7 Tips for Going Back To School and Paying for It
Your Goals Determine How Much You Should Invest
Full or Part-time
Speak With Your Manager
What Is Your Budget
Leverage Your Severance
The Lifelong Learning Plan
Start An RESP
You’ll want to figure out what you hope to achieve by going back to school. Maybe your goal is to make more money or get a better or different job. Maybe you just want something to do for the fun of it. When you determine what your goals are, then you can figure out how much you should invest into your studies.
You might be able to achieve your goals by going back to school part-time. This will allow you to continue to work at your current job and you might not need to take a loan out. However, if you want to complete your studies as soon as possible, then full-time schooling may be for you.
Speak with your boss because there is a chance that there is a program offered by your company. Some companies have programs that help their workers get an education and/or upgrade their skills. Some of these perks may include getting financial help to obtain an MBA or being able to attend a night course at a community college for free. Sometimes companies will want you to stay with them after you’ve earned your degree.
What is your budget because there may be room for you to save money that can go towards helping you go back to school. You can consider bad credit loans UK to fund your studies. Remember, it’s easier to live off cheap and unhealthy food when you’re younger than it is to do it now. It is extremely important to stay as committed as possible when you make a decision to cut back on something.
If you receive or are planning on receiving a severance package, then use it to your advantage. The money you get from it can be put towards getting your degree. In most cases, severance pay is taxable, so you’ll want to know whether or not any tax has been taken out of the pay and/or how much you’ll owe once you use the funds to pay tuition fees.
Speak with your financial advisor too. They can provide you with good advice. While you’re at it, ask them to place your severance into an RRSP.
Look into the lifelong learning plan that the federal government has in place. This will allow you to take cash out of your RRSP, and you won’t have to pay a penalty fee for doing so. The money can be put towards your post-secondary education.
At the time of this writing, you can withdraw a maximum amount of $20K from your RRSP. Bear in mind that you can only take out up to $10K in a year. If you have a spouse or partner, they can do the same for you. In total, that’s $40K that can be used for your education.
Sure, the $40K you take out won’t be doing much in the short-term. However, in the long-run it may pay off because you could land a better paying job. Furthermore, there will come a time when you have to put the money you took out back into your RRSP. Figure out when you’ll be required to do this.
You’ll want to start an RESP. Anyone can do this, as it’s not just for kids. All you have to do is set one up under your name and then contribute to it. You might be surprised at how much money you could end up with. Keep in mind that only kids receive government contributions, but nonetheless it’s worth looking into setting up an RESP.