5 Types Of Financial Aid For Adult Students

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It may seem impossible to fund a college education as an adult student, considering nearly one-third of the total students enrolled in postsecondary education in 2023 were 25 or older, according to the U.S. Department of Education, but there are many options still available.

Going to college as an adult student may have its hurdles, but finding financial aid shouldn’t be one of them. There are many options available to fund adult education, and adult students may have access to some unique financial aid options.

Start by determining the total cost of your education, and then you can start gathering information about student loans, employee aid, as well as grants and scholarships that may be available.

Grants

The federal government offers several grants for students, which you may qualify for by filling out the Free Application for Federal Student Aid (FAFSA). Because many federal grants are need-based, adult learners may qualify for more aid than younger students.

Any student over the age of 24 is considered independent, meaning parents’ income is not counted against the student’s financial need. Adults may qualify for a federal grant if they fall below the required income threshold, though most apply only to undergraduates.

The most common grants include the Pell Grant and Teacher Education Assistance for College and Higher Education Grant.

• Pell Grant: Undergraduates who haven’t yet earned a degree, as well as some students enrolled in a postbaccalaureate teacher certification program, can receive up to $7,395 annually – though the maximum amount depends on your financial circumstances and can change every year.
• Teacher Education Assistance for College and Higher Education (TEACH) Grant: TEACH grants award up to $4,000 per year to aspiring teachers who agree to teach in a low-income area for four years.

State grants

Many states offer grant programs for higher education that are only available to residents of that state. Typically, grant recipients must also attend an in-state school. For example, the Maryland Higher Education Commission offers multiple scholarships and grants to support student education costs, including the Maryland Community College Promise Scholarship and Delegate Scholarship.

To find out what your state offers and how to apply, contact your state’s education agency. College-specific grants will also impose their own eligibility requirements, but it’s possible to find specialized grants for nontraditional students, such as grants for single parents.

Scholarships

Students of all ages are eligible for the thousands of scholarships offered by various organizations. Scholarships may be one of the best options for funding your college experience, especially as an older adult. Scholarships are similar to grants because you don’t have to pay them back, but they differ in how you qualify. Grants are typically need-based while scholarships are merit-based.

You may qualify for scholarships depending on a number of criteria, and some organizations offer awards specifically for adult college students. Other criteria can include academic standing, your height (Yes, there is a scholarship for tall people!) and the community where you live.

Many schools also offer institutional awards that you automatically qualify for because of your grades. Talk to your school’s financial aid office to find out which awards may be available to you.

Employer-sponsored aid

Some employers offer scholarships, tuition reimbursement or other college cost assistance to their employees. As an adult student, you may be uniquely positioned to take advantage of these types of employee benefits. Employers may provide up to $5,250 in tuition assistance annually to their employees without tax consequences. You can use this cash to cover college-related expenses like books, supplies and tuition.

University employment

You may also be able to get tuition perks through working at a college or university. Many colleges offer employees tuition remission, also known as tuition waivers. Tuition remission means employees get the opportunity to attend college classes at the university where they work for free.

These programs can vary from university to university. Some may require employees to be full-time or have worked there for a certain period of time to qualify. It also might not be completely free – certain fees may still apply. If you work at a college or plan to, talk to your HR department to fully understand any tuition remission program.

Student loans

If you can’t cover all of your college expenses with the free financial aid available, you may want to borrow student loans. Keep in mind that both federal and private student loan options come with some strings attached. You’ll need to pay back any money borrowed and pay interest on your loan, so make sure you take advantage of grants and scholarships first.

It’s best to start with federal student loans. These are backed by the Department of Education and they come with lower interest rates and several repayment plan options. Anyone can apply for federal student loans by filling out the FAFSA, but those with more need will qualify for more.

Applying for a private student loan is another option for adult learners. While federal student loans are usually more advantageous, adult learners may have built a solid credit history and qualify for competitive interest rates. Be careful though – those with bad credit can get stuck paying high interest rates on bad credit private student loans. You’ll need to research different lenders as eligibility requirements and interest rates can vary.

Bottom line

Adult college students can take advantage of both traditional financial aid options, programs and scholarships uniquely available to older college students. Both federal and private student loans are available to all types of college students.

Adult students can also seek out employer-sponsored aid for higher education or work at a university to receive discounted tuition. Many grants and scholarship programs are available for adult students, as well. Research all your options to figure out your best payment options for college as an adult student.

Frequently asked questions

• What support is available for military-affiliated adult learners and veterans?
  

  Military and veteran adult learners can find a number of financial aid options. First, GI Bill benefits help military members pay for school while training for a job. The Military Tuition Assistance Program can help you find financial aid options through different military jobs. There are also nonprofits offering scholarships and grants specifically for military members or veterans.

• Are there federal tax benefits available to eligible students?
  

  There are two main tax benefits available if you pay for the cost of college yourself. The American Opportunity Tax Credit allows you to claim up to $2,500 per student each year on your income taxes. The Lifetime Learning Credit lets eligible students claim up to $2,000 each year for eligible college expenses such as books, supplies and equipment needed for college.

• What are the direct and indirect costs associated with education for adult learners?
  

  As an adult learner, you’ll need to weigh the pros and cons regarding the costs of going back to school. The costs may be both direct and indirect. Indirect costs may include working less or not at all and losing income, having less time for family, friends or hobbies or possibly needing to move to attend college. Direct costs include tuition, books, a computer or tablet and any other supplies needed.