A Guide to Private Student Loans for Career Training

Hey, it’s Roxanne here. Today, I wanted to provide some information on private student loans for career training for prospective students who may need additional assistance or just want to know about all the options available.

Let’s just take a look at the costs for our Phlebotomy and Medical Assistant training programs:

• Phlebotomy Training costs $990 for seven weeks of training, in-class instruction, and all materials and textbooks.
• Medical Assistant Training costs $3,000, which includes 16 weeks of in-class instruction, all materials, and textbooks.

To enroll, you can choose a one-time payment or a payment plan. Of course, we have scholarships for every cohort, too.

So, the question is, when we consider all the factors, where do private student loans for career training fit?

Look to family and friends first.

I always recommend that prospective students contact family, friends, and mentors first. You’d be surprised how generous people are, especially those who know and care about you.

So, before you think about taking out a loan from a bank or lender, apply for our scholarship. Ask a family member or friend for a loan and connect them with our staff if they have any questions about our payment plans.

Let’s say you don’t end up at NTX. I’d say the same thing. All you have to do is ask, “What’s the worst thing that could happen?”

Most students will need a co-signer for loans.

Lending institutions require a co-signer when they’re not sure if the borrower (you) has the ability to pay back the loan. It’s not anything mean, and it does not say anything bad about you.

Co-signers are required because the majority of students are young. A 19-year-old year student may simply not have had the time to build up an extensive credit history. We make mistakes. For example, forgetting to pay off a store credit card can have a big effect on your credit score.

Credit scores affect how much you can borrow, the length of time you have to pay back the loan, and your annual percentage rate (APR). “APR” is the percentage of interest and fees you’ll pay on top of the loan amount every month. Many factors contribute to your APR. Your credit score is the biggest factor.

Co-signers with proper credit history and a fair to excellent credit score reduce loan interest and win over skeptical lenders.

A family member who’s been around the block is likely to have an extensive credit history and a better credit score. So, if you don’t qualify for the loan on your own, that’s okay. It’s common for family and friends to co-sign, from private student loans for career training to lease agreements for first-time apartment renters.

Explain to family members or friends that both certified phlebotomists have bright career prospects and certified medical assistants enjoy high starting salaries.

Roxanne’s Pro Tip #1: Are you 18 years old or above? Check your credit score at Credit Karma before you apply for a loan.

If you choose private student loans for career training, read the fine print.

So, I really want to emphasize the importance of shopping around and doing plenty of research before choosing a loan. At the same time, helpful websites like Bankrate can help you start.*

Sallie Mae leads the pack in private student loans for career training and trade schools.

Yesterday, I hopped onto Bankrate, selected “private student loan,” and chose “640–699” as my credit score. See the results below.

Sallie Mae Loan Breakdown

Here’s what the terms look like at first glance:

• Loan Type: Private Loan 
• Loan Amount: $3,000
• Annual Percentage Rate (APR): 3.49- 15.49% (depending on your credit score)
• Loan Term: 10-15 yrs

According to Sallie Mae, students can borrow whether they’re in school full-time, half-time, or less than half-time. Loans cover 100% of tuition and fees. The co-signer can be released after twelve consecutive, on-time payments.

Ascent is a nationwide lender with similar loan terms.

Ascent provides private student loans for career training and is particularly known for its flexible payment terms and rewards program.

Ascent Lending Breakdown

• Loan Type: Private Loan 
• Loan Amount: $3,000
• Annual Percentage Rate (APR): 3.69- 15.04% (depending on your credit score)
• Loan Term: 5–20 yrs

I have to admit that my spidey sense activates when I hear about rewards and other programs that encourage certain behaviors. Remember that the information here is just for educational purposes. It’s not financial advice because I’m not qualified to provide that kind of advice. I just want to get you thinking about possibilities.

Roxanne Pro Tip #2: You don’t need to sign up for Bankrate to get a loan. If the terms work for you, simply contact the bank, organization, or credit union directly.

Consider credit unions for reasonable loan terms despite poor credit scores.

Here’s an example from Greater Texas Credit Union (GTCU) that offers private student loans for career training “ when scholarships, grants, and federal aid are insufficient to cover the full cost of attendance.”¹

• Enrolled at least half-time in a degree-granting program at an approved school.
• Student borrowers and cosigners (if applicable) must be permanent residents of Texas.
• Applicants without a co-signer must earn at least $30,000 per year and provide proof of current income.
• The student borrower and cosigner (if applicable) must be United States citizens/nationals or lawful permanent residents of the United States.¹

The requirements above come straight from the GTCU and seem to be in line with the requirements of other credit unions. (But always do your homework!)

Here are four tips for loan management.

First and foremost, remember to notify your loan servicer when you graduate or change your name, address, or Social Security number.

1. Stay in contact with your loan provider.
2. Keep track of how much you’re borrowing.
3. Understand loan terms and keep loan documents.
4. Make payments on time. If possible, set up autopay.

If you have trouble making payments, you should contact your loan provider immediately.

Combine NTX payment plans with family or private loans.

In addition to private student loans for career training, the state of Texas offers grants and loans.² Be sure to check those out.

Now, what is the takeaway? Start with our scholarship. It’s easy to apply for (no terms!). Go to family and friends for help before you apply for a loan. If you apply for a loan, get help from a friend or acquaintance with experience. Finally, always know what you’re signing on to and have a plan to pay off your loan.

Let’s get started.

Schedule a tour to meet me and our staff, see the building, and get all the details you need on payment plans and career prospects for phlebotomy and medical assistant training.

References

1. Private Education Loans | Greater Texas Credit Union [Internet]. GTCFU.org. 2023 [cited 2024 Nov 19]. Available from: https://www.gtfcu.org/greater-texas-cu/loans/personal/private-education-loan
2. Grant & Loan Programs [Internet]. Texas Higher Education Coordinating Board. 2024 [cited 2024 Nov 13]. Available from: https://www.highered.texas.gov/student-financial-aid-programs/grant-loan-programs/