Dollars & Sense: Reducing the Cost of an Online Degree

By Brittany S. Moss

So, you have decided to get your degree online. Like most degree-seeking individuals, the first question that comes to mind is, how am I going to pay for this? No worries, as long as you are enrolled in an eligible degree program, there are payment options for you.

Several types of financial aid available to online degree program students. Here are some financial options for qualified students:

  • Federal Pell Grant- These do not need to be repaid. They are awarded to undergraduate students who do not have their degree.
  • Academic Competitiveness Grant(ACG)- Available for some first and second academic year students. It will provide up to $750 for the first year and $1,300 for the second year.
  • SMART grant- Will provide up to $4,000 for a student’s third and fourth years of undergraduate studies majoring in physical, life or computer sciences, mathematics, technology, engineering or a foreign language.
  • Award Letters- If a student is eligible for any of the above degree programs, they will be notified in an award letter. The amount and dates of payment will be included in the letter.
  • FSEOG- This grant is for students with exceptional financial needs. This grant, like the Pell, does not need to be repaid. Students who qualify for this grant have the lowest Expected Family Contribution (EFC).
  • Federal Subsidized Stafford Loan- A low-interest, need-based federal loan by a private lender. The federal government pays the interest on the loan while the student is enrolled. Must begin repaying this loan six months after the student ceases enrollment.
  • Federal Unsubsidized Stafford Loan- A low-interest, non-need based federal loan by a private lender. Interest accrues while the student is in school.
  • Federal PLUS Loan- Low interest, non-need based federal loan made by a private lender. The borrower is the parent of a dependent student.
  • Federal Perkins Loan- A low-interest loan for students with exceptional need.
  • Scholarships- All students are eligible to apply for scholarships through state, federal and private agencies.
  • As demonstrated, there are many options for funding your online education. For more information on various financial aid options visit www.fafsa.ed.gov or call the financial aid office of the online university of your choice to learn more about their specific financial aid opportunities. You can also learn more about your options on UniversityDecisions.com's college financial aid options page.