Most of the online degree programs listed in GetEducated.com’s Best Distance Learning Graduate Schools offer financial aid. The student loan is the most common type of aid. The second most common type of aid is corporate tuition assistance. Some programs also participate in military tuition benefits for active duty personnel or veterans.

According to 2000 statistics from the U.S. Census Bureau a person with a master’s degree can expect to earn $55,300 per year. Those whose education stops at the bachelor’s level can expect to earn $46,300 per year. Holding a master’s degree may, on average, raise your income $225,000 over a 25-year career. Clearly, spending between $18,000 and $21,000 on a distance master’s degree, in return for $225,000 more in lifetime income, makes a master’s degree a good investment.

Yes. Not all student loans are equal.

Some online graduate schools offer government-backed Stafford student loans. Research your options to find an online university that participates in the special government Distance Education Demonstration program.

Government-backed Stafford student loans typically carry the lowest interest rate. Interest rates on Stafford student loans are variable, set in July of each year. In 2003, Stafford student loans carried the lowest interest rate in two decades: 3.42%.

To find out if you might be eligible for a government-backed Stafford student loan consult the annual free Student Guide to Financial Aid, http://studentaid.ed.gov/students/publications/student_guide/index.html or call 800-4-FED-AID for a copy of the Guide.

Not all distance-learning graduate programs participate in the federal government’s student loan program. Some offer only private student loans only. There is a difference.

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Private student loans are available from private finance companies such as CitiBank, Keybank, or the Access Group.

Disadvantages:

Private student loans typically have two drawbacks in comparison to government student loans:

Higher Interest Rates

Private student loans typically carry variable interest rates. The typical rate range in 2004 will vary from 4% to 12%. Origination fees can raise rates. Rising prime rates will cause rates to vary quarterly. Credit-worthiness can escalate or lower rates.

Credit Worthiness

You will need to pass a credit check to qualify for a private educational loan. This may be a problem if you have a spotty credit history. A poor credit history will generally result in higher interest rates.

Advantages:

Private student loans also have advantages in comparison to government-backed student loans:

More Money

Private lenders may loan you more money than you might obtain through a government student loan program.

Less Restrictions

Government loans are commonly restricted to students attending school at least half-time (defined as taking at 2 or more courses per semester) who are also actively working toward a new degree (as opposed to a certificate or single discrete courses). Some private loan programs allow borrowers to pay for non-degree professional certifications and discrete training courses.

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Many large corporations, such as AT&T and FedEx, offer tuition assistance as a part of employee benefit packages. Check with the human resource department at your workplace to see if you are eligible for corporate tuition assistance or company scholarships.

The most common type of corporate assistance is tuition reimbursement. Under tuition reimbursement you may be eligible to have all part of your degree tuition paid by your employer. According to the National Center for Education Statistics about 20% of all graduate students receive aid from employers. Tuition assistance policies vary. Below are common features:

Annual Cap

Most companies limit how much they will reimburse in one calendar year. $2,500-$5,250 is a common annual cap.

Job Relevant Education

Many companies pay only for courses directly related to your current job.

Reimbursement Upon Completion

You will be reimbursed for tuition provided you pass a course with an acceptable letter grade – typically a grade of "B" or better. Earn a "C" and ouch! – you may be stuck with the bill!

Limited Coverage

Many companies pay for course tuition but will not reimburse for fees. Some distance learning degree programs charge significant "technology fees" in addition to tuition.

Meet with your corporate benefits officer to determine the types and amount of annual aid that may be available to you.

Some degree programs in GetEducated.com’s Best Distance Learning Graduate Schools offer tuition discounts to members of professional associations.

Consult the free online database Union-Sponsored Scholarships and Financial Aid, http://www.aflcio.org, for leads on $4 million in financial aid awarded by more than 60 labor unions through 38,000 local chapters nationwide.

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No. When figuring the cost of any online degree read the fine print. Tuition is the amount an institution charges to take a course. At some programs tuition is the only cost. Other programs add technology or distance learning "fees." These fees can significantly elevate the cost of a degree.

Some distance learning colleges require annual campus residencies. Factor in the cost of attending these physical residencies. Campus residencies can add thousands of dollars to the overall cost of earning an online graduate degree.

In addition, one online university may have a lower tuition or sticker price but provide a less attractive financial aid package. For example, one school may offer a government-backed student loan at 3.42% interest while another offers only a private student loan at a rate of 8% or higher.

Compare schools carefully to determine the true cost of earning an online degree.

Public distance learning universities may offer significantly lower tuition rates for state residents. Since state tax money supports these institutions these institutions often charge less to state residents.

Florida Gulf Coast University offers a Web-based MBA. Tuition for Florida residents is under $11,000. Tuition for non-residents is almost $40,000.

A few public universities have implemented a single distance-learning tuition structure. California State University, which offers a MBA, a MPA, and several other online degrees, charges all learners a single rate. All applicants to California State University’s online degree programs are charged the same low rate regardless of where they reside. At $9,000, the CSU distance MBA is a remarkable bargain for everyone.

