Federal funds can be used for tuition, fees, books and other expenses, including those associated with online learning, incurred at accredited institutions.
In 2010-11, Pell Grants were worth up to $5,300. Up to $4,000 is available through the Federal Supplemental Educational Opportunity Grant and up to $1,300 is offered from the Academic Competitiveness Grant.
Federal loans can also be used to fund costs associated with online classes. Perkins loans and subsidized Stafford loans are for undergraduates with financial need. Unsubsidized Stafford loans and PLUS loans (for parents) can be awarded to virtually any student.
Fill out the Free Application for Federal Student Aid (FAFSA), available on the web or from your financial aid office. Complete the application as soon as possible, the earlier after January 1 the better. If obtaining a loan, you will be required to submit a Master Promissory Note.
Online-focused colleges such as the University of Phoenix accept federal funding. Online programs are also available at many traditional schools, such as the University of Memphis.