Student Loans for Certificate Programs: How To Fund Your Education

Certificate programs are short-term programs that allow you to earn a professional credential. For example, you could earn a certificate in accounting, computer programming, or cybersecurity, among many other areas of specialization.

It's typically quicker to obtain a certificate than a degree, and much cheaper. Still, not everyone can afford to pay for their program on their own. The good news is there are some student loans for certificate programs available, but you'll need to shop more carefully for them.

This guide will help you understand your options so you can find the right solution for you.

Can you get student loans for certificate programs?

Federal and private student loans could both potentially be available to pay for a certificate program.

Federal student loans for certificates

“Federal loans are the best option to look at first,” explains Domenick D'Andrea, financial adviser and co-founder of DanDarah Wealth Management. Federal loans have affordable fixed rates and many benefits and protections for borrowers, including income-driven repayment plans and access to loan forgiveness.

However, federal loans won't be an option for everyone. “The only caveat is that all schools do not offer financial aid for certificate programs,” says D'Andrea. The Department of Education indicates that eligible programs for federal loans include programs that award a vocational degree or certificate, but only certain programs are approved.

D'Andrea recommends using the National Center For Education Statistics' College Navigator to find an approved program. You can also use the School Search tool on the Federal Student Aid website.

Private student loans for certificates

If you can't find a certificate program you're interested in that's eligible for federal aid, you also have the option of pursuing a private student loan. However, there's a caveat there as well.

“Because certificates have a shorter completion time frame, not all lenders fund certificates,” explains Hillary Saylor Schulze, director of student financial services counseling at Alvernia University.

Saylor Schulze suggests working with your school to find options. “We encourage students to use our preferred private lender list and really research which lenders will fund a certification program,” she says.

Current private student loan rates

How to apply for student loans for certificate programs

If you're eligible, you'll need to submit an application in order to receive either federal or private student loans.

Applying for federal student loans

You apply for federal student aid by completing the Free Application for Federal Student Aid (FAFSA). This can be found at StudentAid.gov. It takes under an hour to complete, and you'll need basic information, including:

• Your verified Federal Student Aid account username and password
• The names of contributors (parents or a spouse), depending on whether you are a dependent or married
• Your date of birth (and that of any contributors)
• Your Social Security number (and that of any contributors)
• Your email (and that of any contributors)

You must provide income and financial information, although you can streamline this process by consenting to have your tax information automatically retrieved from the IRS.

Applying for private student loans

Applying for private loans works differently because each individual lender has its own application process. To apply for private student loans, you'll generally complete the following steps:

• Use an online tool to find lenders that offer private loans for certificate programs.
• Verify with each private student loan lender that it'll provide loans for your particular program.
• Check rates and terms across multiple lenders, getting quotes from at least three or four.
• Compare rates and offers, looking at factors like potential monthly payments, repayment terms, and interest rates.
• Complete the application process with your chosen lender, which may include providing financial information and details about a cosigner, if you choose to add one to your application.

Eligibility requirements for certificate program loans

Federal student loans are available only if you are a U.S. citizen or eligible noncitizen enrolled at least half-time at approved academic institutions, including:

• Institutions of higher education
• Proprietary institutes of higher education
• Postsecondary vocational institutions

You must also make sure your specific certificate program counts as an eligible program “of a certain length” that leads to a qualifying “certificate or other recognized education credential.” In addition, you'll need to meet other basic eligibility requirements for federal student aid.

Eligibility criteria for private student loans can vary by lender, but you generally will also need to be a U.S. citizen attending a qualifying program at least half-time.

Alternative funding options for certificate programs

It's always a good idea to explore alternative funding options for certificate programs so you can limit your borrowing. Other options to consider include:

• Grants and scholarships for non-degree programs: Some options, such as federal Pell Grants, are usually not available for certificate or non-degree programs, but you may be able to find grants or scholarships through outside organizations such as nonprofits or professional groups.
• Employer tuition reimbursement programs: Employers sometimes reimburse you for completing a certificate program that's relevant to your job. For example, if you work as a computer programmer, your company may pay for you to get certificates in various programming languages.
• Personal savings: Since certificate programs tend to be less expensive than degrees, you may be able to save up to pay for your program.
• Payment plans: Some schools offering certificate programs provide payment plans to allow you to pay over time.

Tips for managing student loans for certificate programs

If you graduated from your certificate program with student debt, you'll want to manage this obligation so it doesn't have an adverse impact on your long-term financial goals. To do this:

• Work loan payments into your budget: Since certificate programs are often less expensive than degree programs, your loan amount may be relatively small. Create a budget that has room for your monthly payments or consider making extra payments, if possible.
• Explore refinancing options: Some private student loan lenders allow you to refinance your certificate loans, which may enable you to get a lower interest rate. However, you'll need to meet the lender's minimum loan requirements, which are often around $5,000 to $10,000.
• Understand your loan repayment options: If you have federal student loans, you may be able to choose from multiple repayment options, including income-driven repayment plans or the Standard Repayment Plan, which has a 10-year payoff time.