How to Get a Scholarship for Going Back to School
If you're considering switching careers, there's a good chance you'll need to go back to school. That could mean anything from getting an advanced degree to attending another type of training program. But, that's a pricey decision: Over the past ten years, the cost of graduate school has risen 60%, according to the Council of Graduate Schools.
How to pay the bill? These tips may help.
--Look for federally-backed loans. Graduate-school students usually receive less outright grant money than undergraduates. It's more common to pay for their tuition with loans, according to Mark Kantrowitz, publisher of Finaid.org. Your first step should be to fill out the Free Application for Federal Student Aid (FASA) form, which is used for awarding federally-backed loans. For students with extreme financial need, the Perkins loan has a 5% interest rate with no fee and a nine-month grace period. Then there are subsidized and unsubsidized Stafford loans. With the subsidized variety, open to students with some financial need, you don't have to start paying the interest until after a six-month grace period. Unsubsidized loans are awarded without regard to financial need; students are responsible for all of the interest that accrues while enrolled in school, though the interest may be deferred until after graduation. The loans have an interest rate of 6% or 6.8% with fees of 2%.
--Or consider private lenders. You're not eligible for federal loans unless you're enrolled at least half-time, which generally means at least two courses a semester. If you're taking a lighter class load, you can use private loans, available from such places as Citibank and Keybank, for non-degree professional certifications and training courses, though the interest rates are considerably higher.
--Apply for grant money. Usually called fellowships or assistantships, they're not generally awarded on the basis of need and may require that you do some teaching. They're also tough to get and are generally only for full-time students. "There's little outright fellowship money for someone going part-time," says Kantrowitz. For more about graduate fellowships, try fastweb.com.
--Use a 529 savings plan. Pretty much every state offers at least one of these tax-advantaged plans; many offer a partial or full state tax income tax deduction, as well. Contributions, which are generally invested in mutual funds, can be used to pay for tuition and other expenses for any accredited college or university. You can open s 529 plan for yourself. Or, if you've started one for your children and there's any money leftover, you can use that for your own expenses.
--Try your employer. Many companies offer tuition reimbursement benefits to employees, usually for courses that are job related. But check what the annual cap is on benefits. And make sure to keep up your grade point average. Many programs won't provide reimbursement if you don't get a specified minimum grade.
About the Author: Anne Field is an award-winning small-business writer based in Pelham, NY
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