Financial Aid Overview for Accounting Degrees

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An accounting degree can pay off, but first you have to pay for college. Tuition, fees, textbooks, and living expenses add up quickly. Fortunately, accounting students can use financial aid to lower the total cost of their degree and improve their return on investment.

The process starts with determining the cost of attendance (COA). According to the National Center for Education Statistics, public schools had the lowest average COA (including room and board) of $27,100 vs. $58,600 for private schools in 2022-23.

Accounting scholarships, grants, loans, and other funding sources can cut your out-of-pocket costs. Our financial aid overview walks through possible sources of aid, from the most advantageous options to ones that may accrue debt.

“Free money” is essentially financial aid that you don’t have to repay. Accounting scholarships and grants, regardless of their sources, fall into this category. Accounting students should put these forms of financial aid at the top of their list.

A scholarship awards funds to support accounting students earning a degree or certificate. Private organizations, professional associations, employers, and foundations offer scholarships for accounting students. For example, AICPA scholarships award over $1 million annually, with an average award of $5,000. Also, renewable scholarships provide funding for multiple years or allow recipients to reapply annually.

Scholarships fall into merit-based and need-based categories. You can also find scholarships for underrepresented groups in accounting, including accounting scholarships for women.

Eligibility requirements, deadlines, and application materials vary depending on the scholarship. Accounting students benefit from regularly checking for new scholarships and tracking scholarship deadlines.

Discover more accounting scholarships:

Grants, like scholarships, award funding to students with no requirement for repayment. However, grants are more likely to require the recipient to demonstrate financial need. The largest grant program, the Federal Pell Grant, awards up to $7,395 per year based on your financial need and COA.

Students fill out the FAFSA to determine their eligibility for Pell Grants and other federal grants, like the Federal Supplemental Educational Opportunity Grant. States also often use the FAFSA to determine grant eligibility.

Eligibility and recipient requirements depend on the grant. Some grants, like the federal TEACH Grant, are more similar to a forgivable loan because they include a service requirement after graduation. However, many grants provide funding to students with no service obligation.

Colleges and universities also offer financial aid for students, both need-based and merit-based. After receiving an admission offer, you’ll likely receive an award letter or notification from the school. The award letter will list the institutional aid offered by the school. It can include multi-year or single-year funding. Your award letter will also list the school’s COA.

Private colleges generally offer larger financial aid packages for students. However, these schools also charge higher tuition rates than public colleges. The net price, which is the amount that remains after subtracting grants and scholarships, may be higher or lower than at a public college.

Learn about affordable undergraduate accounting programs:

Another way to help cover tuition and other college expenses is through employment at your institution. Some options include work-study programs, fellowships, and assistantships. Like scholarships and grants, these programs don’t require repayment. However, you will have to work to receive the award.

Work-study programs connect students with part-time jobs where they can earn money to cover the cost of college. Need-based work-study opportunities can help accounting students gain relevant experience while in school. Work-study jobs include on-campus, nonprofit, and public agency jobs.

The federal work-study program supports undergraduate and graduate students, including part-time students. Recipients receive at least the federal minimum wage, with some opportunities paying higher wages. Prospective work-study students need to submit the FAFSA to qualify for the federal program. Some colleges may offer their own college work-study programs to supplement the federal work-study program.

Graduate students may receive need-based or merit-based assistantships and fellowships. Assistantships are similar to work-study programs in that recipients may work as teaching assistants. Fellowships often fund graduate students to cover tuition for their research

Assistantships and fellowships are often competitive. Universities, government agencies, and private foundations offer these forms of financial aid for accounting students. Applicants submit materials demonstrating their academic strengths, research interests, and financial need.

Accounting students may qualify for general or accounting-specific opportunities. The AICPA Foundation Fellowship for Accounting Doctoral Students provides $15,000 fellowships to CPAs in doctoral accounting programs.

Learn about affordable graduate accounting programs:

The federal government offers several types of financial aid through its student aid programs. The FAFSA, or Free Application for Federal Student Aid, determines your eligibility for federal grants, work-study jobs, and loans.

