The work environment has become a complicated landscape. With advancing technology, the digital economy and economic changes, many people feel uncertain about their current career. In fact, in a World Economic Forum report, researchers suggest that one billion people will need to reskill by 2030. Although this may be daunting, if you’re considering going back to school to change careers, it need not break the bank. There are actually a number of education grants that can be accessed by mature students or those who are over the age of 25.
Grants vs Loans
There is a misconception that financial aid is only available for recent high school graduates, but eligibility for education aid is based on enrollment status and financial need rather than age. This means that career changers have the potential to be just as eligible as younger students to access financial help. However, before you can start to explore the various programs, it is crucial that you appreciate the distinction between a grant and a loan.
| Feature | Education Grants | Student Loans |
|---|---|---|
| Repayment Required | No repayment required (if eligibility is maintained) | Must be repaid with interest |
| Based On | Financial need, demographics, field of study | Financial need (subsidized) or creditworthiness (unsubsidized) |
| Common Sources | Federal government, state agencies, colleges, private orgs | Federal government, banks, credit unions |
| Interest Rates | N/A | Fixed or variable; interest accrues over time |
| Eligibility Criteria | Often need-based, sometimes merit- or goal-based (e.g. STEM) | Broader eligibility; must meet lending criteria |
| Impact on Future Finances | No debt burden | Can increase debt-to-income ratio |
| Application Process | FAFSA or specific grant forms | FAFSA + loan agreements |
| Best For | Those seeking low-cost return to school with financial need | Those who need more funding than grants provide |
| Examples | Pell Grant, TEACH Grant, State Workforce Grants | Direct Subsidized/Unsubsidized Loans, PLUS Loans |
Grants are a type of financial aid that will not require repayment. This is particularly beneficial for those students with existing financial responsibilities such as mortgages, existing debt or supporting a family.
Loans provide financial support, but they must be repaid with interest. While you typically don’t need to worry about making payments as you’re studying, there will be a schedule to make repayments once you complete your course. So, while student loans can be helpful, if you want to return to school without incurring further debt, education grants are key.
Federal Education Grants
Fortunately, there are a number of federal education grants that can be helpful for those looking to reskill for a career change.
Pell Grant
The Pell Grant is a federal program that is usually awarded to undergrad students displaying exceptional financial need. To qualify, you must not have previously earned a professional, Bachelor’s, or graduate degree, which may provide a barrier for some career changers. However, there are some exceptions.
With a Pell Grant, you don’t need to worry about repaying the funds you receive except under specific circumstances. You need to maintain eligibility with your enrollment in a course at a non-foreign school, completing your paperwork for each year you’re in school.
Students can receive up to 12 eligibility terms, which is usually sufficient to complete a degree course. After 12 terms, you can no longer receive the grant, even if you have not completed your education.
The grant amount changes each year, but maximum award caps are applied. The specific amount you can receive if you’re eligible is calculated according to a number of factors including whether you’re studying full or part time, the cost of attendance, if you attend for the full academic year and your Student Aid Index score. The latter number is calculated when you submit an application form and it is based on the information you provide.
However, there are some circumstances where it is possible to receive as much as 150 percent of the scheduled award amount during the award year. As an example, if you qualify for a $3,000 Pell Grant for the award year and you’re enrolled full time for the spring and fall terms, you would receive $1,500 in spring and $1,500 in fall. But, in some circumstances, you may receive an additional $1,500 for an extra term during the award year.
Additional grant funds may also be available if there is an US armed forces family connection.
FSEOG
The Federal Supplemental Educational Opportunity Grant or FSEOG is a program directly administered by participating schools’ financial aid offices. Not every school participates, but students with exceptional financial need should check if their school is a participant.
The grant offers $100 to $4,000 per year and the specific amount depends on your financial need and whether you’re receiving other aid, the available funds at your school and when you apply for the grant. The reasoning behind this is that each participating school receives funding from the Department of Education’s Federal Student Aid Office. The funds are allocated as applications are approved and once these funds have all been awarded, no further grants will be available in that year, regardless of the applicant’s financial circumstances.
