Trade schools are an increasingly popular path to well-paying, hands-on careers in healthcare, manufacturing, construction, and IT. These programs typically last less than two years and cost an average of $33,000. Many students consider trade school loans to help pay for their education.
Both federal and private lenders offer funding for accredited vocational and career training programs, and each comes with its own eligibility requirements, rates, and repayment terms. Here, we help you compare your options and find what fits.
Table of Contents
- What are trade school loans?
- Can you get student loans for trade schools?
- Can FAFSA be used for trade schools?
- Federal vs. private trade school student loans
- Compare student loans
- Best student loans for trade school
- How to apply for a student loan
- How can you pay for trade school?
- Choose the right trade school loan
- FAQ
What are trade school loans?
Trade school loans help cover school-certified expenses like tuition, fees, and supplies for vocational, technical, and professional training programs. They can include federal student loans, private student loans, and other financing, like income-share agreements. Which ones you can access largely depends on whether your school is accredited and what type of program you’re enrolled in.
Can you get student loans for trade schools?
Yes. Students at accredited trade schools can qualify for both federal and private student loans, depending on the school and program. Federal loans require you to complete the FAFSA, and not every program qualifies. It’s worth confirming your school and program are eligible before applying.
Are all trade schools eligible for student loans?
Not all trade schools qualify for federal or private loans. To be eligible for federal student aid, your school and program must participate in the federal student aid program and be recognized by the U.S. Department of Education.
If your school or program isn’t eligible, you likely won’t be able to take out federal student loans, and many private lenders may not lend to you either.
To check:
- Use the Federal School Code List
- Contact your school’s financial aid office to confirm eligibility
Can FAFSA be used for trade schools?
Yes, the FAFSA works for many trade schools. It’s how the Department of Education determines your eligibility for federal financial aid, including loans and Pell Grants. If your school is accredited, it’s usually the first step in the funding process.
Federal vs. private trade school student loans: What’s the difference?
The biggest difference between federal and private trade school loans comes down to borrower protections and repayment flexibility. Federal loans offer fixed rates, income-driven repayment options, and access to forgiveness programs. These are advantages that private loans typically don’t match. Private loans can fill funding gaps when federal aid falls short, but approval depends on your credit history and financial profile.
| Feature | Federal loans | Private loans |
|---|---|---|
| Eligibility | FAFSA-based | Credit-based |
| Interest rates | Fixed, set by government | Fixed or variable |
| Repayment options | Flexible (IDR, forgiveness) | Limited flexibility |
| Credit check | Usually no | Yes (or cosigner) |
Watch below: Federal vs. Private Student Loans
Federal student loans for trade school
Federal student loans are government-backed loans available at many eligible vocational or technical schools and programs. To find out whether your school qualifies, search the Federal School Code List, or ask your school’s financial aid office.
Once you confirm eligibility, submit the FAFSA. Your school will use your FAFSA data to put together a financial aid package, which may include grants, scholarships, and federal loans. There are two types of federal loans you might receive:
| Details | Direct Subsidized Loan | Direct Unsubsidized Loan |
| Interest rate | 5.50% | 5.50% |
| Eligibility | Need-based | No need requirement |
| Terms | 10 – 25 yrs | 10 – 25 yrs |
| Grace period | 6 months after school | 6 months after school |
Subsidized Loans are based on financial need, and the government covers your interest while you’re enrolled at least half-time. Unsubsidized Loans are available regardless of financial need, but interest starts accruing right away.
Watch below: Can You Get Financial Aid for Trade School?
How to compare student loans for trade schools
Comparing trade school loans carefully before you apply can save you money and help you avoid repayment surprises down the road. Here’s what to look at when you’re comparing.
- Interest rates (APR): Some lenders offer a fixed APR, and others offer a variable APR that can shift over time. Either way, the rate you get directly affects your total loan cost.
- Repayment options: Check whether the lender defers monthly payments while you’re in school, requires interest-only payments, or expects full principal-and-interest payments right away.
- Loan terms: The shortest loan term you can afford will save you the most in interest. Longer terms lower your payment but cost more in the long run.
- Cosigner options: Applying for student loans with a cosigner can boost your approval odds and help you qualify for a lower rate, especially if your credit history is limited.
