Back to School Savings Not Just for the Kids

COLUMBIA, Md., July 28 /PRNewswire/ -- Even as the economy slowly recovers, it's hard to stand out among the millions of Americans who are currently seeking employment in a limited job market. While some are taking on temporary work, volunteering or devoting themselves full-time to the job hunt, others are looking for ways to further their education in hopes of advancing their careers once the market turns around.

An education can make a significant difference in both a person's earning potential and his or her chances of losing a job during a down economy. According to data from the U.S. Department of Labor, 14.6 percent of workers who had not completed high school were unemployed in 2009 – nearly double the national unemployment rate of 7.9 percent. By comparison, only 6.8 percent of workers with an associate's degree and 5.2 percent of workers with a bachelor's degree were unemployed.

Adults returning to school have far more obstacles to face than their younger classmates between family responsibilities, working a temporary or part-time job and even increased financial obligations. Fortunately, many colleges and universities have created programs to help those who want to continue their education or hone their trade skills. Many states also offer incentives to help people who have lost their jobs by paying for education in new careers.

"While we don't encourage people to further their debt in the current economy, in general, one of the best debts someone can have is one that will pay off in the end, such as an education loan," says Jenny Realo, CPA and executive vice president of CareOne Services.

There are several options for adults who are looking to go back to school or advance their degree.

Continuing Education

For a busy person who still maintains a job, going back to school for education in a specific skill may be the best option. Many community colleges and universities offer continuing education courses that take nontraditional student schedules into consideration and allow participants to learn a new skill that could help them advance their career. In many cases, these courses may also be applied toward an industry certificate program. Individuals can also hone in on a particular talent or personal goal and use that, along with some education, as a starting point to launch their own business.

Associate's Degree

An associate's degree is another alternative for someone with many obligations, but unlike continuing education courses, it does require more commitment and time. There is generally a set curriculum for those pursuing an associate's degree that takes about two years to complete. The least expensive place to obtain an associate's degrees is generally public community colleges, but private 2-year colleges, for-profit technical institutes and many 4-year colleges and universities offer programs, too. In 2001, according to the Bureau of Labor and Statistics, the unemployment rate for associate degree holders was 30 percent lower than that of high school graduates. Check out the state's community college system to get started.

Bachelor's Degree

Getting a bachelor's degree can be hard for someone with a full-time work schedule. However, going back to school for a four-year college degree is a great option for those who have been laid off or have had a hard time finding employment. Obtaining a bachelor's degree can definitely pay off. On average, someone with a bachelor's degree earns nearly twice as much as workers with only a high school diploma, according to the American Enterprise Institute for Public Policy Research. For motivated students, a new popular trend is the 3-year college program for a bachelor's degree. While the student may be on a fast-track to graduate, a 3-year program can save someone up to $10,000. Online programs are also a great option for students who need a flexible schedule and they are often more affordable than courses taken on a physical campus.

Graduate and Professional Degrees

While having a bachelor's degree helps in the job hunt, having a master's degree can help job applicants really stand out in the market. Someone with a master's degree can generally earn $10,000 to $30,000 more than someone with a bachelor's degree, depending on the industry. While a typical master's program only lasts about two years, the average cost is $25,000, and can be upwards in cost depending on the school, according to FinAid.org.

Financial aid is available to help those who want to go back to school but may have difficulty affording it. Many scholarships and grants are awarded earlier in the year on a first-come, first serve basis so apply as soon as annual tax returns are complete. For a complete list of items to gather before applying for a student loan, visit the Federal Student Aid website, www.fafsa.ed.gov.

"There are also a few tax incentives that can help you along the way," says Realo. For example, all qualified tuition and expenses required for enrollment or attendance can be deducted from your annual taxes. Check with the local IRS office or review the IRS Publication 970 for more information.

"And don't forget," says Realo, "when you go back to pay your student loans, you can also deduct the interest you pay on it."

About CareOne Services

CareOne Services, Inc. was formed in 2002 to provide consumers with multiple solutions to complex money problems. CareOne boasts a unique Financial Fitness Center that examines each consumer's individual financial situation and develops a personalized solution to help the consumer get out of debt and strengthen his or her financial footing.

CareOne has helped hundreds of thousands of consumers. CareOne takes a holistic approach in assisting customers to manage their debt, looking at an individual's situation and creating a solution that is achievable and works. CareOne does not offer to change or improve an individual's credit score, record or rating.  CareOne goes beyond providing the standard debt payment programs, helping consumers address day-to-day life issues that are the result of being in debt along with free educational tools online.

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Jenny Realo

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SOURCE CareOne Services