Earning an online degree can come with certain expenses like tech fees or a per-credit distance learning fee. Those costs can add up, so it’s important to consider the full financial commitment before enrolling.
Online programs are typically more affordable than in-person programs, says Michael Novak, dean of enrollment management at Embry-Riddle Aeronautical University–Worldwide, “because they eliminate significant expenses such as housing, commuting and campus fees.”
Online students also have more flexibility to live in more affordable areas “and avoid many of the extra costs associated with attending a physical campus,” he says.
If you’re considering an online degree, it’s best to weigh all of the financial factors before enrolling. Here are 10 things to consider.
Tuition
Online tuition is often per credit or course instead of per term. Students should check transfer credits and consult an adviser to outline their degree path.
For example, the University of Iowa’s Tippie College of Business online MBA program has 15 courses total and costs $2,250 per course, so total tuition is $33,750 for the program, says Jennifer Blackhurst, associate dean for graduate professional programs.
Some online programs have tiered pricing where the cost per credit decreases when you take more classes at the same time.
You should also compare in-state vs. out-of-state rates. For example, an online bachelor’s degree at the University of Florida is $129 per credit for in-state students and $552 per credit for out-of-state students in 2024-2025, per the school’s website. However, some online programs, like Tippie, have a single tuition rate for residents and nonresidents.
“Every program is different,” Blackhurst says.
[Read: How to Pay for College Using These Overlooked Strategies.]
Extra Fees
Most online programs charge various fees on top of tuition.
“Additional fees may apply such as Student Government Association, graduation fees, and user fees such as but not limited to application fees, transcript fees, etc.,” Novak says. “These can vary by university, so it’s important for students to consider these additional costs.”
Oregon State University‘s Ecampus charges all new undergraduate and graduate students a one-time $350 matriculation fee. The University of Wisconsin–Green Bay charges a $25 per-credit distance learning fee.
Other payments can include assessment and technology fees. UF Online requires, per credit hour, a $5.25 financial aid fee, a $5.25 technology fee and a $6.76 capital improvement fee, according to the school’s website.
“Students should make sure they understand the cost of the total program,” Blackhurst says.
Employer Reimbursement
Some companies may help pay for employees’ online degrees, so prospective students should find out if their employer offers tuition reimbursement.
For example, through Papa John’s Dough & Degrees program, eligible corporate team members can get tuition assistance to earn their associate, bachelor’s and master’s degrees at education partners like Purdue University–Global, eCornell,University of Phoenix and the University of Maryland Global Campus.
[See: How to Balance Work and Online College Classes]
Required Travel
Some online programs may have onsite requirements.
“Online programs do not typically have a residency requirement,” says Jack Wang, college planning strategist and wealth advisor for Innovative Advisory Group. “Some graduate MBA and graduate certificate programs are low residency, such as requiring one weekend to be spent on campus for an in-person class or event.”
For example, Indiana University–Bloomington’s Kelley School of Business online MBA requires two in-person residencies on campus.
“For these required in-residence experiences, students pay for tuition and travel expenses to and from the location and the $1,000 course fee for each residency,” says Sarah Wanger, executive director for the Kelley Direct Online MBA.
Transfer Credits
Many online programs allow students to transfer credits, which can help cut costs and time to finish your degree.
Embry-Riddle has a flexible transfer credit policy that allows students to transfer credits from accredited institutions, Novak says. “Students may review how many credits will transfer to reduce the cost of your degree.”
By comparison, Kelley Direct does not allow students to transfer credits, “given the required program core and foundations courses and the opportunity to obtain a specific major and dual degree specialization,” Wanger says.
So, checking whether an online program allows you to transfer credits is important if you’re “considering transferring from a traditional residential program or from one online program to another,” Novak says.
The FAFSA
Both online and on-campus students can apply for financial aid via the Free Application for Federal Student Aid, but online students should check that their program is accredited by the U.S. Department of Education.
“No matter what type of program students are considering, they should complete the FAFSA for federal financial aid eligibility,” Novak says.
Online students may be eligible to apply for state scholarships, state grants, university institutional grants and scholarships, and external scholarships, experts say.
[Read: Tips for Deciding Whether Online College Learning Is Right for You]
Scholarship Opportunities
Not many schools offer scholarships geared to online students only, but students should search scholarship databases online.
“Unlike many online programs, Kelley Direct applicants can apply to a variety of program scholarships to help bring down the total cost of tuition,” Wanger says. “Most online programs do not provide scholarships so this is a huge consideration for prospects to ask about.”
Loans and Grants
Online students pursuing an associate or bachelor’s degree may be eligible for the Pell Grant, which gives low-income students a maximum of $7,395 for 2025-2026. Students also have access to private and federal borrowing options.
“Online students should complete FAFSA to access federal financial aid, including loans and grants,” Novak says.
Additional Technology Expenses
There may be extra tech expenses like buying a laptop, a headset and upgrading to high-speed internet for video or Zoom lectures.
“Some costs that students may incur could potentially include software or technologies fees, and of course, the student needs Wi-Fi at home,” Wang says.
Program Amenities
Among undergraduate students who exclusively took distance learning in fall 2021, about 3.2 million were enrolled in colleges located in the state where they lived compared with 1 million enrolled in colleges in a different state, according to the National Center for Education Statistics.
Enrolling in an online school in your state can reduce costs, since you’ll get in-state tuition rates and access to on-campus resources, including in-person meetings with career advisers.
“From a cost perspective, it’s hard to beat an online degree,” Wang says.
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What to Consider Before Paying for an Online Degree originally appeared on usnews.com
