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For many people, a college degree can mean the difference between a run-of-the-mill job and a management opportunity. However, attending traditional school isn’t for everyone due to the time and travel required. Consequently, in order to climb the next rung of the corporate ladder, many people are turning to online learning programs to further their education. There are currently hundreds of possible courses and degrees available through online colleges and universities. However, the biggest question many prospective online students face is how to pay for an online education.
Depending on which college or university you attend – whether it’s in the virtual world or the real one – you may find that the tuition, fees, and other expenses can be astronomical. Fortunately, online learning can often be a lot less expensive than traditional colleges and universities, simply because there is a lower cost of overhead to run the programs. However, online distance learning programs can still come with a hefty price tag, so it’s worth looking into the following opportunities to help pay for it.
Federal Student Aid
Many students take advantage of federal student loans to pay for college, although not all online colleges and universities participate in Federal Student Aid programs, typically due to a lack of accreditation. Other reasons that an online school may not offer federal loans can include a high rate of federal student loans that were defaulted on, or that the college isn’t a legitimate school. If an online college or university offers federal aid to their students, it’s a good bet that it’s a reputable school.
If you attend a program that offers these loans, you’ll first need to complete the Free Application for Federal Student Aid Form, also known as the FAFSA. Once successfully submitted, you’ll receive a Student Aid Report, which will list the amount, if any, which you or your family will be expected to pay for your education expenses. It will also tell you whether or not you qualify for in a Pell Grant, a financial award that’s based on your financial need. If you do qualify for this grant, the money is sent to the college or university you enroll in, and the school will pass it on to you. Currently, the maximum amount you can earn for the 2008-2009 academic year is $4,731.
You may also be eligible for certain federal loans, such as the Perkins Loan and the Stafford Loan. These loans aren’t due for repayment until you drop below half-time status or graduate. Even then, the repayment of these loans doesn’t start for nine months and can, in some instances, be extended. In some cases, the interest on these loans may be paid for by the government. If you think you qualify, speak with the financial aid office of your online college or university to see what options are available for federal student aid.
Scholarships
If you don’t qualify for federal grants or loans, don’t worry – there are many scholarships available to help with online distance learning programs. You may find that your online college of choice offers scholarships for single parents, low income families, or active or retired military members. You may also qualify for additional scholarships based on academic merit as you progress through your program. Some scholarships will cover the entire cost of tuition, while others will help to reduce your costs significantly.
Payment Plans
Many online colleges and universities now offer payment plans to help ease the financial strain of tuition costs. With these plans, you won’t have to pay your entire bill up front, but will be able to spread your payments out over a specific period of time. Payment plans can range from those that require half of the tuition upfront, with the balance paid in monthly installments, to plans that are tailored specifically to a student’s financial needs. Again, if you think this might be a good option for you, speak with a representative of your online college to see if they offer payment plans.
GI Bill
More and more online colleges and universities are now accepting payments from the Montgomery GI Bill. In some cases, this military benefit can cover the entire cost of a degree program. Many servicemen and women are taking advantage of this program as they leave the military and enter into the civilian world. Others are enrolling in online courses while still on active duty in order to get a head start on their degrees. If you are currently in active service or have recently left the military, it’s definitely worth looking into whether or not you qualify for GI bill benefits.
Employer Reimbursement
Many employers are now paying all or part of the cost of higher education for their employees, which can be a huge draw for prospective employees. Employers may require that an employee be with the company for a certain period of time before they’re eligible for this benefit, and they may require that any classes you take relate to your position or job duties. If this is the case, you may find several classes that will help you in your career, such as specific industry certifications, are now available online. Speak with your company’s human resource department to see if this is an option for you.
Family Loans
If you’re having trouble paying for online distance learning courses through conventional means, your family may be the best option for securing funding. Many parents, grandparents, and other relatives set aside money for educational expenses, although you may only qualify if you’re still legally considered a dependent. If you don’t qualify for these funds, members of your family may be able to offer a personal loan from their savings or retirement plans. While borrowing money from family members can be difficult, it may be the only option for some students. If you do go this route, it’s best to lay out the specific terms of the loans and how you plan to pay the money back in a written document that you both sign.
Credit Cards
Credit cards are a final option for paying online learning expenses, although this method should be used with extreme caution. Credit cards will have higher interest rates than most student loans, although any increased earnings you qualify for as a result of your additional education may be enough to cover your monthly credit card payments. If you do decide to go this route, be sure you’re as diligent in paying off your expenses as you would be with a federal student loan. Otherwise, you could find yourself struggling to pay off the balance for years to come.
A Few Final Thoughts
When it comes to paying the bill for your online learning courses, you may want to look at a combination of federal aid, grants, loans, scholarships, and any other source of funding you have access to. While it may seem like a big expense, the benefits of online learning can certainly outweigh the costs. Many people will find better paying jobs or qualify for a promotion after completing an online degree or even a certificate. Consider all your payment options carefully to determine what works best for you and your family.
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