Does Financial Aid Cover The Cost Of a Business Degree?

The rising cost of higher education is often a deterrent for high school graduates. However, these students can pursue various financial aid options to pay for their degree programs.

Students pursuing a bachelor's degree in business can apply for degree-specific financial assistance from multiple sources. In addition to federal financial aid, students can cover the cost of attendance with private grants, scholarships, fellowships, and even work-study programs.

Filling out your FAFSA form is the first step to discovering your financial aid eligibility so you can cover your business administration education expenses.

What Is the FAFSA Form?

The Free Application for Federal Student Aid (FAFSA) is the application college students must submit to establish their financial needs. This form is used by the U.S. Department of Education to determine eligibility for federal education benefits, such as the Pell Grant, the Federal Supplemental Educational Opportunity Grant (FSEOG), and federal student loans.

The application process involves students answering questions about their income, expected family contributions, and the costs of their preferred schools. You can submit FAFSA forms before acceptance, but it's important to list as many of your top-priority schools as you can to ensure proper benefit calculation. Most FAFSA awards are for undergraduate students, but benefits are also awarded to graduate students.

The federal government first calculates your benefits, but the results of your FAFSA are also used by your school's financial aid office and even private organizations to determine the amount from financial aid programs.

Eligibility Requirements

All students can submit the FAFSA application, but benefits are awarded on need-based criteria. Some of the most common criteria used to award merit-based financial aid packages include:

• applicants must be a U.S. citizen or eligible non-citizen, such as a recognized permanent resident
• applicants must have a high-school diploma, GED, or completed a recognized home-schooling program
• applicants must approve tax information to be used with their FAFSA application

Can Financial Aid Be Used for a Business Degree?

Financial aid can be used for a business degree from an accredited university or community college. Most programs will be applied directly to your tuition by your school's financial aid office. Financial aid programs rarely have degree program requirements, though some private scholarships or grants might.

Some common restrictions for financial aid will include:

• the number of semesters you can use the aid
• maintaining satisfactory academic progress (a passing GPA)
• full-time vs. part-time enrollment status
• using other financial aid programs (e.g., active duty benefits or state grants)

Can I Use Financial Aid To Cover My MBA Program?

Students who continue their business studies into graduate school can still use financial aid programs; however, their eligibility will likely change.

Many students who pursue graduate degrees, such as an MBA program, do so after starting their careers. This usually alters a person's eligibility for financial aid as their need will change. Students can still out their FAFSA and apply for alternate programs, such as fellowships.

Learn more: Guide to Using FAFSA for an MBA

Types of Financial Aid for Business Degrees

Financial aid for business degree programs often includes more options than other degree programs. Businesses offer fellowships and scholarships specifically tailored to students in business degree programs. Filing your FAFSA form can provide some opportunities, but there will be additional financial aid options for business majors.

1. Explore Business Scholarships

Often, governmental and private organizations offer scholarships that are independent of degree or certificate programs, but this isn't true of every scholarship. When pursuing a business degree, you should look for scholarships specifically targeted towards students like you.

Nyadollie Scholarship

The Nyadollie Scholarship requires students to write a 400-600 word essay. This scholarship awards $500 to two winners in business, photography, beauty, or cosmetology degree programs.

Applicants can be first-year students or actively in an undergraduate program. This scholarship is funded by Dollie Vision to make degree programs more affordable to all students, but especially African American women.

Maverick Scholarship

The Maverick Scholarship is an academic merit-based scholarship that awards $1,000 to $8,000 annually to incoming applicants at the University of Texas at Arlington. Students must be in the top 25% of their graduating class, have a 3.7 GPA, have a 1280 SAT or 27 ACT, and submit to a full academic review process. Students will have to meet ongoing requirements to renew this scholarship.

William R. Godfrey Scholarship

This scholarship is awarded to students accepted into historically Black colleges and universities (HBCUs). William R. Godfrey earned his business degree from an HBCU and this scholarship is designed to continue his legacy. Students must be minority applicants with a 3.0 GPA.

2. Look for Business Fellowships

Business fellowships are usually reserved for graduate students and serve a similar role to an internship. Most fellowships are paid, unlike internships. Finding a fellowship has three main benefits.

First, you earn money that can be used for your MBA. Second, you will receive hands-on experience in your field of study. Finally, a fellowship is a great opportunity to network and build connections with other students and future employers.

Business Leads Fellowship Program

The Business Leads Fellowship Program teaches students how to start educational and workplace programs. This fellowship lasts six months and is a hybrid of virtual and in-person workshops with business leaders throughout the U.S.

Stanford Business MBA Summer Fellowships

Stanford offers multiple business-minded fellowship programs designed for MBA students. These programs have different lengths, but all are highly competitive. The main two programs include the Impact Design Immersion Fellowship, where students work on a real-world business problem, and the Social Management Immersion Fund, where they work with non-profits.

High Point University Business Fellows Program

High Point University's business fellows program provides students with an immersive multi-year fellowship. Students work with a team to learn more about their degree and career paths, as well as others within the larger business landscape.

3. Discover Business Grants

Business grants are grant programs designed specifically for business majors. These programs are like scholarships but often have a less competitive nature. Sometimes these programs are offered by local businesses and can be used to establish connections for careers after graduation.

4. Evaluate Student Loan Options

Student loans are a commonly used financial aid option, but they should be used as a last resort. Both subsidized and unsubsidized loans require repayment, even if that is deferred until after graduation. Loans are offered publicly and privately through the government, banks, and credit unions.

5. Complete a Work-Study Program

A federal work-study program gives the student a job with a local government agency or non-profit. In exchange for work, the student receives a paycheck that can be applied to school expenses.

These programs are generally coordinated through the Department of Education and your school, but it's up to you to apply for and pursue the opportunity. Unlike a grant or scholarship, the money from a work-study isn't directly applied to tuition. Instead, it's deposited into your bank account and up to you to allocate.