Do you ever think about going back to college? If so, you're not alone. Faced with today's economic challenges and the need for new and different job skills, many adults are considering some type of continuing education.

In community colleges, universities and graduate schools across the country, the age diversity on campuses is growing. A 2006 report from the American Association of State Colleges and Universities found that between 1993 and 2003 (the latest year of data available) one of the greatest increases in college enrollment was among those over the age of 50.

Going back to school can be exciting but expensive. Not only do you need to consider tuition, fees and books, but also ancillary costs such as child care and transportation. If you plan to take time off from work while you study, the decrease in income should be factored into your overall cost as well.

The numbers can add up pretty quickly, but don't be discouraged. With a little creative thinking and some research, you can find ways to help pay for education at any point in life.

WHERE TO GET INFORMATION

What's the first thing you'd tell a young person looking for financial aid? Get the information. The same advice applies to you. There are many places to look.

Start with your school. Many universities now offer financial aid specifically geared to re-entry or nontraditional students. Next, talk to your employer. If you're going back to school to enhance your work skills, your company may have tuition assistance available for employees.

If you are interested in a particular field, be sure to look into industry-specific scholarships. And don't forget your local community. There may be grants available through community associations or the chamber of commerce.

HELP FROM UNCLE SAM

While private loans and scholarships are definitely worth researching, there are several federal loans that offer lower interest rates and better repayment terms, depending on your financial situation. Some loans that may apply to nontraditional students include:

— Stafford loans: The most common type of college loan funds, for both undergraduate and graduate students, has two varieties: subsidized loans (based on need) that defer interest on the loan for specified periods, and unsubsidized loans where need is not a factor. For both kinds of loans, you must be enrolled at least as a part-time student.

— Federal Perkins Loans: A Federal Perkins Loan is low-interest for both undergraduate and graduate students with "exceptional" financial need. Aside from need, you must also be enrolled halftime to qualify.

These loans are just the tip of the iceberg. A school financial-aid counselor can help you explore other government-sponsored loans and grants. Visit http://studentaid.ed.gov for more information.

TAX ADVANTAGES

From tax-advantaged college savings plans to tax credits to tax-deductible tuition, the IRS offers a variety of aids and incentives to continue your education.

— 529 College Savings Plans: Many parents turn to 529 plans to benefit from tax-free growth while saving for their kids' college. But you can also open a 529 plan for yourself. Most 529 plans require low minimum contributions and allow you to contribute monthly, so there's a plan for every budget. Earnings grow tax-free, and as long as you use the proceeds to pay for qualified education expenses — tuition, room and board, books and anything required by the program — you don't pay taxes on withdrawals; there are other state and federal tax issues to consider so it pays to do your homework ahead of time.

This can be a good solution if you're planning to return to school at a future date. An added benefit is being able to change the beneficiary of the plan at anytime. You can open a 529 for yourself and transfer it to your child — or vice versa — depending on who needs the funds for college.

— Tuition tax credits: A tax credit allows you to subtract the amount of the credit from your federal income tax bill, dollar for dollar. Two credits that apply specifically to tuition and fees are: the Hope Tax Credit and the Lifetime Learning Tax Credit. Although there are different parameters for each tax credit, both have family income limits of between $47,000 and $57,000 for single filers and between $94,000 and $114,000 for joint filers. For eligibility specifics and how to claim the credit, consult IRS Publication 970 or talk to your tax adviser.

— Tax deductions: A number of tax deductions for tuition, fees and student loan interest are all worth exploring. Once again, talk to your tax adviser. Every dollar saved is a dollar toward your education costs.

FINDING MONEY IN YOUR BACKYARD

If you're a homeowner fortunate enough to have equity in your home as well as a home equity line of credit, you may have a viable option for funding your education. In this case, you could most likely borrow at a favorable rate — and the interest may be tax deductible.

And while I would never recommend borrowing against your retirement savings, you can, in fact, withdraw money from both a traditional and a Roth IRA without penalty for education expenses. However, you may be required to pay federal and state income tax on your withdrawals. All in all, although this might be a choice, I'd consider it a last resort.

FREE CLASSES FOR SENIORS

When it comes to saving money, age can be an advantage. And it's no different with ongoing education. There's a growing trend at colleges and universities: offering free classes to senior citizens. While stipulations regarding class enrollment or auditing versus taking a class for credit may exist, if you're interested in education for learning's sake, you just might be able to enrich your mind without draining your savings.

Going back to school can mean financial sacrifices, but it can also open the door to economic advancement. Statistics from the U.S. Census Bureau suggest that a person with a bachelor's degree can earn, on average, twice as much money as a high school graduate over the course of a lifetime. A person with a master's degree, on average, earns upward of 100 percent more a year than someone with a high school diploma.

Whether it's for job advancement, salary increase or personal enrichment, don't let finances keep you from pursuing your education goals. It may cost money to do it, but it may cost more in lost opportunity if you don't.

Carrie Schwab Pomerantz is Chief Strategist, Consumer Education, Charles Schwab & Co., Inc., Member SIPC. You can e-mail Carrie at askcarrie@schwab.com. To find out more about Carrie Schwab-Pomerantz and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

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