How to Pay for an Online College in 4 Steps

Avatar

Andrew Pentis

Updated on February 24, 2021
February 24, 2021February 24, 2021Paying for CollegeFeatured, Student Loans1043Andrew PentisAmanda GarciaSEO
How Student Loan Hero Gets Paid

How Student Loan Hero Gets Paid

Student Loan Hero is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). Student Loan Hero does not include all lenders, savings products, or loan options available in the marketplace.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Student Loan Hero is an advertising-supported comparison service. The site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

Editorial Note: This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the financial institution.

Pay for Online College
Logo

OUR PROMISE TO YOU: Student Loan Hero is a completely free website 100% focused on helping student loan borrowers get the answers they need. Read more

How do we make money? It’s actually pretty simple. If you choose to check out and become a customer of any of the loan providers featured on our site, we get compensated for sending you their way. This helps pay for our amazing staff of writers (many of which are paying back student loans of their own!).

Bottom line: We’re here for you. So please learn all you can, email us with any questions, and feel free to visit or not visit any of the loan providers on our site. Read less

Private Student Loan rates starting at 1.04%

1.04% to 11.98% 1
VARIABLE APR

Visit Lender

1.13% to 11.23% 2
VARIABLE APR

Visit Lender

3.80% to 9.36% 3
VARIABLE APR

Visit Lender

1Important Disclosures for College Ave.

College Ave Disclosures

College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.

Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
 
This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. This informational repayment example uses typical loan terms for a first year graduate student borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.10% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $141.66 while in the repayment period, for a total amount of payments of $16,699.21. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.

Information advertised valid as of 7/22/2021. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.



2Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.

3Important Disclosures for CommonBond.

CommonBond Disclosures

Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.  If you choose to complete an application, we will conduct a hard credit pull, which may affect your credit score. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Jan 1, 2021 and may increase after consummation.



  • Variable APR
Learn more about private student loan lenders.

Note that the situation for student loans has changed due to the impact of the coronavirus outbreak and relief efforts from the government, student loan lenders and others. Check out our Student Loan Hero Coronavirus Information Center for additional news and details.

*          *          *

If your online college is eligible for federal aid, you might be able to get federal student loans for online classes. If it’s not, you may still be able to access private student loans.

But before borrowing money for school, make sure to apply for grants, scholarships and other aid that you generally don’t have to pay back.

How to get student loans for online classes

If you need additional funding, here’s how to go about getting student loans for online classes:

  1. Determine if your school is eligible for federal financial aid
  2. Find out if your program is accredited
  3. Compare federal and private student loans for online college
  4. Examine other options if school accreditation is an issue

1. Determine if your school is eligible for federal financial aid

If you want to access federal financial aid (including student loans) for an online college, your school must be accredited by a federally recognized accrediting agency. The good news is there are plenty of accredited online colleges that can set you up with federal student loans and financial aid.

For example, about 75% of students at online-only Capella University received financial aid as of Dec. 31, 2019, including federal grants, work-study opportunities and loans. Many more traditional schools, including public nonprofit giant Arizona State University, offer fully online degrees.

Find out if your school is eligible by using the Department of Education’s Federal School Code Search tool. You can find your school’s code by asking its financial aid office or doing a search — with “[school name] federal school code” — online.

The Federal Student Aid office also maintains a downloadable spreadsheet of school codes.

2. Find out if your program is accredited

Go a step further to determine if your degree path would also be accredited. You can type your school’s name into the Department of Education’s Database of Accredited Postsecondary Institutions and Programs. You might find, for example, that your school’s nursing department enjoys full accreditation, while its program for teachers has lost its backing.

Use the federal agency’s tools instead of relying solely on your school. A school might tell you that it enjoys the support of an accrediting organization — but that organization could be dubious. You also can cross-check your school’s accreditation claims using the Council for Higher Education Accreditation’s list of legitimate accreditation organizations.

Confirm your findings with the school’s financial aid office. Then, complete the Free Application for Federal Student Aid (FAFSA) — the FAFSA will determine the amount and kind of federal aid you’ll be eligible to receive, including student loans.

Depending on your Expected Family Contribution (soon to be renamed the Student Aid Index), you might be eligible for direct subsidized loans, a specific kind of federal student loan. With these loans, the government pays interest on the debt while you’re enrolled and during the first six months after you graduate, so it’s better than direct unsubsidized loans.

Federal aid can also be available in the form of grants and work-study opportunities, if your family demonstrates financial need.

3. Compare federal and private student loans for online college

Whether you’re an online or on-campus student makes no difference in the world of federal student loans. The interest rates, repayment terms and other details are the same for each type of loan.

The federal government should usually be your first stop for borrowing, since its student loans come with low interest rates and flexible repayment plans. What’s more, federal loans are eligible for various loan forgiveness programs.

However, some private student loan companies offer certain borrower protections, such as the ability to defer repayment while you’re in school or if you lose your job. And if you have strong credit or can apply with a creditworthy cosigner, you could find competitive rates on a private student loan.

There is, however, another key nuance of student loans for online college: Just because your school is eligible for federal loans doesn’t mean that it will be eligible to work with every private lender.

You can check with lenders directly if you don’t see your school as an option on your initial loan application. Then, use our student loan payment calculator to figure out the amount of interest you’ll be responsible for during your loan term.

No matter what type of loan you use, borrow only what you need after applying for gift aid like grants and scholarships. Gift aid doesn’t have to be paid back, unlike federal student loans.

4. Examine other options if school accreditation is an issue

You could run into trouble when financing your education if you opt for an online college without accreditation. Speak with the school’s financial aid office about your options — as well as asking why it doesn’t enjoy the accreditation of a legitimate accrediting body.

Often, for-profit colleges (online and on-campus) might not have the proper accreditation, so you can’t finance your degree with federal loans.

