Student Loans for Trade School

Data analytics company Gitnux projects that the number of available trade jobs will grow 10% by 2026. Trade schools offer training for specialized occupations, including carpentry, plumbing, HVAC, web development, real estate, and health professions. Gitnux reports that trade school typically lasts two years and costs an average of $33,000.

Many students may not realize scholarships and grants are available for trade schools—and they might be eligible for trade school loans, including federal student loans. Private student loan companies also provide funding to trade school students, so you can consider them if federal loans aren’t an option. 

Can you get student loans for trade school?

Yes, you can get student loans for trade school, and you may be eligible for many types of student loans. 

These are our top trade school options. Click the loan or lender’s name in the table below for more details—or keep reading for the full story on all your options.

Loan or lender	Rates (APR)	Federal or private?
Direct Subsidized Loan	5.50%	Federal
Direct Unsubsidized Loan	5.50%	Federal
College Ave	4.07% – 16.69%	Private
Sallie Mae	4.50% – 16.70%	Private
Ascent	4.09% – 16.08%	Private

But before you apply for any loans, research available grants and scholarships. 

Trade school grants

Federal grants are available for trade school students, and you don’t need to repay them. The most well-known federal grant is the Pell Grant, which is available to qualified trade school students with financial need. The maximum Pell Grant award is $7,395, which can go a long way in funding trade school.

Skills Training Grants are provided by The Department of Labor’s Employment and Training Administration. This is just one example of grants trade school students can apply for, and they don’t need to be repaid.

Trade school scholarships

In addition to grants, research available scholarships as well. Many trade schools offer their own scholarships. You might be able to find state-based and third-party scholarships, too. Third-party scholarships typically come from organizations, clubs, and unions. 

If you still need funds after applying for scholarships and grants, see whether your school is eligible for federal student loans. Federal student loans have low fixed interest rates—and more flexible repayment terms than private student loans. 

To be eligible for federal student loans, you must have a financial need, be a U.S. citizen or eligible noncitizen, and be enrolled in an eligible program. Not all trade schools qualify for federal student loans, so it’s important to choose one that does if you want to apply for federal loans.

You can apply for private student loans for trade school, but keep in mind private student loans might have different borrower requirements, such as a good credit score or an eligible cosigner.

Federal student loans for trade school 

When most people think of federal student loans, they think of loans for four-year colleges and universities. However, many trade and vocational schools also qualify for federal loans.

If you’re considering specific trade schools to continue your education, check with their financial aid offices to see whether they’re eligible to accept federal aid. You can also use the School Search function on the Federal Student Aid website. Just type in your state and the name of your school to see whether it accepts federal loans.

The Department of Education gives every school participating in the federal student loan program a unique code. You’ll enter this code when completing the Free Application for Federal Student Aid (FAFSA). If your school doesn’t have a code or isn’t searchable, it likely isn’t eligible for federal loans.

Once you submit the FAFSA with your trade school’s code, that school will receive a report based on your FAFSA data and create a financial aid package for you that may include federal student loans.

Direct Loan type	Subsidized	Unsubsidized
How it works	Fed. gov’t. pays interest on your loan while in school & during grace period	Gov’t. does not pay interest while in school
Fixed rate	5.50% APR	5.50% APR
Max loan amount	$5,500 / yr., depending on your year $23,000 total	Dependent students: $7,500 / yr. (depends on year); $31,000 total Independent students: $12,500 / yr. (depends on year); $57,500 total
Repayment options	10 – 25 years	10 – 25 years
Grace period	6 months	6 months

Private loans for trade school 

Another option you have when paying for trade school is to take out a private student loan.

These are loans from banks, credit unions, and online lenders. They may have higher interest rates than federal loans but also allow you to borrow more.

To take out a private loan, borrowers must meet the lender’s income and credit score requirements or apply with a cosigner who does. It’s possible to take out a private student loan for a non-degree program or a boot camp as well.

We’ve researched the best private student loans to choose the top three private trade school loan lenders.

• Best overall: College Ave
• Best for cosigners: Sallie Mae
• Best for eligibility: Ascent

College Ave – Best overall 

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LendEDU rating: 5.0 out of 5

• Offers a program completion reward
• Choose your repayment term
• 4 in-school repayment options

College Ave is our pick for the best overall private lender for trade school student loans. It offers a career training loan to help pay for up to 100% of your expenses. 

We like College Ave’s competitive rates, flexible repayment options, and the ability to apply for a grace period of six more months once your initial period is up. We also love that you can earn $150 cash back after completing your degree and that you and choose between several repayment schedules.

To qualify for a career and trade school loan from College Ave, you (or your cosigner) must have a valid Social Security number and meet College Ave’s proprietary credit score requirements. You aren’t required to attend school full-time, but you must attend an eligible school and meet the school’s requirements for satisfactory academic progress.

