Adult Students: Higher Education is Much More Than Tuition

Take Charge America Uncovers 5 Hidden Costs for Adults & Parents Who Are Returning to College

PHOENIX, Ariz. (Aug. 8, 2006)… Going back to college may be one of the most important financial investments an adult can make, whether it’s undergraduate or postgraduate work.

According to the U.S. Census Bureau, the expected lifetime earnings of a bachelor’s degree-holder are $2.1 million, whereas those with only high school educations are expected to earn $1.2 million. Tack on a master’s degree, and the expected lifetime earnings jump to $2.5 million.

Statistics show the significant financial benefits of holding a degree; however, the road to get there is sometimes blocked by hidden financial barriers. Mike Sullivan, director of education for Take Charge America, a national nonprofit credit counseling agency, says adult students often have more financial burdens than their younger counterparts.

“Many adults who return to college have full-time jobs, children and own homes,” he said. “It can be a challenge to balance these financial responsibilities with school and not fall into debt.”

Despite the additional expense, many adults are finding their way back into the classroom. The U.S. Census Bureau reports that 6.1 million college students – or 37 percent – are older than age 25.

If you’re thinking of hitting the books to advance your career, keep in mind these five expenses as you make our plans and set your budget:

• Child Care – Parents of young children will need to pay for child care during school functions if a spouse, family member or close friend is not available. In addition to class time, you may need a babysitter to cover you during outside school projects and when doing homework on the weekends. To ease the burden, check with your school to see if child care is offered and consider trading child care services with another parent in a similar situation so you each have time to study.
• House/Yard Work – Extensive school work can take you away from daily house chores and yard work. Many adult students find it easier to hire a cleaning or lawn maintenance service; yet, that could set you back considerably each month. Sullivan suggests doling out chores to family members. Use these chores as “together time” and make it go faster, instill work ethic in your children and benefit from a little exercise.
• Healthcare – If you are leaving your job to return to school, or switching to a part-time position, you may lose full-time benefits, such as healthcare. This can be especially burdensome if your spouse and/or children are attached to your health plan at work. Single-enrollment plans can easily be three times as expensive as being part of a group. Before you quit your job or go part-time, check out the company’s COBRA plan to see if you can continue your current benefits for less than a single-enrollment plan. If you and your family are relatively healthy, consider a higher deductible to keep payments as low as possible. Consider an HMO rather than a more expensive PPO. And, don’t forget the vitamins.
• 401(k) – Similar to healthcare benefits, switching to a part-time job could force you to stop regular deposits into a 401k plan. If you have been counting on a specific retirement date, does this force you to delay your plans? Do you have other investments to pad the loss? Will your increased earnings potential make up the difference? If you are relatively young, it is probably worth it to get the degree and delay the 401(k) savings. How about asking parents and friends who regularly give you gifts on birthdays and holidays to consider cash gifts that you can deposit into your 401(k)? If you get a tax refund, put it in your 401(k) to give it an extra boost. Every little bit helps.
• Extended Commute – Rising gas prices are a hot topic nationwide. Depending on your location, you may have to shell out more money each month in extra gas and parking fees. Sullivan suggests you share the ride. Ask around or post a message letting others know you are willing to carpool.

Sullivan adds that adult students should not use high-interest credit cards to cushion the financial strain.

“Falling deeper into credit card debt will extend your financial burdens far past the time you would graduate,” he said. “If you need additional money to complete your degree, rely on financial aid or student loans, which have much lower interest rates.”

About Take Charge America
Founded in 1987, Take Charge America, Inc. is a nonprofit organization headquartered in Phoenix, Arizona. TCA offers a variety of services including financial education, credit counseling, and debt management. To learn more about TCA or its programs please call 1-800-823-7396 or visit www.takechargeamerica.org.