Student Loan Options for Non-Degree Seeking Students (2024)

There are plenty of student loans available for individuals seeking undergraduateand 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 eligibilityrequirements of federal and most private student loans. This guide explains your loan optionsfor 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 loanscarry strict requirements you might not meet, and private lendersset their own rules, favoring those seeking degrees in most cases.

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

Federal student loans

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

• Completing prerequisitecoursework 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 programqualifies for federal student aid, use the National Center for Education Statistics’ College Navigator tool. You can also contact your school’s financial aid officeto find out if you meet federal financial aid eligibility. If so, apply for loans by submitting the Free Applicationfor Federal Student Aid(FAFSA) form, which is what the government uses to determine financial need.

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

Private student loans

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

Sallie Maeoffers 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 loanor receive worthwhile interest rates.

Alternatives to student loans for non-degree students

There are other ways to pay for certificate programsor 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 optionsand how to qualify for them.
• Personal loans: As a last resort, you could take out a personal loan, home equity loan, or HELOCto pay for school costs. Personal loanstypically offer lower rates than credit cards, but most lenderslimit how you use the funds, including education expenses.

Home equity loansand 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 programsand 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 attendanceoverall should be lower than a four-year college. Programs are shorter because you don't have to take general courses or prerequisite courseslike you would at a four-year school. Your education is more career-focused, which means the number of creditsrequired 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 optionsare 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.