Also known as trade or technical schools, vocational schools focus on hands-on training and education in specific trades, such as welding, construction, and automotive fabrication. While each program is unique, most take six to 12 months to complete.
While vocational school is usually more affordable than college, it can still be expensive. Below, we’ll explore student loans for trade schools, as well as other resources and strategies for covering your education.
Can you get student loans for vocational school?
Fortunately, you can take advantage of different types of student loans if you decide to enroll in vocational school. You’ll have access to federal student loans if your trade school is accredited by the Accrediting Commission of Career Schools and Colleges.
Federal student loans are awarded by the government and offer various unique perks, including income-driven repayment plans and loan forgiveness. Complete the Free Application for Federal Student Aid (FAFSA) to determine your eligibility for federal student loans.
Private student loans are also available for trade schools. Offered by private lenders, such as banks, credit unions, and online lenders, these loans usually require a credit check. If you don’t have the best credit, you may need to apply for them with a cosigner to increase your chances of approval.
It’s a good idea to apply for grants and scholarships before or at the same time you apply for student loans. Since grants and scholarships don’t generally need to be repaid, they can help reduce the amount of student loans you take out and improve your financial situation.
| 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 |
Vocational school grants
There are several vocational grants you may want to explore, including:
- Pell Grant: Awarded by the U.S. Department of Education, the Pell Grant is a need-based grant intended to help low-income students cover the costs of college and trade school. The amount you may receive depends on your enrollment status, the cost of attendance, and whether you plan to attend for the entire academic year or less.
- Federal Supplemental Educational Opportunity Grant (FSEOG): The FSEOG is also offered by the U.S. Department of Education. It’s also need-based and offers between $100 and $4,000 per year, depending on your financial status and the funds available at your trade school.
In addition to these federal grants, other state-specific and private grants are available to offset the cost of trade school. Typically, you won’t have to repay the grant money you receive.
Vocational school scholarships
Just like grants, scholarships don’t need to be paid back. There are several options for trade school, such as:
- AWS Welder Training Scholarship: Created by the American Welding Society (AWS), the AWS Welder Training scholarship is for those attending a trade school with a focus on welder training and living within the boundaries of the AWS District.
- Garage Gurus Scholarship: The Garage Gurus Scholarship is distributed by Garage Gurus, an organization that offers automotive training. It’s for students who plan to attend trade school to pursue an automotive technician degree or certification.
You can find more scholarship opportunities through trade schools, non-profit organizations, and employers.
Federal student loans for vocational school
If you’re interested in federal student loans for trade school, you should become familiar with Direct Subsidized and Direct Unsubsidized loans. Here’s a closer look at each one:
Direct Subsidized
Direct Subsidized Loans are offered to undergraduate students attending college or trade school who demonstrate financial need. They come with an interest subsidy, meaning the government will pay for interest charges while you’re enrolled in school at least half-time and during other periods of deferment.
Your vocational school will determine the amount you can borrow, but that amount can’t be higher than your financial need.
Direct Unsubsidized Loans
Unlike Direct Subsidized Loans, Direct Unsubsidized Loans are for undergraduate and graduate students. They don’t have a financial need requirement, so you may qualify as long as you’re eligible for federal financial aid for trade school.
Since there is no interest subsidy, these loans begin to accrue interest the day they are disbursed. You may face hefty interest charges if you don’t repay them in school.
It’s best to explore Direct Subsidized and Direct Unsubsidized loans first. These loans offer perks and protections you won’t find with other student loans, including private ones. These include lower interest rates, income-based repayment plans, and student loan forgiveness programs.
Private loans for vocational school
Once you’ve exhausted federal student loan, grant, and scholarship options, you may want to look into private loans for vocational schools. These loans typically require good credit or a cosigner with a solid credit history who will agree to repay the loan if you can’t afford to.
We’ve researched the best private student loans to choose the top three private vocational school loan lenders.
- Best overall: College Ave
- Best for cosigners: Sallie Mae
College Ave – Best overall
Information advertised valid as of 06/15/2026. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s).
All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit.
College Ave Student Loan Servicing, LLC, NMLS#1263410 NMLS Consumer Access
College Ave’s student loan products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or BTG Pactual Bank, N.A., member FDIC
- Up to 100% of costs are covered
- Choose between 20 different repayment schedules
- Apply in just 3 minutes
College Ave is our pick for the best overall private lender for vocational school student loans. Its career training loan can help pay for up to 100% of your expenses.
College Ave stands out for its competitive rates, flexible repayment options, and the ability to apply for an additional six-month grace period after your initial period ends. We also like that it lets you choose between several repayment schedules.
To qualify for a career and vocational 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 don’t need to attend school full-time, but you must attend an eligible school and meet the requirements for satisfactory academic progress.
Sallie Mae – Best for cosigners
Borrow responsibly
We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.
Loans for Undergraduate & Career Training Students are not intended for graduate students and are subject to credit approval, identity verification, signed loan documents, and school certification. Student must attend a participating school. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., and apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident). Requested loan amount must be at least $1,000.
