What to Consider Before Paying for an Online Degree
Key Takeaways:
Tuition and fees for online programs can vary widely. Look into scholarships, loans, and grants that may be available. Keep in mind that transfer credits will affect your total cost.
Pursuing an online degree often comes with extra expenses, such as tech fees or distance learning fees per credit. These can add up, so it’s important to understand the full financial commitment before enrolling.
“Online programs are generally more affordable than in-person ones,” says Michael Novak, dean of enrollment management at Embry-Riddle Aeronautical University—Worldwide. “They cut out major costs like housing, commuting, and campus fees.”
He adds that online students also have the flexibility to live in more budget-friendly areas, avoiding many of the additional expenses tied to a physical campus.
If you’re thinking about an online degree, carefully evaluate all financial factors first. Here are 10 things to keep in mind.
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 consists of 15 courses at $2,250 each, totaling $33,750 for the full program, says Jennifer Blackhurst, associate dean for graduate professional programs.
Some online programs offer tiered pricing—meaning the cost per credit drops if you take more classes at once.
It’s also smart to compare in-state vs. out-of-state rates. For example, the University of Florida’s online bachelor’s degree costs $129 per credit for in-state students and $552 for out-of-state students in 2024-2025, according to the school’s website. However, some programs, like Tippie’s, charge the same rate regardless of residency.
“Every program is different,” Blackhurst notes.
Extra Fees
Most online programs tack on additional fees beyond tuition.
“Extra charges might include Student Government Association fees, graduation fees, and user fees like application or transcript costs,” Novak explains. “These vary by school, so students should factor them in.”
For example, Oregon State University’s Ecampus charges a one-time $350 matriculation fee for new undergrad and grad students. The University of Wisconsin—Green Bay adds a $25 distance learning fee per credit.
Other potential fees include assessment and technology charges. UF Online, for instance, requires a $5.25 financial aid fee, a $5.25 tech fee, and a $6.76 capital improvement fee per credit hour, as listed on their website.
“Students need to understand the full cost of the program,” Blackhurst advises.
Employer Reimbursement
Some companies help cover the cost of employees’ online degrees, so check if your employer offers tuition reimbursement.
For example, Papa John’s Dough & Degrees program provides tuition assistance for eligible employees pursuing associate, bachelor’s, or master’s degrees at partner schools like Purdue University—Global, eCornell, University of Phoenix, and the University of Maryland Global Campus.
Required Travel
A few online programs may have in-person requirements.
“Online programs usually don’t have residency requirements,” says Jack Wang, college planning strategist and wealth advisor at Innovative Advisory Group. “But some graduate MBA or certificate programs might have low-residency components, like a weekend on campus for a class or event.”
For instance, Indiana University—Bloomington’s Kelley School of Business online MBA requires two on-campus residencies.
“Students cover tuition, travel expenses, and a $1,000 course fee for each residency,” says Sarah Wanger, executive director for the Kelley Direct Online MBA.
Transfer Credits
Many online programs accept transfer credits, which can save time and money.
Embry-Riddle has a flexible transfer policy, allowing credits from accredited institutions, Novak says. “Students can review how many credits will transfer to lower their degree cost.”
On the other hand, Kelley Direct doesn’t accept transfer credits due to its structured core curriculum and specialization options, Wanger explains.
So, if you’re switching from a traditional or another online program, Novak emphasizes checking transfer policies beforehand.
The FAFSA
Both online and on-campus students can apply for federal aid via the Free Application for Federal Student Aid (FAFSA), but online students should confirm their program is accredited by the U.S. Department of Education.
“Regardless of the program type, students should complete the FAFSA to determine federal aid eligibility,” Novak says.
Experts note that online students may qualify for state scholarships, grants, institutional aid, and external scholarships.
Scholarship Opportunities
Few schools offer scholarships exclusively for online students, but it’s worth searching online databases.
“Kelley Direct applicants can apply for various program scholarships, which isn’t common for online programs,” Wanger says. “Since most don’t offer scholarships, this is a key question for prospective students to ask.”
Loans and Grants
Online students pursuing an associate or bachelor’s degree may qualify for the Pell Grant, offering up to $7,395 for 2025-2026 to low-income students. Federal and private loans are also options.
“Online students should submit the FAFSA to access federal aid, including loans and grants,” Novak advises.
Additional Technology Expenses
You might need to budget for a laptop, headset, or high-speed internet for video lectures.
“Students may face software or tech fees, and of course, they’ll need reliable Wi-Fi at home,” Wang says.
Program Amenities
In fall 2021, about 3.2 million undergrads in distance learning enrolled in schools within their state, compared to 1 million out-of-state, per the National Center for Education Statistics.
Staying in-state for an online program can cut costs with lower tuition rates and access to on-campus resources, like in-person career advising.
“From a cost standpoint, an online degree is hard to beat,” Wang says.
