Introduction to Financial Aid for Online Colleges
The cost of higher education in the United States is among the most expensive worldwide. According to the Education Data Initiative, an undergraduate degree costs an average of $38,270 per year, including tuition, books and supplies, and other living expenses.
Due to the expensive cost of higher education, traditional colleges and universities are seeing a drastic decrease in student enrollment. In the past ten years alone, US college enrollment has dropped by nearly 1.5 million.
Yet, in the pursuit of better opportunities, more people are choosing to study online. In fact, during the 2022–23 academic year, 53% of college students were taking at least one online course.
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Unlike traditional students, online students are not required to uproot their whole life for a degree. They also won’t have to budget much for transportation, saving students at least $1,360 annually.
However, even with the potential cost savings, many students still find it challenging to pursue an online degree. Fortunately, there are several ways to reduce the overall cost of online college education. Usually, financial aid is one of the most helpful ways for students to pay for college.
This post discusses the different types of financial aid for working adults and provide tips and strategies for applying for one.
Types of Financial Aid Available
Working adult students are an integral part of the overall US education system. This student group brings different perspectives and experiences to the classroom. However, they face different challenges that often cause them to doubt themselves and drop out of school.
One of their major problems? Financing their education.
Most working adult students also have mouths to feed and bills to pay. Balancing these financial responsibilities while pursuing further education is daunting. Luckily, financial aid programs exist.
Working adult students have access to the following financial aid programs.
Scholarships
Scholarships are among traditional and non-traditional students’ most popular financial aid programs. They’re available at expensive traditional schools and affordable online colleges, as well as from the government and some private organizations.
These financial aid options do not require repayment. However, they’re often competitive. Here are a few examples of the types of scholarships for working adults studying online:
- Academic scholarships
Awarded based on academic achievement. These include high GPAs or standardized test scores. It aims to recognize and support students’ educational excellence.
- First generation scholarships
These are designed for students who are the first in their families to attend college.
- Community service scholarships
This type of scholarship is for students who actively participate in community service. Yet, in most cases, it is only available for those who are involved in leadership activities.
- Merit scholarships
These are granted to students based on their exceptional talents, achievements, or skills in specific areas.
- No essay scholarships
These are scholarships that do not require applicants to write essays. They are often the most accessible type of financial aid and are mostly offered by private organizations, such as Bold.org, Niche, and ScholarshipOwl.
- Major-based scholarships
These are aimed at students pursuing degrees in specific fields of study. The fields with the most scholarships offered are in STEM.
- Need-based scholarships
Need-based scholarships are given to applicants based on their financial need. The government often offers this financial aid.
Grants
Grants for online education often do not need repayment. Yet, for some reason, they’re much more competitive than scholarships. An online college grant is a single payment of money given based on how well you’ve done in school or how much money you have.
Each grant will have its own terms and conditions. You must thoroughly understand them before accepting any.
Loans
A student loan is money that you can borrow from the government or a private company to pay for college. Most college students in the US rely on loans to pay for their education. More than half of public and private nonprofit university students take out loans.
Loans are often the easiest financial aid to obtain. Yet, this doesn’t mean that they should be at the top of your options.
Like any other type of loan, student loans need to be repaid. However, some student loans will only require you to start repayment after you’ve secured a job. Nevertheless, there are some private loans that you need to start paying right after graduation.
Direct Loans
Given by the US Department of Education, these loans are for students at 4-year colleges, trade schools, or other technical schools. They’re also called Stafford Loans or Direct Stafford Loans. There are two types:
- Direct Subsidized Loans: This kind of loan is granted based on the applicant’s financial need. The college decides how much you can borrow. The government pays the interest on the loan while you’re in school and for the first six months after you leave.
- Direct Unsubsidized Loans: In this type of loan that is not based on financial need, the school decides on the amount you may borrow based on your tuition and other costs, minus any other financial aid you get. Interest on these loans starts accumulating as soon as you take the loan and repay it after leaving college.
Direct PLUS Loans
Meant for graduate students or parents of undergraduates, Direct PLUS Loans are also called Parent PLUS Loans and Graduate PLUS Loans.
Unlike other loans, it doesn’t depend on your financial need, but the Department of Education checks your credit history. If you have bad credit, you might still qualify by meeting extra conditions, like finding someone to promise to pay if you can’t or showing special circumstances.
Work-study programs
Another option for paying for college as a working adult is to seek work-study programs. However, as an online student, this may be uncommon. Nevertheless, they’re still available.
