Can You get Financial Aid for Online School? A Guide

Are you thinking of ways to further your career without breaking the bank? Are you asking yourself, “can you get financial aid for online school?” In that case, it’s essential to learn about the financial aid processes involved in continued education.

The primary reason behind financial aid is to provide access to quality education for all. A competitive and robust economy requires a highly educated society. For most people, it would be great to enroll in college for free or without paying for college loans.

It’s beneficial for students to obtain financial aid to further their education, considering the rate at which college tuition increases. The secret of getting a high-value student aid package depends on the Free Application for Federal Student Aid form, also known as FAFSA. It is the official document that colleges use to determine federal aid.

This comprehensive guide will uncover the critical steps in finding, registering, and receiving financial aid.

What is Financial Aid?

Financial aid is money from external sources that help students pay for college. In most use cases, it covers costs like living expenses, tuition fees, college books, supplies, etc. Regardless of a person’s net worth, families from various income levels can obtain financial aid.

It is vital to know that some types of financial aid are provided by beneficiaries and must be paid back.

Financial Aid Officers

Financial aid officers are the administrators that directly help students seeking financial assistance to support their college education. The primary role of aid officers is to link students to valuable aid opportunities, disburse resources and help address issues that might arise.

Can I get Financial Aid if I Already Have a Bachelor’s Degree?

Most students exhaust their financial aid during their stay as an undergraduate. Students can no longer obtain financial aid after spending the twelve semesters of eligibility.

Can I get Financial Aid for a Master’s Degree?

Yes. Students taking graduate degree courses on-campus or online are eligible for financial aid if they haven’t exhausted all 12 semesters of their eligibility. Check with the relevant departments in your chosen institution to find out more information.

Are Certificate Programs Eligible for Financial Aid?

Most certificate programs are eligible for federal financial aid. To qualify, students must go through the federal aid eligibility requirements or check through the online student aid portal of the institution.

Different Types of Financial Aid

In any academic institution, there are three major types of financial aid for students:

Student Loans
Scholarships and Grants
Federal work-study (work-study programs)

Student Loans

Student loans are the money offered to college students to help cater to educational costs. Loans are the type of financial aid you would repay in the future. Since the funds obtained must be paid back later, students must plan to use them judiciously.

All student loans from lenders come with their terms and conditions and applicable interest rates. In order not to get confused, check the helpful definitions below:

Loan Lender

A loan lender is an institution that offers loans to eligible students.

Loan Servicer

A loan servicer is a firm that acts as the middleman between you and the lender. Students will work with a loan service provider to repay the money borrowed from the lender.

Loan Term

The student loan terms refer to the time limit set by borrowers for students to repay their outstanding debt. These loan terms can range from at least six years to thirty years.

Interest Rates

The interest rate is the commission earned by a lender for disbursing the loan to the student. The interest paid is dependent on the loan amount and duration of payment. In general, low-interest rates are better than high-interest rates for students.

Subsidized vs. Unsubsidized Loans

It’s essential to understand the difference between unsubsidized and subsidized loans since it affects how the repayment plans are paid and calculated.

For subsidized loans, the federal government repays the interest on the borrowed loan while a student is in college, six months after graduating from college, or after deferment. While for an unsubsidized loan, it is the borrower’s responsibility to repay the accrued interest on the loan.

Scholarships and Grants

A scholarship is a financial aid offered to eligible students in order for them to pursue their academic careers. Scholarships are offered based on specific criteria which must meet the purpose for which it was created.

Here’s the good news: Beneficiaries are not mandated to repay the scholarship money.

The two main types of scholarships available to all students across various levels of education are:

College (School) Scholarship
Private Scholarships

College (School) Scholarship

Over the years, most colleges have offered scholarships through the combined support of school alumni and donors.

The sources of funding for college scholarships are always different, but a college-sponsored scholarship falls into two main categories:

Academic Scholarship
Endowed Scholarship

In most cases, academic scholarship relies on Scholarship Aptitude Test (SAT), American College Testing (ACT) scores, or High School GPA scores. For students that qualify for an academic scholarship, the college will inform them ahead of time.

An endowed scholarship is a valuable gift to an institution, college, or university, whose primary aim is to award scholarships to outstanding students. Endowment-based scholarship mainly honors the donor. The selection criteria solely depend on the instructions given by the donor.

Private Scholarship

Private scholarships are financial incentives or aids awarded to students and solely funded by multinational companies, individuals, nonprofit organizations, etc. Students are not obligated to pay back the money awarded because they are offered to candidates to help them pay for their college costs.

Grants

Grants are a form of financial aid given to students with no repayment option. Grants support a wide range of ideas, including educational research and career development, to help stimulate the economy.

