Almost all of the financial aid programs available to traditional students also are available to adult learners. In fact, the major student aid programs sponsored by the federal government make no distinctions based on age. However, it is important to understand that these programs are only available to students attending institutions accredited by an agency recognized by the U.S. Department of Education. This includes almost all traditional two- and four-year colleges and many vocational or trade schools. Be sure to find out whether the institutions that interest you participate in the federal student financial aid programs.

To learn more about the basic financial aid process and the major programs, and to search for private grants and scholarships, visit the Paying for College section of this site.

In addition to federal, state, and institutional programs open to all students, there are a number of special programs for adult learners. These programs include:

• Employer-provided assistance

• Federal tax exclusion for employer assistance

• Hope and Lifetime Learning tax credits

• Penalty-free IRA Withdrawals

• Veteran's and military benefits

• Union Programs

• Job Training Partnership Act

• State Programs for Adult Learners

Many companies will pay for their employees to take courses. Check with the human resources department where you work to see whether they offer such assistance and what, if any, restrictions they place on the aid. In some cases, the employer must review each course to determine whether it is work-related. In other cases, the employer will only reimburse students if they achieve a specified grade level in a course. This is a valuable benefit offered by a growing number of employers.

Normally, such a benefit would be considered income for tax purposes. However, under Section 127 of the tax code, workers who receive employer assistance for undergraduate courses can exclude up to $5,250 of employer-provided benefits from their income when computing their taxes. This exemption is not yet available for graduate coursework.

Lifetime Learning and Hope Tax Credits

In 1997, Congress established several new tax benefits related to higher education. The largest of these benefits were the Lifetime Learning and Hope Scholarship tax credits.

• The Lifetime Learning tax credit is targeted to adults who want to go back to school, change careers, or take a course or two to upgrade their skills, and to college juniors, seniors, and graduate and professional degree students. A family will receive a 20% tax credit for the first $10,000 of tuition and required fees . The Lifetime Learning tax credit is available for tuition and required fees less grants, scholarships, and other tax-free educational assistance. The maximum credit is determined on a per-taxpayer (family) basis, regardless of the number of students in the family, and is phased out for joint filers who have between $80,000 and $100,000 of adjusted gross income, and for single filers who have between $40,000 and $50,000 of adjusted gross income. Families may be able to claim the Lifetime Learning tax credit for some members of their family and the Hope Scholarship tax credit for others who qualify in the same year.

• The Hope Scholarship tax credit is available only to students in their first two years of postsecondary education and who are enrolled on at least a half-time basis in a degree or certificate program. This credit also is available for tuition and required fees less grants, scholarships, and other tax-free educational assistance. This credit is phased out at the same income levels as the Lifetime Learning credit. The taxpayer can claim a credit for his or her own tuition expense or for the expenses of his or her spouse or dependent children.

For more information on these new tax benefits, see the U.S. Department of Education's Families Guide to the 1997 Tax Cuts for Education (www.ed.gov/updates/97918tax.html) or the IRS website.

Penalty-free IRA Withdrawals

In the same 1997 legislation, Congress made it possible for individuals to withdraw funds from their IRA to pay qualified educational expenses. Taxpayers must pay taxes on this income, but they are not subject to any penalties for early withdrawal. For more information, visit the IRS website.

Veterans' and Military Benefits

A number of programs are available to veterans and active or reserved duty service members, including tuition reimbursement, survivors' benefits, and vocational rehabilitation programs. For detailed information on veterans' programs, visit:

• Veterans' Affairs Education Service (www.gibill.va.gov/education)

• Veterans' Affairs Vocational Rehabilitation Service

If you or a family member belongs to one of the 38,000 local unions in the U.S., there may be tuition benefit programs, grants, or scholarships available for higher education programs.

The AFL-CIO website has a special section, "Help With College Costs", that allows visitors to search for scholarships sponsored by national and international unions. Check with your local union office or contact the AFL-CIO for more information about how these organizations can help make college possible for you.

Workforce Investment Act

This federal legislation funds over 50 employment, training, and literacy programs, including job training programs at community colleges and local community-based organizations for low-income adults and youth and displaced workers. If you think you might qualify for such a program, check with your local community college to see what they offer. To learn more about the Workforce Investment Act, visit: www.nifl.gov/lincs/collections/policy/wia.html.

State Programs

Some states offer special programs specifically for adults. To locate your state's higher education agency and link to their website, visit www.ed.gov/offices/OPE/agencies.html.