Switching Careers: How to Tackle The Cost of Going Back to School
Career changers typically flock to graduate schools to obtain advanced degrees to make them more marketable in the work force.
But that switch, always a difficult one, is proving even tougher for some in this economic slump. The number of applications to U.S. business schools, for instance, is down by 54% in 2002-2003 school year, according to a survey by the Graduate Management Admission Council in McLean, Va. "Career switchers are less inclined to risk leaving a job for two years until the economy shows signs of improvement," says Daphne Atkinson, vice president of industry relations for the council.
Indeed, going back to college midcareer often involves financial sacrifices that affect the whole family. Still, there are things you can do to make it more manageable.
Calculate your need. The first step is to figure out how much money you'll need to attend school, how much debt you can reasonably afford to carry and, most important, how much time you anticipate being without a regular paycheck while you pursue that degree.
To figure out how much debt you can shoulder, college-planning Web site FinAid.org (
www.finaid.org), Pittsburgh, offers calculators that will crunch the numbers for master's and doctoral candidates.
To get a feel for how long you'll be out of work, contact a financial-aid counselor at the school of your choice and discuss your goals. Determine whether it's feasible to attend night school and continue to work. Also, many fields of study require extended internships. Ask for guidance on how well these jobs pay, if at all.
Now add in all the collateral costs: Will you need more child care? Will your commuting costs increase? Will you have to pay for your own health care? When you total it up, sticker shock may ensue. But relax, there is funding available to help ease the burden.
Search for financial aid. One big mistake most adult students make is assuming they make too much money to get financial assistance.
"I have a client who really wanted to go to law school, but she was making a good deal of money in her current job as a career counselor and she didn't think she'd be eligible for any aid at all," says Patricia A. Konetzny, a certified financial planner in Maynard, Mass. But, "it turns out she was eligible for a full scholarship" that wasn't need-based.
The best place to start looking for scholarships and grants is the College Board's scholarship site (
www.collegeboard.com/pay), which lets you search based on your professional, military, religious and social affiliations, among other things. Another popular free search engine is Fastweb.com (
www.fastweb.com), operated by career Web site Monster.com.
Watch out for scholarship-finding services that charge a fee to track down money. Some may be scams, so check with the Better Business Bureau before paying for any service.
Ask your current employer. More companies are adding tuition-assistance programs to their benefits packages in an effort to attract and retain top talent. Some 81% of 960 companies surveyed offered some type of tuition-assistance plan in 2002, according to outsourcing and consulting firm Hewitt Associates in Lincolnshire, Ill.
But company aid often comes with strings attached. Many employers require assurances that you're enhancing your current skills, not training for a new career. And a growing number of companies are adapting the military's take on higher education: You sign a contract that says if your employer pays two to four years of higher-education costs, you'll continue working at the company for an equal or greater number of years.
Finally, if you, a spouse or a parent is part of one of more than 40,000 labor unions in the U.S., you may be eligible for additional tuition-assistance programs, grants or scholarships.
Federal or private loans? Interest rates on federal student loans are at record lows, but many professionals may not be able to take advantage of them due to government loan limits, says Mark Kantrowitz, publisher of FinAid.org.
For example, Stafford Loans have a loan limit of $18,500 a year, with a cumulative limit of $65,500. "So if a person's already borrowed $23,000 as an undergrad, he's only got $42,500 to pursue an advanced degree," Mr. Kantrowitz says.
Many postgraduate students rely on private alternative loan programs from commercial lenders, such as Citigroup and American Express. But these programs typically charge a percentage point or two more than federal loans.
Leave that nest egg alone. Education is a long-term investment in yourself, so it might seem like a no-brainer to tap your 401(k) to pay for it -- whether you stay with your current employer or not. But borrowing from your retirement savings should be your last resort.
"You're not only cashing out in the midst of a bear market, but you risk missing out on any recovery," says Dean Knepper , certified financial planner and CPA with Lifetime Financial Planning in Leesburg, Va. "It's better to keep that money earning tax-deferred interest."
And don't forget, you have to be able to pay it back quickly -- typically within five years -- or you'll get hit with personal income taxes and a 10% penalty on the money.
o Jonathan Clements is on vacation. WSJ.com subscribers can read more of Terri Cullen's personal-finance coverage at Cullen Corner and write to her at
terri.cullen@wsj.com Corrections & Amplifications:
The Graduate Management Admission Council in McLean, Va., said that 53% of the full-time business programs responding to a survey reported declines in applications in the 2002-2003 school year. The article above incorrectly said applications were down 54% at U.S. business schools, according to the council.
