5 Ways To Pay for an Online College Degree

College is expensive, and the costs seem to keep rising. Between 2010-2022 tuition increased by an average of nearly 10% per year. While costs have dropped slightly in the last few years, there's no telling if this trend will last.

Most students can not pay for their degree without financial assistance. Nearly three-quarters of undergraduate students use some form of financial aid.

What kind of financial aid is available for students studying online? Keep reading to learn how to pay for online college.

How to Pay for Online College

There are several different ways that students can pay for their online program or degree. These include grants, scholarships, student loans, work-study programs, and employer-sponsored programs.

Before applying to any of these programs, students should learn what they qualify for by filling out their Free Application for Student Aid (FAFSA).

Below, we dig deeper into some of the most common types of financial aid that students use to pay for online college. Many students use a combination of these to pay for their degree.

1. Grants

Grants are a type of student loan that does not need to be repaid except in certain circumstances, like if you drop out of your program.

Grants are commonly offered by the federal government and state governments, but can also be offered by your school or by private or nonprofit organizations.

Most often, grants are offered based on financial need, but they may be offered for other things like academic achievement.

The most common grant used by students in the United States is the Federal Pell Grant, which is awarded to undergraduate students based on their household income. 34% of students across the U.S. receive a Pell Grant.

When you fill out your FAFSA, you'll be automatically assessed for qualification for the Pell Grants. Other places to find grants include websites like:

• CareerOneStop
• Scholarships.com
• The College Board

2. Scholarships

Scholarships are a very popular type of financial aid. Like grants, this is money that you don't need to pay back.

Scholarships can be offered for many reasons, including:

• academic achievement, like scholarships for honor roll students
• activities and hobbies, like scholarships for drama, music, or journalism
• athletics, like scholarships for baseball, football, or basketball
• age, like scholarships for adult students
• demographics, like scholarships for women or people of color
• field of study, like STEM scholarships
• financial need, like scholarships for students whose household income falls below a certain threshold
• first-generation students (students whose parents and grandparents did not attend college)

This type of financial aid can range from a few hundred dollars to the full cost of your tuition. There are thousands of scholarships offered each year, and securing more than one can add up.

Scholarships can be offered by all types of institutions, including:

• your college or university
• the federal government
• your state government
• your community or local government
• private businesses
• non-profit organizations
• the U.S. military

You can use several online databases to find national scholarships. These include:

• Cappex.com
• CareerOneStop.org
• GoGrad.org
• Fastweb.com
• Unigo.com

Local scholarships are sometimes easier to win, as there's less competition for them than national scholarships. Check with your college or your school counselor for help finding local scholarships.

3. Work-Study Programs

Many colleges and universities participate in the Federal Work-Study program, which allows students to earn money to help pay for their education.

Often, work-study programs are available on campus, where you'll work for your school. This isn't always convenient for online students who live far from campus. However, some schools offer off-campus work-study programs as well.

You may be able to find a work-study program that allows you to work for a non-profit organization or public agency that's in your neighborhood or city.

Some schools may also have private agreements with private for-profit employers, but these jobs are usually required to be related in some way to your program of study.

4. Employer-Sponsored Tuition Programs

Many employers offer tuition programs as part of their benefits packages. This is typically only offered to full-time employees.

There are two types of employer-sponsored tuition programs: tuition reimbursement programs and tuition assistance programs.

In a tuition reimbursement program, the student pays their school, and the employer pays them back the amount they've agreed to cover.

For tuition assistance programs, the employer pays the college or university directly, rather than requiring the student to pay out-of-pocket first.

Employer-sponsored tuition assistance programs are more likely to be offered by larger companies. Target, Amazon, and Best Buy are all examples of large corporations offering tuition assistance.

The U.S. Military also offers enticing tuition assistance programs. The amount you receive depends on the length of your service.

5. Student Loans

Student loans are the one type of financial aid that you are required to pay back, often with high interest rates. For many, student loans are inescapable. Over 50% of bachelor's degree graduates leave with student loans.

Student loans can be offered by the federal government or by private loan companies. The federal government is the largest student loan provider.

There are several reasons why, if you need to take out student loan debt, a federal loan is typically a better option:

• The interest rate is fixed and usually lower than private loans.
• You don't need a credit check or cosigner.
• You don't need to repay the loan until after you graduate.
• Payment plans are often more flexible.
• Certain jobs are eligible for student loan forgiveness.

Because of the high interest rates on student loans, students should try to qualify for other financial aid options before taking on student loan debt.

Find Financial Aid for Online College Today

Students can pay for online college through grants, scholarships, work-study programs, employer-sponsored programs, and student loans.

Check out the options and resources above to fund your online college program today.