What Are The Financial Aid Options Available To Online Students?

Earning your degree online has numerous advantages, from convenience to cost savings, but financing your studies can still be a daunting prospect for many. Studies have shown that more than half of families think scholarships are only available for students with exceptional grades or abilities or did not apply because they were unaware of available scholarships (https://www.salliemae.com/about/leading-research/how-america-pays-for-college/). However, in the 2023-2024 academic year, 27% of students used scholarships and grants to pay for college, while 37% used parent income and savings. If you want a better future but worry that you might not be able to afford an online degree, the following tips can help you make an informed decision about your financial options.

What Financial Aid Options Are Available To Online Students?

The following are some of the most common financial aid options available to online students in the United States. 

Federal Financial Aid

Students can use federal financial aid by filling out the Free Application for Federal Student Aid (FAFSA). The process helps determine how much financial aid a student qualifies for and how eligible they are for federal need-based grants. Completing the form is free and can lead to students being offered grants, work-study, and loans. Many states use the FAFSA for their financial aid programs, but students must submit their application on time to be eligible.   

State Aid

Although many states use the FAFSA, the financial aid offered by different states varies and may have additional requirements. States distribute aid differently, some providing it directly to others while others indirectly do so via colleges and universities. In addition to grants, some states also have merit-based grants, scholarships, educational loans, or tuition waivers available. 

Institutional Aid

Some colleges and universities offer students their own financial aid packages, such as scholarships and grants. These tend to be either merit-based or based on financial need. It is a common misconception that online institutions do not offer institutional aid, which is not true. 

Private Loans

Many students turn to private loans to cover the cost of their tuition, which are available from banks, credit unions, or other types of lenders. However, these loans' higher interest rates and less flexible repayment terms make them a riskier option than federal loans. 

What Are Scholarships?

Scholarships tend to be the most lucrative option for students to earn their degrees as, unlike other forms of financial aid, there is typically no requirement to repay anything. There are a number of different scholarship options available, including the following:

General Scholarships

All students can apply for general scholarships if they are available, but these tend to be based on things like academic performance or financial need. Numerous websites are available to assist students with finding scholarship options that apply to their situations. 

Nontraditional Student Scholarships

Scholarship options are also available for nontraditional students, such as adults with work and family responsibilities who want to continue their studies. Organizations such as ASIST (Adult Students in Scholastic Transition) offer nondiscriminatory educational scholarships for nontraditional students who are past high school age or who might need retraining due to workplace changes. Typically, nontraditional scholarships are available to students over a certain age, first-generation students, single parents, or those who took a break from education before returning. 

Field-Specific Scholarships

Students interested in pursuing specific fields like education, technology, or healthcare can benefit from field-specific scholarships. Federal or state governments, corporations, or private institutions can offer these scholarships. Field-specific scholarships are highly targeted, so engineering students might find scholarships for fields such as material science or chemical engineering.  

Employer-Sponsored Scholarships

Some employers offer scholarships to their employees or family members of employees. Some, like the scholarship opportunities offered by Intel, are available to students worldwide as long as they are the children of blue-badge Intel employees. Numerous employers have these types of scholarship opportunities, so check with your company if you or your children are eligible for any scholarships.

How To Find Scholarships?

There is no shortage of places online to check for scholarship options, but students can also contact a number of accessible sources of information directly. These include the financial aid office at a college or university, federal agencies, foundations, community organizations, local businesses, organizations in your field of interest, and your employer or parents' employer. It is important to remember that most scholarships have a deadline for applications, which can be as early as a year before the start of the degree program, so be sure to get started with your search as soon as possible. 

What Should I Watch Out For When Trying To Finance My Online Degree?

Like any industry where money is involved, plenty of scammers are trying to take advantage of students trying to finance their online degrees. Watch out for people or businesses offering to help you find financial aid by charging you a fee and making promises that seem too good to be true. Some are selling information that is readily available for free, while others make promises that guarantee you'll get aid, which is not always the case. Also, be wary of websites offering to help fill out the FAFSA form for a fee, as free help is available. Finally, make sure to keep your personal information safe when applying for aid to reduce the risk of identity theft.  

Conclusion

Many students struggle with the financial burden of paying for their studies, even after completing their degrees. However, this burden can be reduced by using the information in this article to understand what type of aid is available to you and how you can make your education more affordable. While it still requires a lot of research and diligence on your part, the result is definitely worth the effort.