April 13, 2013

Is it Possible to get Student Loans for Cosmetology School

If you cannot afford to pay your way through beauty school, the good news is you can get financial assistance to pay for cosmetology school tuition. Keep reading to learn more about the financial assistance opportunities available for beauty school students.

Types of Financial Aid for Cosmetology School

Unlike traditional education loans, cosmetology student loans are not normally widely available. Depending on the beauty school that you choose to join, you can get loans, scholarships, or grants. Of course, to get a loan, you have to show that you are unable to pay your way through cosmetology school without assistance. The rule of thumb when applying to study cosmetology is to choose an accredited institution. This is because access to loans at beauty schools is restricted to students who attend accredited programs. Some of these loans include:

Federal Direct Loan Program

This consists of the Subsidized Federal Direct Loan and the Unsubsidized Federal Direct Loan. The former has a fixed interest rate of 3.4 percent and eligible students can only apply once every academic year. After graduating from school, you have a grace period of six months during which the federal government pays the loan interest. When this period elapses, you have to start paying the loan. The Unsubsidized Federal Direct Loan has a fixed interest rate of 6.8%. Unlike the Subsidized loan, the interest rate that accrues while you study is your responsibility. Once again, you have to start paying the loan six months after graduating.

Federal Direct Plus Loan (Parent Loan)

For this loan with an interest rate of 7.9%, you will have to use your parents. The federal government expects parents to start making timely payments 60 days after the loan disbursement. To apply for these loans, students must fill and submit the Free Application for Federal Student Aid (FAFSA).

Private Lender Loans

Besides government loans, students can apply for private lender loans. Take note that these loans have higher interest rates and severe penalties for late payments. The rule of thumb is to avoid borrowing more than you need. Private lenders include Wells Fargo, Sallie Mae, The bank of North Dakota, and The Education Resource Institute (TERI) — a non-profit organization. You can also use the American Association of Cosmetology Schools (AACS) website to learn more about private loans offered by beauty industry companies and individuals.

If you would like to attend a cosmetology school, we at Avalon School of Cosmetology can help you achieve your dreams. Our hands on financial aid staff have helped many of our students develop a financial aid plan no matter their circumstances. We at Avalon can help you get the grants you need to pay your way through beauty school.

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