More Program Choices for Students - Distance Education Online

More Program Choices for Students - Distance Education Online

Until earlier this year, Congress would only grant federal financial aid to students attending schools that offer at least half of their online degree programs at their traditional, residential campuses as well. This regulation - often called the "50:50 rule" - is being reconsidered, thanks to newly proposed legislation.

While Congress' action doesn't make it easier for students to receive funds (in terms of merit, need and personal circumstances), it does make it easier for schools with online programs to receive funding for students in need. Students in need of financial aid for online programs will have more schools to choose from - since more schools will become eligible to receive funding. Still, the online university must be accredited to be eligible to receive funding, McGuire reiterates. Ultimately, the change in the 50:50 rule gives students more choices about where and how to study online.

Financial Aid Details
According to the College Board, the average costs (2005-2006) of a traditional college education are as such, with the credit-hour costs achieved by dividing the annual cost by the average of 32 credits per year:

Four-year private: $21,235 per year, $664 per credit
Four-year public (in-state): $5,491 per year, $172 per credit
Four-year public (out-of-state): $13,164 per year, $411 per credit
Two-year public (in-state): $2,191 per year, $68 per credit
Two-year (out-of-state): $6,351 per year, $198 per credit

Note: Cost and aid figures are from the College Board's Trends in College Pricing 2005, Trends in Student Aid 2005 and Education Pays 2005.

You don't have to be a valedictorian with a perfect test score or a recruited athlete to get scholarships. And you don't have to be poor in order to get financial aid either. You can qualify for loans and scholarships based on a series of factors that demonstrate your need for tuition assistance. These factors include income, estimated family contribution (the amount you and your family will be able to pay out-of-pocket; see the FAFSA web site), the type of institution you are applying to, the number of people in your family who are enrolled in college, etc.

Money paid toward tuition or student loans is also tax deductible. There is a section in the standard tax return form for money paid out for student tuition expenses.