Paying for Online Education

When it comes to financing your online education, your options are typically the same as those available to traditional college students as long as the school or university you are attending is accredited. These options include financial aid, scholarships, and grants.

Student Loans

If your income requirements meet the threshold (are low enough), you may be eligible for federal financial aid to help pay for your college education. Federal financial aid is free to apply for and does not require that you have good credit in order to obtain it. Applying for student loans requires that you fill out the Free Application for Financial Aid (FAFSA) which is available at your school's financial aid office or online.

Financial aid comes in two types of loans: the subsidized and unsubsidized loans. The difference between the two is how the interest accrues and when it begins. Unsubsidized student loans are best thought of as traditional loans in that they begin to accrue interest from the moment you take them out, even though they do not have to be paid back until after you graduate (or drop below part-time attendance). Subsidized financial loans do not have to be paid back until after you graduate as well, but they have their interest subsidized until you leave school. This can mean a substantial savings of money, since, if you borrow $5,000 for your first semester of school, then attend school for five years, when you graduate, that $5,000 borrowed will still be just $5,000 and only then begin to accrue interest as you start to pay down the loan.

Student Loans are also privately available from lenders all across the country. Unlike federal financial aid, private student loans are credit-based, personal loans. There are also PLUS Loans available that parents can take out on behalf of their children in order to help pay for college. Private student loans also come in subsidized and unsubsidized varieties and do not need to be paid back until after the student leaves school.

Scholarships

Scholarships are offered by companies, foundations, individuals, schools and government agencies. They are a sum of free money that are usually awarded for academic merit of some sort and do not have to be repaid by the student. Scholarship amounts can range anywhere from $25.00 to as high as the - full-ride - which pays all reasonable expenses for the student while they are in school, including an amount for a personal allowance. Scholarships are also commonly awarded based on sports merit. Some scholarships are offered only to members of a particular section of society based on locale, race, religion, or even the major that is being pursued.

Grants

Grants are often need-based sums of money awarded to students based on their financial situation. Grants can be applied for through the school's Financial Aid office and, like scholarships, do not need to be repaid. Grant amounts may be quite large (up to several thousand dollars), based upon the school's budget and ability to fairly distribute their total amount available to all of the students in need.