Economy Sends People to College for Better Jobs. Obama to Offer Tuition Aid

Unemployment rates are sky-rocketing, and jobs are in high demand. More and more people are turning back to traditional and online colleges to help them gain a more competitive edge in their search to maintain their family's income. Unfortunately, though, this just isn't possible for everyone.

What do you do if you've been unemployed for a couple of months, and you're already facing losing your house or apartment because you can't pay the rent or the mortgage? In this situation, how can you afford getting a loan for school? Banks are having enough difficulty lending to people with good credit, and people in these situations don't have good credit.

Neither brick and mortar or online degree universities are anxious to offer student loans to people who have lost their jobs or are already facing bankruptcy because of unemployment. Furthermore, most people rarely keep the cash on hand to pay tuition for a degree that wasn't expected. How are the tens of thousands of people who desperately need the benefit of a traditional or online Graduate Degree program going to be able to afford to go back to school?

President-Elect Barack Obama offers some hope for fixing the educational crisis. His plan includes evaluating what areas of the nation's economy are most vulnerable to future job cutbacks. He then intends to offer tuition stipends to workers in these career positions, so that they can get further education or vocational training before these jobs disappear.

Accredited online colleges and universities offer threatened workers a perfect opportunity to return to school and earn a Bachelor Degree at home without quitting their jobs or cutting back their hours. These students can continue earning an income and providing for their families by preparing for a potentially involuntary career change. Furthermore, they don't have to spend all of their time away from their family commuting back and forth from a traditional brick and mortar university.

Obama has also advocated the development of flexible education spending accounts for employees. People would be able to set aside a certain percentage of their regular paycheck for emergency tuition relief. Then, if the situation arose, the allocated funds could be tapped for education to promote the student's career.

These accounts will likely be very similar to the flexible spending accounts already in place by many employers for healthcare and childcare costs. Most of these accounts are tax-exempt, so employees would be able to budget education funds without being taxed on this income. This tax break saves more money than merely allowing a tax deduction on a portion of the education costs.

The economic future is cloudy, but one thing is sure. Mr. Obama's presidential campaign promised major reforms in education, taxes, and many other areas of the U.S. Economy. The next few months will be interesting, and change is sorely needed. Let's all hope that these major changes will be for the better!

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Author Sheila Danzig is world renowned education expert. She is currently on faculty at European-American University. For more information on accredited distance education programs, and the latest in education policies in America, visit her website at www.thecollegedegrees.com. Visit Economy Sends People to Back-to-School for Better Jobs. Obama to Offer Tuition Aid.

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