Distance Education Online - Applying for Federal Financial Aid

Distance Education Online - Applying for Federal Financial Aid

So you've chosen a school and a program - now what?

"The first step for students who are considering an online program is to fill out a FAFSA," McGuire says. "The FAFSA tells the school what types and amounts of federal aid students are eligible for."

A FAFSA (Free Application for Federal Student Aid) is a form used by the US Department of Education to assess a student's eligibility to receive federal and state financial aid. The FAFSA incorporates many factors of a student's life situation, including age, tax information, marital status, dependents and veteran status.

There is no age limit for receiving federal financial aid, but students must be a US citizen or eligible non-citizen. Students that are not US citizens or eligible non-citizens should still complete the FAFSA, since they may still qualify for state financial aid. FAFSA forms can be completed online at the US Department of Education website, www.fafsa.ed.gov.

There are several types of federal financial aid available. Federal grants (such as Pell grants) and other scholarships do not have to be repaid. Student loans, like Stafford loans, must be repaid, with repayment typically beginning several months after graduation.

"If you have to borrow, federal loans are the best option," McGuire says. This is because federal education loans generally have a much lower interest rate (generally 3%-5%) than private bank/lender loans (typically 6%-10%) when it comes to repayment.

However, beware of any web site that charges a fee to help you fill out a FAFSA. Prospective students shouldn't have to pay money to complete the FAFSA. "Those are the scams," McGuire warns. You must submit the FAFSA by the date listed for your state of residency or you will not be eligible for financial aid for the entire year. Be sure to follow marked deadlines. To see individual state deadlines, check the FAFSA web site (above) or visit www.finaid.org.

After submitting a FAFSA, the next step is to contact the school's financial aid department and fill out the school's financial aid forms, McGuire says. There may be numerous sources of financial aid available through the school's organizations, including alumni, general scholarship, private contributors, foundations, etc.

If you are a veteran, there are also special federal financial aid options available for you, including tuition assistance, vocational rehabilitation and the Montgomery GI Bill. "Veterans Affairs has a really great website," McGuire says. The US Department of Veterans Affairs website can be found at www.va.gov.

The majority of these financial aid sources will all apply to online education, as long as the online school you wish to attend is properly accredited and certified as a degree-granting institution. To find out more about accreditation, visit the school's website, browse the All Online Schools online accreditation resources or visit the Council for Higher Education Accreditation (CHEA), at www.chea.org.