Student Loans for Certificate Programs

Certificate programs are designed to prepare you for specialized career paths. You might obtain a certificate in addition to a college degree or as a precursor to one. Sometimes, you may need to complete a certificate program to be considered for specific jobs. 

Costs for these programs can range from a few hundred to a few thousand dollars. Both federal and private student loans can be used for certificate programs; we’ve highlighted the best options below.

Lender	Best for	Our rating
Dept. of Education	Federal student loans	Not rated
College Ave	Private student loans	5/5
Sallie Mae	Cosigners	4.8/5
Ascent	Soft credit check	4.4/5

Federal student loans for certificate programs

If you’re considering a certificate program, start by completing the Free Application for Federal Student Aid (FAFSA) to check your eligibility for federal aid. The FAFSA allows you to list up to 20 schools, and you can update it to add more if needed.

Check with your school to confirm your program qualifies for federal aid. The Department of Education evaluates eligibility based on clock hours, semester hours, and the program’s duration. Programs with less than 16 semester hours typically don’t qualify.

Ineligible programs may include:

• Accounting analytics
• Building construction technology
• Criminal justice technology
• Human resources
• Medical office administration
• Nail technology
• Therapeutic diagnostic services

Certificate programs must usually be from degree-granting institutions to be eligible. For example, an online coding certificate from a boot camp likely won’t qualify for federal aid, though the boot camp might offer its own financial assistance.

If you qualify, federal student loans should often be your first choice for funding. They offer fixed interest rates, income-based repayment options, and protections such as deferment and forbearance. Here are the three types of federal loans:

Federal loan	Rates (APR)
Direct Subsidized & Unsubsidized (undergrad)	5.50%
Direct Unsubsidized (grad or professional)	7.05%
Grad PLUS loans	8.05%

Direct Subsidized Loans

Direct Subsidized Loans may be an option:

• For undergraduates with financial need.
• No interest accrual while enrolled at least half-time.
• Borrowing limits depend on attendance costs minus financial aid, with annual and aggregate limits.

Direct Unsubsidized Loans

Direct Unsubsidized Loans are more widely available:

• For undergraduates and graduates, regardless of financial need.
• Interest accrues during school and deferment.
• Can make interest payments while in school to reduce future debt.

Grad PLUS Loans

Grad PLUS Loans are available to certain borrowers.

• For graduate or professional students enrolled at least half-time.
• Require a credit check.
• Borrow up to the cost of attendance minus financial aid.
• Interest accrues immediately, but payments can be made while in school.

Federal loans come with borrowing limits. If you reach these limits, don’t qualify for grants, or your program is ineligible for federal aid, consider private student loans to cover the gap.

Private student loans for certificate programs

Many private student loan lenders let borrowers use loans to pay for certificate programs, not just college costs. That makes private lenders a terrific place to look if you need help paying for a certificate.

Many private lenders require a good credit score, so you’ll want to ensure you have solid credit before applying. You can also qualify by having a cosigner who has a good credit history.

The following lenders offer private student loans for certificate programs.

College Ave

Best Overall

5.0 _/5

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Why it’s one of the best

College Ave offers career loans with reasonable fixed and variable interest rates. Funding is available for various educational levels, including associate, bachelor’s, and graduate degree programs. You don’t need to seek a degree to qualify; certificate programs are eligible for loan funding.

You can add a cosigner to improve your approval chances or help you secure more favorable loan terms. College Ave does allow cosigner release when certain conditions are met. You and your cosigner must be U.S. citizens or permanent residents.

• Career loans cover up to 100% of costs
• Borrowers do not need to be seeking a degree to qualify
• Minimum loan amount is $1,000

Loan details

Rates (APR)	4.22% – 17.99%1
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 8, 10, or 15 years

Sallie Mae

Best for cosigners

4.8 _/5

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Why it’s one of the best

Sallie Mae offers career training loans for certificate programs, covering all program-related costs for one year. The Smart Option Student Loan for career training has no origination fees or prepayment penalties, and you can choose a repayment term that best fits your budget.

You can choose from fixed or variable rates, with repayment terms extending 10 to 15 years. Sallie Mae accepts cosigners, which could make it easier to qualify if you have a limited or poor credit history. You can apply for cosigner release after completing your certificate program and meeting other conditions.

• Career training loans cover up to 100% of certificate program costs for one year
• Cosigners are accepted, with release available after 12 consecutive, on-time payments
• No prepayment penalties or origination fees

Loan details

Rates (APR)	4.25% – 15.70%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	10 – 15 years

Ascent

Best for a soft credit check

4.4 _/5

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Why it’s one of the best

Ascent offers private student loans for certificate programs and boot camp loans to help you cover tuition costs. The minimum loan is $2,000, and it’s possible to borrow up to 100% of the attendance costs. Ascent has generous aggregate borrowing limits for undergraduates and graduate students.

