Student Loans for Esthetician School: What To Know Before You Borrow

If you're interested in going to school to become an esthetician, the cost of your education can vary depending on where you live and other factors. The average cost of tuition for a cosmetology program is $15,953, according to the American Association of Cosmetology Schools. Students will also need to budget for additional expenses, such as styling tools, textbooks, and licensing fees, which can increase the total cost of attendance.

Here's everything you need to know about federal and private student loans for esthetician school.

Can you get student loans for esthetician school?

Depending on which school or program you attend, you may be eligible for federal student loans. To qualify for these loans, you must attend an accredited cosmetology school at least half-time.

Accredited schools must maintain a level of educational standards as recognized by accrediting agencies approved by the U.S. Department of Education. Many esthetician and cosmetology schools have this accreditation, including well-known programs like Aveda and Paul Mitchell. You can determine if your school is accredited using the School Search tool on the Department of Education's website.

Even if your school isn't accredited or you're attending school less than half-time, you may still be able to take out private student loans to help pay for the program. Just remember that private student loans typically have higher interest rates than federal loans, and they don't offer the same borrower protections as federal student loans.

Federal student loans for esthetician school

To access federal student loans for esthetician school, you must fill out the Free Application for Federal Student Aid (FAFSA). Completing the FAFSA is how you apply for federal student loans, in addition to other federal financial aid.

Gregory Mathews, financial aid administrator at The Institute of Beauty and Wellness (IBW) in Wisconsin, says that most students attending his program fill out the FAFSA to apply for federal student loans.

“Students at IBW typically qualify for subsidized or unsubsidized federal Direct Loans,” explains Mathews. “But parents of our students may also take out PLUS loans to help with expenses.”

Each of these federal student loan types has different eligibility requirements and terms. Understanding how each federal student loan works can help you make the best borrowing decisions for your needs.

• Direct Subsidized Loans are for undergraduate students who demonstrate financial need. If you qualify for a subsidized loan, you won't have to pay interest while you're enrolled in school at least half-time, during the 6-month grace period after leaving school, or during any periods of deferment.
• Direct Unsubsidized Loans are available to all students, regardless of their financial need. But interest on unsubsidized loans begins accruing as of the disbursement date, and you're responsible for this interest during all periods.
• Parent PLUS loans allow parents of dependent students to borrow money to help pay for their child's undergraduate education. These loans are taken out in parents' names, not students'. Interest on PLUS loans begins accruing as of the disbursement date.

Best private student loans for esthetician programs

Private student loans may be an option to help you pay for esthetician school. A number of private lenders offer loans for trade schools, including esthetician programs.

For example, Sallie Mae's Smart Option Student Loan for Career Training is designed for trade certificate programs, which include cosmetology school. According to Mathews, “Sallie Mae is the most common private lender that IBW students turn to for student loans.”

In addition to Sallie Mae, College Ave, Ascent, and Abe also offer private student loans for cosmetology training.

See Also: How To Get Trade School Loans: Options for Funding Vocational Programs

If you're thinking about taking out a private student loan for your esthetician program, make sure you consider the following loan terms while comparing options:

• Interest rates: The interest rate determines the overall cost of the loan. Also consider whether you prefer a variable-rate loan, which may have a lower initial interest rate that can fluctuate over time, or a fixed-rate loan, which has set monthly payments for the life of the loan.
• Repayment terms: How long do you have to repay the loan? When do you need to start repayment? Some private loans will allow you to defer repayment until after you graduate, while others may require immediate repayment.
• Loan fees: What kinds of fees does the private lender charge, and can you avoid them?
• Cosigner requirements: If you can't qualify for a loan based on your own credit and income, what minimum requirements must your cosigner meet? Can you release your cosigner after a certain number of payments?

Other ways to pay for esthetician school

Loans are not your only option for covering your esthetician school costs. You can also use the following strategies to pay for your education:

• Scholarships and grants: Both esthetician schools and beauty industry organizations may offer scholarships to students. Mathews explains that it's a good idea to look for scholarships earlier rather than later: “Senior year in high school is the most common time for our students to receive scholarships,” he says. You may also be able to find grants for trade school or esthetician programs specifically.
• School-sponsored payment plans: Many schools provide payment plans to their students, which break tuition into installments that are typically spread out over a semester or year. “We have an interest-free payment plan with IBW. Students with 529 accounts often take advantage of this plan,” says Mathews.
• Employer tuition assistance programs: If you're already working in the beauty industry, your employer may offer tuition assistance to help you get a formal education.

Tips for borrowing wisely

If you decide to take out a loan to attend esthetician school, make sure you borrow responsibly. Some practical tips to follow include:

• Only borrow what you need: Even if you qualify for more student loans than the cost of attendance, don't take a larger loan than necessary. The smaller your loan, the easier it will be to pay back.
• Compare loan offers before committing: Comparing factors like interest rate, repayment term, monthly payment amount, discounts, and fees can help you decide which loan is the best option for your needs and financial situation.
• Understand your repayment terms: A longer repayment term often has a lower monthly payment, but a higher lifetime loan cost. On the other hand, a shorter repayment term typically has higher monthly payments but less interest overall. Understanding how your repayment terms affect your total loan costs can help you make better loan decisions.
• Crunch the numbers on interest accrual: Make sure you understand when and how interest will accrue on your loans. In addition, look into whether there's anything you can do to reduce your accrued interest, such as making interest-only payments while you're in school.