For prospective students considering online college programs, cost may be a concern. One common misconception is that financial aid for online degree programs is limited compared with aid for in-person programs.
However, most colleges structure the financial aid process for distance students identically to that of their in-person peers. Students in online programs can take advantage of federal, state and institutional financial aid, which can come in the form of merit- or need-based scholarships.
[See: Top 20 Online Bachelor’s Degree Programs.]
As students weigh their financial aid options for online courses, they should:
— Make sure a school is accredited.
— Fill out the FAFSA each year to earn federal aid and work-study eligibility.
— Note financial aid deadlines and apply early.
— Research or talk to financial aid offices about additional aid like scholarships.
Here are some other considerations for those seeking assistance paying for an online college program.
Does Financial Aid Pay for Online Courses?
When researching online programs, students must choose one that is accredited by the U.S. Department of Education to take advantage of federal financial aid, experts say.
Students can check an institution’s website to ensure their program and school are eligible for federal aid, says Michelle Campbell, director of financial aid at SUNY Empire State College. Or they can search for their college in the Department of Education’s Database of Accredited Postsecondary Institutions and Programs.
Eligibility for federal financial aid is determined by the Free Application for Federal Student Aid, or FAFSA. Some colleges and states also use information from the FAFSA to award their own aid.
Questions revolve around income rather than “modality,” so the form is identical for both online and in-person students, says John R. Watret, chancellor of Embry-Riddle Aeronautical University–Worldwide.
Students enrolled in online courses must be careful to meet other requirements for federal financial aid such as being a citizen or an eligible noncitizen and maintaining satisfactory academic progress. To receive most financial aid, experts say, students must be degree-seeking or certificate-seeking and meet the institution’s minimum enrollment requirements.
Adult Students May Qualify for Aid
Adult students pursuing an online degree should be aware that in addition to these factors, financial aid eligibility may also be affected by their income. But experts advise students not to assume they won’t qualify for any aid.
[READ: Going Back to College as an Adult: What to Consider.]
“You never know what your circumstance may be in the coming year,” says Krista Ringler, associate vice provost and director of scholarships and financial aid at North Carolina State University. “Perhaps you’re not expecting to need assistance a month or so before enrolling, but you never know when a job loss, a major medical event, a natural disaster or something else changes your financial circumstance. And if you’ve already applied for financial aid, you’ve laid the groundwork to be able to have adjustments made in cases of special circumstances.”
State residency will also help determine the types of financial aid a prospective online student may receive.
Students should note financial aid deadlines. The FAFSA opens Oct. 1 of each year, closing 21 months later on June 30. But state and institutional deadlines can be much earlier, such as in October or November.
To avoid hiccups in the aid process, “students should apply (for aid) well in advance of the term start date so that they know in advance of any requirements they must satisfy and so that they can plan accordingly,” Campbell wrote in an email.
Another option for financial aid is scholarships. Some colleges and private foundations limit funding to in-person students, so it’s important to research application requirements. Students should also consider applying for local scholarships, experts say. You can use websites such as Scholarships.com or Chegg.com to start the scholarship search and determine the best fit.
Work-Study for Online Students
In addition to grants, loans and scholarships, online students often can access aid via the federal work-study program by completing the FAFSA.
Work-study is a form of self-help aid that requires students to work for their award amount. Students learning in person tend to seek on-campus jobs, such as working in the college library or dining hall. Online students, however, may have slightly different options for a work-study job, depending on residency and the opportunities available at a given time.
[Read: 10 Affordable Online Colleges for Out-of-State Students.]
Not every online student lives far from the college they are attending, meaning an on-campus work-study job may still be an option, Ringler says. But students who don’t live near campus should talk to their college’s financial aid office to learn about opportunities elsewhere.
“During the pandemic, many schools had to become a little more creative about remote working opportunities for students,” Ringler says. “And in some cases, those types of jobs have persisted in that there are remote opportunities for federal work study.” Those remote jobs vary by school but may include working on projects with faculty or tutoring online.
More Financial Aid Advice for Online Students
Before writing off any program or institution, Cheryl Storie, associate vice president of financial aid at the University of Maryland Global Campus, encourages prospective online students to take their time completing the FAFSA and rely on resources such as the IRS Data Retrieval Tool, which automatically shares tax information with the Department of Education.
“Applying for financial aid is not as difficult for most students as it is often portrayed. Take your time, read the directions carefully and complete the form,” Storie wrote in an email. “Don’t be afraid or embarrassed to ask your school’s Financial Aid Office questions or assistance if you need it, that’s what we’re there for.”
Trying to fund your online education? Get tips and more in the U.S. News Paying for Online Education center.
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Financial Aid for Online Programs: What to Expect originally appeared on usnews.com
Update 01/25/23: This story was published at an earlier date and has been updated with new information.
