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10 Things to Consider Before Paying for an Online Degree

By U.S. News & World Report

Examine the Costs of Online Degrees

Higher education is a costly investment — even if a student pursues a degree online. Between technology fees and, in some cases, travel, it’s important to accurately determine the true cost before enrolling, experts say.

Here are 10 financial factors for prospective students to consider before applying to online degree programs.

1. Tuition

Many online programs, experts say, charge by credit hour or course rather than by term. Prospective students should determine how many credits they plan to transfer over and ask an adviser to map out their degree track to determine total costs.

Some online programs offer tiered tuition, where students pay less per credit if they take more classes at once. Similar to traditional students, it’s important for online students to note differences in in-state and out-of-state tuition, experts say.

2. Fees

Most online programs have some sort of technology fee, though amounts vary widely. At Pennsylvania State University–World Campus, the information technology fee for undergrads who take five to fewer than nine credits is $189 per term. At Oregon State University‘s Ecampus, the school’s online arm, there’s a distance education fee of $80 per credit.

Prospective students should also look out for other payments, including assessment and graduation fees. For instance, UF Online at the University of Florida also charges financial aid and capital improvement fees.

3. Employer Reimbursement

It’s pretty common for companies to help pay for employees’ online degrees, though some might take more convincing than others. Experts say prospective online students should see whether their employer has a tuition reimbursement policy, such as the one Chipotle implemented in 2015.

But an employer might finance an online degree only after they see a student’s grades, one expert says, so prospective students should check into flexible payment options.

4. Required Travel

Some online programs, especially at the graduate level, have a residency or other in-person requirement. For example, students in Indiana University’s Kelley School of Business online MBA program must come to Bloomington twice and also can work with businesses in other countries.

In many cases, it’s up to the student to pay travel expenses, so applicants should check whether there are any on-site components beforehand.

5. Transfer Credits

Credit transfer isn’t always a simple process, but it’s doable in many online programs and can help students save time and money completing their education.

“Some universities have more liberal policies than others,” Susan Aldridge, president of Drexel University Online, told U.S. News. “It’s important for students to compare one institution versus another to determine the number of credits that will be transferred and the cost of education.”

6. The FAFSA

In general, the process of applying for financial aid is generally the same for online and on-campus students, so long as the program is accredited by the Department of Education to ensure that students are eligible for federal funds, one expert recently told U.S. News.

Both, for instance, involve completing the Free Application for Federal Student Aid, or FAFSA, which many schools use to determine awards.

7. Scholarship Opportunities

Few schools have scholarships specifically for online students, says Aldridge from Drexel — though, she says, schools might not restrict other scholarships only to on-ground students, so applicants should check the requirements beforehand.

While prospective students can find options through scholarship search engines, one expert told U.S. News some scholarship providers are still hesitant about online education.

8. Loans and Grants

Online learners with financial need and pursuing a bachelor’s might be eligible for federal aid such as the Pell Grant, which provides low-income students a maximum of $5,815 a year for the 2016-2017 school year.

Similar to traditional students, online students have borrowing options, such as through Stafford loans.

9. Additional Technology Expenses

An online student might face some additional unexpected technology charges. One who travels often for work, for example, might need to pay for Wi-Fi on the road.

Some online programs also require high-speed internet to access video lectures. That means students may have to pay more for their service at home.

10. Program Amenities

More online students than in the past prefer a program with access to a campus close to home, according to a July report by Aslanian Market Research and the Learning House. That desire might affect where to enroll and, therefore, how much they pay.

At many schools, for instance, online students can meet with financial aid counselors and career advisers in person if they wish, experts say.

More on Paying for Online Degrees

Find more tips on our Paying for Online Education center, and access our complete rankings of the Best Online Programs.

For additional advice and information on how to navigate online program admissions, connect with U.S. News Education on Twitter and Facebook.

More from U.S. News

5 Things to Know About Financial Aid in Online Degree Programs

5 Financial Questions to Ask Before Getting an Online Degree

Avoid Falling for These 10 Online Education Myths

10 Things to Consider Before Paying for an Online Degree originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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