Financial Aid for Online Students: How FAFSA Works

Pursuing your degree online is a flexible, accessible way to reach your goals, and thanks to financial aid, it can also be more affordable than you think. Whether you're just beginning your college journey or returning after time away, understanding how financial aid works is a key step. And at the center of most financial aid opportunities is one powerful form: the FAFSA.

The Free Application for Federal Student Aid (FAFSA) is the starting point for most federal — and many state and school-based — financial aid programs. But if you’re an online student, you may be wondering: Can I use the FAFSA? Does it work the same way for online degrees?

Let’s walk through how FAFSA works, what it unlocks, and what online students need to know to take full advantage of it.

What Is FAFSA?

FAFSA stands for the Free Application for Federal Student Aid. It’s an online form provided by the U.S. Department of Education that gathers information about your income, household, and educational plans. Based on your responses, the government determines how much financial aid you may qualify for, both need-based and non-need-based.

Submitting the FAFSA is how you gain access to:

• Federal grants, which don’t need to be repaid
• Federal student loans, which do need to be repaid
• Work-study opportunities, a part-time job program for eligible students
• Some state and school-based aid, depending on where you live and what school you attend

FAFSA is used by nearly all accredited colleges and universities in the U.S., including Bellevue University, to assess financial aid options for both on-campus and online learners.

Bellevue University strives to be the university for you - one that partners with you and supports you on your academic journey.

– Dr. Rebecca Murdock, Dean, College of Business

How Does FAFSA Work?

Once you submit your FAFSA, the U.S. Department of Education calculates your Student Aid Index (SAI) — formerly called the Expected Family Contribution (EFC). This number estimates how much financial help you may need for college and is shared with the schools you list on your FAFSA.

Each school then uses that information to build a financial aid offer, which outlines the types and amounts of aid you’re eligible for based on:

• Your SAI
• Your enrollment status (full-time, part-time)
• Your year in school
• The school’s available funds

The FAFSA opens each year for applications on October 1 (though recent changes have adjusted timelines in some years). Some aid is awarded on a first-come, first-served basis, so applying early can increase your chances of receiving the maximum amount of support.

Can Online Students Receive Financial Aid Through FAFSA?

Yes, they absolutely can. Online students at accredited institutions are eligible for federal financial aid, including grants and loans, as long as they meet the basic requirements.

Bellevue University is a regionally accredited university, which means our fully online degree programs qualify for the same financial aid as traditional on-campus programs. Whether you're pursuing your associate, bachelor’s, or graduate degree online, you may be eligible for federal financial aid by completing the FAFSA.

What Types of Financial Aid Can You Get with the FAFSA?

FAFSA unlocks several key forms of financial aid. Here are the most common types of financial aid that online students at Bellevue University may qualify for:

Federal Grants

Grants are need-based financial aid that does not have to be repaid, making them one of the most desirable types of aid.

• Pell Grants are awarded to undergraduate students with significant financial need.
• Federal Supplemental Educational Opportunity Grants (FSEOG) may be available to students with exceptional financial need, depending on the school’s available funding.

Eligibility for these grants is determined by your FAFSA submission and your enrollment status.

Federal Student Loans

Student loans can help cover tuition, fees, and other college-related costs. While these must be repaid, federal loans typically come with lower interest rates and more flexible repayment terms than private loans.

• Direct Subsidized Loans are available to undergraduate students with financial need. The government pays the interest while you're in school.
• Direct Unsubsidized Loans are available to undergrad and graduate students, regardless of financial need; you’re responsible for the interest at all times.
• PLUS Loans are available for graduate students or parents of dependent undergrads and require a credit check.

Even though loans must be repaid, federal options are often more manageable than private alternatives, and many students find them an essential part of paying for their education.

I started my college journey at a large university but ​soon realized I needed something more personal. This led me to a community college​ to finish up my associate's degree. From there, I was intrigued by Bellevue's accelerated option for earning a bachelor's degree. I worked full time during the day, and the program's flexibility allowed me to study and participate in class online at night. It was the perfect fit for my life and personality. I would wholeheartedly recommend the [BS in Leadership] program to anyone who is interested in paving their own path and leading others.

– Mikala Harden, Bellevue University alum

Military Tuition Assistance and VA Benefits

If you're active-duty military, a veteran, or part of a military family, you may be eligible for military tuition assistance or VA education benefits like the Post-9/11 GI Bill®.

These benefits are separate from FAFSA, but many military-affiliated students choose to use both to maximize their support. Some VA programs even require you to fill out the FAFSA as part of the process.

Bellevue University has a long-standing commitment to military students and offers dedicated support through our Military Veteran Services Center.

What About Scholarships or Other Aid That Doesn’t Use Info from the FAFSA?

While FAFSA unlocks many forms of aid, it’s not the only way to get help paying for college.
Scholarships are a major resource for online students, and they don’t always require you to complete the FAFSA. These awards may be based on academic achievement, leadership, life experience, affiliations, or career interests.

At Bellevue University, we offer a variety of institutional scholarships for both new and returning students. Even if you qualify for federal aid, exploring scholarship options can help reduce the amount you need to borrow or pay out-of-pocket.

Tip: Some scholarships do use FAFSA data to determine need, so it’s still a smart idea to submit it even if you're focused on scholarships.

Ready to Get Started?

Completing the FAFSA is one of the most important steps you can take to make your education more affordable, whether you’re studying online or on campus.

At Bellevue University, we’re here to help every step of the way. Our Financial Aid Office can guide you through the process, explain your options, and help you maximize the support available to you.

Related Articles

What You Need to Know About Scholarships and Financial Aid
Actionable Advice: Ways to Pay for College Without Breaking the Bank
10 Must-Know Financial Aid Tips
How to Pay for College
What is it like going to school online? Learn what to expect.
Is Online College More Affordable?