On the other hand, a few public universities charge significantly more for distance degree programs than for the same degree earned in residence (on campus).

Indiana University’s distance MBA costs $36,000 for state or non-state residents. However, if you are an Indiana resident, and you reside near the IU campus you could earn your MBA for significantly less if you opt to earn it on campus rather than through online means.

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No. Private universities generally cost more than public universities because private universities do not receive government subsidies or tax funds. Private universities are more dependent on your tuition dollars to pay for operation.

Usually, but not always. You must shop around.

For-profit, private online colleges, such as the University of Phoenix, must make a profit. An online MBA at a for-profit such as Phoenix costs almost $24,000. On the other hand, tuition for an online MBA at Baker College, a private, non-profit college in Michigan, costs about half that: $12,750. Yet Indiana University, a public university, charges $36,000 for their online MBA.

According to GetEducated.com’s 2004 survey of 120 accredited online MBAs you can expect to pay anywhere from $2,760 to $110,000 for an accredited distance learning MBA.

To compare costs at different accredited online graduate schools, download free copies of any of GetEducated.com’s guidebooks:

Best Distance Learning Graduate Schools, Business & Management

http://www.geteducated.com/bdlgs_bm.htm

Best Distance Learning Graduate Schools, Technology

http://www.geteducated.com/bdlgs_tech.asp

Best Distance Learning Graduate Schools, Education & Library Science

http://www.geteducated.com/bdlgs_ed.htm

Interest on student loans may be tax deductible during the first 60 months of the loan payback period. In 2004 up to $2,500 in interest may be deductible by income-eligible taxpayers. To determine your eligibility consult IRS Publication 970: Tax Credits for Higher Education,

http://www.ed.gov/offices/OPE/PPI/HOPE/index.html.

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Under the Lifetime Learning Credit you may be eligible to deduct up to 20% of the first $10,000 of graduate or professional tuition expenses from your federal taxes. Example: if you pay $10,000 in tuition in 2003 you may be able to invoke the Lifelong Learning Credit on your federal tax form to deduct $2,000. Consult IRS Publication 970: Tax Benefits for Higher Education, http://www.ed.gov/offices/OPE/PPI/HOPE/index.html for details each tax year.

You may be able to deduct some or all of your educational expenses if your educational pursuits are required by your employer or required to maintain your current professional status. (Note: education undertaken to change your career may not be eligible for a straight deduction.)

Maybe. Consult the free government aid directory, http://www.ed.gov/Programs/bastmp/SHEA.htm, to locate your state’s financial aid resource center. Contact your state’s center directly for leads on scholarships and aid for adult learners.

Many factors influence the cost and value of a single distance degree program. In comparing programs you must weigh complex factors.

Compare sticker price: If tuition costs at your chosen institution run higher than average - $16,000 for regionally accredited distance MBAs in 2004; $26,000 for AACSB-accredited, distance MBAs in 2004, for example - ask yourself why you might be willing to pay more than the market average for any specific degree. Below are factors to consider in differentiating the cost of any single degree.

National name brand recognition: If you work in a highly competitive industry attending a national name brand graduate program may be worth any cost. You may consider an "Internet Ivy," like Duke University or Columbia University worth the higher cost.

Consider backyard brands: If you are a Massachusetts resident, and you intend to establish your career in Massachusetts, consider earning a degree from a locally known or backyard brand name. People trust and grant greater value to a degree from a university whose name is known to them. If you are a Massachusetts resident who plans to develop your career in Massachusetts a University of Massachusetts Amherst distance MBA ($22,200) may be a better buy for you than Colorado’s lower-priced Regis University ($15,750).

Compare ease and cost of access: Convenience is one great feature that distance learning offers. It is simply more convenient for many adults to study through distance means than it is to attempt a residential degree. However, for most people, the more campus visits a distance degree requires the less attractive it will be. Two annual 1-week campus visits can increase the overall cost of a distance graduate degree by $4,000. In addition, it may mean that vacation time must be allotted to meet campus residency requirements. Are you willing to pay extra for campus residencies? Are you willing to forgo family vacation trips in favor of mandated campus learning sessions?

Compare ease of admission: A few schools listed in GetEducated.com’s Best Distance Learning Graduate Schools admit literally everyone. These schools practice "open admission." They operate on the theory that the only true test of any student’s preparedness for graduate study is whether or not that student academically survives the first semester. A few programs are highly selective. Highly selective programs are more likely to require higher than average scores on standardized entrance exams such as the GRE (Graduate Record Exam) or the GMAT (Graduate Management Admission Test). If you do not "test" well or consistently gain lower than average scores on these types of exams you may want to consider programs that do not require standardized exams for admission or that weigh the results of these exams less heavily than other factors, such as professional experience or undergraduate GPAs.

Compare financing options: You may not be able to determine the true cost of any degree until your chosen institution has evaluated your paperwork and made a formal offer of aid. This can take months. It is in your best interest to apply to several schools. One degree may "appear" expensive yet turn out to be your best buy because of the type of student loan available. One institution may a Stafford government student loan at 3.42% while another may direct you to borrow from a private lender at 7% or a higher rate.

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