How to Pay For Online College

As all things remote rise, many people are contemplating degrees from accredited schools with “distance learning” options. These prospective students might be wondering how much these colleges cost compared to in-person options, how credible these online degrees are, what steps should be taken to apply to them, and whether there are options for student loans or financial aid.

The short answer: Online degrees can offer credible, competitively priced ways to reach your educational goals. They can have a similar application process as in-person colleges and may be financed with a wide range of financial aid and federal and private student loan options.

A Little Bit About Distance Learning

Online college falls under the umbrella of “distance learning” — a form of education conducted outside the traditional in-person classroom and facilitated with the use of technology. Many distance learning programs allow students to complete courses at their own pace and on their own schedule.

Some online colleges also incorporate learning methods like virtual classrooms and video conferencing for meeting during a designated class time. Depending on which format a student chooses, they can create their own online learning experience as part of their college education.

How Credible Are Online Degrees?

In previous decades, the jury may have been mixed on whether online degrees were considered as credible as their in-person counterparts. But with the advancement of global technology and the onset of digital transformation, online colleges have become more widely recognized as institutions of high-quality education.

According to a landmark Northeastern University’s Online Education survey, 61% of HR leaders believe online college credentials are equally credible as those completed in person. This included both degrees and certificates.

How Much Does the Average Online College Cost?

According to the U.S. News & World Report, the cost of an online degree can vary considerably. For instance, for in-state students attending public online colleges, the average total cost for a bachelor’s degree was $40,536, based on prices for the 2024-25 school year. For an online bachelor’s degrees from private colleges, the cost averaged $63,185.

This, of course, is simply the average. In some cases, online college can cost even more than in-person programs. And, in other cases, online colleges can actually pay students to attend (more on that below).

How Do I Apply for Online College?

The process of applying to an online college is similar to that of a traditional in-person college or university. Depending on which school the prospective student chooses, there should be detailed application and enrollment instructions on the website.

Each college will have its own unique admissions policies and application instructions, with some adhering to set application deadlines and others offering “rolling admissions” where students can apply at any time.

Researching deadlines and requirements in advance can be a prudent way to approach the online college application process and provide exactly what the admissions team wants.

How Do I Pay for College If I Have No Money?

There are several ways to pay for college, even if the applicant has little-to-no means of funding:

•   Applying for scholarships is one way to pay for online college without having any money. There are several resources (such as online scholarship search hubs) available for prospective college students seeking scholarships and, unlike student loans, repayment is not required.

•   Financial aid helps prospective students secure funds for online college in the form of grants, scholarships, work-study programs, and federal student loans. Filling out the FAFSA can be an important first step when seeking federal aid; just remember to be sure your program and the educational institution qualify for this kind of funding.

If you’ve received a federal student loan for online college, there are different student loan repayment options to help you tackle the tuition debt.

•   Getting an extra gig could be a great way to accumulate some extra cash to subsidize online college costs.

•   Prospective students can see if they qualify for a private student loan (more on this option below).

Are There Student Loans for Online Schools?

Yes, federal student loans are offered for eligible programs at online colleges that are accredited by the U.S. Department of Education. Contacting the university’s financial aid office prior to enrollment is the best way to check on eligibility.

Outside of federal student loans, private student loans are another way to potentially pay for online college. With private student loans, each lender will have their own eligibility requirements, terms, and conditions. Borrowers must agree to these parameters and complete on-time payments to avoid any fees or penalties associated with account delinquency. There are student loan refinancing options that may help if a student is struggling to make their payments.

What About Online Colleges That Accept FAFSA?

Yes, FAFSA® can cover eligible online classes at accredited schools. The Free Application for Federal Student Aid (FAFSA) allows prospective students to apply for financial aid for qualifying online classes at an accredited institution much like they would an in-person university. All they have to do is fill out the form online, or print and mail a paper copy. This must be done each year in which a student is seeking aid.

What Types of Federal Student Loans Are Available for Online College?

Prospective students might consider consulting with their online college’s financial aid office before deciding which type of federal student loan to apply for, but many students opt for one of the following types of Federal Direct student loans:

•  Federal Direct Subsidized loans help students who qualify for financial need and are attending traditional four-year colleges or universities, community colleges, or technical schools. The federal government will pay the loan’s interest while the borrower is in school, during the six-month grace period after graduation, and in the event of student loan deferment.
•  Federal Direct Unsubsidized loans help undergraduate, graduate, and professional school students cover college costs without requiring a demonstration of financial need. However, borrowers are responsible for paying back all the interest accrued on the loan from the time they start attending college onward (although they aren’t required to start making payments until after they graduate).
•  Direct PLUS loans are unsubsidized loans issued for graduate or professional students as well as parents of undergraduate students who are helping them pay for college.
•  Direct Consolidation loans are a way to combine different federal student loans into one single loan so the borrower can commit to one monthly payment under one loan servicer.

How Can I Get Private Student Loans?

For prospective students seeking an alternative to federally backed student loans, applying for private student loans can be another way to pay for online college. If your program and educational institution qualify for this type of funding, you can have access to financing from banks, credit unions, and online lenders. These loans can help you attend the program that suits your needs and helps you reach your education goals.

It’s worth noting, though, that rates are typically higher than those for federal loans. In addition, these loans don’t offer such federal benefits as deferment and forbearance.

The Takeaway

Online college is a form of distance education that allows students to acquire a degree outside the traditional in-person university setting. Degrees from online college degrees are considered credible by many employers and HR leaders.

There are several student loan and financial aid options for qualifying online college expenses, including federally backed student loans, scholarships, grants, and work-study programs, as well as private student loans.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

How do you pay for online college?

For eligible online college programs at accredited schools, you can pay via savings, federal or private student loans, as well as grants, scholarships, and work-study options.

How much does an online college degree cost?

According to U.S. News & World Report, the average cost of an online college degree currently ranges from $40,536 for an in-state student at a public university to $63,185 for a private college.

What type of loan can I get for an online college degree?

You may be able to access federal student loans and/or private student loans to finance an online college degree. It’s wise to check whether your program is eligible and the institution is accredited for loans from each lender you are considering; requirements can vary.

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