Student Loans for Real Estate School

Real estate school can be expensive. Depending on your chosen route, it can cost from $1,000 to over $100,000. As a result, student loans are occasionally needed. We’ll review your federal and private 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

Can I get federal student loans for real estate school?

You could use a federal student loan to pay for real estate school. However, your school must be an accredited school to qualify. To check its accreditation status, search the U.S. Department of Education’s accreditation database to see if your school is accredited.

Depending on your financial situation and the real estate program you’re enrolled in, you might qualify for one of these federal loans:

Loan type	What to know
Direct Subsidized	For undergraduates who demonstrate financial
Direct Unsubsidized	Don’t need to demonstrate financial need, but the government doesn’t cover your interest while in school
Grad PLUS	For those enrolled in an eligible real estate master’s degree program and requires a credit check

• Direct Subsidized loan. You might qualify for this loan if you’re an undergraduate student who can demonstrate financial need. While you’re enrolled in school at least half-time, the U.S. Department of Education pays your interest.
• Direct Unsubsidized loan. If you’re an undergraduate or graduate student enrolled at a qualifying school, you may qualify for an unsubsidized loan. While you don’t need to demonstrate financial need to qualify, interest does accrue on the loan while you’re in school.
• Grad PLUS loan. Once you’ve maxed out your unsubsidized loans eligibility, a Grad PLUS loan could help fill any funding gaps. You might qualify if you don’t have any adverse credit history on your credit reports.

Best private real estate student loans

If you’re seeking private loans, two solid options are available: College Ave is terrific for borrowers attending accredited institutions, and Sallie Mae’s Career Training Smart Option Student Loan might be ideal for those considering a non-degree-granting institution.

College Ave

Best Overall

5.0 _/5

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Why it’s one of the best

College Ave is a premier choice for students pursuing career development, including those enrolled in real estate programs at accredited institutions. This lender caters to various educational pursuits, from associate degrees to postgraduate studies, ensuring that students at various levels can find suitable funding options. 

What sets College Ave apart is its broad eligibility criteria and its commitment to supporting students beyond the classroom. The cash-back reward is an incentive that motivates students to achieve their educational goals.

College Ave understands the diverse financial backgrounds of its borrowers, offering the option to add a cosigner to improve approval chances. This flexibility, coupled with the option to release the cosigner after repaying half of the original loan amount, highlights College Ave’s adaptability to borrowers’ evolving financial independence. 

College Ave combines flexibility with financial viability, making it an excellent option for real estate students.

• Cash back reward of $150 upon program completion
• Finance up to 100% of educational expenses
• Choose from 16 different repayment schedules.

Sallie Mae: Best for cosigners

Best for Cosigners

4.8 _/5

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Why it’s one of the best

Sallie Mae is a top lender for students seeking loans for professional training and trade certificate programs, including those in real estate. Its comprehensive approach to funding, which encompasses not just tuition but also books, housing, travel, and more, ensures that students can focus on their education without financial distractions. 

The Smart Option Student Loan for Career Training is beneficial for students at non-degree-granting institutions, providing vital financial support where it may otherwise be scarce. 

One of Sallie Mae’s standout features is its cosigner release policy, which allows borrowers to apply for cosigner release after 12 on-time payments, offering a faster path to financial independence than many other lenders. 

Sallie Mae offers flexible repayment terms ranging from 10 to 15 years and competitive interest rates. Including immediate repayment options, such as interest payments or a nominal flat fee, alongside the potential for making interest-only payments for the first year postgraduation, reflects Sallie Mae’s commitment to accommodating diverse financial situations.

• Cosigner release after 12 consecutive, on-time payments
• Loans can cover 100% of all program-related expenses
• Immediate repayment options and the ability to make interest-only payments for the first 12 months after school

Do student loans cover all real estate schools?

Getting a private or federal student loan for a real estate school is possible. You could get one while pursuing a real estate degree program or a certificate at a trade school.

That said, you might have trouble qualifying for one if your school isn’t an eligible or accredited institution.

Before you take out a student loan, research scholarship opportunities. Some REALTOR® associations offer scholarships up to $2,000 for students majoring in business or real estate. A scholarship can help minimize your borrowing cost; unlike a loan, you don’t have to repay it.

How to get student loans for real estate school

The process varies depending on whether you apply for a federal or private loan. For a federal loan, you must complete the Free Application for Federal Student Aid (FAFSA). After you complete the FAFSA, you’ll receive a student aid report (SAR) outlining your loan eligibility.

Completing the FAFSA generally takes an hour. Once completed, it can take a few weeks to months for the government to disburse funds to your school to cover your outstanding balance. Your school will then send you any leftover funds to cover other expenses.

The application process for a private student loan varies by lender, but here are the general steps.

