, and scholarships like the Oregon Ford ReStart Program, which provides scholarships for adults age 25 and older.
