Introduction: Making Online Education Affordable
Financial aid at nonprofit online colleges is an incredible way for students to affordably earn their degrees. Did you know that $177 billion of student aid was available in the United States (2022-2023)? Of the 18.58 million college students, 87.3% received financial aid. The number of college students receiving financial aid increases by 1.15% every year.
Indeed, financial aid is of crucial importance in affordable education. The numbers tell their own story. The story is also true for financial aid at nonprofit online colleges.
Of course, affordable nonprofit online colleges already offer lower tuition and fees. Combine affordable tuition with financial aid, and you can even get a free ride. (Disclaimer: Free ride insofar as tuition only, especially among low-income students. Be sure to consider fees, books and supplies, and living expenses)
Featured Programs
Financial aid at nonprofit online colleges is crucial for affordable education because it:
- Increases access to higher education for traditionally disadvantaged groups. Target groups include low-income students, people of color, and minorities.
- Boosts the chances for academic success and degree completion among all students. While traditionally advantaged groups benefit the most, even moderate-income students enjoy it, too.
- Decreases student loan debt among students and graduates. The $40,681 average total student loans aren’t easy on future incomes.
- Improves academic performance and increases chances for degree completion. Less financial worries, more focus on studies.
If you’re an incoming college student, you should look into financial aid first for these reasons.
Why nonprofit online colleges for affordable education in the first place? Nonprofit online colleges are mission-driven – not profit-driven – institutions.
Their common mission is to provide quality education and enhance student experience. As a consequence, these colleges also promote public interest.
Nonprofit online colleges reinvest their surplus funds to achieve their mission. There’s no wealth distribution among owners/investors. Instead, there’s a distribution of the wealth of knowledge, skills, and sense of community.
These nonprofit institutions can offer affordable tuition, too, thanks to diverse funding sources. Government subsidies, endowments, and grants keep tuition down. Students don’t take the hit of rising tuition in for-profit colleges.
Understanding Financial Aid At Nonprofit Online Colleges
Financial aid at nonprofit online colleges takes many forms. You must have a basic understanding of each type for an informed decision. When in doubt, ask clarificatory questions or request more information. You can discuss your options with your parents and financial aid officers, too.
Scholarships
These are forms of financial aid that don’t need repayment. But there are usually terms and conditions to maintain scholarships. These can be maintaining good grades or meeting service obligations.
Eligibility requirements differ based on the type of scholarship:
- Merit-based scholarships are based on academic, creative, or athletic achievements.
- Need-based scholarships use demonstrated financial need as their main criterion.
- Specialty scholarships are based on specific criteria. These can be unique talents, backgrounds, or fields of study. Examples include military, teaching, and employer scholarships.
Scholarships are available in online colleges, independent organizations, and government agencies.
Grants
Grants are similar to scholarships – both don’t need repayment. The federal government offers the Pell Grants and (FSEOG). State governments also offer student grants. The TEXAS Grant, Florida Student Assistance Grant, and New Mexico Legislative Lottery Scholarship are examples. Institutional grants are also available.
Work-study programs
These consist of part-time jobs for students, usually in on-campus settings. The salary earned supplements other types of financial aid. You can use it, for example, on living expenses.
Student loans
Federal and private student loans aren’t financial aid per se. Student borrowers pay their loans either during their studies or after graduation.
Examples of federal loans are:
- Need-based Direct Subsidized Loans (undergraduates)
- Not need-based Direct Unsubsidized Loans (undergraduates)
- Direct PLUS Loans (parents and graduate students)
These usually have more favorable repayment terms than private loans. Credit unions, banks, and other financial institutions offer private loans.
Students in nonprofit online colleges can apply for these financial aid options. In fact, you’re in an excellent position for these financial aid opportunities. Nonprofit online colleges offer a wider range and higher amounts of financial aid.
Tips for Applying for Financial Aid at NonProfit Online Colleges
Keep these nonprofit colleges’ financial aid tips in mind when planning for the application process.
- Understand your financial aid options. Research and take note of their eligibility and application requirements, among others.
- Gather the required documents for the financial aid opportunities you’re qualified for.
- Create your FSA identification (fsaid.ed.gov). If you’re a dependent student, one of your parents must also create their FSA identification. Your FSA identification serves as your legal signature access to the federal student aid system.
- Complete the FAFSA. Nonprofit colleges also use it in their financial aid process. Double-check the completeness and accuracy of the information before submission. Even the smallest error can delay your financial aid package.
- Submit other required forms. Many nonprofit colleges require the CSS Profile. Examples include the University of Michigan and the University of Virginia.
- Review your Student Aid Report (SAR). Request for corrections, if necessary.
- Contact your school’s financial aid office. You may be required to complete additional steps and documents. Don’t delay your responses either.
- Understand your award letters. Accept your financial aid package if it’s acceptable.
Be aware of the FAFSA deadline, too.