Sallie Mae – Best for cosigners

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LendEDU rating: 4.3 out of 5

• Cosigner release after 12 months of consecutive on-time payments
• Repayment options include deferred fixed and interest-only repayment
• Get a decision within 15 minutes

Sallie Mae is perhaps the most well-known student lender. It offers a Smart Option Student Loan for Career Training, designed for trade schools and other professional training programs.

We chose Sallie Mae as one of the best trade school loans because students can borrow whether they’re in school full-time, half-time, or part-time. The loan can cover up to 100% of the tuition, fees, books, and other trade-related supplies you may need for school. Your cosigner can be released after 12 consecutive, on-time payments.

To qualify for Sallie Mae’s Student Loan for Career Training, student borrowers (and often cosigners) must meet certain credit score and income criteria. Students (or their cosigner, if they’re international students) must also have a valid Social Security number.

Ascent – Best for a soft credit check 

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LendEDU rating: 4.3 out of 5

• Cosigned and non-cosigned student loans 
• 1% cash back at graduation
• Easy application process

Ascent is a private student lender offering cosigned and non-cosigned loans that cover up to 100% of trade school tuition and expenses. Its Career Training and Development Loan is a fixed-rate product available to students in eligible certification or professional trade programs at eligible schools. You can even check your rate without affecting your credit score.

Ascent’s most valuable benefits are that it doesn’t assess fees, and borrowers can pay off their loans ahead of schedule without penalty. Borrowers, including DACA students, can apply with or without a cosigner. Drawbacks include potentially higher interest rates and a shorter three-month grace period after graduation.

To qualify for an Ascent loan, borrowers must be at least 18 years old and either a U.S. resident, permanent resident, or DACA student. They can’t have a history of student loan default and must meet Ascent’s credit criteria or add a creditworthy cosigner.

Read More

Best private student loans

How to apply for trade school loans

Before applying for trade school loans, ensure you’ve exhausted all other options. Prioritize getting federal grants and scholarships because you don’t need to repay them. You might even find opportunities for employer-sponsored grants.

If you can’t secure grants or scholarships, or they don’t cover the entirety of your education costs, the next step is to apply for a federal student loan for trade school. 

If your school doesn’t qualify for federal student loans, applying for private student loans is the final option. Many private student loans will pay for trade schools, including flight schools, real estate schools, and cosmetology schools.

Here are the steps to take to apply for a trade school loan.

1. Fill out the FAFSA. The FAFSA is the first place you should start when you’re seeking student loans for educational expenses. This form, which you must complete annually, takes into account your school expenses and other factors, including family size and income. This information is used to determine your financial need and calculate your eligibility for certain grants and federal loans.
2. Accept federal aid options. Federal student loans offer fixed interest rates that can be lower than those from private lenders, especially if you or your cosigner have less-than-perfect credit. They also come with certain benefits and features that private loans don’t, making them the best first option for funding trade school.
3. Consider private student loans to fill the gaps. If your federal loans, grants, and scholarships don’t cover all your educational expenses, you may need to turn to private loans. These loans might have variable or fixed rates and require a creditworthy primary borrower or cosigner.
4. Compare terms and find a cosigner (if needed). It’s wise to shop around before choosing a private loan to ensure you’re finding the lowest interest rate and best possible loan terms. Adding a creditworthy cosigner may open the door to additional loans or lower rates.

Other options to pay for trade school 

In some cases, you may find neither federal nor private student loans are an option for you. Perhaps you’ve been denied a loan, or your school isn’t eligible to accept federal aid. 

In this case, you may need to consider other ways to pay for your trade school tuition and expenses.

Income-share agreements 

In recent years, certain schools have begun allowing income-share agreements in lieu of student loans. Instead of borrowing money and later paying it back with interest, some schools or private lenders will offer students the money for their education upfront. In turn, the student agrees to pay the school or lender a percentage of their income once they enter the workforce.

Income sharing is a newer concept; however, its market share is growing. Jobs for the Future, a nonprofit organization, summarized a Strategem Marketing Insights report that showed the ISA market in the U.S. is projected to grow at a 5.5% annual rate until 2030.

There is little awareness or regulation of ISAs yet, so if you choose to pursue one, be sure you understand the income requirements, the percentage of your income you’ll have to pay back to satisfy your debt, and your potential income once you finish your education.

Tuition reimbursement

Another option is to work with an employer that offers tuition reimbursement. In this program, your employer agrees to pay for your education directly or reimburse you for tuition you’ve already paid. One well-known tuition reimbursement program is through Home Depot, which offers tuition reimbursement to salaried, full-time, and part-time employees.

As with any agreement, be sure you understand all parts of it before participating, including whether you have to work for that company for a certain number of years to qualify for tuition reimbursement. It’s also wise to speak to HR and ask how long the company has been offering tuition reimbursement and whether it plans to continue offering the program in the future.

Recap: Best private student loans for trade school

Loan or lender	Rates (APR)
College Ave	4.07% – 16.69%
Sallie Mae	4.50% – 16.70%
Ascent	4.09% – 16.08%