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Can I get financial aid for an online degree?

Online learning offers inherent cost advantages, but many students still need financial aid. Explore this resource to learn about financial aid options for online degree programs.

By: James M. Tobin, Edited by: Marie Custodio Collazo

Published: June 9, 2025

What is student financial aid?

Financial aid is any form of external assistance that makes higher education more financially attainable. Common examples include scholarships, fellowships, grants, work-study programs, tuition discounts, and federal or private loans.

Some types of financial aid, such as student loans, must be repaid with interest. Others, like scholarships and grants, do not. As such, it's smart to consider financial aid options that don't require repayment before considering loans.

Is financial aid available for online degree programs?

You can get federal loans for an online degree as long as you attend a program at an accredited institution, pursue an eligible degree, and maintain your enrollment status. Some scholarship providers specifically offer funding to distance learners. Other forms of aid, including grants and private loans, are also available.

What is FAFSA?

The Free Application for Federal Student Aid (FAFSA) plays a major role in the financial aid process. Submit a FAFSA form online to be considered for all forms of need-based federal aid.

General eligibility requirements include:

  • Demonstrated financial need
  • U.S. citizenship or eligible noncitizen status
  • Enrollment in a qualifying degree or certificate program

Types of financial aid for online learners

Many students combine multiple types of financial aid to meet their education costs. Their strategies often include these aid sources:

Scholarships

Scholarships are financial aid packages awarded on the basis of need, merit, or both and do not need to be repaid. Providers include:

  • Federal, state, and local governments
  • Educational institutions
  • Philanthropic organizations and nonprofit groups
  • Corporate and private donors

To qualify, you must meet the provider's stated criteria and go through a competitive application process. When applying, you may need to write essays or personal statements, obtain recommendations or references, or submit academic transcripts.

Grants

Grants are financial awards that directly lower education costs. Major providers include government and educational institutions.

Like scholarships, grants do not usually require repayment. However, they are more commonly issued based on need, whereas scholarships more often involve merit-based criteria.

Also, grant recipients typically need to meet very specific eligibility conditions. Grants also tend to come with more restrictions on how the money can be used.

Employer tuition assistance programs

Some employers offer tuition assistance to eligible staff members. Employees usually cover their schooling costs up front, with the employer reimbursing them later.

Eligibility policies vary. Employers may require that you meet tenure requirements or remain employed with the organization for a certain period after claiming your benefits.

Student loans

Student loans deliver financial aid in lump-sum amounts, which lenders usually deposit directly into the borrower's account. The borrower is therefore free to use it for educational expenses at their own discretion.

Government agencies and private lenders issue student loans. Interest always accumulates on the loan balance, which requires repayment. However, government loans usually offer more flexible loan terms than private financial institutions.

Generally speaking, you should keep student loan borrowing to a minimum.

How to apply for financial aid as an online student

If you're enrolled in an online program through the edX platform, you can follow these steps to apply for financial aid.

For general financial aid, proceed as follows:

1. Gather the necessary information

Financial aid providers may consider you based on need, merit, or both. You may need to supply the following information:

  • Personal, family, or household income levels
  • Academic transcripts
  • Social Security number (SSN)
  • Proof of residency status (if you are not a U.S. citizen)

Round up this information to make application processes faster and easier.

2. Submit your FAFSA form

To prepare and submit a FAFSA form, you'll need to:

  1. Create a StudentAid.gov account.
  2. Enter the required information, which may include your legal guardian's SSN if you're applying as a dependent.
  3. Complete your form by the annual deadline of June 30.

Note that you may need information on your guardian's income, bank and investment account holdings, and/or business valuations.

3. Look for scholarships and grants

With your FAFSA form, you'll be automatically considered for federal grants. Expand your financial aid search to include scholarships and grants from other providers.

Look for aid opportunities specific to your location, personal profile, or college major. Pay close attention to eligibility criteria, and save time by applying only to matching aid programs.

4. Check with your school

If you've received an admissions offer from a particular school or are returning to a school you've already attended, check to see what in-house scholarship and grant programs the institution offers. Contact your school's financial aid office to learn more.

Empower your online education journey

Financial aid makes higher learning an attainable reality for millions of students. Education is an investment in yourself, so explore all available options to the fullest.

Frequently asked questions about financial aid for online degrees


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