Student Loan Options for Non-Degree Seeking Students

There are plenty of student loans available for individuals seeking undergraduate and graduate degrees. But not all career paths require a degree.

You might only need to receive a certificate or specific training to start or further your career. Similarly, you might only need to enroll in certain courses to obtain a license for your career, in some cases. If you're pursuing certification or credentials to further your career or are attending a trade school, there are still education costs you’ll need to cover.

Student loans for non-degree-seeking students are harder to find because of the eligibility requirements of federal and most private student loans. This guide explains your loan options for non-degree-seeking students, and alternative ways to pay for school if you are pursuing non-degree status.

Student loans for non-degree seeking students

Student loans are one way that some students pay for their college education. If you aren’t pursuing a college degree, however, your options are limited. Federal loans carry strict requirements you might not meet, and private lenders set their own rules, favoring those seeking degrees in most cases.

Here’s what you need to know about both options.

Federal student loans

Nondegree students typically don’t qualify for federal student loans. To qualify, you need to participate in an eligible certificate program and also attend school at least half-time. You might also be eligible if you are:

• Completing prerequisite coursework required for entrance to a degree program
• Completing coursework for teacher certification
• Participating in select certificate programs

To find out if a specific trade school or certificate program qualifies for federal student aid, use the National Center for Education Statistics’ College Navigator tool. You can also contact your school’s financial aid office to find out if you meet federal financial aid eligibility. If so, apply for loans by submitting the Free Application for Federal Student Aid (FAFSA) form, which is what the government uses to determine financial need.

You should almost always prioritize federal student loans over private loans if you’re eligible to receive a loan. Most federal student loans are need-based, don’t require a credit check, and often come with lower rates than private loans. Also, federal loans give you access to benefits like income-driven repayment plans, loan forgiveness, and loan deferment and forbearance options.

Private student loans

Private lenders also restrict who can borrow money to pay for education expenses. Most private student loans are reserved for students pursuing undergraduate, graduate, or other advanced degrees.

Sallie Mae offers Career Training Smart Option Student Loans for those pursuing professional training and trade certificate courses. Depending on your credit, you may need the help of a cosigner to qualify for a private student loan or receive worthwhile interest rates.

Alternatives to student loans for non-degree students

There are other ways to pay for certificate programs or trade school costs, if student loans aren’t an option for you.

• Employer assistance: Check with your employer to see if it offers tuition assistance for costs related to pursuing career-advancing certifications and licenses.
• Payment plans: Many schools offer payment plans to spread out education costs. Check with your school to find out if they offer repayment options and how to qualify for them.
• Personal loans: As a last resort, you could take out a personal loan, home equity loan, or HELOC to pay for school costs. Personal loans typically offer lower rates than credit cards, but most lenders limit how you use the funds, including education expenses.

Home equity loans and HELOCs are secured using the equity you’ve built up in your home. Because they’re considered secured loans, you risk losing your home if you fail to make loan payments. You’re better off finding less risky ways to pay for your training, if possible.

You can save money on certificate programs and trade schools by searching for less expensive options, like a local community college. Some career organizations might offer assistance to those pursuing a license within their particular career field.

Because these types of schools usually offer two-year programs, the cost of attendance overall should be lower than a four-year college. Programs are shorter because you don't have to take general courses or prerequisite courses like you would at a four-year school. Your education is more career-focused, which means the number of credits required to finish is lower. Also, you can start your career right away instead of staying in school for a graduate program.

Should non-degree-seeking students take out student loans?

Student loan options are limited but still exist if you need help paying for non-degree-related education expenses. Do your homework to determine if you qualify for student loans and if they are worth the interest charges you may end up paying over the life of the loan.

With fewer options available, it might be better to find other ways to pay for school without borrowing money. Pursue the option that works best for you.