This post was most recently updated on May 20th, 2023
For many students, financial help makes education more affordable. Can you, however, use financial aid for an online program? Online degrees from approved schools, fortunately, meet the standards for many types of financial help. Distance students can fill out the FAFSA to check if they are eligible for federal scholarships, loans, or work-study assistance. State grants, individual scholarships, and institutional aid are also available to online students.
For most students, submitting the FAFSA is the initial step toward receiving financial help. The FAFSA is the form used to determine eligibility for federal student aid programs. The FAFSA may also be used by colleges to offer institutional aid. While the FAFSA application deadline is June 30 each year, students should submit the form as soon as possible to enhance their chances of receiving additional assistance.
What are the types of financial aid?
The type of financial aid can be discussed under the following heads;
Loans Degree aspirants can obtain federal government or private lender college loans. Federal loans, on average, provide lower interest rates and more repayment choices than private loans. In 2022, the average student loan debt among students with federal loans will exceed $37,000. Scholarships and grants can assist students in reducing their loan burden.
College scholarships, like grants, do not need repayment, making them an excellent source of financial aid. Furthermore, distant learners may be eligible for a variety of online student scholarships. Aside from educational scholarships, degree-seekers can discover external scholarships through professional associations, private foundations, and other sources.
Grants are free college funds with no repayment conditions. College grants are provided by the federal and state governments, as well as by institutions of higher learning. Undergraduates typically qualify for more awards than graduate students. For example, the well-known Pell Grant program solely assists undergraduate students. Many awards have minimum income criteria.
Important financial aid tips for college students;
With the expense of college on the rise — in-state tuition and fees at public National Universities have increased 211% in the last 20 years – many students and families are turning to outside sources to help pay for postsecondary education and are looking for financial aid advice. Financial aid is classified into two types: merit-based and need-based.
Merit funding is distributed by universities and colleges based on academic and talent achievements rather than a family’s household income. According to Lindsay Miller, the school’s interim director of financial aid, counselors at the University of South Dakota look at ACT scores and high school credentials during the admissions process to assess eligibility.
Here are 10 financial assistance suggestions from professionals because figuring out how to pay for college can be difficult and time-consuming.
1) Don’t assume that you are eligible for financial aid.
Vasconcelos believes that deciding not to seek for financial aid is a mistake. “There is a good probability that you are eligible,” she continues. “Don’t assume that you won’t qualify just because your neighbour, who you think has about the same amount of money as you, doesn’t. When it comes to personal household budgets, you have no idea how other people are doing.”
2) Avoid paying third Parties for scholarship searches
There are numerous outside scholarships available, including those offered by churches, employers, local businesses, and philanthropic groups. Miller advises students to begin looking for scholarships a year before they need them.
She does, however, warn against paying someone to look for scholarships and giving out personal information such as a Social Security number. The College Board, FastWeb.com, and the U.S. News Scholarship Finder are all free sites.
3) Don’t shop based on the price tag
It can be tempting to overlook an expensive college. Melissa Yakabouski, director of undergraduate admissions at the University of Mary Washington in Virginia, says students rarely pay the sticker amount.
Net cost is sticker price minus grants and scholarships. A student answers questions on finances, GPA, tests, and extracurriculars. These responses help colleges estimate the student’s grants and scholarships. Subtract financial help from the total cost of attendance to estimate a family’s contribution.
4) Use the IRS Data Retrieval Tool to obtain information
Using the IRS Data Retrieval Tool can cut filing time and error rates, experts suggest.
The virtual application instantly transfers IRS tax return data to a student’s online FAFSA form.
“Estimating income information or making input errors on the FAFSA application can complicate the process,” said Courtney Henderson, director of the OU student finance centre. Those who submitted a U.S. tax return to the IRS can usually use the tool.
5) Keep deadlines in mind.
The FAFSA application period begins on October 1 each year, although the federal application deadline is not until June 30 of the following year. State and college deadlines may be met earlier. Unmet deadlines can cost money.
Jeff Levy, the co-founder of Big J Educational Consulting in California, said applications are submitted online once to all required universities.
6) Apply early
Students should not only meet deadlines but also apply as soon as possible because certain financial aid is provided on a first-come, first-served basis. Experts advise paying attention to key deadlines. According to the Department of Education’s Federal Student Aid Information Center, or FSAIC, states such as Alaska, Georgia, Illinois, Indiana, Kentucky, and Nevada. “as soon as practicable after October 1” is a requirement for the states of North Carolina, North Dakota, Oklahoma, Oregon, South Carolina, Vermont, and Washington.
7) Regularly check your email
Following the completion of the FAFSA, an applicant’s email address is usually sent a Student Aid Report, which includes a projected family contribution to establish financial aid eligibility. Colleges may request more information by email.
Vasconcelos offers this piece of advice: “Make sure that you are paying attention to your email at all times in order to comply with any requests.”
8) Evaluate out-of-pocket expenses
One college’s assistance package may seem larger than another’s at first. Watch out-of-pocket expenses.
“A $50,000 private school might give you $30,000 in aid,” adds Saulnier. “$20k out-of-pocket. Say UMW gives you $11,000 but costs $30,000 Example: $19,000 net. Even if one institution offers more aid, it may not be superior.”
9) The first offer made by a school is not usually the final offer
The FAFSA requires tax information from the “previous preceding” year, which may not reflect current income or employment. If family finances have changed, a student should notify his or her college’s financial aid office to explain the changes and request financial aid package reconsideration, called an appeal.
Special conditions don’t limit aid package adjustments. Vasconcelos says a merit-scholarship student can bargain for a greater offer.
“It’s risk-free,” she says. “They’d say ‘no’ at worst.” Families are often astonished to give you a few thousand dollars.
10) Contact the college financial aid office with any questions
Many college websites list financial aid criteria and deadlines. If you have any questions, please contact the office of financial aid by phone or email. The FSAIC is a source of information. Questions regarding federal funding can be answered by web chat, phone, or email.
Miller thinks it’s never too early to consider college costs. “Be proactive and educate yourself. University admission counselors are a terrific resource for scholarship opportunities, and financial aid offices are helpful throughout the financial aid process.”