by Carlos Soto, CourseAdvisor
Have you been thinking about going back to school? Maybe you've considered an online degree program but have wondered if you can get financial aid for education acquired online. The answer is yes. Changes to the laws governing federal financial aid eligibility now make it much easier to pay for your online degree.
Federal Financial Aid is Available for Online Education
Until 2006, a federal rule known as the "50-50 Law" required colleges and vocational schools to offer no less than 50% of their courses in traditional campus classrooms in order to be eligible for federal financial aid money. The law had been enacted because the U.S. Department of Education believed that traditional classroom-based education was the highest quality and the easiest to keep up to established standards.
But with the increase in both the number of online degree programs and the number of schools offering college courses online, higher education providers began calling for equal access to federal funding for online education. Two years ago, the "50-50 Law" was repealed, making federal financial aid available to many more students enrolled in online college degree programs.
Accreditation, Online Degree Programs, and Financial Aid
For schools to qualify for participation in the federal financial aid program, they must be accredited by an authorized accrediting agency. When online schools and programs began to request federal funding, the Department of Education decided to apply the same accreditation condition required of traditional schools to the online schools as well. Instead of focusing on the delivery method, education officials decided to focus on the quality of the online education. Higher education experts agreed that if an online school or program was high quality enough to earn appropriate accreditation, this should also make it eligible for federal funding.
Today, if a school or program is legitimately accredited, it should be eligible for federal financial aid under Title IV of the Higher Education Act of 1965, no matter what percentage of the school's classes are offered online.
Tips for Paying for Your Online Degree
- Look for legitimate accreditation. Confirm that your school and program are accredited by an authorized accrediting agency. Check the Department of Education site for authorized accreditors and the Council of Higher Education for your school's accreditor.
- Choose a school in your state. Even if you're seeking an online program to avoid having to be on campus, your online course will probably cost less if you take it at a school in your state. Online or campus, college programs are usually much more expensive for out-of-state students than for residents. If you stay in state, you'll have the convenience of an online program and you'll save money on tuition that might have been much higher if you chose an out-of-state school.
- Choose a traditional "bricks-and-mortar" school. If you have a choice of schools, see if you can find the online program you need at a well-known college or university. A school that's been around a long time, with a traditional campus, is usually accredited by one of the more select accrediting agencies, which will certainly entitle it to federal financial aid money. What's more, after you complete your online program, the school's name and reputation will serve as "brand recognition" when you're job-hunting.
- Ask about extra fees and financial aid. When you've found an online program that you like, talk to school's admissions representative and request an explanation of all the fees and expenses you should expect in addition to tuition. Schools consider some fees and expenses as extras even though they're directly related to the class and seem as though they should be included in tuition. Also ask the admissions representative to confirm that the school can offer you financial aid and to explain what all your options are.
- Check with your employer about tuition reimbursement benefits. If you have decided to get an online degree to advance your current career, talk to your employer about tuition reimbursement benefits. Companies usually pay between 25% and 75% of your tuition so be sure you are able to cover the remaining costs. Don't forget to look into financial aid as well. It is important that the program you choose relates to your job, otherwise it is not likely that your company will pay for it.
The Bottom Line
Online education programs are not necessarily cheaper than their on-campus counterparts, especially at well-known colleges and universities. But if the program is accredited and offered at a school in your state, then financial aid and residency tuition discounts can help. And with gas prices so high right now, the convenience of your personal classroom at home may save you a lot of money that you would have spent on transportation costs.
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Click here to read more about Financial Aid
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Sources:
1) "Earning a Degree Online Just Got Easier," by Anne Fisher, CNN: Money, March 2007.
2) "Diploma Mills and Accreditation," Student Aid on the Web, www.ed.gov
Carlos Soto is a Content Editor at CourseAdvisor.
