By CHRISTINA COUCH
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According to the U.S. Census Bureau, those who hold a bachelor's degree earn a whopping $900,000 more over the course of their lifetime than those with just a high school diploma. Ready for the best part? There's a good chance that you're employer is ready, willing, and able to foot part (and in some cases, all) of your education expenses.
More and more companies are recognizing the high value in continuing education, both for the sake of the individual employee and for the sake of the company's own profitability. Whether or not your boss is among these employers, by increasing your brainpower, your bankroll will receive a boost, too.
Just ask Dawn Dozier, a software consultant for IBM who earned her bachelor of economics degree online, thanks to the company’s 100% tuition reimbursement program. Dozier found that her new credentials not only earned her a new job with a fatter paycheck, it also gave her the mobility to move into a better, more challenging career in software consulting.
"This job was what I wanted to do," says Dozier whose clientele includes IBM. "My new role has tons of perks that go with it and I’m making a great deal more in real money."
Big corporate investment in education
Dozier isn't the only one whose boss is footing the tuition bills. According to the Boston-based research and consulting firm, Eduventures, corporate America shells out $10 billion each year in tuition reimbursement and assistance programs. In fact, surveys reveal that more than half (approximately 60 percent) of all students who attend for-profit universities receive some form of financial support from their employers.
Generally, a firm's human resources department determines an employee's eligibility for a tuition reimbursement program. If such a program doesn't exist, Mark Kantrowitz, founder and publisher of the financial aid Web site, Finaid.org, recommends that employees explain to their managers how new credentials can make them better employees.
"It's much less expensive for a company to improve the quality of their employees than it is to go out and hire a new employee that already has those credentials," Kantrowitz comments. You can also sweeten the deal for your employer by promising to stay with the company for a certain amount of time in exchange for an extra degree, he adds.
More than just the money
Even if you do have to put your negotiation skills to the test, gaining an extra credential can boost more than just your salary. Nelson Minter, an F-18 aircraft engineer for The Boeing Company, actually received a monetary award for earning his company-subsidized master’s degree in systems engineering. In addition to 100-percent reimbursed online courses, a better job, a higher salary, and a flexible schedule for attending class, Nelson also received 100 shares of company stock.
"Whenever you get a bachelor’s or another master’s degree, it’s [Boeing’s] policy to give a stock award," he says.
"With a master's degree, you add that extra potential for future success," he says. "I’m more secure now and more marketable, too." Even though he admits he's not actively job searching, the knowledge that he could--and do so successfully--is comforting. "I’m 46 now, and I hope to retire at 57. I’d like to finish my last 12 years here, but I have my master’s just in case," Minter explains.
Other payment options
If tuition reimbursement and stock awards aren’t viable options, you can always go the way of Dr. Don Vogel. To pay for his online doctor of audiology degree, Dr. Vogel relied on partial tuition reimbursements from the hospital where he was employed as well as his credit cards and other assets. "I’m paying it back month by month. I withdrew from my 401(k) too, but I regret nothing of it," he says.
"Having my doctorate has opened up more opportunities for me within the field as well as outside the field." Although he had not planned on changing jobs prior to enrolling in his degree program, after completing his doctorate, Vogel was offered a position as the Hearing and Speech Program Director for Hunter College (NYC). "I could not have gotten [this job] unless I had finished my degree," he says.
Understandably, not everyone is comfortable swiping their credit cards to pay tuition, which is why experts advise potential back-to-schoolers to explore federal grants or take out an educational loan from the government. While credit card interest rates can easily top 25%, federal educational loans are capped at 8.5%.
Additionally, the recently-passed Deficit Reduction Act now recognizes accredited online institutions as equal to their brick-and-mortar counterparts. That means students enrolled in distance learning programs are eligible for the same government-sponsored scholarships, grants, and loans as traditional on-campus students. Kantrowitz believes these changes will spark new monetary and academic opportunities for online learners.
"There will definitely be substantial growth in the online learning industry both in the number of students and the number of institutions in it," he comments. "Purely online schools have been somewhat hampered by the [old rules]. It’s much easier for them to grow online than in the physical world." The same can be said for academic growth, specifically if you're educated about the type of aid for which you may be eligible.
If you don’t qualify for a federal education loan, and are lucky enough to own a home, Kantrowitz recommends taking out a home equity line of credit. Offering lower interest rates than the vast majority of private lenders, as well as the ability to deduct interest payments from your taxes, a home equity credit line provides a fast, easy way to avoid getting caught in the plastic trap or subtracting from your retirement fund. Unlike IRA or 401(k) plans, money withdrawn on a home equity credit line does not count as income on the FAFSA form, meaning that no matter how much you take out, you’ll still be eligible for a check or low-interest loan from Uncle Sam.
Whether you hit the books for a bigger paycheck, a sweeter benefits package, or simply for more bragging rights, Dr. Vogel advocates thinking of your degree as a long-term financial plan, one that will pay dividends the rest of your working life.
"There were times that I wanted to give up, but my partner and my family and my friends were all saying, ‘You’ve got this far, don’t give up now,’" he says. "They were right…This is a tremendous investment and the opportunities that have come from it have been amazing."
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