The cost of a college education has risen drastically over the past 20 years. Most parents just don't have the extra cash on hand to cover the high cost of tuition and other necessities, so student loans and mounting debt have become the norm rather than the exception for most students. Imagine earning your college degree but incurring debt of anywhere from $50 to $100 thousand dollars! It nearly defeats the purpose of working for your degree. So, with no end to tuition increases in sight, financial aid packages are essential for most students.

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Fortunately, financial aid opportunities have increased in recent years. Scholarships and grants that were once only available for the poor or the brightest students, are now open to almost all students. Online degree programs are no exception, if you are interested in earning your degree through distance learning, don't worry, you can still qualify for aid. Nearly everyone is eligible for some type of award, these days. But you have to know where to go to get it.

Free money for online college comes in the form of scholarships (usually merit based) or grants (usually need based). Of course, several other conditions apply to various awards. Common qualifiers for financial aid awards include: minority status, gender, career plans, and field of study. You can use one of these categories to focus your search for aid.

One of the best sources for college grants is the federal government. Submit The Free Application for Federal Student Aid (FAFSA) as soon as possible. This application will tell you if you are eligible for a Pell grant, but more importantly colleges will also use this information to determine if you qualify for a school-sponsored grant. Private grant foundations often also require students complete the FAFSA before they will consider you for an award.

Start looking for scholarships as soon as possible. Some awards require an application be submitted the year before you begin your first semester in college. To find the funding that you need, collecting the names and contact information of prospective awards may take a few months. You need to factor in time to complete the application forms, write essays, and schedule any possible interviews.

In your search for scholarships, FindOnlineDegrees.com recommends that you focus on three main sources. First, search your local community. Start with the high school councilor's office, your local library, churches, community organizations, and any corporation that is based nearby. Next, contact the financial aid office of every college and university you are considering. They can tell you about any school-based awards. Finally, use the Internet. The standard search engine is of some use, but dedicated scholarship search sites are a tremendous resource. Some of these data banks have up to 800,000 awards indexed. Best of all, you can search based on a personal profile that will match scholarships to your unique situation.

Student Loans are also available for most students. Student loans are not free; they must be repaid. There are various types of educational loans available from the Federal government. Two major categories of federal education loans are:

Student loans (Stafford loans and Perkins loans)

Stafford loans may be either subsidized or unsubsidized. Subsidized Stafford loans are awarded to students based on their financial need. Unsubsidized Stafford Loans are not based on financial need.
Perkins Loans are low-interest loans borrowed directly from your school with federal assistance.

Parent loans (PLUS loans)

PLUS loans are awarded to parents of students who qualify as dependents

To apply for any form of federal financial aid including grants, scholarships and loans, you must complete the FAFSA (Free Application for Federal Student Aid.) Do this as early as possible.

Students should complete the FAFSA on the Web worksheet prior to filling out the FAFSA; it will make the process go much more smoothly.