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As you’re exploring the job market and reading up on expected qualifications, you may be at a crossroads, wondering whether a master’s would be beneficial in increasing your salary potential. If you’re already actively job-hunting, you may wonder if a master’s could make you more competitive in the job market.

But there is another option that may make sense depending on what industry you’re in — a certificate program. Not as long (or as expensive) as a master’s program, a certificate can prove highly-specialized competency in certain areas. This could open doors to further professional opportunities.

But a certificate program, which typically requires the completion of three and five graduate-level courses, can still cost thousands of dollars. It may also require significant study time, which can be hard to balance if you’re also working full time. In a job market where companies are fighting for top talent, however, you may find that your company might pay for a certificate program, rather than you going out and paying for it yourself. Read on for more information on post-grad certificate programs so you can assess whether one fits with your financial goals.

What Is The Value Of A Post-Grad Certificate Program?

A post-grad certificate program is a program that provides specialization in a field. While the program may not take as long to complete as a master’s degree and may be less expensive, it can also be intense, requiring a significant amount of time set aside to study.

Post-grad certificate programs can be found in all fields, from medicine to economics to marketing. These programs may cost anywhere from several thousand to tens of thousands of dollars. People may complete these certificates because they may be quicker and less expensive than a degree, and may either boost income or boost your competitive value as a job candidate. Post-grad certificate courses may be done online, in-person, or a combination of both, and often, people balance managing a certificate program with working full time.

Because a post-grad certificate can be beneficial, you may find that employers may potentially be willing to subsidize the cost of training. It may be worth it to ask your manager or your HR department. It can also be beneficial to talk to people who have done the certificate program to hear about any pros and cons. It can also be helpful to understand the level of commitment required in the program, and how people have managed to set aside time to study to prepare for any testing.


💡 Quick Tip: SoFi offers low fixed- or variable-interest rates. So you can get a private student loan that fits your budget.

Graduate Certificate Versus Master’s Degree

If you’re right out of college, you may be wondering what the next step is, professionally. While that depends on your career goals, many post-grads find it helpful to explore the professional lay of the land by getting some work experience right after their bachelor’s degree. Also, if the labor market is tight when you get out of college, there can be advantages to looking for a job immediately after graduation, before you get any higher degrees or pursue certification. In some cases, employers may subsidize or help pay for higher education.

A certificate program tends to be in a niche area, so it may be good to explore your field and decide whether that certification is right for you. A master’s program may be more intense, but of course, can be a requirement if you want to pursue a job in a certain field, such as law.

Bottom line: No certificate or graduate degree can “guarantee” that you’ll make a certain amount of money or get a certain kind of job. Every career path is different. That’s why it can be helpful to speak to alums of certain programs or people who have received certain certifications, to hear their experience and advice.

Recommended: How to Pay for Grad School

Is a Graduate Certificate Equal to a Master’s Degree?

Is a graduate certificate equal to a master’s degree? That depends on how you define “equality.” The two are different paths that help you achieve certain goals. In general:

•   A certificate is less expensive than a graduate degree.

•   A certificate takes less time to complete than a graduate degree.

•   A certificate provides targeted knowledge and a specific skill set about a certain subject area. Generally, a certificate may be about 10 to 15 hours of coursework compared to the 30+ required for graduate programs. Requirements vary based on school and program.

•   A certificate generally requires a less comprehensive application process.

•   A graduate certificate may or may not be affiliated with an accredited degree program. In some cases, certificate coursework can count toward degree hours for a higher-ed degree.

•   Not all graduate certificate programs qualify for federal student loans. You may be able to use a private graduate student loan for a certificate program, or could also explore a personal loan to cover a certificate program.

Is a Graduate Certificate Worth It?

A graduate certificate can be worth it, especially if you’re passionate about the field. It can be helpful to get some “real world” knowledge under your belt and understand exactly how the certificate will benefit you and your career goals.

Because a graduate certificate can be a lot of work, it’s also important to make sure you carve out time to be able to do coursework, study, and complete the certificate exam. Asking any questions prior to applying for the certificate program, or asking to speak to people who have completed the program, can be helpful.

Because graduate certificates can be expensive, and may not be covered by federal aid, you may be wondering how to pay for it. Some financing options include:

•   Subsidization through your current employer

•   Saving up to pay for the program

•   Applying for scholarships or financial aid through the certifying organization

•   Exploring other scholarship programs that may be available for you (such as graduate scholarships for military veterans)

•   Considering federal or private student loans for a certification program

Some certification programs may be eligible for federal student aid, including federal student loans and work-study. If this is the case, students can fill out the Free Application for Federal Student Aid (FAFSA) to see what types of aid they qualify for.

Private student loans may be another option for students to consider. These loans don’t always offer the same borrower protections (such as deferment or forbearance options) that come with federal loans. But some private lenders do offer student loans for graduate certificate programs.

