Distance Learning: Paying for Your Education with Federal Student Aid

Attending college brings with it many challenges, one of which is finding a way to pay for the ever-increasing tuition.

If you plan to attend college and have determined that you will need some form of financial assistance, you are not alone. According to the National Center for Education Statistics, 63 percent of undergraduates received some form of financial aid during the 2003-04 academic year.

And while distance learning offers many unique benefits that differentiate it from more traditional, classroom-based institutions, online education does have one thing in common with the traditional schools - it is not free.

Fortunately, the U.S. Department of Education recognized the increasing demand for online education and as a result, opened up its federal aid program to include qualified distance learning programs.

Online Education Programs: FSA Eligibility

In the past, it was a challenge for an online education program to receive federal funds. Until 2005, the U.S. Department of Education relied on a guideline known as the "50-percent rule."

This rule stated that at least 50 percent of a school's courses had to be classroom-based rather than online in order for that institution's student to receive financial assistance from the government. As a result, any schools with curriculums made up of mostly or solely online courses were not eligible to receive federal funds.

Fortunately, the "50-percent rule" was voided by the Higher Education Reconciliation Act, which was passed by the federal government in 2005. The passage of this act in effect opened up federal student aid to online-only institutions.

Today, the primary requirement for an institution to be FSA-eligible is accreditation. To receive federal funds, a school that offers online courses must be accredited by a qualified accrediting agency that is recognized by the U.S. Department of Education.

In many cases, a school will highlight on its web site whether or not it is eligible to receive federal funds. You also can find a listing of accredited schools through the Council for Higher Education Accreditation. This national organization oversees 3,000 degree-granting colleges and universities and currently recognizes 60 accrediting agencies.

Are You FSA-Eligible?

To receive financial assistance, a student also must qualify for federal student aid.

There are six primary requirements that students must meet in order to qualify to receive financial aid from the federal government.

According to the U.S. Department of Education, prospective students:

• Must be able to demonstrate a financial need;
• Must be able to show that they are a U.S. citizen or an eligible noncitizen with a valid Social Security number;
• Must be working toward a degree or certificate in a qualified program of study;
• Must be able to show that they have earned a high school diploma or GED certificate, passed an approved ability-to-benefit test or fulfilled high school education requirements in a home-school setting approved under state law;
• Must register with Selective Service if they are male and between the ages of 18 and 25; and
• Must maintain a minimum level of academic progress following enrollment.

Additional information on federal student aid can be found at Student Aid on the Web, the U.S. Department of Education's web site specifically designed to guide students through the financial aid system.