The federal government offers two widely recognized grants called the Pell Grant and the Supplemental Education Opportunity Grant. In order for these and other federal grants to be applied toward your online education, you must ensure the college you are attending is accredited. The University of Phoenix and Kaplan University are two such schools. These grants are limited to low-income students. However there are several merit based grants available through the federal government and individual institutions.
State education departments also award scholarships and grants to students. Like federal funding, these awards can be used to pay tuition at accredited online colleges. State governments generally limit funding to residents, and often the school you attend must also be in the state you reside in. Some states, such as Delaware, offer tuition assistance to out-of-state schools. Delaware also offers non-traditional grants such as the Governor's Education Grant for Working Adults. This grant pays up to $2,000 for part-time school enrollment.
Individual colleges often provide financial aid to prospective students. In addition, many public and private colleges -- like the University of Tennessee or Delaware State University -- offer online courses, so distance education need not be limited to online-focused schools. State and federal grants and scholarships can be used for tuition in addition to the school's financial aid offerings.
As soon you fill out your annual income tax return you should fill out the Free Application for Federal Student Aid. The FAFSA will determine whether you are eligible for any federal or state grant or scholarship opportunities. Private grants have different processes. Some applications can be filled out online while others must be mailed. Some require you to fill out a questionnaire while others ask for an essay. Be prepared to fulfill the requirements of each application to maximize your chance of being chosen as a recipient.
Apply for grants as early as possible. Many are available on a limited basis or to a small number of students. Ensure the schools you are considering are accredited, as most grants are only awarded to accredited institutions.