How to Shift Gears in Mid-Career

A graduate degree can help you start a new chapter in your life. Affording one can be a little daunting but it is completely attainable. Sometimes people change careers because they want to work fewer hours, spend more time with their families and want to devote their lives to meeting a social cause that believe in. The U.S. Department of Education has said that nearly 18 percent of all graduate students are 40 or older. One has to cut spending drastically until the program is completed.

Instructions

Difficulty: Moderately Challenging

Things You’ll Need:

• College literature and application
• Financial aid forms and brochures

Going back to Graduate School

1. Make sure that the degree is exactly the ticket you need. You have to do research to know if the degree you want to undertake will meet your goals of more money, less hours, better job prospects, etc. Talk with others in the field to figure out how many jobs are available. Peruse job boards and meet headhunters to ascertain your prospects.
2. Try to keep your current job. You may go to school part-time or take classes completely online. Most graduate schools offer evening and weekend classes. Talk to your employer about the possible need for a slight schedule change.
3. Get some type of financial aid. There is no age limit to apply and you may be eligible even if you attend classes part-time or online. Federal aid formulas do not factor in your home equity or retirement accounts. As an adult, a certain amount of your savings is protected--typically from $40,000 to $50,000, depending on your age and marital status. Awards are more generous for graduate students. Fill out the Free Application for Federal Student Aid (FAFSA) in early January.
4. Create a budget. Even if your financial award is generous, you must create a budget to cover any shortfall. Adjust expenditures and cut activities such as dining out.
5. Take advantage of tax breaks. If your income as a student will fall below $47,000 ($94,000 if you are married and filing jointly), you can qualify for the lifetime learning credit of up to 20 percent of the first $10,000 you spend in graduate school bills.
6. Use your assets. As an older student, you may have a bit of money saved up. Borrowing from you 401(k) and other retirement accounts will make sense in some cases if going back to school will help you to command a higher income.

Tips & Warnings

• Going back to school is a family affair, so involve them in the process.
• Research each school carefully, as one school may give you more financial aid.
• Don't rule out your local university or college, as your tuition will be less.
• The time commitment is great, so make sure you are prepared for this.