FAFSA and Financial Aid for Online School
Whether you’re taking classes online or on campus, financial aid can help cover the cost of college. Online students attending accredited schools qualify for the same financial aid, including federal aid, as traditional on-campus students.
Accredited colleges and universities offer various financial aid options for online learners, including loans, scholarships, and grants. A good place to start is checking your FAFSA eligibility.
Keep reading to learn how to get financial aid for online school, when you can apply for aid, and how to get the funds needed to earn your degree while minimizing your student debt.
When Does the FAFSA Open for 2025-26? When Does It Close?
You have to fill out the FAFSA to be eligible to receive federal financial aid for online college. The FAFSA application cycle normally runs from October 1 through June 30, but that window can vary.
- When the FAFSA Opens: The application cycle for the 2025-2026 FAFSA opened on November 18, 2024.
- When the FAFSA Closes: The FAFSA deadline for the 2025-2026 academic year is June 30, 2026.
Keep in mind, the longer you wait to apply, the less likely you are to receive financial aid. Additionally, some states and colleges might have earlier deadlines for their aid programs than the federal deadline. It’s worth noting that the FAFSA deadline is the same for undergraduate and graduate students.
Do Parents Need to Fill Out the FAFSA for Students Over 18?
It ultimately depends on whether you’re considered an independent or dependent student. There are various criteria for this. For example, if you’re over 24, you’re likely independent, so there is no need to include parental information on your FAFSA. But if you’re under 24, you generally can expect to include your parents’ financial details.
4 Types of Financial Aid for Online School
Students often use multiple financial sources to fund their online classes and degrees, including scholarships, loans, and grants. In the 2022-2023 school year, nearly 87% of first-time, full-time undergraduate students at four-year colleges received some type of financial aid, according to the National Center for Education Statistics (NCES).
Each type of financial aid can have varying requirements and limitations. We’ll walk you through some of the most popular financial aid options for online college.
1. Scholarships
Private donors, organizations, state governments, and colleges all provide scholarship aid. Your grades, major, or financial need can qualify you for a scholarship. You can also narrow your pool of school options by looking for scholarships specifically for students in a certain major or demographic, such as scholarships for women.
“Explore organizations or foundations for private scholarship opportunities that are specific to your program,” advises Raquel Arevalo, assistant director of financial aid at Rice University.
2. Grants
The federal and state governments, as well as colleges and nonprofits, offer grants. Unlike loans, grants do not need to be repaid. For instance, federal Pell Grants provide low-income students with funding for college that doesn’t need to be repaid unless they leave college early.
Typically, grants are awarded on the basis of financial need. Scholarships, however, can be granted due to a wide variety of factors, including financial need, academic merit, special interests, and achievements.
3. Student Loans
Student loans are funds students borrow from the government or private lenders. Federal loans from the government typically offer lower interest rates and more flexible repayment options. Private loans may have higher interest rates and stricter repayment plans.
When choosing a loan, consider the terms and interest rates. Based on your FAFSA, you can apply for four types of loans.
- Subsidized: Subsidized loans are need-based. The government pays interest during school or deferment.
- Unsubsidized: Unsubsidized loans are not based on financial need. Borrowers handle all interest on unsubsidized loans from the start, even while in school.
- Direct PLUS: Direct PLUS loans are for parents and graduate students and require a credit check.
- Direct consolidation loans: Direct consolidation loans allow borrowers to merge multiple federal loans into one, making repayment more straightforward.
Undergraduates who can demonstrate financial need can apply for subsidized loans, which don’t accrue interest during college. Unsubsidized loans, on the other hand, are for students who are not necessarily in financial need. These loans do not collect interest while in college.
4. Work-Study Programs
Federal work-study programs allow online students to get paid to work part time on or off campus. Often, these positions allow students to engage in community service while earning money for college.
“Online college students are eligible for work-study programs — they just have to complete the FAFSA application, indicate that they have interest in the program, and meet the school’s eligibility,” said Arevalo.
How to Apply for Financial Aid as an Online Student: 3 Steps
The financial aid application process is the same for both online and traditional students. You will be eligible for the same type of funding, including grants and loans, as long as you complete the FAFSA application and the school is accredited.
Your college’s financial aid office can offer guidance on the aid options available to pay your tuition. The steps below ensure that you apply for all eligible funding.
1. Check Your Eligibility
The federal government sets basic eligibility requirements for financial aid. As an online learner, you can qualify for all the loans, scholarships, and grants available to traditional students.
Your eligibility for aid often hinges on your financial need — what you and your family can contribute to your education. To qualify, you also must hold U.S. citizenship and pursue an accredited degree or certificate program.
2. Fill Out the FAFSA
The FAFSA is the first step to getting federal financial aid as an online student. You’ll fill in basic information about yourself and answer questions about your family’s financial situation.
Your application will determine your eligibility for financial aid and how much you can receive, so make sure you answer correctly. It’s common for online colleges to require a completed FAFSA with a student’s admission application. All students need to create a StudentAid.gov account to complete this free form.
3. Submit Applications
To complete the FAFSA, you must submit your Social Security number (or Alien Registration Number if you do not hold U.S. citizenship). Also, expect to submit federal income tax returns, with the option to transfer your filing directly from the Internal Revenue Service.
The FAFSA also requires bank statements, income dates, and bank account balances. If you qualify as a dependent student, your parents or legal guardian must submit their financial information.
Frequently Asked Questions About Financial Aid for Online School
Pell Grants can be used for any qualified online or on-campus program. You do not need to repay these funds. The federal government allows you to receive Pell Grants for six years, or 12 school terms.
Yes, online degrees cost less, on average, than getting a degree on campus. According to the NCES, online students pay a median cost of $7,926 in tuition and fees yearly, while on-campus students pay $12,250. Online students also save on room, board, and related expenses. Many online colleges prioritize affordability to better attract and support online students.
Yes, the FAFSA can be used to find aid for some certificate programs. The U.S. Department of Education provides federal financial aid in the form of loans, grants, and work-study opportunities that can be used to cover certificate programs at accredited colleges.
You cannot always transfer your financial aid from one college to another. Check with your new school to make sure that you can receive financial aid, and see if you need to file withdrawals to cancel your payments.
You’ll also need to update your FAFSA with your new school. Keep in mind that transferring to another school could affect the amount of aid you receive. Based on tuition costs and where you transfer, you may receive less aid, and doing so could also shift your loans into repayment status.
Taking classes online typically doesn’t impact your eligibility for federal financial aid, as long as you’re enrolled in classes at an accredited college or university and the program is eligible for federal funds.
While some programs, such as certificate programs, may not be eligible, most online degree programs at accredited schools offer the same financial aid opportunities as their on-campus counterparts. However, if the school itself is unaccredited, you won’t be eligible for federal aid, regardless of whether the program is online or in person.
You may find that some colleges limit the types of financial aid available to online learners. For example, you may need to attend school full time to receive certain aid. Generally speaking, though, online students qualify for the same federal financial aid as their on-campus counterparts.
How to Find Scholarships for College
Find scholarships using our list of scholarship indexes, directories, and databases, and get some advice on applying all in one place. There are billions of dollars in scholarship funding out there; find yours!
