While grants and scholarships are the preferable method for financing a beauty school education, you may need to receive student loans to help pay for your tuition, fees, and supplies.
Federal Student Loans
You can apply for student loans from the U.S. government by completing the Free Application for Federal Student Aid (FAFSA) and listing the name of the school you wish to attend. While there is no credit check needed to receive federal loans, the amount you can borrow is based on your financial need. You will be required to provide income tax information for both you and your parents, unless you meet the criteria to be considered as an independent student. If your parents are divorced, you will be instructed to provide information for the custodial parent only. The rules are the same for everyone regardless of whether your parents are actually planning on assisting with your beauty school expenses.
The main type of federal student loan is the Stafford Loan, which does not require repayment until you have finished your schooling. If you are awarded a subsidized Stafford Loan, no interest accumulates while you are in school. If you are awarded an unsubsidized Stafford Loan, interest begins accumulating immediately. Therefore, subsidized Stafford Loans are preferable to unsubsidized loans. Both types of loans cannot be discharged in a bankruptcy filing, however. You should consider your financial need carefully before taking out a Stafford Loan.
The Parent Loan for Undergraduate Students (PLUS) program allows parents to borrow money to help pay for the cost of a child’s education. The loan is awarded in the parent’s name only; the student is not held legally responsible for repaying the debt. The interest rate for a PLUS loan is higher than a Stafford Loan, but parents are allowed to borrow up to the full cost of attendance. Repayment begins immediately.
If you are unable to receive federal student loans, private financing options may be available for your beauty school costs. Private student loans are made through banks or financing companies. They can be certified by the school you wish to attend or awarded on a direct-to-consumer basis. A credit check is required, and the interest rate will be variable, as opposed to the lower fixed rate on a federal student loan. Terms will vary depending upon the lender you select, so read all loan documents carefully before using this option to pay for your beauty school tuition, fees, and supplies.
Home Equity Loans
Homeowners sometimes use a home equity loan to pay for tuition expenses for themselves or their children. While this can result in a significant tax deduction, it is important to take into consideration that the property is being used as collateral. Borrowers who are unable to make payments on a home equity loan risk losing their homes to foreclosure.