Yahoo Finance Debunk 6 Myths About the Cost of Online Education
When it comes to choosing an online degree, a program's price tag tends to be the most important factor for prospective students.
In a recent report about online learners, 45 percent of respondents said they ended up choosing the most inexpensive program among their options, up from 30 percent in 2014.
While choosing an online degree can indeed be a wise move for a student's budget, buyers should beware that the cost of a virtual program isn't always what it seems. Below are several myths about the cost of online education.
[Find out how to decipher the true cost of your online degree.]
1. Tuition in online programs is less expensive. In the absence of dining halls, libraries, climbing walls and other amenities, prospective students could be forgiven for assuming that online tuition is lower than tuition for on-ground programs. But that's not always the case. "I think there is a misconception that online is cheaper, and it's not," says Christine Shakespeare, assistant vice president of continuing and professional education at Pace University.
Officials at online programs list a variety of reasons for charging the same -- or even more -- tuition than brick-and-mortar programs. Some say it's because they still have to pay the same faculty costs. Others say the expense of providing technology and campus services cancels out any cost savings.
Even if tuition for an online program looks appealingly low, students should be sure to look into whether they will be paying any additional fees, says Vickie Cook, director of the Center for Online Learning, Research and Service at the University of Illinois--Springfield.
"They can be associated with classes or a program or the online environment," she says. Since fees are not always listed on a school's website, students will need to do additional digging to determine the total cost of their program.
2. There are plenty of scholarships for online students. With some exceptions, few schools offer scholarships specifically for distance learners. But that doesn't mean all hope is lost. A school may not restrict its scholarships solely to on-campus students, says Susan Aldridge, president of Drexel University Online.
"If a donor donates funds to the university, very rarely have I ever seen anything where it's restricted to face-to-face students," she says. Instead of asking whether there are any scholarships specifically for online students, students should ask about scholarships in general, she says. "If they receive any pushback from the admissions office, they should just ask if the donors have any restrictions with online students."
3. Competency-based education will save you money. Many competency-based programs allow students to move through courses at their own pace, testing out when they master certain skills or knowledge.
The programs sometimes have a subscription model, permitting students to pay a set sum for a period, during which they can take as many courses as they'd like. While that can save students money and time in some instances, it can also backfire.
"If you don't think you can move through really quickly, it might not be a good model for you," says Robert Kelchen, assistant professor of higher education at Seton Hall University. "You would save more money paying for one course at a time somewhere else."
4. You won't have to pay to come to campus. While it's true that in fully online programs, students save on the commuting costs of getting to and from campus, that doesn't mean they won't ever see a university dining hall. Some online programs, particularly at the graduate school level, have residency requirements where students have to meet up on campus or at another location for networking events, classes and other opportunities.
The bad news? Students -- not the university -- will be footing the bill.
5. Federal financial aid is not available. When it comes to doling out aid, the government doesn't care whether students are online or on campus. "If you are pursuing a program or a curriculum that has been approved by the federal government, no matter which way they offer it, its eligible for financial aid," says Kevin McCrary, dean of financial aid services for Daytona State College.
But there are a few caveats. If students take too few credits, they might lose their financial aid eligibility. Also there are some newer competency-based programs, called direct assessment programs, that don't yet qualify for financial aid, says Kelchen with Seton Hall.
[Discover how online education could drive down the cost of your degree.]
6. Students won't be able to transfer credits to an online program. Transferring credits to an online program can be a great way for students to cut back on the time and money it takes to earn a degree. Experts say that while credit transfer is not always easy, it's still doable.
"Some universities have more liberal policies than others," says Aldridge with Drexel. "It's important for students to compare one institution versus another to determine the number of credits that will be transferred and the cost of education."
Trying to fund your online education? Get tips and more in the U.S. News Paying for Online Education center.
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