- No-cosigner options: Some lenders, like Ascent and Edly, offer student loans without a cosigner for qualified borrowers.
Best student loans for trade school loans and lenders
The right lender depends on your credit, your program, and what you can afford to repay. We evaluate lenders based on rates, repayment flexibility, borrower support, and more, so you can find the best fit for your situation.
Best overall for trade school loans: College Ave
Why we picked it
College Ave offers Career Training Loans for students attending eligible trade programs. You can cover up to 100% of school-certified costs, choose your repayment terms, and apply with or without a cosigner.
- Cover up to 100% of your costs
- Choose your repayment terms
- Get a decision in just 3 minutes
Loan details
| Rates (APR) | 5.59% – 16.99% |
| Loan amounts | $1,000 – 100% of certified costs |
| Repayment terms | 5, 8, 10, or 15 years |
| Repayment plans | Full, interest-only, $25 flat, or deferred |
| Enrollment | No restrictions |
| States | All 50 states |
| Credit score | Mid-600s and above |
| Annual income | $35,000 |
Best trade school loans for cosigners: Sallie Mae
Why we picked it
The Sallie Mae Smart Option Student Loan for Career Training works for part-time, half-time, and full-time students. The loan covers tuition, fees, and tools. Cosigner release is available after 12 on-time payments.
- Apply once and receive funds for the full year
- Covers up to 100% of your costs
- Available to less-than-half-time students
Loan details
| Rates (APR) | 5.59% – 16.99% |
| Loan amounts | $1,000 – 100% of certified costs |
| Repayment terms | 5, 8, 10, or 15 years |
| Repayment plans | Interest-only, $25 flat, or deferred |
| Enrollment | No restrictions |
| States | All 50 states, D.C., Puerto Rico |
| Credit score | Mid-600s and above |
| Annual income | Not disclosed |
Excellent borrower support for trade school loans: Ascent
Why we picked it
Ascent is a student loan lender known for its support of borrowers. It has helped more than 15,000 students fund career-training programs and offers deferred payments while you’re studying or during a job search.
- Deferred repayment available
- No prepayment penalties
- Check your eligibility in less than 5 minutes
Loan details
| Rates (APR) | 5.59% – 16.99% |
| Loan amounts | $2,001 – $200,000 |
| Repayment terms | 5, 7, 10, 12, or 15 years |
| Repayment plans | Full, interest-only, $25 flat, or deferred |
| Enrollment | Not disclosed |
| States | All 50 states & D.C. |
| Credit score | 620 |
| Annual income | Not disclosed |
Best trade school loans for income-based repayment: Edly
Why we picked it
Edly offers loans based on your future income, not a set interest rate. You won’t make payments until your annual income exceeds $30,000, and payments scale with what you earn.
- No interest charges
- Repay a set percentage of income
- No cosigner required
Loan details
| Rates (APR) | Percentage of your income |
| Loan amounts | $5,000 – $25,000 |
| Repayment terms | Varies by product |
| Repayment plans | Varies by product |
| Enrollment | Full-time |
| States | Not disclosed |
| Credit score | Varies by product |
| Annual income | None |
Learn more about the best private student loans.
How to apply for a student loan for a trade school
Applying for trade school loans is straightforward once you know the order of operations. Begin with federal aid, and work your way down from there.
1. Submit the FAFSA
This is how you access federal student aid, including Pell Grants and federal loans. You’ll need your trade school’s Federal School Code to complete it.
2. Review and accept your federal aid package
Once your school puts together your financial aid package, accept grants and scholarships first. If you still need funding, accept federal direct loans next, starting with Subsidized Loans.
3. Apply for private loans if needed
If federal aid doesn’t cover everything, private lenders like College Ave or Sallie Mae can help. Look at variable rates vs. fixed rates, and consider applying with a creditworthy cosigner to increase your approval odds and help you qualify for a lower rate.
4. Compare and choose the best loan offer
Look at the full picture, including total cost, loan payments, repayment flexibility, and terms. Don’t just go with the first offer you get.
How can you pay for trade school?
There are several ways to pay for trade school. Most students use a mix of grants, scholarships, and loans, and the smartest approach is to start with free money before you borrow. Federal loans come next, and private loans can cover whatever’s left.
