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.

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

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LendEDU rating: 5.0 out of 5

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

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 from four repayment terms: five, eight, 10, or 15 years. This gives them the freedom to pick a term that works for their budget. Those who add a cosigner can remove that cosigner after they meet certain repayment criteria. 

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Sallie Mae – Best for cosigners

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LendEDU rating: 4.8 out of 5

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

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. 

Students can choose from interest-only, $25 monthly, or deferred payments while in school. Sallie Mae’s six-month grace period gives students a break between class ends and payment due.

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Edly – Best for no cosigner

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LendEDU rating: 3.9 out of 5

• Repayment is based on your income
• Checking your rate doesn’t affect your credit

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 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.

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Are student loans available for all non-degree programs?

While some programs are eligible for student loans, not all are. Federal student loans tend to be reserved for graduate and undergraduate students getting a degree at an accredited school. This includes students attending two-year or four-year institutions, as well as graduate and professional schools, such as medical, veterinary, pharmacy, dental, and law school.

However, the exceptions are:

• Certificate programs required for a specific career, such as a cosmetology school. 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. 

To find out what federal assistance you can get, fill out the Free Application for Federal Student Aid (FAFSA). Before applying for federal student loans, apply for as many scholarships and grants as possible to minimize how much you have to borrow.

You should max out your federal student loans before turning to private student loans because federal loans offer more benefits for borrowers.

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

The best student loan depends on your eligibility, type of education, and financial situation. If federal loans are available, be sure to start with them and look for loans with low interest rates, flexible repayment terms, and generous grace periods.

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

When you take out a loan, the lender evaluates your credit score, income, and other factors to determine how likely you are to repay the loan on time. Students who don’t pursue a full degree may be less appealing to a lender because many high-paying jobs require college degrees.

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, you should answer the following questions.

• Are you confident you’ll complete the program? Certificate programs can be difficult to finish on top of 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? Not being able to work means you may have 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 are a first-time non-degree student, try to limit your total student loan debt to 50% of a first-year salary for the job you’re seeking and never more than 100% of a first-year salary for the job you’re seeking.

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. If you leave before that time, you might need to repay the money.
• 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.

Recap of the best non-degree-seeking student loans