ADMINISTRATIVE PROCEDURES
Going back to graduate school while you are working can help you build new skills without putting your career on hold. With the right paperwork, tax planning and funding strategy, you can make the financial side of further study easier to manage.
Going back to school while you are employed means finding a balance between your job, your studies and your everyday commitments. It's not easy. The physical and mental toll can be quite a challenge; however, if you're prepared, you can ease this process for yourself.
CHOOSE A GRADUATE PROGRAM THAT FITS YOUR LIFE
When you are working, the right graduate program needs to fit around more than your career goals. You also need to consider when you can study, how much time you have available each week and how the program's schedule will affect your existing commitments.
You may find that a part-time program works better than a full-time option. Evening, weekend and online courses can also give you more flexibility. For example, online Ed.D programs can allow you to pursue advanced education leadership studies while continuing to work, without you needing to run to a campus every weekday. An online structure like this can give you a lot more flexibility and freedom to divide your time in a way that works for you.
But you need to be mindful of the quality and accreditation of the program.
As you compare programs, look beyond the advertised tuition. Check the total cost, including fees, books, course materials and any other required expenses. You should also look at the program's application deadlines, enrollment dates and expected completion time.
GET YOUR PAPERWORK IN ORDER
You will usually need several documents when you apply for graduate school. These can include transcripts from colleges or universities you have attended, proof of previous degrees, a résumé or curriculum vitae, letters of recommendation and a personal statement.
Some programs have additional requirements. Depending on your chosen field and school, you may need professional references, work experience information, test scores or other supporting documents.
It is worth requesting official transcripts early, especially if you have attended more than one institution. Give yourself enough time to deal with processing times or requests for additional information.
You should also keep your financial records organized. Save copies of tuition bills, payment confirmations, enrollment records and receipts for qualifying education expenses. If your employer helps pay for your education, keep records of those payments and any forms you submit to your employer.
If you plan to apply for federal financial aid, complete the Free Application for Federal Student Aid (FAFSA). The information you provide can help your school determine your eligibility for available federal student aid. You can also explore other government benefits that may help with living expenses while you study, depending on your circumstances.
CHECK WHAT YOUR EMPLOYER OFFERS
Your employer may already offer a benefit that can help pay for graduate school. Many U.S. employers provide tuition assistance or reimbursement, although the rules can differ considerably from one workplace to another.
Under federal tax rules (Internal Revenue Code (IRC) Section 127), qualifying employer educational assistance can generally be provided on a tax-free basis up to $5,250 per year under an eligible educational assistance program. Graduate-level education can qualify, subject to the applicable rules.
Before you register for classes, talk with your human resources or benefits department. Ask which programs and courses qualify and whether there are restrictions on schools, grades or types of expenses.
You should also find out when you need to submit paperwork. Some employers require you to receive approval before enrolling, while others may reimburse you after you complete a course and provide proof of payment and your results.
If you are considering taking out student loans to finance your degree, it is also worth understanding the available student loan forgiveness programs. Depending on your profession, employer and loan type, you may qualify for certain federal loan forgiveness options.
LOOK AT TAX BENEFITS
Tax benefits can play a useful role in your overall education budget. One federal provision worth knowing about is the Lifetime Learning Credit. If you meet the requirements, you may be able to claim a credit for qualified tuition and related expenses at an eligible educational institution.
The Lifetime Learning Credit can be worth up to $2,000 per tax return, although income limits and other eligibility requirements apply. You should check the current rules for the tax year in which you claim the credit.
You may also want to look at how your employer's education benefit affects your taxes. Qualified employer educational assistance can receive favorable federal tax treatment within the applicable annual limit. Payments above that limit may be treated differently.
Because tax rules can change and your circumstances are unique, you should review current IRS information, learn more about the federal income tax system, or speak with a qualified tax professional before deciding which benefits to claim.
GIVE IT ALL YOU'VE GOT BUT BE MINDFUL OF THE PROCESS
Going back to school while you are employed can be a practical way to invest in your professional development while maintaining your income.
When you understand the paperwork, check your workplace benefits, review potential tax advantages and compare funding choices, you can approach graduate study with a clearer financial plan.