Educational grants enable the beneficiary to pursue career goals without repaying the money. And only students with difficulty in affording the high cost of graduate or undergraduate education can access this privilege.

The most popular grants available to students include:

State Grants – State-sponsored grants are financial aid set up by the government. These grants help state residents or certified professionals (academicians, scientists) access higher education or research opportunities to help boost innovations in the state.
Employer Grants – Based on student competence, employers offer high-value grants to eligible students to enable them to pursue their professional or educational goals.
Federal Pell Grant – A Federal Pell Grant is an incentive provided by the federal government. They are restricted to students with proven financial needs. It is a need-based grant, and the purpose of the offering is to enable low-income students to have access to post-secondary education. A federal agency fully funds the financial assistance rendered to beneficiaries.
Veteran And Military Benefits – You can qualify for various educational benefits by serving in the military. From veterans who have left service and service members on active duty. It is suitable for eligible students to utilize these military benefits. They are a beneficial financial option when paying for graduate, undergraduate, or training tuition.

Federal and Non-Federal Work-Study

Federal Work-Study Programs provide jobs for students with financial needs. Graduate and undergraduate students eligible for the program can benefit from this, allowing them to make money to offset educational expenses. Students can make at least minimum wage with this program in place.

Students can gain valuable work experience in relevant industries or multinational firms through federal work-study jobs. Work-study jobs are situated off-campus or on-campus but are more likely to be in a public agency or non-government organization.

What Determines Who is Eligible for Financial Aid?

To be eligible for financial aid, candidates must meet specific requirements. The primary eligibility criteria are:
Applicants must have a valid SSN. This condition does not apply to students from the Republic of Palau, Marshall Islands, and the Federated States of Micronesia.
Candidates must be regular students in an eligible certificate or degree program.
Valid proof that students merit a financial need.
Candidates must be US citizens or legal non-citizens.
Candidates must be admitted to at least a part-time program to be eligible.
Students must prove that they are qualified for a higher or college education by having a GED or high-school diploma.
Maintain an excellent academic record in training (career) school or college;
Sign and complete the Statement of Certification on the Free Application for Federal Student Aid (FAFSA) form.
Students must agree to use the financial aid for educational purposes only.
Applicants must not already owe a federal student loan or grant.

What Disqualifies You From Receiving Financial Aid?

There are numerous reasons why students can get disqualified from receiving financial aid. Knowing what they are will help candidates in making an informed decision. These reasons include:

Your family is earning enough money that financial assistance is not necessary.
Parents haven’t filed federal taxes.
Poor grade point average.
The financial aid you applied for is available for only new intakes.
Default on previous student loans.
Failure to file the FAFSA application at the end of every year.
Being convicted of drug-related crimes.
Not fulfilling halftime enrollment requirements.

Why is FAFSA Based on Parent Income?

According to federal law, it is assumed that parents are responsible for paying for their children’s higher education. The US federal government provides financial assistance to students only when the parents cannot pay for college. Not when parents deliberately do not pay for their children’s tuition in college.

For independent students, parent income does not count towards obtaining financial aid. Although, the financial assistance of dependent students is based on the parent’s income.

What is the Expected Family Contribution?

The Expected Family Contribution (EFC) is a criterion for estimating a household’s financial strength, determining the amount of financial aid received by different students.

Financial Aid Process Steps

Students might be wondering, how do you receive financial aid? The best way is to submit FAFSA (Free Application for Federal Student Aid) documents online! To avoid making mistakes during the application process, follow the steps below to register for and submit your FAFSA form.

Step 1. Gather All Required Information

When completing the FAFSA form, gather the following necessary information and documents:

Your family size
Estimated family income
Valid social security number
Declared income (If applicable)
Collate the lists of institutions applied to

Step 2. Generate a Federal Student Aid (FSA) ID

If all the relevant documents are on hand, proceed to apply for FAFSA. The next step for those registering via FAFSA online or through the mobile app is to generate an FSA ID. It is a unique identifier and helps track the application progress of all students. For parents, FSA ID will not be the same as their child’s.

Step 3. Fill in Student Information

With the FSA ID in place, fill the required fields in the FAFSA online. Begin to enter valid details in the student demographic section. Information needed in this area includes full names, date of birth, and age.

When filling the schools of your choice, ensure to enter all colleges or institutions you consider to benefit from the high-value aid applicable to each one. The dependency section is where to input details as to whether you depend on your parents.

Step 4. Fill out the Parental Information

After filling in the required details in the student section, enter the relevant information of your parents. It is mandatory to fill this field even if you are not currently living with your parents. In this section, ensure to enter your valid mailing or house address.

