Online Colleges with the Most Generous Financial Aid in 2025

Badge for BEST ONLINE COLLEGES WITH GREAT FINANCIAL-AID

By Dr. James Barham
Reviewed By Jenn Finley

Updated: Dec 18, 2024

Finding online colleges that offer financial aid can be overwhelming for online learners, and not knowing your options may result in unnecessary financial stress or missed educational opportunities. This article lists the best online schools where you can receive federal financial aid and other forms of support, making it easier to achieve your academic goals.

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Online Colleges That Offer Financial Aid in 2025

For those seeking quality education with financial support, online colleges such as Harvard University, the University of Florida, and Kansas State University offer excellent options. These online schools allow students to receive financial aid while also collaborating with the federal government to provide aid accessibility for online school learners.

The University of Florida was our big mover in our 2025 ranking of the online colleges with the most generous aid. The institution moved up 7 positions to the number 2 position.
Purdue University Global also gained 6 positions to move into the number 4 position for 2025. Its Returning Student Relief Grant helps previously withdrawn students re-enroll by covering up to $4,500 of outstanding debt owed to them.
UF also continues to enhance its signature Machen Florida Opportunity Scholars, which provides a full grant and scholarship package to first-generation, low-income students, ensuring comprehensive support throughout their academic journey.

Our Influence Ranking Engine™ leverages machine learning to track the real-world influence of colleges and universities over time. Studying tertiary education has become so expensive that it can be an immense struggle for the average student to be able to afford tuition on their own.

The cost of college is soaring, although there are a number of online institutions that offer financial support to offset the high costs of higher education. Thankfully, learners can apply for FAFSA and other forms of financial support to help them afford tertiary education and achieve their goals in life.

What Are the Steps to Apply for Federal Financial Aid for Online College?

Individuals who do not have enough resources to cover the costs of tuition can apply for financial assistance for their online college degrees. Each year, the FAFSA office provides approximately $114 billion in loans , work-study, and grant funds to help students pay for their tuition.

The FAFSA Simplification Act for School Year 2024, created a streamlined financial process for the Free Application for Federal Student Aid (FAFSA).

The Free Application for Federal Student Aid also manages student financial assistance programs, informs people who can receive federal financial aid programs, develops the FAFSA form and processes them, and manages and secures repayments from borrowers.

The Federal Student Aid website is the ultimate source of financial aid information. Here are the steps for applying for FAFSA for online college:

Apply for a FAFSA ID or account: Borrowers and their parents must create an account to start their student loan journey. The account or ID must be in the FAFSA form, and the Master Promissory Note (MPN) must be signed electronically. Other requirements include loan counseling, use of the Public Service Loan Forgiveness Help Tool, and applying for repayment plans.
Submit the FAFSA form: The FAFSA form must be completed and submitted before your desired college’s priority deadline. Online colleges will use this FAFSA form to determine the Expected Family Contribution (EFC) and your eligibility for aid, such as subsidized student loans.
Submit the CSS PROFILE application form if required: Some universities, colleges, and scholarship programs may require borrowers to file the CSS PROFILE and IDOC forms to assess a student’s eligibility for financial aid. Check the list of participating institutions and programs to ensure you comply with the requirements.
Start searching for local and national scholarships: Check with your high school guidance office to learn about FAFSA opportunities. Search online for national scholarships that you can use to cover the costs of tuition, living expenses, and school supplies.
Go over the Student Aid Report (SAR): You will receive your SAR after filing the FAFSA. Edit any mistakes and add any institution you want your information sent to by logging into your FAFSA account. Find the Expected Family Contribution (EFC) information on your SAR, which will be sent to you by the colleges you have indicated in the form.
Compare your Student Aid Report (SAR) and award letters: The financial aid department of the schools you apply to will create an aid package or award letter for you. This is where you will be offered scholarships, grants, student loans, or work-study opportunities.

Going Over a Federal Student Aid Award Letter

The amount of aid you can qualify for depends on the school you are applying to. You need to review your aid award letter to know how much your chosen institution can afford to help settle your tuition and other related expenses.

