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

Published: Apr 7, 2023
Updated: Oct 3, 2024

Key Takeaways

The cost of college is soaring, but there are a number of online colleges that offer financial aid to offset the high costs of higher education.
Students who couldn’t otherwise afford attending college can do so by attending an online college that offers financial aid.
Repayment for many sources of financial aid can be deferred until after graduation, and even better, some sources of financial aid do not require repayment at all.

Table of Contents

Online Colleges with Generous Financial Aid in 2025

Harvard University
University of Florida
+7
Kansas State University
+3
Purdue University Global
+6
Grand Canyon University
+3
University of Michigan–Flint
–1
Western Governors University
–4
Columbia College
–6
Baker College
–2
University of Wisconsin–Platteville
–6

2025 Ranking Update

Our Influence Ranking Engine™ leverages machine learning to track the real-world influence of colleges and universities over time. Below you’ll see which schools gained or lost ground for the 2025 school year.

The University of Florida was our big mover in our 2025 ranking of the online colleges with the most generous financial aid. The school 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.

The FAFSA Simplification Act for school year 2024, created a streamlined financial aid process. UF also continues to enhance its signature Machen Florida Opportunity Scholars program, which provides a full grant and scholarship package to first-generation, low-income students, ensuring comprehensive support throughout their academic journey.

Purdue University Global the Returning Student Relief Grant, which helps previously withdrawn students re-enroll by covering up to $4,500 of outstanding debt owed to the school.

Education has come so far. Thanks to technological advancements, the education sector has come a long way in preparing students for a brighter future. Because of this, attending college has become quite expensive.

Going to college has become so expensive that it can be an immense struggle for the average student to be able to afford tuition on their own. Thankfully, learners can apply for financial aid to help them afford tertiary education and achieve their goals in life.

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 financial aid. Other sources of financial aid include private loans and local and state governments. There are also schools with financial aid initiatives to help remove the financial barriers to access to college. These institutions will offer students with the most financial need the most generous online college financial aid.

Featured Programs

Top Online Colleges That Accept FAFSA

Steps Needed to Apply for Financial Aid for Online College

Individuals who do not have enough resources to pay for their college tuition can apply for financial aid for their online college degrees.

Each year, the Federal Student Aid (FAFSA) office provides approximately $112 billion in loan, work-study, and grant funds to help individuals who genuinely desire to finish college pay for their tuition. FAFSA also manages student financial assistance programs, informs students and families of the availability of federal student aid programs, develops the FAFSA form and processes them, and manages and secures repayments from borrowers.

Here are the steps for applying for FAFSA for online college:

Apply for a FAFSA ID or account.

Students or 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 or after October 1st. Online colleges will use this form to determine the Expected Family Contribution (EFC) and your eligibility for financial 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. It’s important to check the list of participating institutions and programs to ensure you comply with all requirements.

Start searching for local and national scholarships.

First, you can check with your high school guidance office to learn about local scholarship opportunities. Then, search online for national scholarships that you can use to pay for your tuition, living expenses, and school supplies.

Go over the Student Aid Report (SAR).

You will receive your SAR after filing the FAFSA. You may edit any mistakes and add any school you want your information sent to by logging into your FAFSA account.

You will find the Expected Family Contribution (EFC) information on your SAR, which will be sent to you by the financial aid office of the colleges you have indicated in the form.

Compare your Student Aid Report (SAR) and award letters.

Not all colleges and universities can meet 100% of your financial need. Because of this, the financial aid office of the schools you apply to will create a financial aid package or award letter for you. This is where you will be offered scholarships, grants, student loans, or work study opportunities.

Bottom Line: The Federal Student Aid website is the ultimate source of financial aid information. The site breaks down step-by-step the exact process of applying for and evaluating your financial aid offers.

Going Over Your Financial Aid Award Letter

The amount of financial aid you can qualify for depends on the school you are applying to. Remember, not all schools can afford to offer you the full amount you need to pay for college tuition. This is why you need to review your financial aid award letter to know how much your chosen school can afford to help pay for college.

Get the necessary information.

Here are the steps to read and understand your financial aid award letter:

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 financial aid office when you’ll get it.

Know the different types of financial aid in the award letter.

Financial aid can come in the form of grants, scholarships, loans, and work-study. If you are offered a grant or scholarship, you won’t have to repay it. This is why it’s important to carefully assess the different financial aid 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 pay once you start attending an online college.

