How to Pay for Online College: Financial Aid, Scholarships and Employer Benefits

The sticker price of a degree is rarely the full story. Most online students use a mix of funding sources, and many never apply for aid they qualify for. Here is a practical order of attack.

Start with the FAFSA

The Free Application for Federal Student Aid (FAFSA) is the gateway to federal grants, work-study and federal student loans. Many schools also use it to award their own aid, and some states use it for state grants. It is free at studentaid.gov, so never pay a website to file it for you. The form opens each year, and some state and school deadlines come early, so file as soon as you can and check the dates for the school and state you are interested in.

Prefer grants and scholarships before loans

Grants and scholarships do not have to be repaid. Federal Pell Grants are need-based, and states and schools offer their own. Scholarships come from schools, employers, professional associations, community groups and foundations. Search a school's financial aid page, and ask its financial aid office directly which awards are open to online students.

Ask your employer

Many employers offer tuition assistance or reimbursement, and some partner directly with specific colleges. Ask human resources what is covered, whether the program has to relate to your job, how much is paid up front versus reimbursed, and whether you must stay with the company for a set time after you finish. Get the policy in writing before you enroll.

Check military and veteran benefits

Active-duty service members, veterans and some family members may qualify for tuition assistance, the GI Bill or other benefits. Many schools have a military advising office that can explain how your benefits apply and may offer a reduced tuition rate.

Transfer credits and prior learning

Every credit you can transfer or earn through approved prior-learning assessment is a course you do not have to pay for. Ask for a credit evaluation before you commit.

Borrow carefully if you need to

If you need loans, federal student loans generally come with more borrower protections than private loans. Borrow only what you need, and estimate your monthly payment before you sign. A good rule of thumb is to avoid borrowing more in total than you expect to earn in your first year after graduating.

Questions to ask every school

• What is the total estimated cost of the full program, including fees?
• Which scholarships and discounts are available to online students?
• Do you accept employer billing or tuition reimbursement?
• How many of my existing credits will you accept?

Financial aid rules, award amounts and deadlines change from year to year. Confirm current details with the school and at studentaid.gov, and remember that this article is general information, not financial advice.