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Financial Education for Everyone

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September 4, 2015

Could a mid- to late-career return to college make sense for you?

It's essential to evaluate whether this is a financially risky move. In recent years, older Americans have been heading back to school part-time and during evenings in greater numbers than students of typical college age. According to the National Center for Education Statistics, enrollees 25 years of age and older account for 40 percent of all undergraduate and graduate students – by 2020, that number will rise to 43 percent.

Back-to-school Planning for Returning Students

Statistics proliferate on how much more valuable undergraduate college degrees are than high school diplomas alone – a 2017 Bureau of Labor Statistics (BLS) study reported that high school graduates earn approximately $718 per week, whereas those holding at least a bachelor’s degree earn approximately $1,290 per week. Based on numbers alone, it makes sense that college is a fairly clear sell, especially for the younger set.

For those who are older, however, the decision to go to college holds more weight. Calculating the opportunity cost and examining the future value of your degree is essential before taking that next professional step.

Here are considerations to make before making a mid- or late-career return to the classroom:

A degree doesn't mean a job. That may seem obvious given the recent hiring fortunes of younger, first-time college grads. However, even though some job indicators are looking up for older workers, it doesn't mean past experience and a high-quality degree or certificate program will immediately lead to employment or better pay or for how long. Start with a thorough examination of working conditions and hiring forecasts (http://www.bls.gov/oes/) in your chosen field. If it's a complete career change, add face-to-face networking and observation of the job in action, if possible. Most of all, it's important to know whether employers in that specific field really are interested in hiring older workers and have a record of doing so.

Back-to-school Planning for Returning Students

Fully evaluate your finances. As risky as student debt levels are now – the average student is borrowing around $35,000 – spending money on school when you're older is a much riskier proposition than when you're young. Consider that late-life tuition is money that won't go to retirement, a child's tuition, an older relative's needs, consumer debt or financial emergencies. In other words, it's an investment that really has to pay off. Also keep in mind that student debt cannot be discharged in bankruptcy. This is why it is important to seek qualified financial and tax advice before committing to spending savings or taking out student loans to return to school.

Determine how long you really plan to work. A 2017 Gallup poll indicated that three in four U.S. workers plan to work past the conventional retirement age of 65, but no one really knows how long they'll be able to work given health and other factors. Will you be able to recoup the cost of training based on the number of years you hope to work?

Find the most affordable training possible. If a field is friendly to new workers your age, what will you have to invest in training to get the right job? Will it require a masters-level degree or a training certificate that makes you a specialist in a specific skill? Will some employers accept free or low-cost online courses being offered by known colleges and universities? The American Association of Community Colleges' Plus 50 Initiative is a useful resource for lower-cost training options at community colleges throughout the country. Also check with your chosen industry's leading trade associations to see what certificate training is most popular within the field and what it costs.

Bottom line: Education is beneficial at any age, but mid-to-late career workers should evaluate their finances and thoroughly investigate degree programs before going back to school.


This article is intended to provide general information and should not be considered health, legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.