Get the necessary information: The award letters from the colleges you indicated on the FAFSA may be emailed, mailed, or posted on the student portal. If you haven’t received it, you can ask your school’s office when you’ll get it.
Know the different types of financial aid in the award letter: Aid can come in the form of grants, scholarships, loans, and work-study. Carefully assess the different monetary support offered to you to properly determine the costs you will be paying in the future.
Calculate how much you’re going to have to pay for college: Use online tools like the US Department of Education’s Net Price Calculator Center and College Cost Calculator to determine how much you will pay for college tuition. Calculating your estimated bill, including housing, meal plans, and other fees, will show you how much you’ll need to have once you start attending an online institution.
Calculate the long-term cost of using financial support: One of the main reasons to review your award letter is to be able to calculate the long-term cost of a student loan. Use an online loan calculator to determine how much you will pay monthly for a loan for ten or more years.
Don’t forget your indirect expenses: You’ll need to purchase books, technology devices, and other school supplies. Also, you might need to consider the travel expenses for the days you’ll be asked to report to your college or university. Because of the many items you will need to take into account, it’s important to create a college budget.

Award Letter Terminologies

Upon reviewing your Award Letter, you may come across some unfamiliar terminology. You may want to know the meaning of some words while evaluating and comparing the award letters you receive.

Cost of Attendance: This refers to the total college expenses before any aid is applied. This includes tuition and fees, books and supplies, living expenses, and room and board.
Expected Family Contribution (EFC): This is used by advisors to gauge your family’s financial health and determine the total amount for your aid. EFC is computed based on the information you provide about your family’s financial status.
College Credit: Some colleges grant credit for online courses. This means that passing a course counts toward a degree. Others may also grant degree credits based on exam scores.
Demonstrated Need: This is the difference between the total cost of attendance and your EFC.
Need-Blind Admission: Some educational institutions have this policy of making decisions on college admissions without considering the student’s financial needs. As a result, those schools may not offer enough monetary support to help meet a student’s full college tuition needs.

What Are the Types of Student Financial Aid?

The National Center for Education Statistics states, “Grants and loans are the major forms of federal financial aid for first-time, full-time degree/certificate-seeking undergraduate students.” Grants and loans are two of the most distinct forms of monetary assistance.

However, if you do need monetary support, other sources of financial aid include private loans and local and state governments. There are also schools with monetary support initiatives to help remove the financial barriers to access to college.

Did you know that there are colleges that you can attend for free and numerous online college courses that you can take for no cost? In case you do need to settle payment, repayment for many sources of financial support can be deferred until after graduation, and even better, some sources of financial assistance do not require repayment at all.

Student Loans

Unlike grants and scholarships, a student loan is money awarded to a student based on financial need that must be paid back, almost always with interest.

Student loans are much like any other loan, such as a housing or car loan. The only difference is that you do not need to repay a student loan immediately. Loan payments will be deferred until you graduate or stop attending school.

When you reach this point, you will be given a six-month grace period and work with a loan servicer to guide you on your loan repayments.

Direct Loan: The US Department of Education (DOE) offers Direct Subsidized Loans, the kind of loan awarded to a borrower after the college you will be attending determines how much you can borrow based on your financial needs. Meanwhile, Direct Unsubsidized Loans are determined based on the tuition and other costs.
Direct PLUS Loan: These are sometimes referred to as Parent PLUS or Graduate PLUS, depending on the borrower’s identity. This type of loan isn’t based on a borrower’s financial needs. Rather, the DOE will conduct a credit check to check whether you have a poor credit history.
Federal Student Loan vs. Private Student Loan: Aside from the US government, some private institutions and organizations, such as credit unions and banks, offer federal student loans. While federal loans have fixed interest rates, private student loans are generally more expensive.

Grants

Grants are offered by the state or federal government. They are occasionally also offered at career schools, private colleges, and nonprofit organizations. Grants do not need to be repaid, unlike loans.

Federal Pell Grants are generally awarded only to undergraduate learners who show exceptional financial needs and would be unable to attend college without the award.
Federal Supplemental Educational Opportunity Grants (FSEOG) are types of grants that only a participating school can administer. Only the people with the most financial needs can be awarded FSEOGs. Typically, you can receive $100 to $4,000 a year, depending on your financial needs.
Iraq and Afghanistan Service Grants are for applicants whose parents or guardians perished while in service in Afghanistan or Iraq, granted they meet certain criteria.
Teacher Education Assistance for College & Higher Education is different from other types of grants because those who accept such monetary support will be required to agree to complete a teaching service obligation. If you don’t complete the service obligation, the TEACH grant awarded to you will be converted to a loan, which you will repay with interest.

