8 Ways To Pay For An Online Master’s Degree

Pursuing a master’s degree online is more accessible than ever, but the investment can be substantial. If you’re wondering how much a master’s degree costs online and how students actually afford it, you’re not alone.

Let’s break down the average costs, typical debt loads, and the most effective strategies people use to pay for their online graduate education.

How Much Does a Master’s Degree Cost Online?

Online master’s programs are often more affordable than their on-campus counterparts, but they are still expensive. 

• Total Program Cost: The average total cost for a fully online master’s program is about $27,930 per year. Assuming you attend a two-year program, that means your program will end up costing around $55,860 total. 

• Debt Load: The typical graduate student loan debt for master’s degree holders is around $54,000. 

With that in mind, many online master’s degree students will have to explore different options for paying for school. 

Top Ways to Pay for an Online Master’s Degree

1. Federal Financial Aid

• Eligibility: Most accredited online master’s programs qualify for federal financial aid, including Direct Unsubsidized Loans and Grad PLUS Loans.

• Application: Complete the Free Application for Federal Student Aid (FAFSA) to determine eligibility.

• Limits: Federal loans have annual and aggregate limits, but are often the backbone of graduate financing.

2. Scholarships and Grants

• Scholarships: Offered by universities, private organizations, and professional associations, scholarships can be merit-based, need-based, or targeted to specific groups or fields of study.

• Grants: These are typically need-based and do not require repayment. Federal and state governments, as well as some institutions, provide grants to graduate students.

• Competition: Both scholarships and grants are competitive, so apply widely and early.

3. Employer Tuition Assistance

• Prevalence: Nearly half (47%) of U.S. companies offer tuition reimbursement or assistance programs for employees pursuing higher education.

• Benefits: Employer assistance can significantly reduce out-of-pocket costs and, in some cases, cover the entire tuition.

• How to Access: Check your company’s HR policies or approach your employer about available programs and how your degree can benefit the organization.

4. Private Student Loans

• Sources: Banks, credit unions, and private lenders offer loans to cover gaps not met by federal aid.

• Considerations: Interest rates and terms vary. Credit unions often provide more favorable rates and flexible repayment options.

• Eligibility: Your credit score and income will impact loan approval and interest rates.

5. Work-Study and Assistantships

• Work-Study: Some online programs offer federal work-study opportunities, allowing students to earn money while studying.

• Assistantships: While more common in on-campus programs, some online programs offer teaching or research assistantships with stipends or tuition waivers.

6. Military and Veteran Benefits

GI Bill® and Tuition Assistance: Active-duty service members, veterans, and eligible family members may qualify for substantial education benefits, including tuition coverage and housing allowances.

7. Payment Plans

• Installment Options: Many universities allow students to spread tuition payments over the semester or academic year, easing the immediate financial burden.

• No Interest: Institutional payment plans typically do not charge interest, making them a cost-effective way to manage cash flow.

8. Transferring Credits and Prior Learning Assessment

• Transfer Credits: Bringing in previously earned graduate credits can reduce the number of courses—and thus the cost—needed to complete your degree.

• Credit for Experience: Some programs award credit for relevant professional experience or allow students to test out of certain courses, further lowering costs.

Smart Strategies to Minimize Debt

There are other ways to minimize the amount of debt you take on to complete your online master’s degree.

• Choose Public Over Private: Public institutions generally offer lower tuition rates for online master’s programs.

• Work While Studying: The flexibility of online learning allows many students to maintain full- or part-time employment, using earnings to offset tuition and living expenses.

• Apply Early and Often: Maximize your chances for scholarships and grants by applying to as many as possible, as early as possible.

Paying For Your Online Master’s Degree With The University of Alabama Online

The University of Alabama Online  is a public university that offers an impressive array of grants and scholarships tailored to support online master’s students. Each year, UA Online awards over 40 scholarships to online learners, and you only need to submit one application annually to be considered for all available opportunities.

Beyond scholarships, UA Online offers several tuition grants to reduce your upfront costs. The First Class Free grant covers the tuition cost of your first class in a UA Online program, making it easier to start your degree.

 The Tide Transfer Tuition Grant pays for a 3-credit-hour course for newly admitted community college graduates transferring into UA Online as first-time transfer students.

Additional grants include the Roll Tide Reconnect Tuition Grant for UA alumni returning for another degree, the Back to Bama Tuition Grant for former students completing their degree online, and the Tide Together Tuition Grant for faculty and staff from Alabama or partner community colleges enrolling in online programs.

Final Thoughts

While online master’s degrees are expensive, there are ways to pay for yours, and you should take advantage of as many as you can. 

By researching programs, applying for aid, and leveraging all available resources, you can invest in your education without sacrificing your financial future.