5 types of financial aid for adult students

Students face high tuition costs and fees regardless of age. But students aged 25 or older — over one third of the total students enrolled in postsecondary education institutions in 2021, according to the U.S. Department of Education — may have access to some resources that younger students don’t, including employer-sponsored aid programs.

The cost of your education will dictate how much of each type of financial aid you will need. Your income, marital status and other factors may contribute to your eligibility.

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

Most states and colleges have their own grant programs that adult learners can leverage to help pay for school. For many state grants, eligibility is restricted to residents attending in-state schools.

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 are arguably the best way to afford a college education, especially as an older adult.

Scholarships don’t need to be repaid, and some organizations offer awards specifically for adult college students. You can use a scholarship database to find the awards that are best tailored to you and your interests.

It’s likely that your school also offers institutional awards, some of which you may qualify for automatically based on your grades. It’s worth contacting your school’s financial aid office to see if it offers any awards specifically for adult students or for your intended major.

Employer-sponsored aid

A benefit of working for several years before returning to school is your boss may pick up some of the tuition cost. Employers may provide up to $5,250 in tuition assistance annually to their employees without tax consequences. These funds can be used for eligible expenses, such as books, supplies and tuition.

Sponsored aid for continuing education is one way many employers invest in their workforce without tax consequences for them or the employees. Even if your employer doesn’t have a specific program set up already, it’s worth asking your HR department if the option is available.

University employment

Working at a college or university can come with tuition perks for adult learners. Employees of a university may be eligible for tuition remission, which is a type of program that allows employees to attend college courses at that university for free.

Tuition-remission programs, sometimes referred to as tuition waivers, may come with strings attached. Though programs vary by institution, colleges frequently only offer the benefit to full-time employees who have been with the institution for a certain period. There may also be caps on how many classes employees can take per semester, and employees may still be required to pay fees.

Student loans

After making use of free financial aid offered to them such as grants and scholarships, adult students may also consider borrowing student loans. This can be a useful solution for covering the gap between an award package and the full cost of attending school in a given year.

Federal student loans — which can be accessed by filling out the FAFSA — are often the best choice. Borrowers can access several benefits and repayment options, including income-based repayment plans. Borrowing limits vary based on dependent status and degree.

Private student loans may also appeal to adult learners who have built up their income and credit. Unlike federal student loans, each lender controls the eligibility requirements, application process and interest rates of its products. Borrowers with good financial health could score a lower rate than they would get with federal loans. On the other hand, you may end up paying more for bad credit private student loan rates than you otherwise would.

Bottom line

Federal student aid is not age-limited, making it available to both traditional and nontraditional college students. Unlike their younger peers, adult students can also take advantage of employer-sponsored aid for higher education, or even work as faculty or staff at a university to receive discounted tuition in exchange. There are a number of aid options available, especially for students who are willing to do some research and think outside the box.