What to Consider Before Paying for an Online Degree
Earning an online degree can involve expenses like tech fees or per-credit distance learning charges. These costs can accumulate, so it’s crucial to factor in the full financial commitment before enrolling.
Online programs are generally more budget-friendly than in-person options, notes Michael Novak, dean of enrollment management at Embry-Riddle Aeronautical University—Worldwide, “since they cut out major expenses like housing, commuting, and campus fees.”
He adds that online students also gain flexibility to live in more affordable areas “and skip many extra costs tied to attending a physical campus.”
If you’re thinking about an online degree, it’s wise to evaluate all financial aspects first. Here are 10 key considerations.
Tuition
Online tuition is usually charged per credit or course rather than per term. Students should review transfer credits and work with an advisor to map out their degree path.
For instance, the University of Iowa’s Tippie College of Business online MBA program includes 15 courses at 2,250each,totaling2,250each,totaling33,750, explains Jennifer Blackhurst, associate dean for graduate professional programs.
Some online programs offer tiered pricing—where taking more classes at once lowers the per-credit cost.
Also, compare in-state vs. out-of-state rates. The University of Florida’s 2024-2025 online bachelor’s degree, for example, costs 129percreditforin−statestudentsand129percreditforin−statestudentsand552 for out-of-state learners, per the school’s website. However, programs like Tippie charge a flat rate regardless of residency.
“Every program is different,” Blackhurst says.
Extra Fees
Most online programs tack on additional fees beyond tuition.
“Extra charges may include Student Government Association fees, graduation fees, and user fees like application or transcript costs,” Novak explains. “These vary by school, so students should account for them.”
Oregon State University’s Ecampus imposes a one-time 350matriculationfeefornewundergradandgradstudents.TheUniversityofWisconsin—GreenBayaddsa350matriculationfeefornewundergradandgradstudents.TheUniversityofWisconsin—GreenBayaddsa25 per-credit distance learning fee.
Other potential fees cover assessments and technology. UF Online, for example, charges per credit: 5.25forfinancialaid,5.25forfinancialaid,5.25 for tech, and $6.76 for capital improvements, according to its website.
“Students must understand the program’s full cost,” Blackhurst advises.
Employer Reimbursement
Some companies help cover employees’ online degrees, so prospective students should check if their employer offers tuition reimbursement.
Papa John’s Dough & Degrees program, for example, provides tuition assistance for eligible employees pursuing associate, bachelor’s, or master’s degrees at partner schools like Purdue Global, eCornell, University of Phoenix, and UMGC.
Required Travel
A few online programs include in-person components.
“Online programs rarely require residency,” says Jack Wang, college planning strategist at Innovative Advisory Group. “But some graduate MBAs or certificates may have low-residency demands—like one weekend on campus for a class or event.”
Indiana University—Bloomington’s Kelley School of Business online MBA, for instance, mandates two on-campus residencies.
“For these, students cover travel expenses plus a $1,000 course fee per residency,” says Sarah Wanger, executive director for Kelley Direct Online MBA.
Transfer Credits
Many online programs accept transfer credits, saving time and money.
Embry-Riddle, for example, allows credits from accredited institutions, Novak notes. “Students can review transferable credits to lower degree costs.”
Kelley Direct, however, doesn’t accept transfers due to its structured core courses and specialization options, Wanger explains.
So, if you’re “switching from a traditional or another online program,” Novak stresses, “verify transfer policies first.”
The FAFSA
Online and on-campus students alike can apply for federal aid via the FAFSA—but online learners must ensure their program is U.S. Department of Education-accredited.
“Regardless of program type, complete the FAFSA to check aid eligibility,” Novak says.
Online students may also qualify for state scholarships, grants, institutional aid, and external scholarships.
Scholarship Opportunities
Few schools offer online-exclusive scholarships, but students should scour online databases.
“Unlike most programs, Kelley Direct applicants can apply for scholarships to reduce tuition,” Wanger says. “Since many online programs don’t offer these, prospects should ask.”
Loans and Grants
Online associate or bachelor’s students may qualify for the Pell Grant (max $7,395 for 2025-2026). Federal and private loans are also options.
“Online students should file the FAFSA to access federal aid, including loans and grants,” Novak advises.
Additional Technology Expenses
Extra tech costs might include a laptop, headset, or high-speed internet for Zoom lectures.
“Students may face software or tech fees—plus, they’ll need reliable Wi-Fi,” Wang notes.
Program Amenities
In fall 2021, 3.2 million undergrads in distance learning enrolled in-state vs. 1 million out-of-state (per NCES). Staying in-state cuts costs via lower tuition and access to campus resources like career advising.
“From a cost perspective, online degrees are hard to beat,” Wang says.
