5 Things to Know About Financial Aid in Online Degree Programs

A college or graduate school education can be costly for on-campus and online students alike, but there are ways to ease the burden of a hefty price tag.

When it comes to financial aid, prospective online students -- just like traditional students -- should first ensure a program is accredited by the Department of Education so that students are definitely eligible for federal funds, says Mark Kantrowitz, publisher of Cappex.com, a website connecting students with colleges and scholarships.

Here are five things they should keep in mind when applying for financial aid.

1. The process is generally the same as it is for on-campus students. Any student will have to fill out the Free Application for Federal Student Aid, or FAFSA, which many schools use to determine awards.

[Learn what to expect your first time filling out the FAFSA.]

"Students apply for financial aid using the FAFSA, the same as they do at other institutions. We contact them via their email account and direct them to their student portal when there's action they need to take," says Cheryl Storie, associate vice president of financial aid at the University of Maryland University College, of both traditional and online students at the school.

Rick Wilder, director of student financial affairs at the University of Florida, described the financial aid process at the school as "identical" for both.

Kantrowitz says financial aid, however, still needs to fully adapt to newer types of online degree programs -- such as those with skills-based curriculums -- as they emerge. Therefore, students in those programs should check with their school beforehand to see if aid is offered and in what forms.

2. Enrollment status is an especially important consideration. The decision of whether a student enrolls in an online program on a part-time or full-time basis might affect the amount of financial aid he or she receives, experts say -- just as it would for traditional students.

This is particularly important for online learners to keep in mind as many work full time while pursuing their education; that decision can greatly impact an already-busy daily schedule. Many online programs require students to meet credit-hour requirements to receive certain amounts or types of aid, for example.

Take Victor Torres, who lives in Cleveland and earned his online master's degree in special education from Michigan State University in 2015. He had to enroll on a full-time basis each semester while also working full time in order to receive aid.

[Discover how to decide between part-time and full-time online degree programs.]

"There were times where I had to pick up electives that I didn't even need for my program just so that I could continue going," the 31-year-old says, when some of his required courses weren't offered.

3. Some online programs have opportunities for federal work-study. Online programs may or may not offer options for work-study, a federal program that allows students to earn a portion of their college expenses through part-time work on or off campus. Its availability varies across online programs.

UMUC, for example, no longer offers online students work-study, given the challenges online students face participating on top of their obligations outside of classes, Storie says. This is the first full year UMUC isn't involved with the program.

"It's not the right population to do it," Storie says.

Other schools, such as SUNY Empire State College and Liberty University, enable online learners to apply for work-study.

4. Certain scholarship providers are still hesitant about online education. Some scholarships are open to online learners in accredited programs, but this varies depending on the provider, Kantrowitz says.

Students should conduct research beforehand to determine whether they are eligible for certain scholarships, experts say. Many scholarship search engines, for example, allow prospective students to specify their individual circumstances and find scholarships that meet their unique needs.

Some scholarship providers, Kantrowitz says, still perceive online education as a lower-quality education and therefore won't open up scholarships to online students. At the same time, institutions such as Pennsylvania State University--World Campus offer competitive scholarship opportunities for part-time and full-time online students.

[Explore tips for online students seeking scholarships.]

5. Starting early is key. Many online students are already consumed by jobs and other responsibilities, so it's important to not wait until the last minute to get started, says Marti Demarest, manager of academic support at Colorado State University Online.

Doing so will ensure that online students are aware of any limitations in terms of aid for online students at specific institutions. CSU Online undergrad students, for instance, aren't eligible for stipends from the state's College Opportunity Fund, which is usually available for Colorado residents.

"Get that FAFSA done as soon as possible," Demarest says, and many financial aid awards are given on an as-available basis, so "students have to start the process earlier than they think."

Trying to fund your online education? Get tips and more in the U.S. News Paying for Online Education center.

Jordan Friedman is an online education editor at U.S. News. You can follow him on Twitter or email him at jfriedman@usnews.com.