Step 5. Provide Your Financial Information

In this section, complete the financial information of your household. For those registering via FAFSA online, use the IRS Data Retrieval Tool. This tool helps to fetch the financial data from your tax return automatically.

Step 6. Review Your FAFSA Information

At this stage, ensure to review your FAFSA application for mistakes or typographical errors. Recheck and confirm that the appropriate list of schools and financial information are where they need to be.

Step 7. Sign and Submit the FAFSA form

Submit the required information after checking and correcting errors in the required sections.

Online School Financial Aid Ethics

If you’re still on the fence about financial aid, consider the primary function of the office of financial assistance and financial aid professionals:

To increase opportunities for students to reach their academic potential by providing appropriate financial resources.

The National Association of Student Financial Aid Administrators (NASFAA) adopted this statement, which provides the financial advisor’s office with principles that serve as a common foundation for accepted standards of conduct. These ethics are:

Make a prompt effort to help students with financial needs
Refrain from conflict of interest and adhere to the highest level of ethical behaviors
Encourage the freedom of expression, opinions, and ideas, and promote respect for different points of view within the profession
Offer services without discrimination based on gender, race, religion, economic status, age, etc
Respect students’ confidentiality and privacy, and ensure the confidentiality of student records and personal situations
Educate students and families by providing accurate educational information
Be knowledgeable of student issues and help advocate for their rights at the educational, federal, and state levels

Online Student Loan Scams – Steps to Protect Yourself

Unfortunately, financial aid scams exist. Being well-informed can reduce your risk of experiencing a scam. Here are some tip-offs to be aware of to avoid a student aid fraud:

Never Pay an Up-Front Fee or Payment in Advance
Don’t pay anyone to get a student loan debt relief. All of the services offered by debt relief companies are ones you can perform on your own. Keep in mind that reputable companies should not demand payment in advance for those seeking assistance.
Protect Sensitive Personal Information
Identity theft becomes more likely when unwelcome people have access to your information. When providing information over the phone or the internet, always be vigilant. Know who has access to your data and check the legitimacy of your sources before sending over your credit card information or social security number.
Beware of False Legal Claims by Companies
Several scams prey on the trust you might place in business professionals. Permitting debt relief companies or law firms to negotiate on your behalf cannot guarantee lower student loan payments. Take caution in your search for the best financial aid offers. Many fake schemes frequently use crafty emails filled with practical terms to lure students into giving them money.

FAQs on Financial Aid for Students

What does the EFC score mean?

An EFC score is the number aggregated with information inputted in the FAFSA application. The computed score ascertains a student’s eligibility for financial aid.

How much financial aid can I get per semester?

The amount of aid received varies across different colleges or institutions. Students can expect to obtain between $650 to $6400 per year. The financial assistance awarded is split 50/50 between the winter and fall semesters.

How much money can a student have before it impacts financial aid?

The amount of money a student earns before it affects their financial aid varies. Once a student makes between $6570 to $6600, such an amount will be counted as income, impacting the available financial assistance.

Will my savings account affect my financial aid?

Money kept in a brokerage account, or a traditional savings account can lower the amount of financial aid you are eligible to get. An educational savings account (ESA) or 529 plan will have a minor effect.

Do online colleges accept financial aid?

Yes. Many students fund their distance learning programs using financial aid from the government, individuals, and private organizations.

What is the GPA requirement for financial aid?

To avoid being disqualified for financial aid, students must maintain excellent academic progress toward their degree. Your college decides the minimum grade point average (GPA) requirement in most cases. Ideally, a student must achieve a GPA of 2.0 or higher based on a 4.0 scale or maintain a C average.

Is FAFSA a Pell Grant?

Yes, it is.

How many semesters can a student get FAFSA?

When students are close to their financial aid limit (Pell Grant), they will receive credit-limit notifications to their registered mailing address.

Can you get student loans if you don’t qualify for financial aid?

Before thinking of private loans, consider applying for a federal student loan. Federal loans are beneficial because they offer reduced interest rates. Most colleges will provide alternative PLUS loans to enrolled students.

Do parents have to fill out FAFSA forms?

Yes, they do.

Should I put my parental info on FAFSA if I am independent?

For independent students, only fill in your personal information. Dependent students are the only ones required to input their parents’ information.

Best financial aid calculators for students?

Due to accuracy, students can use the Online EFC Calculator provided by the College Board. Although, different financial aid calculators are obtainable online. Do your due diligence and explore the best options that suit your needs.

Find Financial Aid Today!

Now you have an in-depth understanding of what financial aid is all about. The next step is to take the strategies learned in this article and use the insights in your subsequent student aid applications. Check out our educational resources for more academic benefits like these.