Financial aid for an online degree is available in the same way it is available for on-campus degrees, provided the online degree is offered through an accredited school. Fill out a FAFSA or Free Application for Federal Student Aid to find out what types of financial aid for an online degree that you qualify for.

There are two types of financial aid that you do not have to repay and they are grants and scholarships.

Federally funded grants are obtained by completing a Free Application for Federal Student Aid (FAFSA). Types of grants:

The Federal Pell Grant is awarded to undergraduate students based on their financial need and students can receive an award maximum of $5,350 per academic year.

• The Federal Supplemental Educational Opportunity Grant (FSEOG) is also for undergraduate students but only those with exceptional financial need. The FSEOG awards a maximum of $4000.
• For students planning to pursue a degree in science or math, the National Science & Math Access to Retain Talent or National SMART grant is available. National SMART grants award up to $4,000.
• First and second year students who successfully completed and excelled in specific high school courses are eligible for an Academic Competitive Grant (ACG). First year students can receive a maximum of $750 and second year students up to $1,300.
• Students planning to pursue a degree in teaching can consider the Teacher Education Assistance for College & Higher Education Grant (TEACH). As long as students are willing to commit to working as a full-time teacher in a low-income area after graduating, they can receive up to $4,000.

Scholarships are another excellent form of financial aid since, like grants, they do not have to be repaid. There are scholarships offered through colleges and universities, private companies, and not-for-profit companies. Most scholarships are awarded based on some type of talent or achievement, ranging from the straightforward, for example academic, athletic or musical accomplishment to the downright strange including scholarships for duck callers or people of a certain height or weight.

Students can also pay for their online education with either federal loans or private loans. Federal loans usually offer lower interest rates and more flexibility regarding repayment.

• Perkins Loans offer up to $4,000 per academic year for undergraduates and up to $6,000 per academic year for graduate students with a 5% interest rate. Eligible students must have exceptional financial need.
• Stafford Loans are available to both undergraduate and graduate students and may award up to $5,500 per academic year depending on the student’s year in school and financial need. Stafford loans have a fixed interest rate of 6.8% and students with exceptional need may qualify for a subsidized Stafford loan where the government pays the interest.
• PLUS Loans for Graduates and Parents are loans made available to parents of dependent students and graduate students with credible credit histories.

Private loans are available through private lenders and various loans will have different repayment plans, interest rates and additional fees. It is important to be informed of the private loan process when shopping for a loan. When comparing loans, be sure to compare loans that have similar repayment plans and look at the big picture, for example, loan may have low interest rates but high fees.

As more and more students pursue online degrees, it is a relief to know that financial aid for an online degree is available. If you are interested in being eligible for this financial aid benefit, be sure to attend an accredited online school and then fill out a FAFSA to get the ball rolling toward the assistance you need to get the degree you dream of.