Does Student Aid Cover Online College Courses?

Choosing a college isn’t just about majors and mascots. For a lot of students, the decision boils down to cost and flexibility—can you take classes around your work schedule, stay closer to home, or even log in from anywhere? Those are some of the main benefits of online programs. But if you’re counting on financial aid to help pay for school, there’s a big question to answer first: Does student aid cover online college? 

The short answer? Often, yes–but not always. Many accredited online colleges use the Free Application for Federal Student Aid (FAFSA) to determine eligibility for federal grants and loans. However, not all online programs qualify for FAFSA, so it’s important to know what to look for before you apply. 

This article will cover how financial aid works for online schools, what types of aid you can apply for, and how to find online colleges that accept FAFSA. Whether you’re just starting applications or are ready to make your decision, we’ll help you figure out your options and next steps.

Key Takeaways

• Many accredited online colleges accept FAFSA, and students of accredited online colleges qualify for the same types of financial aid as on-campus students.
• Grants, scholarships, work-study, and federal student loans may be available to eligible online students.
• You must choose an accredited school and a qualifying program to use FAFSA for online education.
• Private student loans can help cover any remaining costs of online college when federal aid and scholarships aren’t enough.
• Do your research and consider all the funding options available to you before you borrow student loans. 

Types of Financial Aid for Online Colleges

Online students can qualify for grants, scholarships, and student loans, just like students on campus. Other options, like work-study, might not be available. Let’s break down each type of financial aid for online students. 

Grants

Federal grants are money that you don’t have to pay back, which makes them one of the best ways to pay for college. Most grants are based on financial need and can be applied for by filling out the FAFSA. 

One of the most common grants is the Federal Pell Grant, which many students use to pay for classes, books, and other school costs. If your online college is accredited and accepts federal aid, you can usually use the Federal Pell Grant there. 

Some states and schools also offer their own grants that you can apply toward online programs. Complete the FAFSA and check with your school’s financial aid office to see what additional grants you might qualify for to ensure you’re maximizing your free financial aid. 

Scholarships

Scholarships are another type of free money for college, but they’re usually awarded based on academic achievements, extracurriculars, community involvement, or other criteria, instead of financial need. Scholarships don’t have to be paid back, and most do not require a FAFSA application to be eligible. 

Scholarships can be awarded by schools, companies, nonprofit organizations, and even private donors. Many scholarships can be applied to online programs as long as your school meets the rules for the specific award. 

You can search for scholarships online on websites like Scholarships360, and you can also ask your school if they offer any for online students. Just like grants, scholarships can help lower the total amount you need to borrow for school.

Work-Study

Work-Study is a federal program that provides part-time jobs to students with financial need to help cover school costs. Most jobs are on-site at the school, but others can be off-campus with nonprofit organizations or public agencies. Some schools even offer remote opportunities. 

The jobs available for work-study vary by school, so check with your school’s financial aid office to see what’s available. If you’re taking online classes through a school with a physical location, you might be able to work on campus, at an approved site nearby, or remotely. But if your school is fully online, your work-study options may be limited.

Federal Student Loans

Federal student loans come from the government. Like grants, the amount is based on financial need and eligibility is determined by the FAFSA. Federal student loans can be utilized for online colleges that accept FAFSA—these colleges are accredited and eligible to receive federal funds.

One benefit of federal loans is that they offer flexible repayment plans and access to things like Public Service Loan Forgiveness (PSLF), student loan deferment, and forbearance if you run into financial trouble. 

Private Student Loans

Even after seeking out free forms of aid and applying for federal student loans, many students find that their financial aid is not enough to fully cover their tuition. If you have exhausted your options for financial aid and federal loans, applying for private loans can help close the gap to pay for online college.

Private student loans can be funded by banks, credit unions, or private lenders like Ascent. These loans aren’t tied to the FAFSA, and the amount you are qualified for will usually depend on your income and credit history, or the income and credit history of your cosigner. 

Benefits of private loans include flexible terms, quick approval, and more choices on your loan amounts. And while you may have borrowing limits based on your income and credit history, the amount you can borrow is typically higher than what you’ll get through federal loans. All lenders have different loan options and terms, so it is important to do your research and weigh all the benefits before applying. 

Finding Online Colleges That Accept FAFSA

If you’re planning to use FAFSA for online college, it is important to make sure the school and program you choose meet the right standards before enrolling. Not all online schools accept federal financial aid, and choosing the wrong one could mean missing out on critical funds to help you pay for college. 

Taking the time to check a few key details now can help you be sure you’ve found online colleges that accept FAFSA: 

• Accreditation: Make sure the online school is accredited by a recognized agency. You can find a list of accredited institutions on the U.S. Department of Education’s website.
• Federal aid eligibility: Ask the school’s financial aid office if they accept federal student aid for your specific online program. Make sure the school has a FAFSA code so you can list it on your application.
• Program type: Confirm whether the degree or certificate program is fully online and if that impacts your aid options like scholarships or work-study opportunities.

If you’re not sure where to start, talking to an admissions counselor, a financial aid advisor, or a career counselor can help point you in the right direction and make sure your financial aid plan lines up with your goals. 

Learn More with Ascent

Figuring out how to pay for college online can be stressful, but it doesn’t have to be complicated. Ascent offers a variety of financial wellness resources designed to help students and their families succeed in college—and beyond. 

If you’re ready to explore additional avenues for financial aid, Ascent’s private student loans can help you achieve your financial goals with loan terms and repayment options that fit your budget and timeline. Explore our college loan options or check your rate today without impacting your credit score.

FAQs

Can I use FAFSA for online colleges?

Yes, many online colleges accept FAFSA, but the school must be accredited and approved to accept federal student aid. Most schools list accreditation information on their financial aid page or you can ask their admissions office.

What types of student aid can be used for online education?

Most financial aid options for online schools are the same as what they would be for students on campus. If your program is fully remote, your work-study options may be more limited. Completing the FAFSA can help you determine your eligibility for grants, scholarships, work-study, or federal student loans. 

Do I need to specify in my FAFSA application that I’m an online student?

No, the FAFSA doesn’t ask if you’re taking classes online. You just list the school you’re planning to attend using their FAFSA school code. The school will match your application with your program and decide what aid you can get.

Will my financial aid package be smaller if I study online?

Not always—your aid package depends on your financial need and your school’s cost of attendance. Some online programs cost less, which may reduce the total aid amount you receive. But you can still qualify for many of the same types of federal aid as on-campus students.

Can I transfer current FAFSA coverage if I am transitioning to an online program?

Yes, if your online program is eligible for federal aid, you can update your FAFSA to reflect the change. You may need to add the new school’s FAFSA code and check for any additional steps. It’s a good idea to contact the new school’s financial aid office to help you through the transition.