Financing your online degree can seem challenging, but understanding the options available can make it easier. Scholarships, loans, and grants offer different ways to fund your education and help you reach your academic goals.
With online education becoming more popular in India, many students are finding flexible ways to learn without facing financial problems. Whether upgrading your skills or starting a new career, the possibilities are endless. However, the costs of an online degree—like tuition fees, study materials, and technology—can be a concern.
Lets get to know “How to Finance Your Online Degree” in this blog, we will explain the different ways you can finance your online degree. From scholarships and education loans to crowdfunding, many options can help you pay for your studies.
What is an Online Degree program?
An online degree program is a way to earn a degree by studying over the Internet instead of going to a physical classroom. Many universities and educational platforms offer these programs, which you can access from anywhere in the world.
These programs cover a wide range of subjects, from business and technology to arts and science. They include online lessons, recorded lectures, assignments, and exams, all of which you can do at your own pace.
How to Finance Your Online Degree?
1. Scholarship and grants
Scholarships and grants are great ways to pay for your online degree because you don’t have to pay them back. They are like “free money” that can help reduce the cost of your education.
Scholarship: These are typically awarded based on merit, such as your academic achievements, special talents, or achievements in extracurricular activities. Some scholarships are also available based on your field of study.
| Types of Scholarship | |
| Merit-based Scholarships | Awarded to students based on their academic performance, test scores, or special talents. |
| Need-based Scholarship | Given to students who demonstrate financial need, meaning their family’s income may not be enough to afford the full cost of education. |
| Scholarships by Major | Specific scholarships are awarded to students pursuing particular programs like engineering, law, medicine, or even arts and humanities. |
| Minority Scholarships | Offered to students from underrepresented backgrounds or minority groups to promote diversity in education. |
| Athletic Scholarships | Given to students who excel in sports and represent their university in competitions. |
Grants: Grants, on the other hand, are generally awarded based on financial need. If you can show that you require financial assistance to afford your education, you may be eligible for a grant.
| Types of Grants | |
| Government Grants: | The Indian government offers various grants for students who need help paying for their education. You can find these through the National Scholarship Portal (NSP). |
| Private Grants: | Some companies or organizations also give grants. These can be for students studying a particular subject or from a specific community. |
2. Educational Loan
An education loan is money that banks or other lenders give to students to help pay for their studies. This loan can cover things like tuition fees, books, and other education-related expenses. The loan is repaid after you finish your studies, and many loans offer low interest rates and flexible repayment plans. The good thing about an education loan is that it allows you to study without worrying about paying all the costs upfront. You only start paying it back once you complete your degree or get a job.
| Bank | Interest Rate | Loan Amount | Repayment Term |
| SBI | 11.15% without collateral; 10.15% with collateral; 0.50% off for girl students | Up to ₹75 lakh for top institutions; ₹50 lakh for other courses in India; ₹7.5 lakh for studying abroad | Up to 15 years after completing the course + 12-month break before repayment starts |
| HDFC Bank | 9.55% for top institutions; 13.25% for other courses | Up to ₹150 lakh; ₹50 lakh without collateral for select institutions | Up to 15 years after course completion + 1-year break before repayment starts |
| ICICI Bank | Starting from REPO* + 3.75% (interest rate varies) | Up to ₹1 crore for studies in India; Up to ₹2 crore for studies abroad | Flexible repayment options with a break before starting to repay |
| Axis Bank | 8% to 16% (depends on the Repo Rate) | Up to ₹5 crore | Flexible repayment options with a break before starting to repay |
3. EMI Fee payment
If you can’t pay your entire education loan amount at once, you can choose to pay in EMIs (Equated Monthly Installments). This means you pay a smaller amount every month for a set period, making it easier to manage. Several highly ranked universities allow you to pay the fees in easy installments.
EMI options are available for both secured and unsecured loans. The repayment time can vary, and you can spread the payments over several months or even years. The interest on the loan is added to the monthly amount you pay, and you can set it up for automatic payments to avoid missing any due dates.
4. Employer Sponsorship
Another way to finance your online degree is through employer sponsorship. Some companies help pay for their employees’ education, especially if the course is related to their job. This means your employer may cover part or all of your tuition fees, either directly or by reimbursing you after you finish the course.
This option is helpful because you can keep working while studying. Some employers also offer flexible hours or study leave to help you manage both work and studies. However, there may be conditions, like needing to stay with the company for a certain time after completing the course or meeting certain performance goals.