离职求学费用巧安排
想转换职业的人一般都选择去研究生院校取得更高的学历，使他们在劳动力市场更具竞争力。
这种转变本身已非易事，但在经济低迷时期，对一些人来说则更为艰难。美国弗吉尼亚州McLean市研究生管理入学委员会进行的一项调查结果显示，受访美国商学院中，有53%表示2002-2003学年入学申请数量出现下降。"在经济出现复苏迹象之前，想换工作的人不太愿意冒风险离职两年"，该委员会负责行业关系的副总裁达夫恩?艾特金森(Daphne Atkinson)说道。
事实上，在事业发展途中返回学校进修常常意味著经济上的损失，整个家庭生活都会因此受到影响。但仍然有一些办法可以让你重返校园。 计算所需的费用。第一步是算算上学需要多少钱，你能承受的负债水平；最重要的是估算出在没有固定工资收入的情况下，你求学的时间要持续多久。
算算自己能负担多少债务。在FinAid.org网站(
www.finaid.org)上有一个计算器，可以为那些硕士和博士求学者计算所需费用。
要了解自己需要离职多长时间，可以联系目标大学的助学顾问，与他讨论你的求学目标。看看能否一边工作一边上夜校。此外，不少专业都要求延长实习时间，你可以问问这些实习工作的薪水如何。
现在计算一些附带成本：孩子是否需要更多的照料？交通成本是否会上涨？是否要自己付医疗保险费？把这些成本相加，会让你吓一跳。不过放心，还有办法帮你减轻负担。 寻找经济援助。大多数成人学生犯的一个大错误是认为自己赚的钱很多，得不到奖学金。
"我有个客户非常想上法学院，但她现在从事的职业发展顾问工作薪水很高，她觉得自己不符合申请奖学金的条件，"马萨诸塞州Maynard市的一位注册财务规划师派崔茜?科内兹尼(Patricia A. Konetzny)说，"但实际上她获得了全奖，因为是否能得到奖学金并不是以需不需要为判断标准"。
开始寻找奖学金的最好地方是College Board的奖学金网站(
www.collegeboard.com/pay)，你能根据职业、参军历史、宗教和社会关系等来搜寻信息。另一个热门的免费搜索引擎是由职业发展网站Monster.com公司运营的Fastweb.com (
www.fastweb.com)。
小心那些收费的奖学金搜索服务，有些网站可能是个圈套，因此在付费前要向美国优良企业联盟(Better Business Bureau)核实一下。
看看你工作的公司能提供什么帮助。越来越多的公司在其福利措施中增加学费资助项目，以吸引和留住精英人才。据外包及咨询公司Hewitt Associates在2002年进行的调查显示，受访的960家公司中，有81%提供不同类型的学费资助计划。
不过，公司资助经常伴随著约束性条款。许多公司要求申请人的学习目的是强化现有工作技能，而非寻求新的职业。而且越来越多的公司正在仿效军方对进修学习的做法：你必须签署一个协议，如果公司为你支付两到四年的进修费用，你得继续在公司服务相同或更长的年限。
最后，如果你或你的配偶是美国40,000个工会中的一员，则你可能有资格申请额外的助学金、补贴或奖学金项目。
那么政府或私人贷款怎么样？政府的学生贷款利率正处于历史低点，但许多专业人士可能由于政府对贷款金额的限制而无法利用这种方式，FinAid.org公司的马克?坎托维兹(Mark Kantrowitz)说道。
比如说，斯坦福贷款(Stafford Loans)每年的限额为18,500美元，总贷款额不得超过65,500美元。"所以如果某人在大学本科教育阶段已经借了23,000美元，那么再深造阶段就只能借42,500美元了，"坎托维兹说道。
不少研究生依靠私人贷款项目，从花旗集团(Citigroup)和美国运通(American Express)等商业贷款者那里借钱，但这些项目一般都比政府贷款的利息高一两个百分点。
不要动用养老金等长期储蓄。教育是对自身的长期投资，但不管你会不会回到现在的公司工作，用401(k)养老金计划的钱来支付学费可能都不太明智。不过，从养老金帐户中借钱可以作为你不得已而为之的最后办法。
"从养老金帐户支钱不但意味著在熊市中变现，而且使你丧失复苏带来的收益，"弗吉尼亚州Leesburg市终生财务规划公司(Lifetime Financial Planning)的注册会计师(CPA)兼注册财务规划师迪恩?克奈普(Dean Knepper)说，"最好还是让养老金生息，而且可以延迟缴税"。
别忘了，你必须能够在短期内把债付清──通常在五年以内──否则你会被征收个人所得税，以及贷款额10%的罚金。
