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| Uncommon Sense | The true cost of changing careers
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A 2002 Nellie Mae survey found that borrowers who pay less than 7% of their monthly gross income toward student loans can do so fairly comfortably. As your debt-to-income ratio climbs, so does your stress.
That's a significant factor for my husband and I to weigh. Most MFA programs cost between $20,000 and $40,000 for two years. The starting teaching salaries we've heard about range from about $15,000 to $35,000 a year.
How to offset costs
That said, earning power is not the only reason to switch careers. In fact, for some the downshift to a lower-paying but more satisfying career -- which is what Beth and my husband are aiming for -- is the whole point.
Either way, it's important to remember that massive debt is not inevitable and should be avoided at all costs.
Thankfully, there are a number of Web sites geared to help would-be students find grants, aid and scholarships, from the free scholarship search at FastWeb.com and the College Board sites, to MyRichUncle.com, a non-traditional loan program, and the many resources compiled by student Karen Kelly on her StarvingStudentScholarships.com Web site. (See more links to the left.)
In addition, graduate students can get several tax breaks, if they qualify. Depending on your income and other factors, these may include:
According to the Employee Benefits Research Institute, a growing number of employers offer tuition benefits, too, so make sure to ask if your company might fund part of your education.
God bless the blog
When I put the question of how to afford higher education to the gals on my blog, they added the following brilliant suggestions:
- Getting even a lowly job at the college where you want to study can get you great tuition credits. Kris reports that she was able to take two classes per semester, and "it cost me less than $200 per semester plus books."
- In the same vein, go all out for teaching fellowships, research assistantships and the like.
- K2 says she saved a bundle by getting a job as a live-in resident advisor in a dorm at a nearby boarding school during her first year as a grad student. "This gave me three meals a day, a place to sleep and a $20 monthly stipend I saved to pay for gas."
- Don't assume that in-state tuition will be cheaper for you. Some private colleges have more aid to give. Have frank conversations with the financial aid officers at the schools you're investigating.
- Consider an online program; they're often cheaper (although if the program is not accredited, you may not qualify for tax breaks).
One last thing: According to Kantrowitz at FinAid.org, it's especially important for future students to be cost-savvy now. As of July 2006, the reauthorization of the Higher Education Act will take effect, effectively raising student-loan interest rates and making it harder for students to consolidate their loans after they graduate.
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MSN Money's editorial goal is to provide a forum for personal finance and investment ideas. Our articles, columns, message board posts and other features should not be construed as investment advice, nor does their appearance imply an endorsement by Microsoft of any specific security or trading strategy. An investor's best course of action must be based on individual circumstances.
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