Once you decide to go to a trade school, you’ll need to be ready to fund this next stage in your education — and you might not need to borrow to do so.
For example, you could find a company willing to finance your education in order to bring on a trained worker.
Employers are “very committed in helping fund their skilled worker shortage,” says Tracy Lorenz, division president of Universal Technical Institute, also known as UTI.
If you do need loans, you should look to federal borrowing options first. These tend to have lower interest rates than private student loans — though that may not be the case if you have good credit.
How Much Is Trade School?
The cost of trade school depends on factors such as where you go for training and the kind of financial support you receive.
For instance, the average annual cost of attendance after financial aid at North American Trade School in Baltimore, Maryland is over $11,800, according to the College Board. In comparison, Williamson College of the Trades in Media, Pennsylvania costs an average of over $1,400 per year after aid.
[Read: Best Private Student Loans.]
How Can I Pay for Trade School?
Multiple pathways exist. Options include:
— 529 savings accounts. As of July 2025, funds in these tax-advantaged accounts can pay for programs such as industry certifications in welding and mechanics. You may even be able to use funds to pay off loans in the future. But be sure to review the fine print. “Each state is going to be different as to what they offer,” says Niv Persaud, a certified financial planner and the managing director at Transition Planning & Guidance LLC.
— Employer-sponsored programs. An employer might pay for your certification in exchange for a commitment that you’ll work for them for some amount of time. But that doesn’t mean you’re necessarily locked in. “If you get recruited to go somewhere else, you can always negotiate, ‘Hey, you need to repay the company that I’m leaving if you want me,'” Persaud says.
— Employment income. You could consider working while simultaneously earning your certification. UTI offers “early employment partners” to facilitate this. “Students can work 20 to 30 hours a week, while in school, and potentially then be hired permanently by that employer,” Lorenz says.
— Federal grants. As long as the program you’re attending is accredited (you can check in this Department of Education database), you can fill out the Free Application for Federal Student Aid, or FAFSA, and potentially qualify for aid, including Pell Grants.
What Are Trade School Loans?
Trade school loans are just student loans that you use to pay for your trade education, whether you’re looking to become an auto mechanic, a welder or something else.
For federal student loans, available for accredited trade schools, you’ll fill out the FAFSA just like you would if applying to an eligible two- or four-year college.
You might also consider private loans to fill financing gaps, especially if you have a good credit score. You may see these called “career training loans.”
Be sure to familiarize yourself with the loan’s terms and repayment obligations. You might be able to find employers that will help you repay loans.
“Employers will, when they hire our graduates, they often will help with some sort of reimbursement of their loans,” Lorenz says.
[Read: Best Student Loans Without a Cosigner]
Does Student Loan Forgiveness Include Trade Schools?
If you take out federal student loans to cover trade school education, you could qualify for forgiveness under programs such as Public Service Loan Forgiveness.
With private loans, you’re less likely to get loan forgiveness regardless of whether you attended trade school or another educational program. Refinancing your loan or getting help from your employer may be more viable.
[Read: Best Student Loan Refinance Lenders.]
Are Trade Schools Impacted by the Trump Administration?
Changes to federal student loans under the One Big Beautiful Bill Act could affect trade school borrowers. For instance, federal loans now come with a lifetime borrowing maximum of $257,500. If you’ve already borrowed prior to July 1, 2026, you can continue to go by the current loan limits for the remainder of your expected program completion.
The Trump administration is also aiming to register 1 million apprenticeships in the skilled trades. To serve this goal, the Department of Labor is providing $145 million to boost apprenticeships in certain industries.
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Funding a Welding or HVAC Certificate? Here’s What You Need to Know About Trade School Loans originally appeared on usnews.com