How do you fill out the FAFSA? You’ll need to submit financial information, such as your net worth. Dependents also submit financial records for their parents. You’ll also include school information on the FAFSA to determine your COA and expected contribution.

Only accredited schools can distribute federal student aid, but not all accredited schools are eligible. A college must have signed a program participation agreement with the U.S. Department of Education and have been approved.

You can submit the FAFSA starting in the fall before you need financial aid. June 30 or the last day of classes is the latest you can submit the FAFSA for federal funds. Many states have earlier deadlines, so check the FAFSA deadline list for more information.

Federal Direct Subsidized Loans are one of the best options if you need to borrow money for your degree. Available to undergraduates, subsidized loans cover your interest payments while you’re in school and for six months after graduation. That means you’ll owe less when you graduate.

To be eligible for a subsidized loan, you must be an undergraduate at a four-year college or community college. Students at accredited technical and vocational schools can also qualify.

There are limits on how much you can borrow. You cannot borrow more than your financial need, as determined by your school and your FAFSA form. There are also annual limits that vary by year in school, as well as aggregate loan limits.

More students qualify for Federal Direct Unsubsidized Loans. You’ll pay more interest with these loans, but they don’t require financial need.

Borrowers do not need to start repaying these loans until six months after graduation. However, interest will accrue on the loan from when you borrow the money, increasing the amount of debt when the loan enters repayment. Your COA determines how much you can borrow.

While only undergraduates can take out subsidized loans, both undergrads and grad students can borrow unsubsidized loans.

Many states also award financial assistance to college students. State aid can include grants, scholarships, tuition assistance programs, and work-study programs.

Every state offers different types of aid, with different eligibility requirements and application processes. In many states, you can use your FAFSA to qualify for state aid. Other states require you to fill out a separate state application for financial aid. State aid may be need-based or merit-based.

Because state aid is available on a first-come, first-served basis, it’s important to submit your financial aid forms early to increase your chances of receiving aid.

Military service members, veterans, and their families may qualify for GI Bill benefits. For example, the Post-9/11 GI Bill covers school expenses, including tuition, living expenses, books, and supplies. Other forms of military aid include the Montgomery GI Bill and the Yellow Ribbon program.

The Post-9/11 GI Bill requires at least 90 days of active duty service after Sept. 11, 2001, or either a Purple Heart or service-connected disability. Dependent children can also use benefits transferred by a service member or veteran.

GI Bill® is a registered trademark of the U.S. Department of Veterans Affairs (VA). More information about education benefits offered by VA is available at the official U.S. government website at https://www.benefits.va.gov/gibill/.

The Public Service Loan Forgiveness program helps accountants working in public service roles eliminate student debt. The federal program forgives the remaining balance on your Direct Loans after 10 years of working for a qualifying employer.

Accounting professionals can qualify for loan forgiveness by working for an eligible employer. Federal agencies like the Internal Revenue Service and Government Accountability Office qualify, as do state and local agencies. Nonprofit organizations also meet the requirement.

Eligible borrowers must work full time for an eligible employer and make 120 qualifying monthly payments on their loans. After making these payments — typically over a period of 10 years — the federal government forgives the balance of any Direct Loans.

When it comes to borrowing money for college, you can take out federal or private loans. Private loans, provided by banks and other financial institutions, typically charge higher interest rates (depending on your credit score) with fewer repayment options. You’ll also need to meet credit score requirements to take out private loans.

Unlike federal loans, some private loans require repayment while students are in school. Private loans are also not eligible for Public Service Loan Forgiveness or income-driven repayment plans.

Federal loans do come with some strings, including limits on how much you can borrow. If you’re attending an expensive program and need to borrow more, private loans could be an option. Students without a good credit history can borrow money with a cosigner.

A 529 plan allows you to save money for college with several tax advantages. Most states offer 529 plans, including prepaid tuition plans and savings plans. A prepaid tuition plan allows you to pay the current tuition rate to attend college in the future. 529 plans offer tax-free earnings, and qualified distributions may be entirely tax-free.

These plans can cover educational expenses, including tuition, fees, books, and living expenses, but not transportation expenses. Some states offer other tax benefits for contributions. You can open a 529 plan for yourself or a beneficiary, and you can choose from any state’s 529 plan.