Pell grants, other student aid can help older college students

— -- As the labor market becomes increasingly competitive, millions of Americans who are out of work or worried about their jobs are trying to learn marketable skills. But when money is tight, going back to school may seem like an unaffordable luxury. The good news: Financial aid isn't just for the young. Even if you use Facebook to share pictures of your grandkids, there's a good chance you qualify for direct grants or low-interest loans.

Here's a look at what's available for adult learners:

•Federal grants. Federal Pell grants are available for undergraduate students of all ages who can demonstrate economic need. For the 2009-10 academic year, the maximum Pell grant is $5,350. Pell grants also are available for part-time students on a pro-rated basis, says Melissa Gregory, director of student financial aid for Montgomery College, a community college based in Rockville, Md.

To qualify for a Pell grant, you must fill out the Free Application for Federal Student Aid, or FAFSA. You can find an online version of the application at www.fafsa.ed.gov. If you plan to attend college this fall, Gregory says, complete the application as quickly as possible.

This year, the FAFSA includes a question asking the student if he or she is a dislocated worker — for example, laid-off workers who are unlikely to find new jobs in their field. If you answer in the affirmative, you may qualify for more aid, Gregory says.

Talk to your school's financial aid office if your economic circumstances have deteriorated since last year. The FAFSA is based on the previous year's income — a problem if you recently lost your job. Financial aid administrators have the discretion to consider major changes, such as job loss or a reduction in your hours, and recalculate your eligibility for aid, Gregory says.

The Obama administration is also encouraging states to change their rules so that laid-off workers can enroll in college without giving up unemployment benefits. Ordinarily, states require individuals who are collecting unemployment to look for a new job, which is difficult to do if you're attending college.