Finding Money to Continue Your Education
Many people want to continue their education but don’t have the financial ability to pay for the tuition, especially since an education online usually costs a little or a lot more than a traditional program. That doesn’t mean you have to abandon your dreams of earning a degree or of pursuing a higher degree. Funds are available for your education if you know where to look.
First Stop: Grants
If you’re pursuing your first bachelor’s degree through an accredited program, you may be able to receive some tuition assistance through the Federal Pell grant program. Pell grants are awarded to students based on their financial need so you do need to provide income information. Awards of over $5,000 per year can be given out but funding amounts vary based on Federal funding. Your year in the program, your level of need, and the cost of your tuition also affect the amount of grant money you can receive through the program.
Other grants are also available, including awards for pursuing science programs, excelling in high school and your undergraduate program, agreeing to teach after completing your degree, or having an exceptional financial need.
To qualify for any of these grants, you have to complete the FAFSA (Free Application for Federal Student Aid). The application can be completed online, takes about 20 to 30 minutes the first time, and will also help you qualify for other types of Federal financial aid that do not have income requirements.
Second Stop: Scholarships
Another good option for paying for your education online is a scholarship. Even if you are a non-traditional student (meaning you did not go to college right after high school), you may still be able to get scholarships. You also don’t have to be the best student or a great athlete to qualify. Many schools offer scholarships to students who do community service or who are pursuing certain degrees. If your parents are employed in specific careers, you may also be able to qualify for scholarships. Online sites, such as FastWeb.com, can also connect you with a wide range of scholarship opportunities.
Third Stop: Your Employer
Some employers will offer tuition reimbursement for employees who pursue a degree, particularly a degree that is going to be useful in the field. For example, if your boss thinks you have potential, the company may pay for you to earn an MBA. Even if they don’t pay the whole amount of your tuition, you may get some of the money back. Keep in mind that your employer will probably require you to stay with the firm for a specific amount of time after you complete the degree or you’ll have to repay the reimbursement.
Fourth Stop: Government Loans
Because grants are only available for undergraduate students and for students who demonstrate financial need, you may need to check out the Stafford loan program offered by the government to help cover the costs of your education online. To qualify for these loans, you need to complete the FAFSA but you do not need to meet income requirements.
Government loans have lower interest rates which makes them a better choice than private loans. Plus, you do not need to pass a credit check to qualify for them. You can also take out up to $8,000 per year (a lower maximum is set during your first few semesters). These loans do need to be paid back but you will have a grace period of six months from the time you drop below half-time status as a student. Government loans also offer more repayment choices which means you’ll have more flexibility in how to repay the money.
You may also be able to take out even larger amounts if you want an unsubsidized loan. The interest on these loans will accumulate during the time you are in school but you do have the option of paying the interest.
Parents can also take out government education loans on your behalf but they do need to pass a credit check and the maximum amount is only equal to your tuition.
Fifth Stop: Private Loans
The last stop you should consider is private loans. This should be your last ditch effort to find money to pay for your schooling. That’s because it will end up costing you a lot in the future thanks to higher interest rates and fewer repayment options. However, if you don’t have to finance your entire tuition then you’ll be fine.
Most lenders do offer these loans. If you have a bank you normally use, go there first. Credit unions, if you are a member, sometimes offer the best deals and the lowest interest rates so keep that in mind. Typically, you will have to pass a credit check to qualify for the loan but you can have a co-signer, too.
Other Options
You should also communicate with your education online school about programs they offer to help cover the costs of tuition. Sometimes you can pay it off in installments which can be a good way to spread out the costs over the entire semester or year. They may even have their own financing available.
In some cases, you might even be able to use your credit cards to pay your tuition. Just remember that this option isn’t as good as some of the others, including the Stafford loans. You’ll pay less in interest.
The bottom line is you shouldn’t give up your dreams of continuing an education online. Instead, check out all of the available options and you should be able to find a way to pay for the degree you want. An education is definitely one of the best investments you can make.