Ibrahim Gardner
Student loans are one way to pay for certificate programs, but they are not the only option. Federal student loans are available to borrowers who attend Title IV schools, while private student loans can be used at Title IV schools and other qualifying institutions. PLUS loans are an option for those who have already earned a degree and are returning to school for a certificate. Some lenders require borrowers to be working toward a degree, and certificate programs do not meet their criteria. Federal student loans are generally the best option for most students, as they offer more flexible repayment options and additional borrower protections. However, scholarships, grants, and employer tuition assistance are other ways to fund certificate programs without taking on debt.
| Characteristics | Values |
|---|---|
| Student loans for certificate programs | Available through federal or private lenders |
| Federal student loans | Available to borrowers who attend Title IV schools |
| Private student loans | Can be used at Title IV schools and other qualifying institutions |
| PLUS Loans | Require a credit check; higher interest rates and fees than other federal loans |
| Direct Unsubsidized Loans | No need to demonstrate financial need; borrowers pay interest during all periods |
| Subsidized Direct Loans | Available to undergraduate students with financial need; government covers interest while in school and during the grace period |
| Repayment options | Private student loans may have different repayment options than loans for degree programs |
| International students | May need to apply with a cosigner; some lenders accept international students |
| Scholarships | No repayment required; search engines like Fastweb and Scholarships.com can help find opportunities |
| Grants | No repayment required; completing the FAFSA determines eligibility for Pell Grants |
| Payment plans | Some schools offer plans to pay attendance costs in installments |
| Employer reimbursement | Many companies offer tuition or education reimbursement for continuing education |
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What You'll Learn
Federal student loans
To qualify for a federal student loan, you must complete the Free Application for Federal Student Aid (FAFSA). The FAFSA will determine your eligibility for federal student aid, including loans, grants, and work-study programs. It is important to note that federal student loans are only available to borrowers who attend Title IV schools. You can search the Federal School Code List of Participating Schools to find out if your school qualifies.
There are several types of federal student loans that may be available for certificate programs, including:
- Direct Subsidized Loans: These loans are available to undergraduate students with demonstrated financial need. The government covers the interest while you are in school and during the six-month grace period after leaving school.
- Direct Unsubsidized Loans: These loans are available to undergraduate, graduate, and professional students without the need to demonstrate financial need. Borrowers are responsible for paying the interest during all periods, including while attending school.
- Direct PLUS Loans: These loans are available to graduate and professional students enrolled at least half-time in an eligible degree or certificate program. PLUS Loans have higher interest rates and fees than other federal loans but do not have annual or aggregate limits.
It is generally recommended that students explore federal student loan options before considering private student loans due to their more flexible repayment options and additional borrower protections.
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Private student loans
Some lenders that offer private student loans for certificate programs include:
- 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. Certificate programs are eligible for loan funding, and you can add a co-signer to improve your approval chances.
- 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 fits your budget.
- Ascent: Offers private student loans for certificate programs and boot camp loans to cover tuition costs. The minimum loan is $2,000, and you can borrow up to 100% of attendance costs. Ascent accepts applications from U.S. citizens, permanent residents, and DACA recipients. You can add a co-signer and apply for co-signer release after meeting minimum requirements.
Before choosing a private lender, it's essential to shop around and compare your options. Private student loans may have higher interest rates and fewer repayment perks than federal loans, so it's recommended to explore federal loan options first.
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Employer tuition reimbursement
If you're employed, you might be able to get help with certificate program costs through your job. Many companies offer tuition or education reimbursement for continuing education, especially if the program can help improve or expand skills for your current role. For example, if you're a programmer and want to learn a new coding language, that's a significant benefit to your company.
Tuition reimbursement, also known as tuition assistance, is an employee benefit through which an employer pays for a predetermined amount of continuing education credits or college coursework to be applied toward a degree. These programs are intended for employees hoping to advance their education as it relates to their current career track, offering them the chance to increase their industry knowledge and develop advanced skills.
On average, companies spend around $10,500 for employees pursuing graduate degrees, although organizations are beginning to increase their educational benefits as they witness the positive impact they can have on their businesses. Some companies prepay for students' coursework, which can encourage participation in their tuition reimbursement program. However, tuition reimbursement programs often come with employee and coursework eligibility requirements. For example, eligible coursework is often limited to subjects related to an employee's current job, and employers may require that employees earn a specific grade, such as a "B" or higher, to qualify for tuition reimbursement.
