ScholarshipmaponlinePaying for college is one of the biggest concerns for students pursuing higher education. The good news is that many online colleges are now eligible for federal financial aid through the Free Application for Federal Student Aid (FAFSA).
Whether you’re a recent high school graduate, a working adult, or returning to school, choosing an accredited online college that accepts FAFSA can help you earn a degree without massive debt.
In this comprehensive guide, we’ll cover:
- What is FAFSA and how it works for online schools
- Top accredited online colleges that accept FAFSA
- Types of financial aid available
- Eligibility and how to apply
- Tips to maximize your aid package
- FAQs
What Is FAFSA?
FAFSA stands for the Free Application for Federal Student Aid. It’s the official form used to determine a student’s eligibility for:
- Federal grants (e.g., Pell Grants)
- Federal student loans (subsidized/unsubsidized)
- Work-study programs
- State and institutional aid
FAFSA is available for both traditional and online students, as long as the online college is accredited and participates in Title IV federal aid programs.
Top Online Colleges That Accept FAFSA (2025)
1. Southern New Hampshire University (SNHU)
- Location: Manchester, NH (Online Nationwide)
- Programs: Over 200 online degrees
- Accreditation: NECHE
- FAFSA Code: 002580
- Tuition: ~$320/credit hour (undergrad)
2. Liberty University
- Location: Lynchburg, VA (Online)
- Programs: Business, Education, Nursing, IT
- Accreditation: SACSCOC
- FAFSA Code: 010392
- Note: Christian-based education with financial aid available
3. Arizona State University (ASU Online)
- Location: Tempe, AZ
- Programs: Engineering, Business, Arts, Social Sciences
- Accreditation: HLC
- FAFSA Code: 001081
- Known For: High employability rankings
4. Western Governors University (WGU)
- Location: Online Only (HQ in Salt Lake City, UT)
- Programs: Competency-based model in IT, Healthcare, Education
- Accreditation: NWCCU
- FAFSA Code: 033394
- Tuition: ~$3,625 per 6-month term
5. University of Florida (UF Online)
- Location: Gainesville, FL
- Programs: Top-ranked public university online degrees
- Accreditation: SACSCOC
- FAFSA Code: 001535
- USP: Same faculty as on-campus programs
6. Purdue University Global
- Location: West Lafayette, IN (Online Division)
- Programs: Cybersecurity, Psychology, Business
- Accreditation: HLC
- FAFSA Code: 004586
- Flexibility: Weekly modules, mobile-friendly access
7. Penn State World Campus
- Location: University Park, PA
- Programs: 150+ online degrees
- Accreditation: MSCHE
- FAFSA Code: 003329
- Recognition: Highly respected Big Ten university
8. Columbia Southern University
- Location: Orange Beach, AL (Online)
- Accreditation: DEAC
- Programs: Criminal Justice, Fire Science, MBA
- FAFSA Code: 041215
- Affordable: Tuition ~ $235 per credit hour
Types of Federal Aid Available Through FAFSA
| Type of Aid | Description | Maximum Amount (2025) |
| Pell Grant | For low-income students (does not require repayment) | Up to $7,395 |
| FSEOG | Supplemental grant for exceptional need | $100 – $4,000 |
| Direct Subsidized Loan | Based on need; no interest while in school | Up to $5,500/year |
| Direct Unsubsidized Loan | Not based on need; interest accrues immediately | Up to $20,500/year (grad) |
| PLUS Loans | For parents or graduate students | Up to full cost of attendance |
| Work-Study | Part-time campus or remote jobs | Varies per school |
These aid types apply whether you study online or on-campus at eligible institutions.
How to Apply for FAFSA (Step-by-Step)
Step 1: Create an FSA ID
Go to studentaid.gov and create your secure login credentials.
Step 2: Gather Required Documents
- SSN (or Alien Registration Number if not a citizen)
- Federal income tax returns
- W-2s and bank statements
- Records of untaxed income
Step 3: Fill Out FAFSA Form
- Choose the correct academic year
- List online colleges’ FAFSA codes
- Submit before federal and state deadlines
Step 4: Review Your SAR (Student Aid Report)
Ensure all data is accurate and complete.
Step 5: Accept Financial Aid Offer
Your selected online college will send an award letter via your student portal.
FAFSA Eligibility Requirements
To qualify for FAFSA-based aid at online colleges:
- Must have a high school diploma or GED
- Enroll in an eligible degree or certificate program
- Be a U.S. citizen or eligible non-citizen
- Have a valid SSN
- Maintain satisfactory academic progress (SAP)
- Not be in default on previous federal loans
Some state-based grants require earlier deadlines, so apply ASAP.
Benefits of Choosing Online Colleges That Accept FAFSA
- Lower overall costs (no commuting, housing)
- Flexible schedules for working students
- Same federal aid as on-campus programs
- Nationally recognized degrees
- Study from anywhere in the U.S. or abroad (with U.S. status)
Cost Comparison: Online vs. On-Campus Tuition
| Institution | Online Tuition (per year) | On-Campus Tuition (per year) |
| SNHU | ~$9,600 | ~$15,000 |
| WGU | ~$7,250 | Not applicable |
| ASU Online | ~$11,000 | ~$15,000 |
| Liberty University | ~$11,700 | ~$22,000 |
| UF Online | ~$3,876 (in-state) | ~$6,380 (in-state) |
Even after federal aid, online students save more overall.
Tips to Maximize Your FAFSA Award
- Apply Early: Some aid is first-come, first-served.
- Fill out all fields: Incomplete forms may disqualify you.
- List multiple schools: Boost your options.
- Include accurate income details: Underreporting can delay aid.
- Reapply annually: FAFSA must be renewed every academic year.
FAQs – FAFSA and Online Colleges
Q1: Is FAFSA available for online degrees?
Yes. As long as the school is accredited and Title IV eligible, you can receive aid.
Q2: Do part-time online students qualify?
Yes, but the award amount may be reduced based on enrollment status.
Q3: Can graduate students at online colleges use FAFSA?
Absolutely. Graduate-level FAFSA loans include unsubsidized loans and PLUS loans.
Q4: Is online FAFSA submission secure?
Yes. FAFSA uses SSL encryption and secure login (FSA ID) protocols.
Q5: What if my school isn’t listed on FAFSA?
Only choose colleges that are Title IV eligible and have a FAFSA code.
Afford Your Online Degree with FAFSA
Online learning is here to stay, and it’s more accessible and affordable than ever. By choosing a federally approved online college that accepts FAFSA, you can earn your degree without drowning in student debt.
Whether you’re pursuing an associate’s, bachelor’s, or graduate program, there are thousands of dollars in aid available to help you achieve your academic dreams.
Don’t wait—start your FAFSA application today and take the first step toward an affordable online college education.
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