Private Student Loans for Certificate Programs: When You Need Them and How to Qualify

A certificate program can be a smart way to build new skills, advance your career, or switch industries—without the time and cost of a full degree. But while these programs can be more affordable than traditional college, they still come with tuition and fees that might require financial aid.

Federal student loans can be used for some certificate programs, but not all. Your program must be offered by an eligible school and meet the Department of Education’s requirements for length and accreditation. If your program doesn’t qualify, private student loans may be an option.

We’ll explain how to pay for a certificate program, whether federal loans are available, and what to consider before taking out a private loan.

Lender	Best for	Our rating
Dept. of Education	Federal student loans	Not rated
College Ave	Private student loans	5.0/5
Sallie Mae	Cosigners	4.8/5
Ascent	Soft credit check	4.4/5

When can you use federal student loans for certificate programs?

You can use federal student loans for certificate programs if:

• The program is offered by an accredited school that participates in federal financial aid programs.
• The program meets minimum length requirements, typically at least 16 semester hours.
• The school’s financial aid office confirms the program qualifies for Title IV federal aid.

If your program meets these criteria, you can apply for federal student loans by filling out the Free Application for Federal Student Aid (FAFSA).

However, if your certificate program is shorter, offered by a non-degree-granting institution, or not approved for federal aid, you won’t be eligible for federal student loans. In that case, private student loans or alternative funding options may be necessary.

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

Private student loans for certificate programs

Many private student loan lenders let borrowers use loans to pay for certificate programs, not just college costs.

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 Deferred Payments

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

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Best Private Student Loans

Does financial aid cover all certificate programs?

No, financial aid does not cover all certificate programs. To qualify for federal financial aid, your certificate program must be:

• Offered by an accredited school that participates in federal aid programs.
• Approved by the Department of Education, meeting length and curriculum requirements.

If your program meets these criteria, you can use federal aid—including grants, work-study, scholarships, and student loans—to help cover costs. However, many short-term or non-degree certificate programs (such as coding bootcamps or trade certifications) are not eligible for federal aid.

Private student loans may be an option if your program isn’t eligible for federal aid, but lenders set their own rules on which schools and programs qualify. Always check with your school and lender before applying.

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. (We’ve confirmed that the companies above offer loans for certificate program and don’t limit the scope.)

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 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.

Before taking out a loan for a certificate program, consider whether it will significantly boost your career or income. Make sure you can handle any required payments while in school and explore other funding options, such as savings or a side gig. If a loan is your best choice, compare federal and private lenders to find the right fit.

FAQ

Can I use federal student loans for online certificate programs?

Yes, but only if the program is offered by an accredited school that participates in federal financial aid programs. The Department of Education must approve the program, and it must meet minimum length requirements. If the program doesn’t qualify, you won’t be able to use federal loans or grants to pay for it.

What are my options if my certificate program isn’t eligible for federal student loans?

If your program doesn’t qualify for federal aid, you may need to look into private student loans, employer tuition assistance, or scholarships specific to your field. Some schools also offer payment plans, which can help spread out the cost over time without requiring a loan.

How do I know if a certificate program is worth the cost?

Look at job placement rates, salary increases, and demand for the certification in your industry. If the program leads to significant career growth or higher pay, taking out a loan might make sense. However, if job prospects are uncertain, consider lower-cost alternatives, including employer-sponsored training or free online courses.

How we chose the best private student loans for certificate programs

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 student loans for certificate programs

Lender	Best for	Our rating
Dept. of Education	Federal student loans	Not rated
College Ave	Private student loans	5.0/5
Sallie Mae	Cosigners	4.8/5
Ascent	Soft credit check	4.4/5