Our comprehensive guide addresses what online education entails, what online learning options exist, how to select the best online education for your needs, and much more.
In designing the "Guide to Online Education", we worked closely with online students, graduates, professors, and online learning experts to collect practical information to help you succeed in online learning.
Self-funding your education can be a complex process. It may involve re-framing your expectations in terms of the school you wish to attend, the time it takes to complete your degree, and the amount of personal sacrifice you and your family willing to take on.
Do some research about all your options to pay for school and then speak with a tax advisor to discuss the pros and cons and impact on your income tax before exercising your options.
Personal Savings
If you have been fortunate enough to set aside money that you don't anticipate you will need in the immediate future, then writing a check is certainly an option. Weigh the amount of interest you could be earning, against the amount of interest you would pay on a loan.
Credit Cards Applying for a low-interest credit card, or placing some or all of the tuition on one of your current credit cards is an option. The interest rate may be higher than a loan. And you don't receive the tax benefit. But, you may earn cash back, points in a rewards program, or other incentives that you consider valuable. One couple placed their tuition for Walden University on a credit card and then used the points they earned to buy airline tickets to Hawaii.
Borrowing from your retirement plan Speak with your human resources specialist to determine your options. If you are not fully vested in your company's plan, you may not be eligible to use the funds. Penalties usually apply. Also see http://www.finaid.org/savings/retirementplans.phtml for more information.
Borrow against your life insurance policy Whole, or permanent, life insurance accrues a cash value which may be used by the policyholder. Call your insurance agent about the possibility of borrowing against your policy. Borrowing against the policy could put your family's security in jeopardy, and also expose you to stiff penalties. But it's still a good idea to get all the facts.
Home Equity Loan or Home Equity Line of Credit (HELOC) If you own a home you may be able to borrow against the equity—the difference between what you owe on the loan and what the home is worth. Even if you have only owned the house for a short time, if the home has appreciated in value you may have more equity than you think. Contact your lender and then shop around. You will probably incur an origination fee and closing costs, but you may be able to roll those into the loan.
Loans or gifts from family or friends Wouldn't everyone love a rich uncle who is generous, and a little forgetful? Of course. There would be no complicated application process, no credit check, and the terms of repayment would be considerably more forgiving than those of a traditional lender. But borrowing from people you know is tricky. That family member or friend may feel the need to "remind" you of the help constantly. Or, he or she may feel that the gift or loan gives license to provide "help" or "advice" in other areas of your life. Or worse, if that family member or friend falls on hard times--or the two of you have a falling out--you will feel compelled to escalate your repayment timetable. In the end, only you can evaluate the emotional cost of such an arrangement.
Savings Accounts Initiate a Section 529 education savings plan—for yourself. Many people already know that they can open an account and name their child as a beneficiary. But this option is open to adult students, or those who may become students, as well. Earnings are compounded and are tax free. See http://www.businessweek.com/bwdaily/dnflash/jun2005/nf2005067_9130_db085.htm.
Payment Plans Tuition payment plans allow you to pay your college tuition in digestible monthly installments rather than in (gulp!) a lump sum. Expect an enrollment fee, but no interest charges.
For additional creative stratgies to help offset the cost of a college education, browse the state-by-state listings of the eLearners.com Debt-Free College Guide.
