We’ve all heard of the midlife crisis, but have you ever stopped to think how much going through one costs? I’m not talking about midlife crisis clichés – new cars, new spouses, or new wardrobes – these midlife “crises” are professional. For individuals considering a drastic career change involving a new education, deciding how to afford it can often make or break the decision to change paths.

As many of us are already aware, committing to an education can be a rewarding, yet expensive life decision. Like other big-ticket purchases, if you decide a new education is worth the financial cost, you’ll have to make room in your individual or family budget.

Kevin O’Leary, a working dad and husband, recently decided after spending ten years in an advertising career that he wanted to make a career switch. His new desired profession? A physician’s assistant. As one might expect, the world of advertising usually doesn’t teach the skills needed for the medical career lifestyle, so Kevin will soon be on his way back to school.

Before making a commitment to his new education, Kevin tested the waters of the medical profession by spending some time working in a hospital near his family’s home in San Gabriel, California. Once he felt sure this was the right decision, he made plans to attend a two-year certificate program in the fall of 2010.

The next step? Make room in the family budget. Here are the O’Leary family’s strategies for saving education money. They might work for you too!

1. Stockpile cash. By cutting spending, trimming down 401(k) contributions, and holding off on making contributions to their young daughters’ 529s, the family can put this money toward Kevin’s education.
2. Stay nearby. Consider local programs in your community to cut down on commuting expenses.
3. Plug tuition gaps. Check out education-specific saving plans and apply for federal loans and scholarships.

Have any other tips for fitting an education into your budget? Let us know what worked for you and your family!

In a recent blog post, we talked a little about the Federal Student Aid Programs that don’t require repayment. But, even if you qualify to receive a grant or begin a work-study program, chances are, you’ll still probably need additional funds.

Filling out FAFSA will also help determine your eligibility for a number of loans. Let’s take a look at one of my favorites:

Federal Perkins Loan
This is a loan with a super-low 5% fixed-interest rate, with the ­college serving as the lender. You don’t have to pay your principal and interest charges if you’re enrolled at least half-time.

Eligibility based on financial need. And, even though your financial need is determined by the U.S. Department of Education and the info you provide on your FAFSA, your school’s financial aid administrator has a big say in determining the amount of Perkins loans to award.

Undergraduates can qualify for up to $4,000 annually with a maximum limit of $20,000 for the whole of your undergraduate education. Graduate students can qualify for up to $6,000 with a maximum of $40,000, including undergraduate loans.

And, you start making payments nine months after you graduate, or from the time your enrollment falls below half-time status. Repayment can take up to 10 years.

The extra perk in the Perkins Loan? Students who get involved in certain fields like public, military or teaching service employment may be eligible to have all or part of their loans CANCELLED! It’s one of those “you scratch America’s back, America will scratch yours” deals.

Sounds good to me!

Anyhoo, keep on the lookout for our next installment where we’ll explore Federal Stafford Loans.