Calculate the long-term cost of using financial aid to afford college.

One of the main reasons to review your financial aid award letter is for you to be able to calculate the long-term cost of a student loan. When computing the total cost, account for all the years you’ll attend school. 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.

Attending school always involves indirect expenses, whether you’re enrolled in on-campus or online classes. Of course, 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 Terminology You Should Know

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 financial 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 financial aid advisors to gauge your family’s financial health and determine the total amount for your financial aid. EFC is computed based on the information you provide about your family’s financial status.
College Credit: Some colleges grant credit for a course. 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 financial aid to help pay a student’s full college tuition needs.

What Are 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.

Types of Student Loans

Direct Loans: 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 need, and Direct Unsubsidized Loans, the kind of loan that the school determines based on the tuition and other costs.
Direct PLUS Loans: These are sometimes referred to as Parent PLUS Loans or Graduate PLUS Loans, 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 Loans vs. Private Student Loans: Aside from the US government, some private institutions and organizations, such as credit unions and banks, offer federal aid thorugh student loans. While federal loans have fixed interest rates, private loans are generally more expensive.

What Are Grants?

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

Types of Grants:

Federal Pell Grants are generally awarded only to undergraduate students who show exceptional financial need 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’s financial aid office can administer. Only the students with the most financial needs can be awarded FSEOGs. Typically, you can receive $100 to $4,000 a year, depending on your financial need.
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 financial aid 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 students with financial needs. You will need to submit a FAFSA form to know whether you qualify or not.

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?

What Are Student Scholarships?

Like other financial aid, scholarships are awarded to deserving students attending traditional or online school to help them pay for an undergraduate or graduate degree.

Some scholarships are given as a one-time check, and others are renewable each semester or school year. What makes them different from student loans is that you don’t need to repay them.

Types of Scholarships:

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

Bottom Line: There are three basic types of financial aid: loans, grants, and scholarships. It is key for students to explore each type of aid in order to ensure that they have the financial support needed to attend college. Being savvy about all of the options for aid can remove the financial barrier to receiving a higher education.

Applying for Additional Financial Aid

Take Advantage of the Federal Work-Study Program

If you are eligible, you can work in FWSP-designated jobs at the college or university of your choice. Being a working student helps you earn extra money to pay for your college tuition.

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 financial aid offices in your school to confirm your financial aid eligibility.

Get a federal student loan before applying for a private loan.

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

Ask to pay tuition in 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.

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 your college education.

Private loans can come from:

Banks
Credit unions
Lenders
Private organizations

Private scholarships can come from:

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

Most Common Challenges That Online Students with Financial Aid Encounter

Restrictions on eligibility requirements

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. 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 students who need to juggle their time between work, school, and financial obligations.

College Accreditation

Accreditation further narrows the educational opportunities available to students 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.

Tips to Help College Students Save Money

Going to college can put a huge dent in your family’s budget. This is why it helps to do everything you can to save money while in school.

Maximize the use of student discounts.

Your student ID offers various discounts, from coffee shops to grocery stores. Some schools even offer discounts on bigger ticket items and tech gadgets.

Apply for a tuition payment plan.

If the federal student loan you have been awarded is not enough to pay for the entire cost of your yearly tuition, you can request a monthly or biannual installment plan.

Check the school’s credit transfer policy.

Some colleges may only accept credits from regionally accredited schools. Transferring credits for professional, academic, or military experience can help you reduce your tuition and speed up completion times.

For veterans, there are a number of online colleges that are best for veterans, offering Post-9/11 GI Bill and even Yellow Ribbon Program veteran benefits.

Choose shared living.

Paying rent while living alone can be very expensive. Finding a roommate can be a real boon when trying to cut costs for college. You’ll not only split the costs of rent, but you can also save on utilities and must-haves like internet service.

Opt for secondhand stuff.

Whether for books, clothes, appliances, or furniture, you’ll reward yourself with big savings by opting for pre-loved items. With a keen eye for the old but good stuff, you’ll enjoy significant savings in the long run.

Take on a side gig (or two).

Whether you’re a working student or on a federal student loan or grant, you can take on a side hustle that will allow you to get extra income every month. This should help you pay for rent and other necessities.

Be conscious of how much energy you consume daily.

