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 can qualify for the same types of 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 Free Application for Federal Student Aid (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.

You have to fill out the FAFSA to be eligible to receive federal financial aid for online college. The FAFSA application cycle typically follows a 20-month cycle, from October 1 through June 30 (two calendar years away). However, that window can vary.

Keep in mind that 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.

Students often use multiple financial sources to fund their online classes and degrees, including scholarships, loans, and grants. In the 2022-23 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.

Private donors, organizations, state governments, and colleges all provide scholarship aid. Your grades, major, and/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.

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 for a wide variety of factors, including financial need, academic merit, special interests, and achievement.

Student loans are funds that students borrow from the government or private lenders. Federal loans from the government typically offer lower interest rates and more flexible repayment options. In contrast, 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 results, you may be able to apply for four types of loans.

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.

The financial aid application process is the same for both online and on-campus students. You can qualify 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.

Yes, generally speaking, taking classes online 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, the answer gets more complicated if you intend to take online classes as a non-degree-seeking student.

In general, non-degree students are not eligible for federal student aid. Most online schools require you to enroll in a degree program on a full-time or part-time basis to receive certain types of aid. However, there are a few exceptions to this.

The federal government may provide financial aid options if the education you’re seeking leads to a professional credential. This means, even if you’re not pursuing a traditional diploma, there are still ways to pay for your non-degree program:

Your options may be limited if you don’t qualify for federal financial aid as a non-degree student. You can apply for scholarships specifically for non-degree students, pay out of pocket, or take out a private loan from lenders like Sallie Mae, SoFi, or Discover.

Remember that private loans often have significant drawbacks: they don’t include federal protections or borrower benefits, base interest rates on your credit score, and offer no federal subsidies. Consequently, you should only consider private student loans as a last resort.