By: The Capella University Editorial Team
Reading Time: 5 minutes
You can pay for your degree in a number of different ways, but some of the most appealing options may help reduce out-of-pocket costs, such as grants, scholarships, employer tuition assistance and certain loan forgiveness programs.
Here are four avenues that may help offset education expenses, including tuition, fees, books, supplies, equipment, transportation and other eligible school-related costs depending on the funding source.
Before anything else, complete the Free Application for Federal Student Aid (FAFSA). The FAFSA helps determine whether you may qualify for federal financial aid. Note that while federal loans must be repaid, the FAFSA can help determine your eligibility for other forms of aid such as grants that do not require repayment. Even if you are eligible for federal assistance, you can still explore scholarships, employer benefits and other nonfederal sources of funding.
Grants are typically awarded based on financial need and generally do not need to be repaid. Federal grants are among the most widely known and are offered by the U.S. Department of Education to eligible students attending approved colleges, universities, community colleges and trade schools.
Common types of federal grants include:
Some schools also offer institution-specific grants. Availability, eligibility and award amounts will vary by school.
Like grants, scholarships generally don’t have to be paid back. They are often awarded based on merit and typically distributed based on the standard academic year, though some will take financial need, background, field of study or other factors into consideration. Some scholarships may be competitive and have a lengthy application process, which means it’s important to research options and complete scholarship applications before their deadlines.
Look for scholarships connected to the field you want to enter. Nursing, teaching, business, social work and other professions may offer scholarship opportunities through schools, employers, nonprofits and professional associations. Some programs may include work or service commitments after graduation.
You can also search for scholarships tied to your experiences, interests, affiliations or achievements.
Capella University offers scholarship opportunities for eligible learners in select programs.
Learn more about Capella scholarships.
While student loans are not free funding, some federal repayment or forgiveness programs may reduce what eligible borrowers ultimately have to repay.
It can be difficult to qualify for, but under certain circumstances, you may qualify for federal loan forgiveness or discharge. For example, eligible teachers in qualifying schools may be able to receive forgiveness on certain federal student loans. Borrowers working in qualifying public service roles may also be eligible for Public Service Loan Forgiveness (PSLF), depending on loan type, repayment plan and employment requirements.
Because federal loan repayment program rules can change, it’s important to review current federal guidance before making financial decisions.
Some employers offer tuition assistance or tuition reimbursement to employees pursuing work-related education. Depending on the employer’s policy, this benefit may help cover individual courses, a certificate, or in some cases a larger portion of a degree program.
If you are working while earning your degree, check with your employer’s human resources department to find out whether this benefit is available and what eligibility requirements apply. You can also explore whether your employer has a partnership with an institution, such as Capella’s employer tuition assistance.
Other sources of information for grants and scholarships:
If a scholarship sounds too good to be true, it probably is. Never provide your social security number or financial information unless it’s for a federal or state grant.
FAFSA stands for Free Application for Federal Student Aid. It’s the U.S. Department of Education’s application used to determine eligibility for federal grants, work-study, and loans, plus many state and institutional aid programs. File a new FAFSA each academic year you want to be considered for aid, since your income and household information can change.
Grants and scholarships don’t have to be repaid. Grants are typically awarded based on financial need, like the Federal Pell Grant, while scholarships are usually awarded based on merit, field of study or other qualifications. Loans must be repaid with interest and are generally worth considering only after grant and scholarship options are exhausted.
While employers are not required to offer tuition assistance, some do, especially for coursework related to your job. Connect with your HR department about whether your company offers tuition-related benefits. Find out if your employer partners with Capella.
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