1. Loan application must be submitted to see available rates.
2. Although we do not charge you a penalty or fee if you prepay your loan, any prepayment will be applied as provided in your promissory note — first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.
3. Based on a comparison of the percentage of students who were approved with a cosigner to the percentage of students who were approved without a cosigner from October 1, 2023 to September 30, 2024.
4. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment.
5. Advertised APRs for undergraduate students assume a $10,000 loan with a 4-year in-school period, a 6-month grace, and the longest loan term offered. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment.
6. Savings comparison assumes a freshman student receives a $10,000 Smart Option Student Loan with the most common variable rate as of January 2025 and the longest loan term offered.
7. Examples of typical transactions for a $10,000 Smart Option Student Loan with the most common fixed rate, Fixed Repayment Option, two disbursements, a 4-year in-school period, and a 6-month grace: For a borrower with the shortest loan term, it works out to 16.16% fixed APR, 51 payments of $25.00, 119 payments of $296.32 and one payment of $41.82, for a total loan cost of $36,578.90. For a borrower with the longest loan term, it works out to 16.38% fixed APR, 51 payments of $25.00, 177 payments of $265.54 and one payment of $173.00, for a total loan cost of $48,448.58. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not.
Information advertised valid as of 07/02/2026.
SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION.
Sallie Mae loans are made by Sallie Mae Bank.
- Cover 100% of costs for the full year
- Lower your rate with in-school repayment
- No prepayment or origination fees
- Cosigners can be released after 12 on-time payments
- Choose your repayment plan and interest rate type
- Free study help and college expense calculators for borrowers
Sallie Mae is one of the best-known student lenders. It offers a Smart Option Student Loan for Career Training for vocational schools and other professional training programs.
We chose Sallie Mae as one of the best vocational school loans because full-time, half-time, and part-time students are eligible. The loan can cover up to 100% of your tuition, fees, books, and other supplies. You can release your cosigner after 12 consecutive, on-time principal and interest payments.
To qualify for Sallie Mae’s Student Loan for Career Training, student borrowers or their cosigners must meet the lender’s credit score and income criteria. Students (or their cosigner, if they’re international students) must also have a valid Social Security number.
How to apply for vocational school loans
It’s fairly simple and straightforward to apply for trade school student loans. The process usually entails these steps:
- Fill out the FAFSA: Completing this form will inform you whether you qualify for federal loans and grants. Be prepared to share your Social Security number and submit financial documents, such as tax returns and bank statements.
- Research and compare lenders: If you decide to take advantage of private student loans as well, shop around to learn about the lenders available to you. Compare interest rates, terms, and perks. Many lenders will allow you to prequalify and get an idea of potential rates and terms without any impact on your credit.
- Complete the application: Once you’ve found the right private student loans, you can apply online or in person, depending on the lender. You’ll be asked to provide personal and financial information, such as your monthly income and housing expenses.
- Wait for approval: The financial aid office at your vocational school should contact you and inform you whether you qualify for federal aid. Private lenders may inform you of approval within a few business days or even less.
Other options to pay for vocational school
Student loans are a solid option for those pursuing career-specific education, but the following financing methods are worth considering.
Work-study
Work-study programs enable you to earn money while gaining on-the-job experience. Unlike vocational school loans, work-study doesn’t result in debt. However, balancing work and studies might be challenging.
Apprenticeships
Apprenticeships allow you to work and earn money while learning a trade. The significant benefit is that apprenticeships usually involve no cost. The downside is that completing your training and starting your desired career may take longer.
Employer sponsorship
In some cases, employers fund vocational education. Rather than repaying a lender, it involves a commitment to working for a specific employer. The substantial benefit here is that it eliminates loan repayments, but it might limit future career flexibility.
Income-share agreements (ISAs)
ISAs are agreements in which a student pledges to pay a percentage of future income for a set period. Unlike student loans, ISAs limit the risk of high repayment if your income is lower than expected. However, high earners may end up paying more than they would with a traditional loan.
Recap: Best private student loans for vocational school
| Loan or lender | Rates (APR) |
| Direct Subsidized Loan | 5.50% |
| Direct Unsubsidized Loan | 5.50% |
| College Ave | 4.07% – 16.69% |
| Sallie Mae | 4.50% – 16.70% |
About our contributors
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Written by Anna BaluchAnna Baluch is a personal finance writer with more than 10 years of experience. Her focus areas include mortgages, personal loans, debt management, and student loans. She spent three years working in SEO and marketing for a national home improvement company.
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Edited by Amanda HankelAmanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.
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Reviewed by Chloe Moore, CFP®Chloe Moore, CFP®, is the founder of Financial Staples, a virtual, fee-only financial planning firm based in Atlanta, Georgia, and serving clients nationwide. Her firm is dedicated to assisting tech employees in their 30s and 40s who are entrepreneurial-minded, philanthropic, and purpose-driven.