How to Pay for an Online Graduate Degree

If you’re thinking about going back to school for an advanced degree, you may be concerned with two main factors—first, how to finance it; and second, how to balance classes with work, family, and other commitments. An online graduate degree can often be a great solution for those in this situation. By pursuing an online degree, you can continue to hold a job while simultaneously attending classes, decreasing your debt load after you graduate. Online graduate degrees are also typically less costly than their on-campus counterparts. Keep reading to learn about the benefits of online degrees, and the financing options that may be available to you.

The Benefits of Online Graduate Degree Programs

Online education is becoming more and more popular as a way to advance career opportunities and personal growth. According to research firm McKinsey & Company, between 2012 and 2019, the number of hybrid and distance-only students at traditional universities increased by 36 percent. Then, in 2020, the circumstances of the COVID-19 pandemic rapidly accelerated that growth by an additional 92 percent. Some of the reasons returning students are choosing online graduate degrees include:

Affordability. At many schools, an online program costs less than the on-campus version of the same program. Even in instances where this isn’t the case, online learning can save you money in other ways, like travel and parking fees.
Convenience. Packing up everything you own, moving it into storage, and obtaining new housing near the school of your choice is simply not a feasible option for many adult learners. Getting an online degree means you and/or your family members can stay where you are already established.
Flexibility. Online learning can allow you to balance all of your obligations, like raising children, managing a household, and/or going to work. It also gives you more free time to take care of your physical and mental health, by exercising, enjoying a hobby, or socializing.

Top Financial Aid Options for Online Graduate Degrees

Many people believe that financial aid is limited for online degree programs, especially online graduate degree programs. However, this is a misconception. Distance learners usually qualify for the same types of financial aid as on-campus students, including federal loans, private loans, scholarships, and grants.

Federal financial aid is one of the most common forms of financial assistance available to students. However, only accredited schools, which are recognized by the U.S. Department of Education for upholding high levels of educational standards, are eligible.
Government grants are often a good way to supplement your financial aid without increasing your debt load. Federal grants are usually need-based; many are only available to members of historically disenfranchised groups. State government grants vary based on location, and requirements and eligibility will vary by program.
Scholarships are another good way to decrease your overall education costs. These also tend to be merit-based, or geared towards students in certain ethnic or religious groups. They are also highly competitive, awarded to those who demonstrate the most potential in their field of choice. However, since scholarships don’t have to be repaid, they are definitely worth applying to!
Private loans can also help you pay for your online degree. These can be obtained from banks, credit unions, and for-profit organizations. Of these, credit unions can often offer the best rates. Since they are owned by members, and not investors, they tend to offer more flexibility for borrowers with options for a line of credit that allows you to borrow funds as needed throughout your academic program without having to reapply each year. Like federal student loans, you’ll need to be sure your program is eligible for private student loans, as some are limited to specific schools.

Other Online Graduate Degree Financing Options

These options are less common but may also help contribute to funding your online degree program:

Employer tuition assistance programs help employers retain employees and makes them more valuable to the organization. Usually the field of study will need to be relevant to your industry or job. Companies typically require employees to be with the company for a certain period of time before offering tuition assistance, and you may be required to repay costs if you don’t stay for a designated amount of time. If your workplace does not already have a program in place, it can’t hurt to inquire.
Educational savings accounts can be used to pay for qualified education expenses, such as tuition, fees, books, supplies, and equipment. Contributions to these accounts are not taxed, and some states will even give students a tax deduction for contributing to them. However, there are very stiff penalties for using funds for anything other than education.

Explore Your Options with a Credit Union

We hope this article has helped outline some of the ways you could potentially finance your online degree. When researching your options, be sure to compare different plans and programs, and do the math to see which path would be most advantageous to you. You might also consider speaking to a financial consultant or academic advisor who has experience in this area.

In addition, check out our free resources to download informative guides; watch webinars; or speak to our college counselor, at no cost to you. Our finder tool can also help you make an informed decision about financing your education with a credit union.