Non-Degree-Seeking Student Loans

You may decide to pursue an education without earning a degree. Maybe you hope to expand your knowledge in a particular industry. Or perhaps you’d like to enhance your resume with trade school or a certificate program. 

Regardless of your situation, some lenders offer student loans for these programs.

Lender	Best for	LendEDU rating
U.S. Dept. of Education	Federal student loans	Not rated
College Ave	Best overall	5/5
Sallie Mae	Best for cosigners	4.8/5
Edly	Best for no cosigner	3.9/5

Can you get financial aid as a non-degree-seeking student?

Some non-degree programs are eligible for federal student loans, but not all. Federal student loans tend to be reserved for graduate and undergraduate students getting a certificate or degree at an accredited school. 

This includes students attending two-year or four-year institutions and graduate and professional schools, such as medical, veterinary, pharmacy, dental, and law school.

However, you may be able to take out federal student loans for: 

• Certificate programs required for a specific career, such as cosmetology. The government’s college navigator tool can help you find certificate programs eligible for financial aid.
• Coursework you need to complete before attending college—for example, prerequisite classes you must take to qualify for a degree.

If you meet one of the above criteria, you may be eligible for federal Direct Loans, which include Direct Subsidized and Unsubsidized Loans. Here are the current interest rates and borrowing limits. 

Loan & rate	Undergrad amounts	Graduate amounts
Direct Subsidized Loan, 6.53%	$3,500 – $5,500 per year	Not eligible
Direct Unsubsidized Loan, 6.53% or 8.08%	$5,500 – $7,500 per year	$20,500 per year

Fill out the Free Application for Federal Student Aid (FAFSA) to find out what federal assistance you can get. The FAFSA opens the door to federal student loans and puts you in the running for other types of aid, such as grants and work-study. Apply for as many scholarships and grants as possible to minimize how much you have to borrow. 

You should also max out your federal student loans before turning to private student loans. Federal loans offer more benefits for borrowers, such as income-driven repayment plans and forgiveness programs.

Private non-degree-seeking student loans

Private lenders set their own eligibility and program requirements. Unlike federal loans, you or your cosigner will need a good credit score to qualify. You may also need a source of income to prove that you can repay the loans.

Many private lenders have specific types of loans for cosmetology school, trade school, or other certificate programs. Here are our top picks.

College Ave

Best overall

5.0 _/5

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Why we picked it

College Ave offers a variety of student loans, including a Career Loan for students not pursuing a degree. Borrowers can opt for a fixed or variable interest rate and land a 0.25% rate discount if they enroll in automatic payments.

The lender allows students to choose a repayment term that works for their budget. Those who add a cosigner can remove it after meeting certain repayment criteria. 

• 4 repayment options
• No origination or application fees
• Quick 3-minute online application

Loan details

Rates (APR)	3.99% – 17.99%
Loan amounts	$1,000 – $80,000 (up to $150,000 for graduate health professions)
Repayment terms	5, 8, 10, or 15 years

Eligibility requirements

• Be at least 16 years old 
• Have a Social Security number 
• Be enrolled in an eligible school 
• Make satisfactory academic progress 
• Meet credit and income requirements, or apply with a cosigner

Repayment terms

• Repayment terms of 5, 8, 10, or 15 years 
• Full immediate payments, interest-only payments, flat payments of $25 per month, or deferred payments while you’re in school

Sallie Mae 

Best for cosigners

4.8 _/5

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Why we picked it

Sallie Mae’s Smart Option Student Loan for Career Training will cover a year’s worth of professional training or a trade certificate course. Borrowers can take out the full cost of their program without worrying about origination fees or prepayment penalties. 
While in school, students can choose from interest-only, $25 monthly, or deferred payments. Sallie Mae’s six-month grace period gives students a break between class ends and payment due.

• 3 repayment options
• No origination or prepayment penalties
• 10-minute application and approval process

Loan details

Rates (APR)	3.99% – 16.46%
Loan amounts	$1,000 – cost of attendance
Repayment terms	10 – 15 years

Eligibility requirements

• Open to students attending school full-time, half-time, or less than half-time 
• Must meet credit and eligibility requirements or apply with a cosigner

Repayment terms

• Repayment terms of 10 – 15 years 
• Can make interest-only or $25-per-month payments while in school or defer payments until after you graduate

Edly

Best for no cosigner

3.9 _/5

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Why we picked it

Edly offers career training loans to students with and without a cosigner. Its loans can be used for coding boot camps, allied health, and similar fields.

Unlike traditional student loans, Edly’s non-cosigned loans don’t have a specific period after graduation in which repayment begins. Instead, you must meet a minimum income requirement before payments start. This ensures you aren’t forced to make payments without the necessary funds.

However, if you borrow a loan with a cosigner, you’ll have to start making payments while in school. Minimum payments start at $100 per month. 

• Repayment is based on your income
• Checking your rate doesn’t affect your credit
• Cosigner release is available after 12 months of consecutive on-time monthly payments

Loan details

Rates (APR)	A company representative advised Edly’s rates are “around 20% – 24%”
Loan amounts	Up to $15,000 per year with a lifetime limit of $20,000
Repayment terms	Income-based payments: Pay a percentage of your income after landing a job with a minimum annual salary of $30,000

Eligibility requirements

• Must be a U.S. citizen or permanent resident 
• Must be enrolled at least half-time in an eligible school 
• Loans not available to residents of Colorado, Vermont, Maine, West Virginia, Connecticut, Nebraska, or Iowa

Repayment terms

• Income-based repayment 
• Must pay at least $100 per month while in school for cosigned loan; payments start after graduation for non-cosigned loan

How do I know which student loan is best for non-degree programs?

