Online College Degrees

You have decided to attend an on-line school to further your education, good for you!  Now it is time to find the financing available to you.  There are many options open to you that will not require you to break open your piggy bank or dip into your vacation funds.

As recently as 1992 online schools were required by law to offer at least half of their courses at a physical campus in order to be able to offer any type of federal financing; but that law was overturned in 2006.

There are several different kinds of Federal Student Loans available:

1. Federal Perkins Loans- A low interest loan available to students who are proven to be in extreme financial need.  As long as a student remains in school, the government pays the interest on the loan continuing for nine additional months after the student graduates.  Then the loan and the interest is the responsibility of the student.
2. Federal Subsidized Stafford Loans- A low interest loan that the government pays the interest on as long as the student remains in school.  For six months after graduation the government will continue to pay the interest, and then it is the student’s responsibility to start repaying the loan.
3. Federal Unsubsidized Stafford Loans- Also low interest, however the interest starts to accumulate from the time that the money is paid to the school.  The first payment is usually due six months after graduation.
4. Federal PLUS Loans- This stands for “Parent Loan for Undergraduate Students”.  This loan is available to parents that are paying for their child’s education.  The loan repayment starts as soon as the money is paid to the school.
5. Federal PLUS Loans for Graduate and Professional Degree Students- After a student has reached the limits of other federal finance possibilities, they may qualify for this loan.  The loan repayment starts as soon as the money is paid to the school, however the student may request a deferment while they are attending school.  Forty-five days after graduation the loan repayment schedule resumes.

There are other options for paying for your degree beyond Federal loan and grant programs.  We will look at loan options in the next blog post.