If you’re seeking a certificate for a specific trade and not for an associate or bachelor’s degree, your school might not be accredited. However, there are ways to find student loans for trade programs.

At the same time, even if you can find a reputable lender for your program, you’d be wise to question the school for not being accredited. Schools that enjoy accreditation offer more student loan options. More importantly, they could also be better suited at preparing you for a career.

At the end of the day, attending an online college could be a big money-saver, especially if you don’t have to pay for on-campus room and board.

Paying for school will come with challenges, whether your classroom is virtual or not. When you’re on the lookout for student loans for online classes, start by examining your school’s accreditation. That’ll help you figure out if it’s eligible for federal and private student loan options.

Rebecca Safier contributed to this report.

Need a student loan?

Check out our top picks below or learn more about other ways to pay for college.
How Student Loan Hero Gets Paid

How Student Loan Hero Gets Paid

Student Loan Hero is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). Student Loan Hero does not include all lenders, savings products, or loan options available in the marketplace.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Student Loan Hero is an advertising-supported comparison service. The site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

How Student Loan Hero Gets Paid

How Student Loan Hero Gets Paid

Student Loan Hero is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). Student Loan Hero does not include all lenders, savings products, or loan options available in the marketplace.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Student Loan Hero is an advertising-supported comparison service. The site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

Variable APRDegrees That QualifyMore Info
1.04% – 11.98%1 Undergraduate
Graduate

Visit College Ave

1.13% – 11.23%2 Undergraduate
Graduate

Visit SallieMae

3.80% – 9.36%3 Undergraduate
Graduate

Visit CommonBond

2.20% – 6.17%4 Undergrad & Graduate

Visit EdvestinU

1.05% – 11.44%5 Undergraduate
Graduate

Visit Earnest

1.82% – 11.32%6 Undergraduate
Graduate

Visit Ascent

Learn more about private student loan lenders.
Learn more about private student loan lenders.
1Important Disclosures for College Ave.

College Ave Disclosures

College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.

Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
 
This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. This informational repayment example uses typical loan terms for a first year graduate student borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.10% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $141.66 while in the repayment period, for a total amount of payments of $16,699.21. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.

Information advertised valid as of 7/22/2021. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.



2Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.

3Important Disclosures for CommonBond.

CommonBond Disclosures

Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.  If you choose to complete an application, we will conduct a hard credit pull, which may affect your credit score. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Jan 1, 2021 and may increase after consummation.



4Important Disclosures for EdvestinU.

EdvestinU Disclosures

EDvestinU is a product of the nonprofit New Hampshire Higher Education Loan Corporation (dba The NHHEAF Network) NMLS ID#1527348.

APR range and repayment rates displayed assume a $10,000 loan disbursed in two equal disbursements. APR low assumes immediate repayment and 7 year repayment. APR high assumes deferred repayment and 15 year repayment. APR’s presented include a .50% interest rate reduction for electing to have payments automatically deducted from a bank account. The interest rate reduction for authorizing our servicer to automatically deduct monthly payments from a savings or checking account will not reduce the monthly payment, but will reduce the monthly finance charge, resulting in a lower total cost of loan. All examples are provided for educational purposes and actual terms may vary based on credit history, loan amount, applicable repayment term, and chosen repayment plan and method. Please note that the interest rate on variable rate programs may increase or decrease over time. The variable rate example assumes the same standard rate for the life of the loan. The NHHEAF Network reserves the right to modify or cancel its program at any time.  

Eligibility: Dependent and independent U.S. citizen students. Currently residents of Washington and California are not eligible for EDvestinU programs.
Students must be enrolled at least half-time at a U.S.-based Title IV, degree-granting college or university.
The borrower or cosigner (if applicable) must have a minimum adjusted gross income of $30,000.

Loan Limits: Minimum loan amount of $1,000.
Maximum loan amount is cost of education less aid received.

Repayment: Standard or graduated repayment options available during repayment; 7, 10, or 15 year term selected by the borrower.
6-month grace period available to borrowers electing a full in-school deferment. 
No prepayment penalty.
Payments may be postponed during repayment by qualifying for an economic hardship deferment.

Cosigner Release: Cosigner release allowed if an account is in current standing, after 36 months of consecutive & on-time payments with a borrower FICO >749 for EDvestinU Private Student Loans and minimum income requirement of $30,000 with no foreclosures, repossessions, wage garnishments, unpaid tax liens, unpaid judgments or other public records having an open balance exceeding $100 during the last 7 years. The borrower must not currently be involved in bankruptcy proceeding or had any bankruptcy filings during the past 10 years and cannot have any defaults on education loans.



5Important Disclosures for Earnest.

Earnest Disclosures

  1. Rates include 0.25% Auto Pay Discount
     
  2. Explanation of Rates “With Autopay” (APD)
    Rates shown include 0.25% APR discount when client agrees to make monthly principal and interest payments by automatic electronic payment. Use of autopay is not required to receive an Earnest loan.

    Available Terms
    For Cosigned loans – 5, 7, 10, 12, 15 years. 
    Primary Only – 10, 12, 15 years

    In school deferred payment is not available in AL, AZ, CA, FL, MA, MD, MI, ND, NY, PA, and WA).



6Important Disclosures for Ascent Student Loans.

Ascent Student Loans Disclosures

Ascent loans are funded by Bank of Lake Mills, Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: >AscentFunding.com/Ts&Cs;.

Rates are effective as of 07/01/2021 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes income-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: >AscentFunding.com/Rates.

1% Cash Back Graduation Reward subject to terms and conditions, please visit AscentFunding.com/Cashback. Cosigned Credit-Based Loan student borrowers must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs are available for the most creditworthy applicants and may require a cosigner.