How to Finance Your Online Education

Even if you don't think you qualify for financial aid to earn your degree, you should apply for aid. Every year families and students do not to apply for financial aid because they think that they do not qualify. Moreover, a few sources of aid such as unsubsidized Stafford and PLUS loans that are available regardless of need.

First, obtain an application called the FAFSA. The form is used to apply for federal student grants, work-study aid, and loans. The application can also be used to apply for most state and some private aid. The Department of Education uses the information provided on your FAFSA to determine eligibility for aid from the Federal Student Aid (FSA) programs. Many states, universities and schools use the FAFSA to award aid from their programs. In certain cases, some institutions may require you to fill out additional forms. The basic requirements to receive aid from FSA programs include the following:

• A United States citizenship or eligibility as a non-citizen of the United States with a valid Social Security Number
• A high school diploma or a General Education Development (GED) certificate
• Enrollment in an eligible program as a regular student seeking a degree or certificate
• Have a high school diploma or a General Education Development (GED) certificate or pass an approved "ability to benefit" test
• Enroll in an eligible program as a regular student seeking a degree or certificate
• Registration in a selected service (if you are a male between the ages of 18-25)

To obtain a copy of the FAFSA, ask your guidance counselor for a copy. Moreover, the FAFSA can be bound in the financial aid office at a local college, your local public library, or online at http://www.fafsa.ed.gov. To complete the FAFSA form, you will need the following documents:

• Social Security Number
• Driver's license
• W-2 Forms and other records of money earned from the most recent tax year (the base year)
• The previous year's Federal Income Tax Return - IRS Form 1040, 1040A, 1040-EZ, 1040 Telefile
• For dependent students, a parent's previous year Federal Income Tax Return
• Untaxed income records - (Social Security, Temporary Assistance to Needy Families, welfare, or veterans benefits records)
• Recent bank statements
• Current personal business and investment mortgage information
• For non-US citizens, an alien registration card (if you are not a U.S. citizen)

Ideally, it is best to apply for financial aid any time after first of January. However, to receive funds, a student must be admitted and enrolled at the university. Because the analysis process for financial aid uses income and tax information from the most recent tax year to evaluate eligibility for need-based financial aid during the upcoming academic year (the award year), it is best to apply for financial after January 1st. Since the base year ends December 31st, a financial aid application should be applied after January 1. If you submit the financial aid application before January 1st, it will most likely be rejected - especially if your taxes have not been filed from the most recent tax year (the base year).

Generally, most financial aid offices require annual application for financial aid. If a student's financial circumstances change, they may receive more or less aid. After the first year of financial aid, the student will receive a 'Renewal Application'. It contains preprinted information from the previous year's FAFSA. Eligibility for financial aid may change significantly. More importantly, the renewal of a financial aid package is contingent upon satisfactory academic progress toward a degree; for instance, earning a minimum number of credits and/or achieving a minimum GPA.

To apply for a Pell Grant or other types of need-based aid, submit a FAFSA. Make sure you indicate interest in student employment, student loans and parent loans. Check other appropriate boxes. It will not commit you to accepting the financial aid alternatives. Later in the application process, you will have the opportunity to accept or decline each part of your aid package. Leaving unchecked boxes will not increase the amount of grants you receive.

If all else fails, you can always finance your educational investment using your MasterCard or Visa. Don't forget to explore employee tuition reimbursement payments. Finally, maintain all of your financial records in a file because after you are accepted, you'll need to use the information for next year's financial support.