5. Institutional Aid
Many online universities and colleges offer institutional aid to help students with their fees. This can include scholarships, fee discounts, or other forms of financial support provided by the school itself. The amount of aid you can get depends on things like your financial need, grades, or other factors.
Institutional aid can help lower the cost of your education. To apply, you usually need to fill out a separate application, and some schools may ask for documents like proof of income or your academic records. It’s a good idea to check the university’s website for more details on how to apply for the aid they offer.
6. Self-Funding
Many students use their savings to fund their online degree. The benefit of pursuing an online degree is that you can continue working while studying, which makes self-funding easier. Unlike traditional full-time courses, online programs allow you to earn while you learn.
Some students prefer to work full-time and attend their classes in the evenings or on weekends, while others may opt for a part-time work schedule. The flexibility of an online degree allows you to manage your job and studies without having to stop earning or depleting your savings. This makes self-funding a more manageable option for many.
7. Crowd Funding
Crowd funding is another way to raise money for your online degree. It involves getting small amounts of money from many people, usually through online platforms. This option is useful if you don’t have enough money and want to ask for help from family, friends, or even strangers.
Websites like Ketto, Milaap, and GoFundMe let you share your story and raise funds for your education. To succeed, you need to explain why you need the money, what your goals are, and how the degree will help your future. While crowd funding can be helpful, keep in mind that it may take time to reach your goal.
Why is pursuing an online degree worth it?
- Flexibility: One of the biggest reasons students choose online degrees is flexibility. You can study whenever and wherever you want, which is perfect for people who are working or have other commitments.
- Cost-Effective: Online degree programs are often cheaper than traditional ones. You don’t have to worry about travel, accommodation, or other campus expenses. Many online courses also offer lower fees.
- Access to Quality Education: With online degrees, you can study at universities around the world, even if you don’t live near them. This gives you access to high-quality education without leaving your home.
- Career Growth: An online degree can help you get ahead in your career. Whether you want to switch jobs or get promoted, having a degree will improve your skills and make you stand out in the job market.
- Learn from Anywhere: Whether you live in a city or a small town, you can study online as long as you have internet access. This makes education available to more people.
Institutions Which offer Funding Support for online degree
Many universities and online platforms offer financial aid to help students pay for their online degrees. They understand that education can be expensive, so they provide scholarships, grants, and other types of support to make learning more affordable.
Some well-known institutions offering financial aid for online degrees include:
- Indira Gandhi National Open University (IGNOU) – Offers scholarships and fee discounts for deserving students.
- University of Delhi (DU) – Offers financial aid through its various programs for students in need.
- Swayam – A government platform offering free online courses, with some offering certificates for a small fee, making learning affordable.
- Coursera – Partners with universities like Stanford and Yale to provide financial aid for many of its courses, including online degrees.
- edX – Offers financial help for students enrolled in verified courses to make learning easier.
- Manipal University – Offers scholarships and financial aid for eligible students, including discounts and merit-based awards.
- Amity University – Provides financial aid through scholarships and fee waivers for students in need.
Conclusion
Paying for your online degree might seem challenging, but there are many options to help make it easier. Scholarships, educational loans, financial aid, self-funding, and even crowd funding can all help you manage the costs. By exploring these options, you can find the right solution for your financial situation and continue your studies.
Start your research early, apply for scholarships or financial aid, and consider loan options carefully. Planning ahead will allow you to focus on your studies without stressing too much about money.
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FAQ(s)
Q1: Can I apply for scholarships if I am already enrolled in an online degree program?
Ans: Yes, many scholarships are available even if you’re already enrolled. Just check the eligibility and application deadlines for each scholarship.
Q2: What is the best way to apply for an education loan for an online degree?
Ans: Research various banks and NBFCs offering loans for online education, compare interest rates and terms, and apply online or visit the bank for guidance.
Q3: How does crowd funding work for education?
Ans: Crowd funding helps you raise money by sharing your education story on platforms like Ketto or GoFundMe. People who want to help can donate small amounts to support your education.
Q4: Can I work while studying for an online degree?
Ans: Yes, online degrees are flexible. You can work part-time or full-time while studying, which helps you fund your education.
Q5: Are there financial aid options available for online degree programs from foreign universities?
Ans: Yes, many foreign universities offer financial aid, scholarships, or loans for international students. Check with the university’s financial aid office or the platform you’re using for more details.