If federal student loans are available, they are the best option for non-degree programs because they don’t require a cosigner and come with various repayment plans, forgiveness program eligibility, and other borrower protections. 

If federal loans aren’t available, or you’ve maxed out your borrowing limit and need additional funding, a private student loan could be your next best option. Before borrowing, consider the loan’s interest rate, repayment terms, and fees. 

Use a student loan calculator to estimate your monthly payments and long-term borrowing costs. Pay close attention to when you must begin repayment. Some lenders may require in-school payments. 

Before you borrow, make sure to shop around and compare offers from multiple lenders to find the most affordable loan option. 

Why is it harder to get a student loan for a non-degree program?

Due to lender requirements, it can be harder to get a student loan for a non-degree program. The federal government, for instance, requires that you attend an accredited school that leads to a certificate or degree. 

Private lenders are more flexible but want to reduce lending risk. Students who don’t pursue a full degree may be less appealing to a lender because many high-paying jobs require college degrees.

When you take out a private loan, the lender evaluates your credit score, income, and other factors to determine how likely you are to repay the loan on time. You may be able to overcome this hurdle by applying with a creditworthy cosigner. 

Some lenders also offer non-cosigner loans to non-degree-seeking students. However, non-cosigned loans may have higher interest rates and fees than cosigned loans. 

Is taking out a student loan for a non-degree program a good idea?

If you’re considering a non-degree program, you must decide whether borrowing money to complete it makes sense. Before taking out a loan, ask yourself the following questions.

Question	Why?
Are you confident you’ll complete the program?	Certificate programs can be difficult to finish while working full-time, so only students who are certain they can finish the program should take out loans.
Will the certificate increase your income?	Not every training or certificate will result in a huge salary jump. If you won’t see a large increase in income, you may want to reconsider or find another funding option.
Is there an opportunity cost?	Can you keep working while in the program, or do you need to stop working to study? If you can’t work, you may need to take out more loans to cover your living expenses.
Even if the certificate increases your income, is the increase worth the debt?	Borrowing $25,000 to make an extra $1,000 per year makes less sense than borrowing $50,000 to earn an extra $20,000 per year.
Do you have a plan for repaying the loan?	You’ll need to repay the loan after you leave school, so be sure you have room in your budget for payments.
Is the loan within your debt limit?	If you’re a first-time non-degree student, try to limit your total student loan debt to 50% of the first-year salary for the job you’re seeking and never more than 100% of the first-year salary.

Certificates can be valuable. However, the source of the certificate matters. Those who earn certificates from for-profit institutions often pay more and earn less than people who earn certificates from nonprofit institutions, such as community colleges.

You should also consider how interested you are in the program. Students who are passionate about switching careers may be more likely to finish and use their newfound education than those who are ambivalent.

Other student loan resources for non-degree-seeking students

If you’re considering a non-degree program, LendEDU has many resources to find loans to cover your educational costs.

• Student loans for certificate programs
• Student loans for continuing education
• Student loans for trade school and career training
• Student loans for acting school
• Student loans for cosmetology school
• Student loans for coding bootcamps

Alternatives to non-degree-seeking student loans

Other ways to pay for a certificate or non-degree education program include:

• Talk to someone at your school’s financial aid office. They may be able to help you set up a payment plan.
• Some employers have programs to pay for your certificate program if it’s related to your job. To qualify, you may need to stay with your employer for a period after finishing the program. You might need to repay the money if you leave before that time.
• Look for scholarships or grants for the program you want to attend.
• Consider borrowing money through a home equity loan or line of credit.
• Save cash for your program and delay the start date.

FAQ

Can you get student loans without going to college?

Student loans are typically designed to cover the costs of attending college, university, or other accredited educational institutions. However, there are alternatives for financing education-related expenses outside traditional college programs, such as career training programs, trade schools, and certificate programs. 

What type of student loan does not require a credit check?

Most federal student loans do not require a credit check. These include Federal Direct Subsidized Loans, available to undergraduate students with demonstrated financial need, and Federal Direct Unsubsidized Loans, available to undergraduate, graduate, and professional students regardless of financial need. Although phased out in 2017, Federal Perkins Loans might still be available at some institutions.

Can you get a student loan without a job?

You can get a student loan without a job. Federal student loans don’t require employment or a credit check. However, private student loans often require a credit check and may need a cosigner if the borrower does not have a stable income or credit history.

What disqualifies you from getting a student loan?

Several factors can disqualify you from obtaining a student loan. Defaulting on previous loans can make you ineligible for additional federal student loans until the default is resolved. Not meeting your institution’s satisfactory academic progress standards, having certain drug-related criminal convictions, and not meeting the citizenship status requirements for federal loans can also disqualify you. To be eligible for federal student loans, you must be enrolled at least half-time in an eligible program at an accredited institution.

How we selected the best non-degree-seeking student loans

LendEDU evaluates student loan lenders to help readers find the best student loans. Our latest analysis reviewed 725 data points from 25 lenders and financial institutions, with 29 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best non-degree-seeking student loans

Lender	Best for	LendEDU rating
College Ave	Best overall	5/5
Sallie Mae	Best for cosigners	4.8/5
Edly	Best for no cosigner	3.9/5