- June 30 – Deadline for the submission of your completed FAFSA form. This is in the academic year in which you’re applying for financial aid. The FAFSA form is available on October 1, before the academic year.
Check with your state authorities and college officials for their specific deadlines.
Gather these important documents, too.
- Social Security Number
- Driver’s license
- Previous year’s income and asset information. Federal tax returns, W-2 forms, and bank statements are common.
- List of schools you’re interested in
Be proactive when applying for financial aid at nonprofit online colleges. You can anticipate issues before these happen. Not all your applications will be approved. Being positive and persistent is a must.
Scholarships for Online Students
Many scholarships for online students are also available for on-campus students. The competition can be fierce, especially for merit-based scholarships. But it can also be true for need-based and specialty-based scholarships. There’s a finite number of scholarships against thousands of students in need.
Many nonprofit universities also offer institutional scholarships for their students. Western Governors University, Stanford University, and UCLA are examples.
Check out scholarships offered by professional organizations and associations, such as:
- National Black MBA Association (NBMBAA) Scholarships
- Society of Women Engineers (SWE) Scholarships
- American Association of Colleges of Nursing (AACN) Scholarships
Where can you find these scholarships? Check out these resources.
- Your school’s financial aid office is the obvious first choice.
- Use scholarship databases and search engines. Cappex, Scholarships.com, and Fastweb are reliable sources.
- Look into professional organizations and associations in your field of study.
- Ask about scholarship opportunities offered by local community organizations. Start with the Rotary Clubs and Lions Clubs. Consider the local chamber of commerce, charitable foundations, and local businesses. Check the local financial institutions, cultural organizations, and religious groups.
- Inquire about your employer’s tuition assistance program.
Think of the scholarship application process as a job application process. Be prepared with your documents. Put your best foot forward. Be persuasive, persistent, and patient. Apply to as many scholarship opportunities as possible. You want to cast a wide net and, hopefully, get a full ride.
Grants and Federal Student Aid
Grants for online college students are also the same for on-campus students. These are also intended for online college tuition help, meaning to reduce its cost.
As a form of federal student aid, grants come in many types.
- The Pell Grant is a need-based grant for low-income students. Both undergraduate and graduate students can apply. There’s no need for repayment, but there are exemptions. If you withdraw from your program early, you may have to repay. Be careful about receiving other financial aid, too, since it can affect your Pell Grant award.
- The award amount changes on a yearly basis. It’s $7,395 for the 2023-2024 award year. Your award amount varies depending on several factors.
- The Federal Supplemental Educational Opportunity Grant (FSEOG) is for undergraduates with exceptionally demonstrated financial need. The award amount varies between $100 and $4,000 per year.
In both cases, you must file your FAFSA on or before the deadline. You must also meet other eligibility requirements. These include citizenship, enrollment in an approved program, and satisfactory academic progress.
Check out these federal grant programs, too.
- Teacher Education Assistance for College and Higher Education (TEACH) Grants
- Iraq and Afghanistan Service Grants
These are specialty grants. The TEACH program has a service obligation.
Maximizing Your Financial Aid Package
Both government and private scholarships demand effective financial management. Otherwise, your efforts at adopting the above financial aid application tips will be wasted.
Here are effective tips to get the most out of your financial aid package.
- Compare the financial aid packages before accepting them. Choose the ones that fit your needs.
- Prioritize the scholarships and grants first because these don’t have to be repaid.
- Spend the financial aid where it’s intended. This isn’t applicable to scholarships and grants directly paid to the online college. If you received a book scholarship, buy the required books immediately. In the case of discretionary scholarships, be sure to spend the money on college-related expenses.
- Create a budget for the money directly deposited into your account. Track where you spent the money. This way, you can assess if you’re spending it wisely.
- Seek financial advice if you’re struggling about handling your financial aid package.
Cost-Saving Tips for Online Education
Here are more ways that you can enjoy online education cost savings.
- Earn an associate degree at a community college first. Then, transfer credits must be earned. Look at your prior learning, too, for credit transfers.
- Choose an online college that offers in-state tuition for non-residents. You should also consider a college in the state where you’re a resident.
- Use tax credits to offset your college costs. Examples include the Lifetime Learning Credit and American Opportunity Tax Credit.
- Use alternatives to new textbooks. Rent books or buy secondhand books. Use open educational resources (OER). Subscribe to digital textbooks.
- Take advantage of student discounts. Better yet, use free resources for your educational needs.
- Use bundled services to save on utilities, particularly Internet connection.
Of course, effective financial planning is a must. Every successful pursuit starts with good planning. Then, you must follow through with your plans.
Conclusion: Making Your Education Affordable and Achievable
Don’t hesitate to take full advantage of every available financial resource offered. Your ability to pursue your studies and earn your degree rests on it. Keep in mind that with less financial worry, you can focus on more important things.
In conclusion, making your education affordable demands financial planning. Start as early as possible, say, during your high school years. But don’t despair if you haven’t. Now is the best time to start financial planning and follow through with it.