These loans are available to U.S. citizens and permanent residents, but Ascent also accepts applications from DACA recipients. You can add a cosigner, and you can apply for cosigner release after meeting minimum requirements.

Loan details

Rates (APR)	3.69% – 16.20%
Loan amounts	$2,001 – $200,000
Repayment terms	5, 7, 10, 12, or 15 years

Does financial aid cover all certificate programs? 

Financial aid is money a student can use to pay for school. The four main types of financial aid you might qualify for are:

• Loans
• Grants
• Work-study 
• Scholarships

You must repay student loans but not grants, scholarships, or work-study funding. 

If you’re applying for federal aid, you can use your aid package to pay for certificate programs with one caveat: You must be enrolled in an eligible program at an eligible school the Department of Education approves. Private student lenders can establish requirements for determining which schools or programs are eligible.

What to consider with student loans for certificate programs

Explore the tips below to streamline your loan comparison process:

1. Check your eligibility 

If you’re considering private student loans for certificate programs, you must first ensure your program is eligible. Some student lenders won’t offer loans for certificate programs, or they may limit the scope of programs accepted. (The companies we’ve listed above do.)

Next, consider your ability to qualify for a loan. If you can’t meet a lender’s minimum credit score or income requirements, you may need to apply with a cosigner. You may also need to find a lender that will accept you if you’re an international student or a DACA recipient. 

2. Compare loan rates and terms

Interest rates are crucial when comparing loans. The interest rate helps determine the loan’s total cost. In general, you want to choose the loan with the lowest interest rate to keep the loan’s cost as low as possible. 

The loan’s repayment term is another factor in its affordability. Longer terms leave you with lower monthly payments but mean the interest has more time to accrue, increasing the total cost of the loan. Shorter terms mean higher monthly payments but a lower overall cost.

3. Review borrower protections and benefits

Borrower protections are important. No one anticipates falling on hard times, but repayment flexibility is useful. Federal loans offer plenty of benefits to help you adjust or pause your payments during financial distress.

With private student loans, it’s up to the lender to decide what benefits or protections to offer. They may include:

• Hardship forbearance or loan deferment
• Grace periods
• Autopay discounts
• Cash-back rewards or referral benefits
• Cosigner release

The more benefits a lender offers, the more attractive a loan becomes. 

4. Check repayment time frames

It’s helpful to consider when you need to start repaying any federal or private student loans for certificate programs. Some loans require you to start making payments immediately, while others give you a few months after finishing your certificate.

Remember that making payments while you’re in school can help reduce what you’ll owe when you graduate. Even making interest-only payments could help chip away at the loan balance and prepare you to transition to full monthly payments later. 

Alternatives to student loans for certificate programs

Student loans are one way to pay for certificate programs, but they’re not the only option. It’s worth looking into other possibilities to pay for career training or education before committing to a loan. 

Here are alternatives to consider:

• Scholarships. Scholarships provide you with money for school with no repayment required. Some scholarships may expect a work commitment in exchange for funding. The Department of Education offers tips on how to find college scholarships.
• Grants. Like scholarships, you don’t need to repay grants. If you complete the FAFSA, you’ll be considered for Pell Grants. Many grants require you to have a demonstrated financial need to get funding. 
• Payment plans. Many schools offer plans that allow you to pay your costs of attendance in installments. It’s worth a call to your school’s financial aid office to find out whether such a program exists and, if so, how to qualify. 
• Ask your employer. If you’re employed, you might be able to get help with certificate program costs on the job. Your HR department should be able to explain any education-related benefits you might be eligible for, including tuition assistance or student loan repayment assistance.
• Personal loans. Personal loans let you borrow money for personal needs. Some personal loans have limits as high as $200,000. If you’re considering a personal loan to cover a certificate program, be sure to check with the lender first to ensure it doesn’t restrict using the money for education costs. 
• Ask friends and family. People in your personal circle may be willing to offer you a zero-or low-interest loan. If so, it’s wise to draft a written loan agreement so everyone is clear on the repayment terms. 
• Credit cards. Using a credit card to pay for a certificate program isn’t ideal because you may end up paying a double-digit rate on the balance. However, you could consider it if you’ve exhausted all other options to pay for school or if you can take advantage of a 0% introductory rate and repay the balance before the intro rate expires. 

If a loan is your only option, consider the following before you apply for a loan to earn a certificate.

• Will the certificate improve your income or career prospects enough to justify the cost?
• If the lender requires immediate payments, do you have the resources to make those payments while working on the certificate?
• Can you cover the cost of the certificate in other ways, such as saving up money, or picking up a side gig?

Funding the certificate program and significant career advancement shouldn’t be what stands between you. Check out federal and private lenders for funding to make it to the finish line.

Recap of student loans for certificate programs

Lender	Best for	Our rating
Dept. of Education	Federal student loans	Not rated
College Ave	Private student loans	5/5
Sallie Mae	Cosigners	4.8/5
Ascent	Soft credit check	4.4/5