If your school doesn’t qualify for federal student loans, private student loans are still an option. Many private lenders will fund a wide range of programs, like flight schools, real estate schools, and cosmetology schools.
Watch below: How to Get a Student Loan in 3 Steps
Trade school grants and scholarships
Grants and scholarships reduce how much you need to borrow because they don’t require repayment. Here’s what’s available for trade school students:
- Pell Grant: Up to $7,395 if you qualify
- Workforce training grants (often funded through the Department of Labor): These programs, such as WIOA funding, are offered through local job centers and may cover the cost of approved trade school programs for eligible students.
Look for scholarships from your school, trade associations, unions, or third-party organizations.
Income-share agreements (ISAs)
With an income-share agreement (ISA), a school or private entity covers your tuition upfront. Instead of repaying a fixed loan amount, you pay back a percentage of your income after you graduate.
Employer tuition assistance
Some employers offer tuition assistance as a workplace benefit, and it can cover a meaningful portion of your trade school costs. Home Depot is one example, but it’s worth checking with your employer directly since programs and requirements vary.
How we chose the best trade school student loans
LendEDU evaluates student loan lenders to help you find the best option for your situation. Our latest analysis reviewed 725 data points across 25 lenders and financial institutions, with 29 data points collected from each.
We gather information from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives. Our star ratings reflect how each lender performs across those criteria, and we only assign each designation once so every pick serves a distinct borrower need.
Choosing the right trade school loans: Key tips
Paying for trade school is manageable when you approach it in the right order. Start by maximizing grants and scholarships, then federal aid, and turn to private lenders to cover what’s left. If affordability is a concern, options like Edly’s income-based repayment or income-share agreements can tie your payments to your earnings, which may help manage costs.
Explore rates for each lender below to see what you qualify for.
FAQ
Can you get student loans for career training or vocational school?
Yes. Student loans for technical schools, vocational programs, and career training are available through both federal and private lenders, as long as the school meets Department of Education standards.
Can you get student loans for trade school with bad credit?
Yes. Federal student loans don’t require a credit check, so bad credit won’t disqualify you. For private loans, a cosigner with good credit can improve your odds and help you qualify for a lower rate.
Can you get financial aid for trade school?
Yes. If your trade school is accredited, you may qualify for FAFSA-based aid, including Pell Grants, state grants, and federal loans.
How long does it take to repay trade school loans?
Federal loans have a standard 10-year student loan repayment term, though income-driven plans can extend that. Private loan terms generally range from five to 15 years, depending on the lender.
Are trade school loans eligible for forgiveness?
Federal trade school loans may qualify for forgiveness through income-driven repayment (IDR) plans, which can forgive remaining balances after a set repayment period.
Borrowers may also qualify for Public Service Loan Forgiveness (PSLF) if they work full-time for a qualifying employer and meet program requirements.
Do trade school student loans cover tools, supplies, or living expenses?
Yes, many trade school loans cover more than tuition. Check with your lender and school to confirm what’s included.
What happens if you can’t repay a career training student loan?
If you can’t repay a career training student loan, federal loans offer deferment and forbearance. Private loans have fewer protections, so contact your lender early.
Is it worth taking out loans for trade school?
Taking out loans for trade school can be worth it for students, depending on your program cost, completion rate, and expected earnings. Many programs are shorter and less expensive than four-year degrees and can lead to well-paying careers in high-demand fields, but it’s important to compare costs and potential outcomes before borrowing.
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About our contributors
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Written by Catherine CollinsCatherine Collins is a personal finance writer and author with more than 10 years of experience writing for top personal finance publications. As a mother to boy/girl twins, she is passionate about helping women and children learn about money and entrepreneurship. Cat is also the co-host of the Five Year You podcast.
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Edited by Kristen Barrett, MATKristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their pack of senior rescue dogs. She has edited and written personal finance content since 2015.
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Reviewed by Eric Kirste, CFP®Eric Kirste, CFP®, CIMA®, AIF®, is a founding principal wealth manager for Savvy Wealth. Eric brings more than two decades of wealth management experience working with clients, families, and their businesses, and serving in different leadership capacities.