Page 8 THE VILLADOM TIMES II • April 24, 2013 Many adults have been heading back to school. In 2009, 100 community colleges were surveyed by the American Association of Community Colleges, which reported that community college enrollment had increased from two percent to 27 percent in just a year’s time. Displaced workers played a significant role in that spike in enrollment, as men and women who lost their jobs increasingly decided to find a new career path that might offer more security. Though the economy is recovering, many adults are still considering a return to school. Of course, school can be expensive, and it helps to explore the available financial options when mulling a return to school. Where will the money come from? Determining the cost of graduate school is not easy, as tuition varies greatly depending on a student’s course of study. Public graduate schools are typically more affordable than private schools, but tuition will be expensive regardless of the university. Even adults who don’t want to pursue a graduate degree, but a new field of study entirely, Financial considerations for adults returning to school should expect tuition to be substantially higher than it was when they were students years ago. Adults must determine the source of the money for their continued education. Paying out of your own pocket will require some sacrifices in other areas and could also deplete personal savings. Financial aid, grants, and private loans are other options, and each of these should be thoroughly explored before making a final decision. Will an employer help pay? Men and women who are still employed and want to continue their careers may find their current employer will help pay for tuition. Employer-funded tuition programs might earn the employer a tax deduction. Some employers who help pay their employees’ tuition will ask those employees to commit to the company for a certain number of years after they have earned their degrees, while others will only provide assistance to employees who are not training for another career. Can I go directly to the bank? Not all adults returning to school will qualify for financial aid (though all adults who can’t afford to pay out of pocket should still apply), while others will not qualify for enough financial aid to cover the costs of their education. In such instances, it is possible to go directly to the bank and apply for a private loan. Adults with strong credit histories should not have too much trouble securing private loans. However, loans from private lenders almost always come with higher interest rates than government loans. Should I tap into retirement savings? Tapping into retirement savings to pay for education is a potentially costly maneuver. In addition to substantially reducing a nest egg, withdrawing money from a retirement account might incur penalties and taxes. In addition, removing money from a retirement account that has tax-deferred growth will reduce potentially significant earnings. It’s typically a bad idea to tap into retirement savings until retirement, so resist the temptation to do so when establishing a plan to pay for continuing education. Many adults have returned to school to counter a layoff or advance a stagnated career. Before making such a decision, explore whether it is financially prudent.