Recommended: FAFSA 101: How to Complete the FAFSA

Estimating the Value of a Certificate Program

You may wonder how much a certificate will increase your market value as an employee. And of course, that answer depends on your field and the certificate program you are pursuing. To estimate the value of a certificate program, it can be helpful to:

•   Read review sites and salary ranges on employers you’re interested in.

•   Talk to people who have done the certificate program.

•   Talk about your career trajectory with your current manager or HR department.

•   Speak with the career development office at your alma mater for their perspectives on potential certificate programs.

But in addition to financial value, there’s also the educational value. Is this a topic you find interesting and feel you can lean into? Does the material inspire you and excite you? Because you’ll be spending a significant amount of time working on the material, it can be important to have some motivation to do so.

Costs Associated with a Certificate Program

It can also be important to carve out associated costs with the degree program. In addition to the certificate program itself, you also may need to pay:

•   Application fee

•   Exam fee

•   Certification fee, which may be several hundred dollars and may be required that you renew your certification annually

•   Fee for any materials, including text books

Making sure you know exactly what is required of you financially before you enroll can be helpful in planning how you’ll cover the degree.

Recommended: How to Pay for a Grad Certificate Program

How to Decide on a Certificate or Post-Grad Studies

So how do you know which path to take? The answer depends on, you guessed it, your individual goals. But answering these questions may help you decide:

•   What do I want out of my studies?

•   What do I want my work-life balance to look like as I study?

•   What do I hope to gain out of my degree/certificate? What would be the best/worst-case scenario?

•   What are my short-term professional goals?

•   What are my long-term professional goals?

•   What do I like about my work right now? Is there anything I want to dive into more deeply?

•   What is the lack of a degree holding me back from?

•   How will I pay for it? Am I already juggling student loans from undergrad and how comfortable would I feel adding to my debt?

These can be some big questions, and it can be helpful to get perspective by speaking with a mentor, career coach, or someone from your school’s career development office.

You could also consider a certificate program that could go toward credits for a master’s degree. This can be helpful in allowing you to lean into the material and have a head start if you do decide you’d like to pursue a full master’s degree.


💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.

The Takeaway

A certificate isn’t taking the easy road — the courses can be intense, and it can be challenging to balance coursework with career obligations. But a certificate can potentially set you up on the path to success and can help you further define your career goals.

Because certificates can be expensive, consider having a discussion with your employer and see if they would be amenable to paying for part or all of your certificate, or discuss the path in which to do so. A certificate can be a way to further your education without stopping your career, and it can be a good in-between step for you to decide whether or not to pursue a master’s degree in your chosen field.

Depending on the certificate program, students may potentially qualify for federal aid, including federal student loans. If that aid isn’t enough, however, some students may look into private student loans.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

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Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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If you’ve taken out a Parent PLUS loan to help your child through college, you may be wondering if it’s possible to transfer the loan into your child’s name now that they have an income. While there are no federal loan programs that allow for this, there are other options that allow your child to take over the debt.

How to Transfer a Parent PLUS Loan to a Student

In order to transfer a Parent PLUS loan to a child or student, the student can apply for student loan refinancing through a private lender. With a student loan refinance, the child takes out a refinanced student loan and uses it to pay off the Parent PLUS loan. The student is then responsible for making the monthly payments and paying off the loan.

To get a student loan refinance and use the funds to pay off a Parent PLUS loan, simply have your child fill out a student loan refinancing application. Make sure to include the Parent PLUS loan information in the application.
If approved, the student can pay off the Parent PLUS loan with their new loan and begin making payments on the new loan.

💡 Quick Tip: Ready to refinance your student loan? With SoFi’s no-fee loans, you could save thousands.

Advantages of Refinancing a Parent PLUS Loan

The main advantage of refinancing a Parent PLUS loan is to get the loan out of the parent’s name and into the student’s. However, there are other potential advantages to refinancing student loans, including:

•   Lowering your interest rate

•   Reducing your monthly payments

•   Paying off your loan quicker

•   Allowing the student to build a credit history

Disadvantages of Refinancing a Parent PLUS Loan

While it may be beneficial to get the loan out of the parent’s name and into the student’s, there are some disadvantages that should be considered, such as:

•   Losing federal student loan benefits, including income-driven repayment, deferment options, and Public Service Loan Forgiveness

•   Possibly getting a higher interest rate, especially if the student has poor credit

•   The student is now responsible for the monthly payment, which might become a hardship if their income is low

If you do choose to refinance your Parent PLUS loan by means of a student loan refinance, you should note that this process is not reversible. Once your child signs on the dotted line and pays off the Parent PLUS loan, the debt is now theirs.

Parent PLUS Loan Overview

The Department of Education provides Parent PLUS loans that can be taken out by a parent to fund their child’s education. Before applying, the student and parent must fill out the Free Application for Federal Student Aid (FAFSA®). Then the parent can apply directly for a Parent PLUS loan, also known as a Direct PLUS Loan.