This means that if you are interested in an FSEOG, you need to submit your application as soon as possible. Schools tend to set their own deadlines, but your financial aid office will be able to let you know the application dates.
TEACH
The Teacher Education Assistance for College and Higher Education Grant or TEACH education grant is not quite the same as other federal grant programs. Recipients are required to make a teaching service obligation agreement as a condition of receiving grant funds. If you fail to complete this obligation, the grant will convert into a loan, which must be repaid with interest.
The eligibility for this program is enrollment in a course at a participating school, meeting the basic federal student aid eligibility criteria and certain academic achievement requirements. Applicants are also required to undergo grant counseling, which ensures that they fully understand the service obligation agreement to serve or repay before signing.
Essentially, the TEACH agreement requires the grant recipient to serve as a full time teacher at a school serving low income students, an educational service agency or in a high need field for four elementary or secondary school years. This obligation must be met within eight years of graduating. If you fail to meet these requirements, applicants are obliged to repay the entire sum of TEACH grant funds received. This amount is converted into Direct Unsubsidized Loans, which must be repaid in full with interest charged from the date of the grant disbursements.
It is possible to request suspension of the service obligation for a temporary period, but typically it is only approved in very specific scenarios such as being called up to Armed Forces or National Guard active duty, living or working in a federally declared disaster area or having a qualifying medical condition. Assessments for exceptional circumstances requests are all completed on a case by case basis.
The grant itself provides up to $4,000 per year, which can be particularly useful for those considering a career change into teaching.
The Iraq and Afghanistan Service Grant
This education grant is available to applicants who had a parent or guardian that died in military service in Afghanistan or Iraq after 9/11. This is limited in scope, but can help those qualified applicants with an award amount equal to the maximum Pell Grant.
State Grants
Although federal grants are typically a major source of educational financial aid, there are some state level grant programs. Generally, these mirror federal programs and are needs based with no repayment requirement, but the specific eligibility criteria varies from state to state.
For example, in California, the Cal Grant program has several grant awards for low to middle income students which includes those returning to school as mature students. In Texas, the Texas Public Educational Grant supports students at public colleges or universities in financial need.
Most state grants require submission of a FAFSA, which we will cover in more detail below, but you may also be required to complete additional forms with specific deadlines.
Special Adult Learner Grant Programs
In addition to federal and state standard grant programs, there are specialized education grants specifically designed for adult learners, displaced workers and veterans looking to change careers.
WIOA
The Workforce Innovation and Opportunity Act provides funding for adult education and job training. There are many local workforce development boards which partner with community colleges to offer WIOA funded programs. The awards can cover tuition, books, fees and even child care or transportation costs.
Single Parent/Caregivers
Many potential students considering retraining for a new career are caregivers or single parents and there are specific grants for this group. For example, some states offer additional grants for single parents pursuing higher education or provide child care assistance for mature students.
Veteran/Military
Veterans who are returning to education may qualify for educational benefits beyond the GI Bill. This includes state grants for veterans, institutional scholarships and federal tuition assistance programs which are targeted at former service members. So, if you are a veteran or are leaving active military service, it is worth checking with your state financial aid office to see what programs are available to you.
Applying for Education Grants
If you are interested in education grants or any form of federal student aid, you will need to start the process with a FAFSA or Free Application for Federal Student Aid form. You will need to visit the official studentaid.gov website and create your Federal Student Aid ID. This will enable you to use the website to complete and submit your form. You can also obtain assistance from the financial aid office at your college who can help you to access the form.
FAFSA applications are used by schools and colleges to determine applicant eligibility and calculate the amount of federal funding you qualify for. If you want to apply for any federal, state or school financial aid program, including a scholarship, grant or federal student loan, you need to complete this form.
