Paying For Your Online Degree
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.
School accreditation is essential for financial aid eligibility
With the dramatic increase in the number of schools offering online programs, federal rules about the use of federal financial aid have been changed to include accredited online degrees.
How'd that happen?
Under Title IV of the Higher Education Act of 1965, any higher education institution that wants to take part in the federal financial aid program must be accredited by a legitimate, authorized accrediting agency. When schools with online degree programs began asking if they could also qualify for federal funding, the Department of Education decided to apply the same accreditation requirement to online degree programs that it already places on traditional schools. Instead of online vs. campus, the focus is now on the quality and accreditation of online education. Higher education experts have agreed that if a school and its online degree program are high-quality enough to earn appropriate accreditation, they should also eligible for federal funding.
You can use Pell Grants & federal financial aid to pay for an online degree
Today, if a school and its online degree program are legitimately accredited, and if the school chooses to participate in the federal financial aid provider program (most schools do), they should be eligible for federal financial aid. Likewise, as long as you enroll in a legitimately accredited Title IV online degree program, you may be eligible for federal financial aid such as Pell Grants, other federal academic grants, and federal student loans.
5 Tips for paying for your online degree
- Look for legitimate accreditation. Confirm that your school and online degree 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. Online or campus, college programs are usually much more expensive for out-of-state students than for residents. Even if you're seeking an online degree program to avoid having to be on campus, your online degree course will probably cost less if you enroll in a school in your state. If you stay in state, you'll have the convenience of an online program and you'll save money on tuition.
- Choose an online degree program offered by a traditional "bricks-and-mortar" school. If you have a choice of schools, see if you can find the online degree 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 degree 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 ought to 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.
Online degree costs vs. campus: where the difference lies
Tuition for online degree programs is 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 residency discounts and financial aid can help. Where you will save money is in transportation costs and time. The convenience of your personal classroom at home could save you money that you may have spent getting to and from campus, and doing your classwork on your own schedule may prevent you from having to cut into your work hours to attend school.
Get matched to an online school that works for you
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 Research by Carlos Soto, CourseAdvisor Content Editor