When mom or dad goes back to school
By Lucy Lazarony • Bankrate.com

You're ready for a change. And this one is going to be a doozy.

After years of working, you'd like to head off to college and pursue a new career.

But how do you go about following your dreams with a family in tow? How do you pay for school and still keep your family's financial security intact?

"It's one thing when you're 18 years old and you go to school," says Deena Katz, a certified financial planner in Coral Gables, Fla. "It's a whole other thing if you have a spouse and children. They are now part of the decision."

And that's why it's so important to talk things through and plan every step with your family. Their lives are about to change, too.

"It's going to be a sacrifice for the whole family," says Ruth Hayden, author of For Richer, Not Poorer -- The Money Book for Couples.

Your spouse is going to have to pick up the slack at home while you're in class or studying. And there's going to be less money to go around for quite awhile.

Without your family's support, it's going to be awfully tough for you to succeed.

"You have to get them on board emotionally or it's going to erode and there's going to be sabotage," Hayden says.

Start by explaining why you want to go back to school and the long-term benefits of earning a degree. Will it give you a leg up in your current career or will it take you in a new direction? Will it lead to higher-paying job opportunities and a more stable career? Or will you be happier in a new job down the road, even if your take-home pay remains roughly the same?

"You need to differentiate between self-satisfaction and putting yourself on a better career path," Katz says. "Be realistic about the impact."

Next, estimate how long it will take to earn your new degree. Will you attend classes part time or full time? Will it take a year? Two years? Four years? Will it be tough to find a job in your field when you're done? Will a job search take six months? A year?

You want to give your family and especially your spouse some kind of time frame to work with.

"There should be some limits around it," says Olivia Mellan, author of Money Harmony: Resolving Money Conflicts in Your Life and Relationship.

"There should be some sense that the other person doesn't have to surrender to this scary dream forever."

Part time or full time?
Weigh the pros and cons of going to school full time or part time carefully.

By going to school full time, you'll earn your degree quicker. But you may have to work less hours or stop work completely to fast track your degree. Could your family survive on your spouse's income for a year or more?

By going to school part time, it will take you longer to earn your degree. But your family's take-home pay won't take as much of a hit. With a half-time class schedule, you'll still be able to work, maybe even full time.

Working full time and attending classes part time won't be easy. But it's an excellent strategy, especially if your employer offers a tuition reimbursement plan.

Many companies will pay for employees to take college courses that are related to their current job duties. But you won't get a tuition check from your employer until after you've completed a course and received a satisfactory grade.

"Normally you have to get a B or better. B classes will get you full reimbursement," says Carl Buck, vice president for financial aid services for Peterson's.

You may have to wait up to six months to receive a tuition reimbursement check, so you'll have to foot the bill on your own for a while.

Be sure to get your course load approved by your employer ahead of time. You could be in for quite a shock when a check arrives and only half of your tuition costs have been reimbursed.

"Get approval in writing before you take the course," Buck says.

And don't forget about financial aid. At most schools, any student taking six credit hours or more per semester or quarter may apply for financial aid.

"You can still get financial aid if you go six hours," Buck says. "You can still get grants and loans and employment at half-time status and a lot of adults don't realize that."

Applying for financial aid should be a top priority if you decide to attend classes as a full-time student.

It's a good idea to make an appointment with a financial-aid counselor to discuss your family's situation.

When assessing future aid, colleges look at a family's financial situation at the end of the most recently completed tax year. If your family's financial situation is going to change significantly in the coming year, say you won't be working or you'll be working far fewer hours, the college should know.

Schedule an appointment with a financial-aid counselor to discuss the specifics of your family's financial situation.

"The best way is to develop a personal relationship with a financial-aid counselor," Buck says. "It's a one-on-one meeting. It's not over the phone."

Ask the counselor if it would be possible to assess your financial aid based on a projected year income rather than past year income.

"Projected year income is a decision that's made under what's called professional judgment," Buck says. "You need to find out if they'll accept that."

Some schools will agree to assess aid based on future income projections and others will not.

If a school will, you'll need to provide written proof of your change in income, such as a letter from your employer listing your last day of full-time employment.

If a school won't, you'll have to tough it out and take whatever aid you can get based on your past financial information.

When meeting with a financial-aid counselor, be sure to ask about scholarships aimed at nontraditional students and students over the age of 25.

"They may not be in a book anywhere," Buck says.

For more information on financial aid and scholarships check out these articles from Bankrate.com.

Career experience counts
A great way to cut college expenses and accelerate your degree is to trade your career experience for college credits.

With life experience or career credits, adult students receive college credits for skills they've learned on the job.

Someone who has worked in marketing for five years hardly needs an entry-level marketing course. So the college awards the student credits for the entry-level course based on the student's previous work experience. The student is then free to take a higher-level business course instead.

To learn more about life experience and career credits at a particular university, contact the school's adult degree division, which counsels older, returning students. If there's no adult degree program, seek out help from the admissions office or an academic adviser.

Most schools will award no more than 30 life experience credits per student. Life credit fees and requirements vary between schools, so shop carefully.

"A few programs charge you nothing, maybe $100," says Vicki Phillips, author of Never Too Late To Learn: The Adult Student's Guide to College. "You literally find yourself getting a full year of college for $100, which is a tremendous bargain."

Other colleges charge fees equal to the cost of attending the course on campus. So if you receive three life credits for a business course, you'll have to pay for the full cost of a three-credit course anyway.

Most schools will charge you an assessment fee equal to one-third of the cost of the course. So if a class costs $300, you'd be charged an assessment fee of $100 for earning life credits for that class.

To earn life credits, you'll need more than your resume. A university will ask to see supporting documentation or corporate training transcripts from an employer as well. Requirements vary between schools, so be sure to ask.

Whether you attend classes part time or full time, college is an awfully big expense. In addition to a hefty tuition bill, you'll need to shell out some serious cash for everything from books and supplies to lab fees. Don't forget about the cost of commuting to and parking on campus.

Cutting back on spending
How do you pay for college and still keep your family financially secure? Start by reining in discretionary spending ASAP.

"You have to give up something to fulfill a new dream," Katz says. "What do you have to give up?"

You'll want to pass on buying a new car or taking fancy vacations for quite awhile. Day-to-day expenses will have to be trimmed as well.

Track your family's spending for a couple of months to pinpoint where all those paychecks are going. Then, cut expenses anywhere you can.

"You really go item by item through the budget," Hayden says. "What kind of changes are you willing to make?"

This article from Bankrate.com will help you scrutinize and trim your monthly budget. Be sure to check out Bankrate's Frugal U. section for additional savings strategies and tips from readers.

One thing you won't want to touch is your family's emergency fund. A car could break down. A roof could leak. A pipe could burst. Any number of calamities could fall on your family while you're attending classes. Without an emergency fund, you'll be stuck paying for everything on credit and that could get awfully expensive awfully quick.

For tips on building and maintaining an emergency fund, check out this article from Bankrate.com.

The sooner your family starts saving and planning for your student days, the easier it's going to be on everyone. If you can start six months before you return to school that's great. A year is even better.

Starting early is especially important for dual-income families that will have to get by on a single salary when a spouse heads off to school.

"Try to live on one person's salary for a year or even six months," "You'll see how big a commitment it is and how hard it is," Katz says.

"There's a lot of different parts to this puzzle, and you need to see how they're going to fit together before you jump in."

-- Posted: Aug. 6, 2002