Types of Financial Aid for Online Colleges

The nature of college students has changed in recent years. While many still attend on-campus programs fresh out of high school, around 40% of today’s college students are considered adult learners, and that number continues to grow.

According to the National Center for Education Statistics, 15% of undergraduate students were enrolled in fully online programs in 2019, and in 2021, that number had jumped to 28%. In addition, 61% of students reported taking at least one online course in 2021. Though more recent data is not yet available, these facts show an upward trend in the number of online college students.

There are many reasons students prefer online degrees. Sometimes, flexibility is necessary, especially for adult learners. Others find they learn better through online education where they can learn at their own pace. Students can also save money with online education: no commute costs, no campus room and board, fewer necessary supplies, etc.

Yet the cost of an online degree is still substantial. U.S. News and World Report estimates the average cost for an online bachelor's degree is nearly $41,000 for in-state public schools and over $62,700 for private schools. This figure points to a need for financial aid for students in online programs. Can you get financial aid for online college? The answer to this common question is yes.

Types of Financial Aid for Online Colleges

Oftentimes, students going back to school assume that financial aid is not available for online degree programs, but this is not true. Most students enrolled in online programs receive the same federal, state, and private financial aid options as traditional students These aid options cover tuition, books, and fees, just as they do for on-campus students. Here are some of the financial aid options available for online students.

1. Federal Financial Aid

Through the Free Application for Federal Student Aid (FAFSA), students may receive federal grants and loans. The FAFSA calculates awards based on the student's income and family size. All students, regardless of age, may qualify for federal awards. It also opens the door for federal work-study programs, which are available for online students even if they do not live near their school.

Students need to attend an accredited university in order to get federal financial aid for their online degree. Then, they must submit the FAFSA to determine their financial aid award amount, so the school chosen has an impact on this type of financial aid. Even if you do not think you qualify for an award through federal programs, filling out the FAFSA is still important. Many scholarships and school-based financial aid programs require it as a condition of application for other programs.

2. State Aid Programs

Many states offer grants and loans to students in addition to the awards received from the federal government. Every state has its own funds and process for distributing aid, which often consists of grants, scholarships, and loans. Depending on the location of the school and student, this can be a valuable source of income for college.

Some states, including California, only require that you complete a Free Application for Federal Student Aid (FAFSA®) form if you are a U.S. citizen, permanent resident, or eligible noncitizen. This is because many California state aid programs, such as the Cal Grant program, use FAFSA information to determine eligibility.

However, if you are an undocumented student or meet the eligibility requirements for the California Dream Act, you would fill out the California Dream Act Application (CADAA). The CADAA allows undocumented and nonresident students who meet certain criteria to apply for state financial aid for college. This further expands access to higher education and opportunity for long-term improved financial benefits.

3. Employer Assistance Programs

For many adult learners, employer assistance programs are an excellent way to pay for online school. These programs offer tuition help for employees who want to go back to school through scholarships and tuition reimbursement. Students who are working, even if they are working part-time, should inquire about these programs.

Education benefits are beneficial for both employees and employers. Employers can offer their employees up to $5,250 annually for education, without it being included as part of the employee’s taxable income. Moreover, employers can deduct these educational expenses as a business expense, exempting them from FICA or FUTA payroll taxes for these benefits. Additionally, when your employer knows you are attending school, they may provide increased flexibility in your schedule. It's a win-win situation for everyone involved!

4. Private Scholarships

Private scholarships come from businesses, nonprofits, and even wealthy individuals in the community. You can use the Department of Labor’s Careers One Stop to search for vetted scholarships. Students can search for scholarships in their degree field based on any disability or medical condition they have, using their nationality or race, and even using their location. Searching online for local scholarship opportunities is also a good choice, especially if the search is targeted for adult learners.

5. Work-Study Programs

While a bit more challenging for adult learners who may already be in their careers, work-study programs offer an option to pay for online education. Traditionally, work-study programs require the student to work on campus where they are attending school. However, online programs may offer remote positions for work-study students. To learn about these opportunities, students should contact their school’s financial aid office.

6. Student Loans

Yet another way to pay for online college is through student loans. Loans are borrowed funds that cover the cost of education. These have to be repaid, but a higher income potential can make it worthwhile to borrow money to cover the deficit between other financial aid and the cost of tuition.

Student loans are either government-based or private. Private loans tend to be more costly through fees and interest rates but are an option for students who do not qualify for federal loans. Many federal loans are subsidized, which means interest does not start building until the repayment period starts, often after the student completes their degree.

Creative Ways to Reduce the Cost of an Online Education

In addition to finding financial aid, students enrolled in online education may be able to lower their costs by earning credits in other ways. For example, some schools allow work experience to stand in for coursework in specific classes. Others take College-Level Examination Program (CLEP) tests in exchange for credit. In programs like communications degrees or art degrees that rely heavily on portfolio assignments, submitting a professional portfolio may earn a student some credits for their degree. To take advantage of these types of programs, look for a school, like UMass Global, that offers credit for prior work experience.

Flexible Bachelor’s Degree Programs Designed for Working Adults at UMass Global

At UMass Global, we believe everyone should have the chance to pursue education, no matter their financial situation. That's why we're committed to breaking down barriers to higher education. Our low-cost competency-based programs offer a solution for those seeking affordable tuition fees.

In our School of Business & Professional Studies, we offer UMass Global MyPath, a range of self-paced courses tailored for adult learners. With MyPath, tuition is a flat fee per CBE academic year, giving you the freedom to take as many courses as you can handle within a 24-week period. Plus, all materials are provided digitally, saving you even more.

These courses provide flexibility for busy schedules, but require more discipline and intrinsic motivation. If you enjoy this educational format then MyPath may be right for you. Explore UMass Global’s bachelor’s degree offerings to jump-start your career, or apply today.