We all know that online degrees are more affordable and offer flexibility, but many students still struggle to afford even online degrees due to their course fees. Hence, they move into employment without proper knowledge and struggle with their careers throughout their lives.
So, to help students with a financially poor background, many universities and even the government are providing scholarships and financial aid so that they can complete their studies and move towards a better career.
This blog will tell you how to finance your online degree through these financial aid and scholarship programs from where students can get financial support, Also, we have discussed some common mistakes many individuals make while opting for a scholarship or loan.
What Is An Online Degree Program?
An Online degree is a course that offers you flexibility so that you can pursue it from anywhere with the help of the internet. While pursuing an online course, you don’t need to attend physically in the classroom, instead, you can attend it via virtual classrooms on different online platforms.
Online degrees are specially designed to cater for the needs of working professionals who want to upgrade their skills and knowledge but can’t commit to a full-time course and are searching for an affordable yet flexible option to continue their studies.
There are many online universities like Amity, Jain University, NMIMS, and LPU, etc. are offering online courses in many fields management, computer science, humanities, and social sciences etc. and the best part of these courses that you will get the same degree as regular students, but you will also get the flexibility to study at your own pace.
How To Finance Your Online Degree?
1. Scholarship Programs
Scholarships are usually awarded based on merit to meritorious students. A student also gets the scholarship if he/she has achieved something in sports or any extracurricular activities. Also, there are many scholarships awarded to students based on their field of study.
Types of Scholarship
Below is the type of scholarships:
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. |
2. Grants
Grants can also financially support your studies, Grants 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
Below are the 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 organisations also give grants. These can be for students studying a particular subject or from a specific community. |
3. Educational Loan
You can also apply for education loans, many banks are offering loans to support your studies and cover your tuition fees, books and other expenses. 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.
Below is the list of Banks offering education loan:
Bank | Interest Rate | Loan Amount |
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 | |
9.55% for top institutions; 13.25% for other courses | Up to ₹150 lakh; ₹50 lakh without collateral for select institutions | |
Starting from REPO* + 3.75% (interest rate varies) | Up to ₹1 crore for studies in India; Up to ₹2 crore for studies abroad | |
8% to 16% (depends on the Repo Rate) | Up to ₹5 crore |
Make Your EMI Easy With Our Education Loan EMI Calculator
4. EMI Fee payment
Many universities offer EMI facility to the students who can’t pay their entire fees 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.
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.
5. 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 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.
6. 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. You can visit the university’s website for more details on how to apply for the aid they offer.
7. 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.
Why Is Pursuing An Online Degree Worth It?
- Flexible Learning, Your Way
Online courses are best if you are looking for flexibility in any course. With this flexibility, you can study whenever it is suitable to you, and you don’t need to worry about missing lectures, as you can attend the recorded lectures.
- More Affordable Than Traditional Degrees
Online degrees usually cost less than regular college programs. You also save money on various expenses like travel, accommodation (if you study in another state), and textbooks—expenses that add up quickly in a traditional setup.
- Access to Quality Education Anywhere in India
Online degrees give you access to top universities without having to move to a big city. That means more students can now aim for quality education, no matter where they live. It is beneficial for those who live in remote areas, even those living in villages where there are no good universities.
- Build Skills While You Study
You can also work on developing skills, even though many students take up part-time work or internships while doing an online degree. This gives you a chance to earn money and gain practical experience—something that employers value.
- Industry-Relevant Courses and Certifications
Many universities offer Online programs that often focus on market needs. helping you get industry insights while studying and stay ahead with updated skills.
- Recognised Degrees That Employers Accept
Online courses are also UGC-approved, which means the online degree holds the same value as a regular one. Many employers are accepting candidates with online degrees and hiring them, especially in tech, management, and digital roles.
Mistakes To Avoid While Financing Your Online Degree
- Not Checking If the Course Is UGC-Recognised
Many students avoid checking the UGC recognition while selecting a course and university, and they apply for a loan. Always keep in mind if your course is not approved by official bodies, then it will be invalid, and you will end up wasting money and getting nothing.
- Taking High-Interest Personal Loans
Another big mistake students make while applying for an education loan is not comparing different banks and their interest rates before applying for the education loan. If you compare different banks and their schemes, you can find the best loan scheme for yourself and save a lot of money.
- Ignoring the Total Cost (Hidden Charges, Material Fees, etc.)
This is common, usually universities tell you about the course fees only and not other charges. Always ask for a complete fee breakdown so that you can apply for the proper loan amount for your education.
- Not Planning Monthly Budgets Around EMIs
If you’re choosing the EMI option, make sure you calculate your monthly expenses. Don’t jump into a plan without knowing if you can afford it month to month. Even small EMIs add up.
- Waiting Too Long to Apply for Aid or Loans
Many students delay applying for financial help and end up missing deadlines. Whether it’s a scholarship or a loan, apply early so that your admission process isn’t delayed.
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Conclusion
If you have been wondering about “how to finance your online degree?”, don’t worry, as there are many options you can finance your online degree, from education loans and scholarships to EMI plans and part-time work, there are multiple ways to make your education affordable.
The important thing is to plan. Make sure your course is UGC-recognised, compare loan and EMI options, and don’t forget to look for hidden charges. By avoiding common mistakes and making smart decisions, you can manage your finances well and focus on what matters—building your future through quality education.
FAQs
Q1. Can I get a loan for an online degree?
Ans. Yes, many banks offer loans for UGC-approved online programs. Apply early and compare options.
Q2. Are scholarships available for online degrees?
Ans. Yes. Platforms like upGrad and some universities offer need-based or merit-based scholarships.
Q3. How to finance your online degree?
Ans. There are many ways to finance your degree, you can go for an education loan, or apply for scholarships and grants etc.
Q4. Does an online degree have the same value as a regular one?
Ans. Yes, if your degree is from a UGC-approved university. Employers and other institutions treat it the same as a traditional degree.
Q5. How soon should I apply for financial aid?
Ans. It’s best to apply earlier you apply, the better your chances of getting aid or loan approval before the fee deadline.
