As the cost of college continues to increase, some students may find trade schools and vocational programs more appealing than four-year bachelor’s degrees.
“Trade school” is an informal term for career-focused education, and programs that fall into this category may also be called career and technical colleges or vocational schools. These can prepare students to work in construction, mechanics, the culinary arts and much more. They typically cost less than a four-year undergraduate degree and take less time to complete.
But trying to finance trade school can be complicated, especially if you’re not sure where to start. Read below to learn how student loans for trade school work.
Can You Use Federal Student Loans for Trade School?
You may not qualify for federal student loans if your program is not accredited. You can search for accredited schools through the U.S. Department of Education’s official database.
“Generally, to be eligible for federal financial aid, you have to be in an accredited degree or certificate program,” says Alisha Hyslop, chief policy, research and content officer at the Association for Career and Technical Education.
Some schools offer associate degrees, while others provide certificates only. It’s possible to receive federal aid for either kind of program.
To apply for federal student loans, you must complete the Free Application for Federal Student Aid. The FAFSA is the government’s official application for federal student loans, as well as federal grants and work-study funds.
[Read: Best Private Student Loans.]
Should You Consider Private Student Loans for Trade School?
If you can’t get federal aid, you can apply for a private student loan. Unlike with federal loans, private lenders will run a credit check before approving you for a loan.
You will likely need a cosigner to qualify for a private loan, unless you have strong enough credit and meet other eligibility requirements. Adding a cosigner can also help you get a lower interest rate.
Compared with current federal student loan offerings, private loans have fewer repayment programs. Private loans also may have higher interest rates.
“For trade schools, if someone needs to borrow money, I would advise them to look at federal loans first,” says Jack Wang, financial aid advisor at Innovative Advisory Group, a Massachusetts-based wealth management firm.
Still, if you’re evaluating private lenders, your options include:
— Ascent Funding. Ascent’s options include career training loans, which offer funding for eligible programs in data science, education, plumbing and more.
— College Ave. College Ave offers career loans, which students can use for associate degrees.
— Sallie Mae. Borrowers can consider Sallie Mae’s Smart Option Student Loan for Career Training, which can cover professional training and trade certificates.
— Edly. Edly offers career training loans with income-based repayment plans, which can make student loans more affordable when the student’s income is lower.
[READ Best Student Loan Refinance Lenders]
How Can You Choose a Student Lender for Trade School?
If your program is eligible for federal and private student loans, it’s usually best to maximize your federal loans first.
If you don’t qualify for federal student loans, you will have to choose a private lender. When comparing private lenders, start by looking at the interest rate. It’s also important to look at factors such as whether the lender requires a cosigner and what fees you’ll be charged.
When deciding how much to borrow, consider how much you can expect to earn with your new training. You can find wage data for your future profession through the U.S. Bureau of Labor Statistics.
How Long Does It Take to Pay off Loans for Trade School?
The amount of time it takes to pay off a student loan for trade school varies depending on the amount you borrow, the loan’s interest rate and the repayment terms that you choose.
Federal student loans generally offer standard repayment terms of up to 10 years. With optional repayment plans, the term can be extended to make payments more affordable. Take note, though, that starting July 2026, new federal loans will have only two options: a new standard repayment plan and the new income-based repayment assistance plan. Under the new standard repayment plan, borrowers would have terms of up to 25 years, depending on their balance. The repayment assistance plan has a 30-year repayment period — after which, your balance will be forgiven.
Private student loans generally offer five- to 25-year repayment plans.
[Read: Best Parent Student Loans: Parent PLUS and Private.]
Do Trade School Loans Qualify for Student Loan Forgiveness?
Yes, students who take out federal loans and use the funds at an accredited trade school can qualify for some federal student loan forgiveness programs. One of the most common programs is Public Service Loan Forgiveness
, which provides loan forgiveness for federal loans after 10 years of public service.
Private student loan forgiveness is rare, usually only happening in extreme cases like disability or death. Student loan forgiveness programs usually apply only to federal loans, which is important to note when deciding which kind of loan to take out for trade school.
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How Can You Get Student Loans for Trade School? originally appeared on usnews.com
Update 08/14/25: This story was previously published at an earlier date and has been updated with new information.
