Complete Guide to Getting Student Loans for Online Schools

Getting an education is easier than ever, especially as online courses have become more popular due to the pandemic. Whether you’re pursuing a bachelor’s, master’s, or certification, it can all be done online from the comfort of your own home.

If you need funding for school, you might wonder if there are special student loans for online schools.

Can you get student loans for online college?

If you’re wondering “Can you get student loans for online college?”, the answer is yes, in most cases. If your online college is accredited, it should qualify for federal student loans.

Federal loans are administered by the Department of Education and come with various borrower protections such as deferment, income-driven repayment options, and even student loan forgiveness.

Related: Federal Student Loan Limits

If your school isn’t eligible, you might be able to get private student loans. Private student loans are offered through financial institutions rather than the government.

Private loans can finance your online education, but you’ll need to check eligibility requirements with each private student loan lender to see if your program qualifies.

How to determine if you can take out federal student loans for online schools

To get student loans for online programs, you want to see if you can take out federal student loans, first. Federal student loans are a better option for student loan borrowers as they’re backed by the government and have many different protections and repayment options that can come in handy later on.

Take the following steps to see if you qualify for federal student loans.

1. Check if the program is accredited

The first thing to do is seeing if your online program is accredited. Visit the Department of Education’s Database of Accredited Postsecondary Institutions and Programs to check your online school or program. Input the name of your institution to see its accreditation status.

2. Submit the Free Application for Federal Student Aid (FAFSA)

The Free Application for Federal Student Aid (FAFSA) can help you see what type of financial aid you might qualify for, including grants and federal student loans. Fill it out completely and submit it by the deadline. Check the FAFSA deadlines for your school and your state as it varies.

3. Review your financial aid award letter

After submitting your FAFSA, you should receive a financial aid award letter. This letter outlines which type of financial aid you qualify for, including federal student loans. If you do qualify for federal student loans, you can accept the award and use them to pay for an online school.

Different types of online schools

Loans for online students help fund a digitally based education. But not all online schools are created equal. Some online schools that accept the FAFSA might let you get an associate’s degree, bachelor’s degree, or master’s degree. Other online schools might provide certification. Costs among these various types of online schools can vary.

Let’s take Ohio State University, which is voted as a top online Bachelor’s program. If you get an online Bachelor of Science in Nursing degree, the total cost to complete the program for full-time Ohio residents is $16,422, and $17,022 for non-Ohio residents.

At Oregon State University, it’s possible to get a Master of Education (Ed.M) degree completely online. The program costs $560 per credit and requires 45 credits equaling $25,200.

Certifications might be much more affordable. For example, Harvard Business School Online offers a Financial Accounting certification for $1,600 for an eight-week course.

Each online school and program has its own student loan eligibility requirements. For example, the certification at Harvard says that it accepts private loans from lenders like Salle Mae, Citizens and MPower Financing.

When considering an online school and taking out student loans for online programs, evaluate the overall cost versus your prospective income after the degree or certification.

If your income will be less than what it costs to complete the program, your best bet is sticking with federal loans due to their benefits. If your income might exceed the overall cost of your education, you can review your private student loan options as well.

Top 4 private student loans for online schools

If you qualify for federal student loans and take the maximum out and it’s not enough, you can consider private loans. Private loans might also be a good option if the type of online school or program doesn’t meet federal loan eligibility requirements.

Here are some places to look for private student loans for online schools.

1. Citizens

Citizens offers undergraduate private student loans between $1,000 to $150,000. Students must be enrolled at least half-time to qualify. You can select a repayment term of five, ten, or 15 years.

Graduate loans from Citizens are similar to undergrad loans, but with higher rates. You can compare Citizens private student loan rates with other lenders through our partner, Credible.

2. College Ave

College Ave offers several private student loan options for undergraduate and graduate students.  The lender provides borrowers with unique repayment terms at 5, 8, 10, and 15 years (3).

If you’re looking for student loans for online programs or other types of schooling, check out College Ave’s Undergraduate and Graduate Career Loans that offer funding for select schools.

3. Sallie Mae

Sallie Mae also offers student loans for online programs. It provides private loans for undergraduate and graduate-level students. Graduate loan rates vary by program. Sallie Mae also offers career training student loans for those who are pursuing certifications or training.

4. Earnest

Another lender offering loans for online students is Earnest. It provides undergraduate and graduate private loans at fixed or variable interest rates. Earnest borrowers (undergraduate and graduate level) receive some unique perks, like being able to skip a payment once a year and an extended nine-month grace period.

Finding student loans for online schools

Going to school online can be a relief and offer convenience. Fortunately, there are various student loans for online schools to choose from.

Remember to see if you qualify for federal student loans first before moving on to private loans. If you’ve used up all federal loan options, searching for the best private student loans for online schools can help you find the money you need.