Some companies that offer tuition reimbursement include:
- Amazon: Covers tuition and fees for front-line employees after 90 days of employment
- Apple: Offers the Apple Education Reimbursement program, which can help with formal education up to $5,250. Apple also has Apple University, which provides classes and training to help employees build skills and earn certificates
- AT&T: Offers tuition assistance up to $5,250 per year for part-time and full-time employees who have worked at the company for at least six months
- Bank of America: Provides up to $5,250 in job-related college courses or degree programs each year for part-time and full-time employees who have worked at the company for at least six months
- Best Buy: Offers tuition assistance for full-time employees working at least 32 hours per week and who have been employed for at least six months
- Capital One: Offers the Education Assistance program, which reimburses up to $5,000 per year for courses taken by full-time associates and up to $2,500 per year for courses taken by part-time associates
- Chick-fil-A: Provides tuition discounts and grants that can be applied to over 100 colleges and universities that partner with Chick-fil-A through Scholarship America
- Chipotle: Contributes up to $5,250 annually to help cover costs for employees working toward a college degree, earning a GED, or studying English as a second language (ESL). Chipotle pays 100% of tuition annually for students enrolled in one of their specific partner degree programs
- Comcast: Offers tuition assistance for full-time employees for up to $5,750 annually. Employees must enroll in a Comcast-approved degree program
- FedEx: Provides up to $5,250 annually to support employees pursuing a college degree or attending trade, vocational, or technical school. FedEx also offers an exclusive employee tuition discount for online programs at Robert Morris University
- Fidelity: Provides assistance for up to 90% of education-related costs, with a maximum of $10,000 per year, toward a work-related certification or degree program for full-time employees who have worked at the company for at least six months
- Ford: Pays up to $6,000 per year in tuition and fees for full-time employees. After 90 days of employment, employees can enroll in a GED, undergraduate program, or approved certificate program from an accredited school to be eligible for this benefit
- GEICO: Offers tuition reimbursement of up to $5,250 per year for full-time employees enrolled in undergraduate education at an accredited community or four-year college
- Home Depot: Offers tuition reimbursement for salaried employees of up to $5,000 per year for a college degree, $3,000 per year for hourly full-time employees, and $1,500 per year for part-time employees
- Lowe's: Pays up to $2,500 per year toward tuition for full-time employees who have worked at the company for at least one year
- McDonald's: Provides up to $3,000 per year in tuition assistance for employees who work a minimum of 30 hours per week and have the approval of their manager. Employees who work at least 15 hours weekly can receive up to $2,500 annually and are eligible after working for 90 days
Even if your employer doesn't have a formal tuition reimbursement program, they might still be willing to cover your costs if you make a strong case for how your education will benefit the company. Your HR department should be able to explain any education-related benefits you may be eligible for, including tuition assistance or student loan repayment assistance.
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Scholarships
Some scholarships may require a work commitment in exchange for funding. For example, if you're employed, your employer might cover the costs of your certificate program, especially if it will help improve or expand your skills for your current role. 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.
If you're a U.S. student, you can also look for scholarships on the r/scholarships subreddit, which lists opportunities for free money for college.
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Personal loans
Before taking out a personal loan, it is important to ensure that you can afford the principal amount, interest, and any associated fees. It is also worth considering other options, such as scholarships, grants, and payment plans, as these may be more cost-effective in the long run.
Another option is to look into flexible payment plans directly through the school offering the certificate program. Some schools may offer deferred tuition until you have landed a job, or they may allow you to pay your tuition in installments, which can help with budget management.
Overall, while personal loans can be used to pay for certificate programs, it is important to carefully consider your options and choose the most suitable financing method for your needs.
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Frequently asked questions
Yes, you can get a federal or private student loan to pay for a qualifying certificate program.
Federal student loan options for certificate programs include Direct Unsubsidized Loans, Grad PLUS Loans, and Direct PLUS Loans for graduate or professional students.
Some private lenders that offer student loans for certificate programs include Ascent, College Ave, and Sallie Mae.
Yes, some alternatives to student loans for paying for certificate programs include scholarships, grants, payment plans, personal loans, and employer tuition assistance or reimbursement.
To apply for federal student loans, you need to fill out and submit the Free Application for Federal Student Aid (FAFSA). To apply for a private student loan, you can search for lenders that offer loans for certificate programs and compare their interest rates and repayment terms.