• Review eligibility requirements. Many private student loan companies have minimum income and credit score requirements. If you don’t meet those requirements, some will allow you to apply with a cosigner.
• Prequalify. Compare your options by prequalifying with multiple lenders. Though prequalifying doesn’t guarantee a lender will approve the loan, it can give you an idea of what rates and terms you could receive.
• Submit formal application. After choosing the best option for you, submit a complete loan application. Documentation requirements vary, but lenders might ask you to provide your school information and your—or your cosigner’s—latest tax return, W-2s, and bank statements.
• Receive funds. Like a federal student loan, lenders usually send funds directly to your school to cover your balance. Afterward, your school will send you any remaining funds.

Ask the expert

Natalie Slagle

CFP®

If you are looking to get a four-year degree in real estate, I encourage you to complete the FAFSA form first to see what they qualify for before going to private lenders. The cost will be significantly less if you just pay for the licensure to become a real estate agent. You are also unlikely to qualify for student loans in this situation, so your options are to self fund or fund through your employer. 

If you want a four-year degree in real estate, I encourage you to complete the FAFSA form first to see what they qualify for before going to private lenders. The cost will be significantly less if you just pay for the licensure to become a real estate agent. You are also unlikely to qualify for student loans in this situation, so your options are to self-fund or fund through your employer. 

Alternatives to real estate student loans

Student loans for real estate school are a common route to fund your education, but they’re not the only option. Consider whether these alternatives are available. They can make your real estate career dreams a reality while lightening your financial burden.

• Employer assistance
• On-campus employment
• Personal savings
• Education savings accounts
• School payment plans
• GI Bill
• Real estate internships

Employer assistance for real estate school

This option involves an employer financially backing your education. It’s an alternative worth considering because it can save you money upfront. Unlike student loans, employer assistance doesn’t need to be repaid. However, some employers might require you to work for them for some time in return for their support.

On-campus employment

On-campus employment could also help fund your real estate school—and it might be a viable way to lessen how much you owe after graduation. Job availability and work-study hours may affect this option’s viability, and it might not cover all your educational expenses.

Personal savings

The primary advantage of personal savings is that it allows you to avoid debt. But real estate school can be expensive, and you may need to save substantially to cover the full costs.

Education savings accounts

An education savings account is a type of investment account that offers tax advantages intended to encourage savings for future education costs. 

School payment plans

Some real estate schools offer payment plans that may require regular payments sooner and have higher monthly payments than a loan would.

GI Bill

The GI Bill, designed to help veterans finance their education, is another alternative to student loans for real estate school. This benefit can cover full tuition costs if you’re eligible, but it’s only an option for veterans and eligible dependents.

Real estate internships

Real estate internships can sometimes offer stipends or other payment methods to help fund your education. The amount you earn can vary and may not cover full costs. Balancing work and study commitments can be challenging.

FAQ

How much does it cost to get a real estate license?

The cost to obtain a real estate license varies by state but generally includes several expenses:

• Pre-licensing education can range from $200 to $1,000, depending on the state and the provider.
• The exam fee typically ranges from $50 to $100, while the license application fee is usually between $50 and $250.
• Background checks and fingerprinting costs around $30 to $100.
• Errors and omissions insurance is an annual fee that can range from $200 to $400. Additionally, some states require post-licensing education, which can cost $100 to $300.

Overall, the total cost to get a real estate license can be between $500 and $1,500.

What are the consequences of student loan debt as a realtor?

Student loan debt can have several consequences for realtors:

• It can create financial stress, as monthly loan payments strain personal finances and make it harder to invest in marketing, continuing education, and other business expenses.
• High levels of debt can affect credit scores, impacting the ability to obtain loans for business or personal needs.
• With a significant portion of income going toward student loan repayments, realtors may find it challenging to save for retirement, invest in property, or build an emergency fund.
• Reduced disposable income can limit lifestyle choices and financial flexibility, affecting overall quality of life.
• A high debt-to-income ratio can also make it difficult to qualify for mortgages or other loans needed to grow a real estate business.

How much student loan debt is too much for a realtor?

Determining how much student loan debt is too much for a realtor depends on several factors. The realtor’s annual income plays a crucial role, with a general rule of thumb being that monthly student loan payments should not exceed 10-15% of the realtor’s gross monthly income.

High living expenses can make even moderate debt burdens unmanageable. Newer realtors with lower incomes may struggle with higher debt levels, while more established realtors with higher incomes may manage larger debts more easily. In a slow real estate market, even a moderate amount of debt can become overwhelming.

Generally, if student loan debt significantly hinders the ability to save, invest in the business, or maintain a comfortable lifestyle, it may be considered too much. Realtors should aim to keep their total debt-to-income ratio, including all debts, below 36% to ensure financial stability.

How we selected the best real estate school 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 real estate school student loans

Lender	Best for	Our rating
Department of Education	Federal student loans	Not rated
College Ave	Private student loans	5/5
Sallie Mae	Cosigners	4.8/5