Work-study programs provide part-time jobs for students demonstrating financial need. If approved, your job will be related to your field of study. You might work in a research lab, assist professors with coursework, or even work in administrative roles within the university.
Scholarships for Working Adults
One of the top financial aid for online degrees is scholarships. Working adults have as many scholarships available as traditional students. Even so, there are specific opportunities tailored for them. Here are a few scholarship opportunities designed mainly for these students:
| Scholarship | Eligibility Criteria | Award Amount | Application Requirements |
| Return2College Scholarship | No age limit. | $1,000 | Fill out the form and provide a three-sentence explanation of why you are pursuing your degree. |
| Working Parent College Scholarship | – Working parents enrolled in college, trade school, or similar programs. – GPA ≥ 3.0 – work ≥ 12 hours/week | Not specified | Complete the form and write a 600-1,000 word essay on managing parenting, work, and studies. |
| Boomer Benefits Scholarship | – Individuals aged 50 and older. – GPA ≥ 3.0, enrolled in college or university (undergrad or graduate) | $2,500 (2 awards/year) | Write about career goals and community service experience. |
| Ford Opportunity Program Scholarship | – Parents and students aged 25 and older in Oregon and Siskiyou County, CA. – The expected family contribution can’t be more than $10,000. | Covers 90% of the cost of attendance | A completed financial aid application |
| College JumpStart Scholarship | Adult learners dedicated to education. | $1,000 | Fill out the form and write a 250-word statement about educational goals. |
You’ll have hundreds to thousands of competitions when applying for working-adult-specific scholarships. To increase your chances of winning scholarships, you must be able to write strong essays (if part of the requirement). Here are a few resources for scholarships for working adults:
Grants for Online Education
Another great financial aid for adults is grants. They’re similar to scholarships but much more competitive and challenging. However, unlike scholarships, some grants may need repayment. Here are a few instances where you need to repay them:
- You have withdrawn from your courses early.
- You reduced your enrollment status.
- You have received outside scholarships or grants that lowered your financial need.
Working adult students can find college grants through federal and state governments.
Federal grants, administered by the US Department of Education, are primarily awarded based on financial need and require completion of the FAFSA form. Your school determines eligibility and amounts based on your FAFSA information. Several types of federal grants include:
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Teacher Education Assistance for College & Higher Education (commonly known as TEACH) Grant
- State Grant
You can also find private grants, which are awarded based on different criteria:
- cultural affinity
- ethnicity
- work background
- the course of study
- family circumstances
There are a few college grant search engines available, including:
- CollegeScholarships.org
- MoolahSPOT
- Scholarships.com
- The College Grant Database
Other Financial Aid Options
Seeking more options for an affordable education for working adults is very important. Here are a few college tuition tips to reduce the overall cost of education.
Firstly, you can utilize federal and state aid programs. Two popular options include benefits like
- Opportunity Tax Credit (AOTC)
The AOTC helps reduce college costs for students or their parents by giving a $2,500 tax credit each year for tuition, fees, and books.
- Lifetime Learning Credit (LLC)
LLC gives a tax break for education after high school. It helps cover costs like tuition and other expenses for college, graduate school, or vocational training.
Since you’re employed, you can also explore employer tuition assistance programs. This aid allows working adults to continue their education without worrying about paying for school.
Tips for Applying for Financial Aid
There are three important things you need to know when applying for financial aid:
- Complete the FAFSA application early.
- Visit fafsa.gov.
- Click “Start Here.”
- Click “I’m a student and want to access the FAFSA form.”
- Create an FSA ID if you don’t have one, or log in with your FSA ID or your identifiers.
- Write strong and tailored scholarship application essays.
- Talk about your accomplishments.
- State your need
- Don’t use unnecessary words or information just to “fill the page.”
- Have someone else read your essay for clarity and ask for feedback.
- Submit all required materials before the deadline.
This is very important. Remember that financial aid programs have hundreds of applicants. Submitting all materials early allows the committee to review your application thoroughly. Late submissions may not receive the same level of attention or consideration.
Conclusion
As higher education costs continue to rise, even online colleges may become too expensive for many working adult students. But before turning to student loans, you should explore all other options, such as scholarships and grants.
There are hundreds of financial aid options available for students like you. The Internet is free; use it to search for aid that matches your qualifications and interests. Search carefully and apply to as many relevant scholarships and grants as possible.