Distance Learning Funding – Options for Your Education

Distance learning funding is an option for distance learners working inconjunction with the United States Department of Education. Colleges anduniversities can also opt for funding for distance learning which they receivein the form of financial assistance to enrolled degree candidates.

Distance learning funding can be in the form of grants, which are typicallyawarded by the federal government or by state education agencies, and areone-time awards of cash that can offset the cost of tuition. Unlike loans,grants do not have to be repaid.

Distance Learning Funding – Scholarships

Scholarships are generally administered by schools or by privatefoundations. Many scholarships are contingent upon qualifying criteria, such asfinancial need, academic achievement, athletic prowess, or successfulparticipation in a community program. Like grants, scholarships do not have tobe repaid, but some awards may carry certain obligations. For instance,scholarship winners may be required to volunteer time for a communityorganization or pledge to work in a specific geographic area.

Distance Learning Funding – Loans

Federal Perkins Loans are funds that colleges and universities lend directlyto qualifying students to help cover the cost of tuition. After graduation,alumni repay their colleges over the course of ten years at a low, fixedinterest rate. Distance learning funding can also be in the form of SubsidizedStafford Loans as they are offered to students who demonstrate significantfinancial need.

These loans help bridge the gap between a student’s tuition and their otherfinancial resources, including scholarships and grants. The Department ofEducation pays all of the interest charges that accrue during a student’sdegree program, shaving thousands of dollars from the cost of their education.Workstudy Grants are funds earmarked for qualifying students who work incommunity-oriented or campus-based part-time jobs during their degreeprograms.

529 Plans or Coverdell Accounts allow students to invest money for collegein sheltered stock market or money market funds. Congress has waived all taxeson interest generated by Coverdell accounts, making them an attractive, ifindirect, source of financial aid.

There are a variety of forms of funding available to the distance learningstudent. If you are in need of funds, evaluate yourself in terms of fundingcriteria and apply for the grants, loans or scholarships that are appropriatefor you. Try to be sure that the program you undertake will increase yourearning power, so that you will be able to pay back any funds as necessary.