How to Get Graduate Loans for Non-Accredited Colleges

Most federal loan options will not assist with funding for graduate loans to non accredited colleges. It is necessary to earn an accredited degree to be eligible for federal student loans through the Department of Education. As a result, your loan pool will be limited to options from private lenders. This can be more costly, but there are advantages to seeking private loans. Namely, private institutions will have less regulation over the types of loans you take and how the loans will be distributed.

Loan Challenges Non-Accredit Colleges

The main challenge with this type of school is the fact the degree cannot be valued on the market. Banks and lenders have an idea of how much a degree is worth in most instances. The degree will lead to a percentage of higher earnings, and the banks measure these percentages for each degree to have an idea of whether they should fund the loan for a student. In a non-accredited situation, there is no guarantee your degree will prepare you for a vocation, job or career. This is very hard to value, so a lender may shy away from making the loan.

Use Income and Assets to Secure a Loan

Thankfully, most students seeking a degree from a non-accredited college have some level of financial backing to assist in gaining the loan option. This occurs because the majority of non-accredited colleges are providing training in continuing or adult education. Very few young students will attend a non-accredited college right out of high school. The exception may be vocational training at a young age, such as training to be a beautician or mechanic. In this case, a lender can value the loan based on anticipated salary once a certificate is earned. If you do not have an asset to secure a loan, try applying based on the income you will receive upon graduation.

Look for Employer-Paid Financing Options

You may find an employer is willing to pay for your continuing education, if you simply ask for a loan. Your employer does not need to pay the entire sum in order to assist with the loan. Even a small amount of assistance will help. For example, if you work for an insurance agency, you may be considering earning a designation in your field. Ask your employer to include this option as part of your compensation since it will benefit the employer as well as you.

Try Local Grants

Local grants exist to help send students back to learn careers. These grants are competitive. Grants differ from loans because they do not need to be repaid. In this way, they can provide a valuable piece of the financing puzzle. Look for grants aimed at the career or industry you are interested in. For example, a hospital may offer grants to a student studying for a nurse assistant certificate. The grant can be supplemented by working at the hospital while you study.


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