The purpose of a Parent PLUS loan is to fund the education of the borrower’s child. The loan is made in the parent’s name, and the parent is ultimately responsible for repaying the loan. Parent PLUS loans come with higher interest rates and origination fees than federal student loans made to students. Further, these loans are not subsidized, which means interest accrues on the principal balance from day one of fund disbursement.

Parents are eligible to take out a maximum of the cost of attendance for their child’s school, minus any financial aid the student is receiving. Payments are due immediately from the time the loan is disbursed, unless you request a deferment to delay payment. You can also opt to make interest-only payments on the loan until your child has graduated.

💡 Quick Tip: Federal parent PLUS loans might be a good candidate for refinancing to a lower rate.

Pros and Cons of Parent PLUS Loans

Parent PLUS loans allow you to help your child attend college without their accruing debt.

Pros of Parent PLUS loans include:

You can pay for college in its entirety. Parent PLUS loans can cover the full cost of attendance, including tuition, books, room and board, and other fees. Any money left over after expenses is paid to you, unless you request the funds be given directly to your child.

Multiple repayment plans available. As a parent borrower, you can choose from three types of repayment plans: standard, graduated, or extended. With all three, interest will start accruing immediately.

Interest rates are fixed. Interest rates on Parent PLUS loans are fixed for the life of the loan. This allows you to plan your budget and monthly expenses around this additional debt.

They are relatively easy to get. To qualify for a Parent PLUS loan, you must be the biological or adoptive parent of the child, meet the general requirements for receiving financial aid, and not have an adverse credit history. If you do have an adverse credit history, you may still be able to qualify by applying with an endorser or proving that you have extenuating circumstances, as well as undergoing credit counseling. Your debt-to-income ratio and credit score are not factored into approval.

Cons of Parent PLUS loans include:

Large borrowing amounts. Because there isn’t a limit on the amount that can be borrowed as long as it doesn’t exceed college attendance costs, it can be easy to take on significant amounts of debt.

Interest accrues immediately. You may be able to defer payments until after your child has graduated, but interest starts accruing from the moment you take out the loan. Subsidized loans, which are available to students with financial need, do not accrue interest until the first loan payment is due.

Can a Child Make the Parent PLUS Loan Payments?

Yes, your child can make the monthly payments on your Parent PLUS loan. If you want to avoid having your child apply for student loan refinance, you can simply have them make the Parent PLUS loan payment each month. However, it’s important to note that the loan will still be in your name. If your child misses a payment, it will affect your credit score, not theirs. Your child also will not be building their own credit history since the debt is not in their name.

Parent PLUS Loan Refinancing

As a parent, you may also be interested in refinancing your Parent PLUS loan. Refinancing results in the Parent PLUS loan being transferred to another lender. By transferring your loan, you may be able to qualify for a lower interest rate. Securing a lower interest rate allows you to pay less interest over the life of the loan — and if you also shorten your loan term, you can pay off the loan more quickly.

When you refinance Parent PLUS loans, you do lose borrower protections provided by the federal government. These include income-driven repayment plans, forbearance, deferment, and federal loan forgiveness programs. If you are currently taking advantage of one of these opportunities, it may not be in your best interest to refinance.

At SoFi, you can refinance federal Parent PLUS loans and qualified private student loans into one new loan with one convenient payment. You can do this on your own and keep the Parent PLUS loan in your name, or you can have your child apply for student loan refinancing and use that money to pay off your Parent PLUS loan. With SoFi, there are no application fees, no origination fees, and no prepayment fees.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What if I can’t pay my Parent PLUS loans?

If you are struggling to pay your Parent PLUS loan, we recommend getting in touch with your lender and asking for a deferment or forbearance to temporarily suspend your payments. Keep in mind, though, that interest will continue to accrue on your loan even if payments are postponed. You could also consider switching the repayment plan you are enrolled in to an extended repayment plan, or refinancing your loan in order to get a lower interest rate. If you’re able to consolidate your Parent PLUS loan with a federal Direct Consolidation loan, you can also make it eligible for the Income-Contingent Repayment plan. This plan adjusts your monthly payment to 20% of your discretionary income while extending your repayment terms to 25 years.

Can you refinance a Parent PLUS loan?

Yes, it is possible to refinance a Parent PLUS loan through a private lender. Doing so will make the loan ineligible for any federal borrower protections, but it might allow you to secure a more competitive interest rate or have the refinanced loan taken out in your child’s name instead of your own.

Is there loan forgiveness for parents PLUS loans?

It is possible to pursue Public Service Loan Forgiveness (PSLF) with a Parent PLUS loan. To do so, the loan will first need to be consolidated into a Direct Consolidation loan and then enrolled in an income-driven repayment plan. Then, you’ll have to meet the requirements for PSLF, including 120 qualifying payments while working for an eligible employer (such as a qualifying not-for-profit or government organization). Note that eligibility for PSLF depends on your job as the parent borrower, not your child’s job.

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SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Student Loan Refinance
If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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