Financial constraints are among the top reasons for students not completing their college education. It is apparent that many online colleges facilitate students’ financial aid of various types from various sources. As per our findings, the structure of financial assistance for online students is also identical to on-campus students in colleges.
According to the National Center for Education Statistics (NCES), 86 percent of students enrolled in 4-year full-time degree programs in 2017-18 obtained financial aid. This trend has been increasing since the academic year 2000-01, where only 75 percent received financial assistance.
Based on the above, you should not hesitate to explore financial aid options when considering enrolling in online colleges.
Types of Financial Aid Available To Online Students
All students enrolled in accredited online colleges are encouraged to complete the Free Application for Federal Student Aid (FAFSA) regardless of the widely held notion that it is a complex process. It will be best to remain patient, read, and adhere to all directions and requirements. Hurdles, in the beginning, maybe a blessing in the future.
The following is a summary of types of financial aid you can explore:
- Federal financial aid: can be a combination of grants, work-study, and loans.
- State-sponsored: grants and scholarships awarded by the state education agency.
- College-sponsored: grants, scholarships, loans, and tuition breaks provided by the college.
- Private sources: loans and financial assistance from organizations, associations, financial institutions, and religious bodies.
On top of the above, you can also explore scholarships awarded to online students pursuing online bachelor’s or graduate degrees, for example, scholarships from Learn.org.
Eligibility Checklist
Working/adult students should complete the FAFSA application to determine the eligibility and type of financial aid they can qualify for, regardless of their income level. It is best not to assume that you are not qualified because you have a job or have been working.
You may use the following points as a guide:
- You are enrolling in an accredited online program by the U.S. Department of Education (for federal aid).
- Check the college’s website to ensure the institution and program is eligible for federal aid – visit the Database of Postsecondary Institutions and Programs (DAPIP)
- Meet all eligibility requirements, e.g., academic qualification and citizenship criteria.
- Apply way in advance of the term commencement to be certain if any further criteria need to be met and to plan accordingly.
- You must be seeking to enroll in a degree or a certificate program.
- You must meet the institution’s minimum enrollment requirement.
- Working/adult students must understand that course enrollment and program flexibility will influence the type of financial aid awarded.
Their income also influences financial aid eligibility for working/adult students. However, this limitation is not to deter application.
Total Financial Aid Awarded
It is interesting to note that billions of dollars have been awarded in the academic year 2017-18 as financial aid to students:
- Federal aid: $154 Billion
- Institutional aid: $60 Billion
- Private: $16 Billion
- State government aid: $11 Billion
On top of financial aid, most online colleges also offer various reductions in fees and tuition for online students by passing on cost-savings to students.