Make substantial savings by turning off your thermostat if the weather isn’t too cold. You should also unplug devices that are not in use. Also, upgrade to energy-efficient electronics to save on utility bills.

Learn to budget and switch to a minimalist lifestyle.

To improve your financial situation, you must start budgeting. You need to have a clear overview of your monthly income and spending so you can take control of your finances and, at the same time, be able to pay for your tuition.

Additionally, you should practice the “less is more” mindset. This means living with only a few essential things, buying only the necessary items, and spending less.

Frequently Asked Questions on Financial Aid

Do online programs qualify for financial aid?

Students who choose distance learning must apply for schools accredited by the US Department of Education to be eligible for federal financial aid. Also, they must check each institution’s website to be sure that the school and the degree program they are interested in are eligible for financial aid.

Most online colleges offer financial aid to students who cannot afford to pay their tuition independently. This is regardless of the student’s major or study level. However, undergraduates tend to qualify more for financial aid than graduate students.

Can students of online certificate programs apply for financial aid?

Yes, some institutions accept federal financial aid for online certificate programs. Career training programs in education, computer technology, and healthcare are eligible for federal student loans and other financial aid options.

It’s also important to note that online graduate certificate programs are not eligible for FAFSA.

Which online colleges can give the highest financial aid?

Financial aid is awarded to students based usually on available funding and the individual’s financial need. Some online colleges with “no loans” policies provide high-quality financial aid packages instead. However, it’s important to remember that the actual amount may vary depending on the following categories:

Need-Based Aid: this is awarded to a student based on the school or organization’s assessment of their ability to pay for college tuition.
Merit-Based Aid: this is awarded to those with a special talent in academics, athletics, music, and other areas.

Do you have a question about this topic? Ask it here

Online Colleges with the Most Generous Financial Aid in 2025

Key Takeaways

Online Colleges with Generous Financial Aid in 2025

2025 Ranking Update

Featured Programs

Top Online Colleges That Accept FAFSA

Last Year’s Ranking:

Career Outlook for degree at Harvard University

Most Influential Alumni

Career Outlook for degree at University of Florida

Most Influential Alumni

Career Outlook for degree at Kansas State University

Most Influential Alumni

Purdue Global’s Online Degrees

Degree Concentrations

Degree Concentrations

Degree Concentrations

Career Outlook for degree at Grand Canyon University

Most Influential Alumni

Grand Canyon University’s Online Degrees

Degree Concentrations

Degree Concentrations

Degree Concentrations

Degree Concentrations

Degree Concentrations

Degree Concentrations

Degree Concentrations

Degree Concentrations

Degree Concentrations

Degree Concentrations

Degree Concentrations

Degree Concentrations

Degree Concentrations

Degree Concentrations

Degree Concentrations

Career Outlook for degree at University of Michigan–Flint

Most Influential Alumni

University of Michigan–Flint’s Online Degrees

Degree Concentrations

Career Outlook for degree at Western Governors University

Most Influential Alumni

Career Outlook for degree at Columbia College

Columbia College ’s Online Degrees

Degree Concentrations

Career Outlook for degree at Baker College

Baker College’s Online Degrees

Degree Concentrations

Degree Concentrations

Degree Concentrations

Degree Concentrations

Career Outlook for degree at University of Wisconsin–Platteville

Most Influential Alumni

Steps Needed to Apply for Financial Aid for Online College

Apply for a FAFSA ID or account.

Submit the FAFSA form.

Submit the CSS PROFILE application form if required.

Start searching for local and national scholarships.

Go over the Student Aid Report (SAR).

Compare your Student Aid Report (SAR) and award letters.

Going Over Your Financial Aid Award Letter

Get the necessary information.

Know the different types of financial aid in the award letter.

Calculate how much you’re going to have to pay for college.

Calculate the long-term cost of using financial aid to afford college.

Don’t forget your indirect expenses.

Award Letter Terminology You Should Know

What Are Student Loans?

Types of Student Loans

What Are Grants?

Types of Grants:

What Are Student Scholarships?

Types of Scholarships:

Applying for Additional Financial Aid

Take Advantage of the Federal Work-Study Program

Get a federal student loan before applying for a private loan.

Ask to pay tuition in installments.

Apply for private loans and scholarships.

Most Common Challenges That Online Students with Financial Aid Encounter

Restrictions on eligibility requirements

College Accreditation