The form itself is quite detailed and typically takes an hour or so to complete. You will need to gather supporting documentation including your W-2s, tax returns, bank statements and other financial paperwork. If you’re over the age of 24, you’ll be considered an independent adult, but younger applicants may need to provide financial details of their parents or guardians to determine eligibility.
Once you sit down to complete the form, you simply need to take your time and answer each question carefully and accurately. You’ll need to provide basic details such as your full name, contact information, date of birth, Social Security Number, etc, but you will also need to provide income details and information about your financial (and/or your parents’) circumstances.
If you are not applying independently, you will need to complete your sections and then have your parents, guardians or contributors to complete their appropriate sections. This can take time, so it is a good idea to submit as early as possible. Remember that many grants are awarded on a first come, first served basis, and any gaps in the form or errors can delay the final processing of your application.
After you electronically sign and submit your application, you’ll receive a Student Aid Report, which summarizes your eligibility. It is a good idea to review this document to ensure it is correct, to avoid delays or issues later. You can then log in to the student aid platform to check on the status of your application. Once the form is submitted, it should show an “in process” status; it will then move into “in review.” If at any point the status changes to “action required,” you will need to check what additional information is needed or if you are required to make a correction to your details. When the application is showing as “processed,” you will need to take no further actions.
Tips for Mature Grant Applicants
Obtaining education grants can be a daunting process, but there are some tips that could help you to more smoothly navigate the procedures.
Consider Your Independent Status
If you’re almost 24, you will need to assess whether it could be worth delaying your application until after you turn 24. When you’re over the age of 24, you’re considered independent, which means that you may have increased eligibility for aid. Applicants under the age of 23, may need to provide financial information for their parents or guardians. This means that you may not qualify as being in financial need for the grants or funding.
Authorize Tax Information Integration
If you consent, the FAFSA application can migrate information from your tax returns from the previous two years. This means that not only will you not need to manually enter a lot of information, but the process should be quicker. You can have the reassurance that your application is likely to be delayed due to a date entry error.
Consult Your Local Financial Aid Office
There are a number of federal, state and local programs, the scope of which would be impossible to cover here. Fortunately, you can access resources in your local area through your local financial aid office. The financial aid office team will be able to provide you with details of applicable grants that you may be eligible for and guide you through the application process.
Apply as Early as Possible
Most programs have admission timetables and deadlines, but you want to make sure that your application is one of the first in the line. Some programs allocate funds for eligible students on a first come, first served basis. So, even if you meet the financial hardship requirements, if all the funds have already been allocated for that school year, you won’t get anything.
So, gather all of your information and supporting documents together to make sure that as soon as the application window opens, you’re ready to submit your FAFSA form.
Make Sure to Resubmit Your FAFSA
Many grant programs require students to maintain eligibility to continue to receive funds. However, in most cases, this simply means that you need to continue on your course and resubmit a FAFSA form each school year. So, don’t miss out and lose your grant funds simply by forgetting to complete a new FAFSA.
Check for Scholarships
Finally, although you may be interested in federal or state grants, make sure that you check if there are any business or non-profit scholarships that you may qualify for in your area of study. For example, the American Association of University Women has Career Development Grants to support women who hold a Bachelor’s degree and are pursuing further education or training in a non traditional field.
You can search online scholarship databases such as Cappex or Fastweb to find potential scholarships according to your qualifications and interests. There are also local community organizations offering scholarships that are tailored to specific demographics or residents within the community.
Grants for Career Changers
Returning to school and navigating the world of education grants, student loans and other school funding can be a daunting prospect, particularly if you’ve been out of the educational environment for a while. There is a wide range of federal, state and specialist grant programs that are available to applicants of all ages, including mature students returning to education to reskill for a new career.
Fortunately, there is also plenty of support and advice to help you to find the right grant programs for your circumstances. If you start early, remain organized and seek out the appropriate guidance, you should be able to maximize the available aid, so you can focus on achieving your education and career goals.