Remember that grants are mostly awarded only to people with financial needs. You will need to submit a FAFSA application to know whether you qualify or not.

Student Scholarships

Like other monetary assistance, scholarships are awarded to deserving people attending a traditional or online school to help them cover the costs of an undergraduate or graduate degree.

Some scholarships are given as a one-time check, and others are renewable each semester or academic year. What makes them different from a loan is that you don’t need to have payment plans.

State scholarship: States likely offer at least one scholarship to state residents. Some offer such monetary support based on test scores or grade point averages. Other states offer scholarships based on a student’s financial needs.
Institutional scholarship: Schools give merit scholarships, usually during acceptance and based on a student’s test scores and grades. When a student files a FAFSA form, the admission staff would determine whether the person needs financial assistance even after considering merit scholarships.
Private scholarship: Private and nonprofit foundations, such as religious groups, private entities, civic groups, and charities, may award deserving learners scholarships.

How Can I Apply for Additional Financial Aid?

Being savvy about the options for aid can remove the financial barrier to receiving a higher education.

1. Take Advantage of the Federal Work-Study Program

See if you are qualified to work in FWSP-designated jobs at the college or university of your choice. Being a working student helps you earn extra money to cover the costs of your education.

Aside from that, you also gain professional experience and develop important skills that will help you advance in your career in the future. Ask the school to confirm your financial aid eligibility.

2. Get a Federal Student Loan Before Applying for a Private Loan

The amount a student may be qualified for financial aid is usually determined by financial needs. This often results in having only a portion of the entire cost of your college tuition being paid for by the student loan.

When you need additional financial assistance after being awarded a loan, you can apply for a private loan as soon as you receive your award letter and accept monetary assistance.

3. Ask for Tuition Installments

If you feel that you may benefit from paying your tuition payments in installments, you can write a formal and detailed letter explaining your circumstances to request the college you are attending.

At the same time, you will also need to set the due dates and deadlines for your installments.

4. Apply for Private Loans and Scholarships

Online college students may also apply for private loans and scholarships to cover the rest of the cost of tertiary education. A loan can come from:

Banks
Credit unions
Lenders
Private organizations

A private scholarship can come from:

Community organizations
Private organizations
Scholarship databases
Employers
Colleges and universities
Religious organizations

What Are the Most Common Challenges That Online Students with Financial Aid Encounter?

According to the National Association of Student Personnel Administrators in Higher Education, one of the major hurdles for online students with financial aid is state eligibility restrictions. Like in a traditional school, most state-funded aid programs require full-time enrollment.

Although schools and government agencies mean well with this eligibility requirement, this can be an unrealistic option for part-time learners who need to juggle their time between work, school, and financial obligations.

Accreditation further narrows the educational opportunities available to people who choose distance learning or online classes. According to the American Council of Trustees & Alumni (ACTA), “Once accreditation agencies became the gatekeepers for federal funding, accreditors essentially gained regulatory control over colleges”. However, many online colleges are respected and accredited.

Accredited schools can have institutional and programmatic accreditations. For example, institutional accreditations can come from the Higher Learning Commission, the Middle States Commission on Higher Education, or the Southern Association of Colleges and Schools.

Meanwhile, programmatic accreditation can come from the Commission on Collegiate Nursing Education or the American Veterinary Medical Association.

Conclusion

Understanding how you can attend school using financial support and aid can open doors to affordable education while easing financial burdens. As you learn how to receive federal aid and explore flexible repayment options, you can take control of your educational future. Start your journey by completing your FAFSA application today.

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Online Colleges with the Most Generous Financial Aid in 2025

Featured Programs

Online Colleges That Offer Financial Aid in 2025

Online Colleges That Offer Financial Aid in 2025

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What Are the Steps to Apply for Federal Financial Aid for Online College?

Going Over a Federal Student Aid Award Letter

Award Letter Terminologies

What Are the Types of Student Financial Aid?

Student Loans

Grants

Student Scholarships

How Can I Apply for Additional Financial Aid?

1. Take Advantage of the Federal Work-Study Program

2. Get a Federal Student Loan Before Applying for a Private Loan

3. Ask for Tuition Installments

4. Apply for Private Loans and Scholarships