Low APR student loans are available to part-time students to help them to pay for their education. However, if they’re only taking one or two classes a semester, their options for part-time education financing become much more limited.
Student Loans for Non-Full-Time Students
7.4 million students attended college or university part-time in the United States in the fall of 2021 and 554,000 in the UK in the 2020-2021 academic year.
Being a part-time student has several benefits, especially for adult learners. Through a part-time degree, you will have a more sustainable course load every semester, which is especially beneficial for those who struggle with traditional learning settings. You will also have more free time to focus on your family, which is important if you’re a parent or have additional responsibilities within your home. Additionally, with fewer hours at school, you can work either part-time or even full-time, which could help pay off your student loan and cover additional educational expenses.
While attending school part-time has its benefits, with the cost of education at an all-time high, students need access to funding for their studies. However, part-time students typically have a harder time accessing funding for their studies than full-time students.
Most student loan lenders will require you to enroll half-time, meaning at least six credits per semester, which is typically two courses at most universities. But keep in mind if you drop below this during your enrollment at university, you will no longer be eligible for certain student loans. What are the part-time education financing options available?
Federal Student Loans
Federal student loans are loans offered by the federal government to aid students in meeting the cost of education. These loans are available to students who are considered half-time at their school and offer low, fixed interest rates and flexible payment terms. To qualify for this loan, students must fill out the Free Application for Federal Student Aid (FAFSA).
Private Student Loans
Similarly to federal loans, students who attend university part-time are eligible to apply for a student loan through a private lender. These lenders offer student loans for non-full-time students with competitive interest rates, terms, and flexible repayment options. While most lenders offer student loans to part-time students, some also offer low APR student loans to students who fall below half-time. To determine if you qualify for a private student loan and which would be the best option for your needs, check the requirements carefully and compare a few different lenders.
What to Consider Before Applying for Low APR Student Loans
If you’re applying to colleges right now, you’re probably worried about how you’ll be able to finance your degree. It’s already challenging being a part-time student, you don’t need the added stress of securing funds for your studies.
The average student needs to borrow over $30,000 to attend university. This debt is a serious burden, especially if you’re new to the workforce. Many young people struggle to buy a house, buy a car, get married, or have children because of their student loan debt. The following are six tips on how to save thousands on higher education while taking out a student loan.
- Start looking for scholarships before applying
Unlike student loans, scholarships don’t need to be repaid. Before applying for a student loan, you should find out about and apply for as many scholarships as possible. Waiting until you’re almost ready to start your course could result in your missing important deadlines to request financial assistance. While this is a good option, remember that most students aren’t granted scholarships.
- Your loan shouldn’t be more than your year’s salary
You want to ensure that your student loan debt isn’t higher than your current or expected starting salary. If your salary exceeds your student loan debt, you’re more likely to finish paying off your loan within 10 years. Also, you want to keep your student loan payments under 15% of your monthly income before taxes and other expenses. If payments are above 15%, you’re more likely to struggle to repay the monthly installments.
- Get prequalified
Loan applications can trigger a hard credit check that will temporarily negatively impact your credit score. However, if you get prequalified before applying, a soft credit check won’t appear on your credit report. You’ll get an idea of the interest rates and whether or not you’ll be approved before you begin the application process.
- Opt for Federal loans instead of private
Before you begin applying for student loans, consider applying for federal student loans for non-full-time students. Federal loans offer more stability and predictability to borrowers than private student loans. Federal loans offer fixed interest rates, unlike many private lenders with variable rates that could change without any warning. The predictability of knowing exactly how much your loan payment will be on a month-to-month basis will make budgeting much easier. Interest rates are also generally lower if you opt for a federal student loan instead of a private one. There’s also a deferment period for federal loans where you aren’t required to make payments while enrolled in school or unemployed.
- Plan out your coursework ahead of time
After deciding on the degree you want to pursue, planning out your coursework ahead of time is important. You want to ensure that you finish your degree within the expected timeframe or faster. Take note of whether your school offers certain courses only once a year, summer courses at discounted rates, or a flat rate on the semester’s tuition (regardless of the number of credits you take for the semester), and plan your coursework accordingly. Starting university with a plan is a smart way to finish early and save on tuition.
- Cut down on additional costs
Tuition is only one aspect of education that’s covered under your student loan. You also need to consider the cost of books and living expenses. If you’re a part-time student with a job, your monthly income could help cover some of these expenses, but there are ways to cut back on your educational costs. Consider living at home or with a roommate while enrolled in university to reduce your living expenses. You could also buy used textbooks and then sell them at the end of the semester when you no longer need them. Finding small ways to cut back on additional costs throughout your studies will only help you in the long term.
Creating a Strong Student Loan Application
Securing part-time education financing is taking a step toward reaching your goals of furthering your education, becoming more competitive in the job market, or securing your dream career. While this may not be often talked about, it’s possible to be denied a student loan. While this might sound terrifying, there are steps you could take to avoid your application being denied.
- Consider using a co-signer: Applying for a student loan with a co-signer increases your chances of being approved for the loan. A co-signer is someone who signs onto the student loan and agrees that if you’re unable to pay, they will take on the responsibility of paying off the loan on your behalf. If your co-signer has a strong credit history, you could potentially enjoy lower interest rates.
- Include all sources of income: As a part-time student, you may have a day job that provides you with income which you included in the loan application. But you should also include any income you receive from freelancing, side hustles, or passive income. By disclosing all of your income sources, the student loan lender will have a clearer idea of your ability to repay your loan and increase the likelihood of approval.
- Apply after your next raise: If you expect to receive a raise or bonus at your current job any time soon, try waiting until after you receive it to apply for your student loan. The higher income will increase your chances of a successful loan application, and in the case of a bonus, it will show that you have additional income on your account that you can fall back on.
Final Thoughts on Part-Time Education Financing
Until recent years, there were few options for student loans for non-full-time students. Fortunately, part-time students currently have the option to apply for funding through both federal and private lenders.
To qualify for low APR student loans through the federal government you only need to be enrolled in about two courses per semester. If you happen to hall below these requirements there are still options available for you through private lenders.
Before applying for a student loan it’s important to consider the amount of debt you will be taking on and how this will affect your future goals. By applying for scholarships or grants and getting prequalified before applying for a loan, you could save money and avoid a hard credit check.
College is a lot of work, but finding the money to finance your studies shouldn’t be. By exploring all of your options and making intelligent and informed decisions, you can finance your education on a budget.
