Trade schools are an increasingly popular path to well-paying, hands-on careers in healthcare, manufacturing, construction, and IT. According to Gitnux, these programs typically last under two years and cost an average of $33,000.
You can get student loans for accredited trade, technical, and career training schools. Start with federal loans via the FAFSA, and then use private lenders to fill funding gaps.
| Company | Best for… | Rating (0-5) |
|---|---|---|
| Best Trade School Loans | ||
| Best for Cosigners | ||
| Excellent Borrower Support | ||
| Best for No Cosigners |
Table of Contents
Best student loans for trade school
Federal student loans
Many accredited trade and vocational schools accept federal student loans. 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 create a financial aid package, which may include:
| 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 |
College Ave
Best Overall
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%1 |
| 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 |
Sallie Mae
Best for Cosigners
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 |
Ascent
Excellent Borrower Support
Why we picked it
Ascent is a student loan lender known for its support of borrowers. It has helped over 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 |
Edly
Best for Income-Based Repayment
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 |
Are all trade schools eligible for student loans?
Not all trade schools qualify for federal or private loans. Your school must be accredited by a U.S. Department of Education-recognized agency and authorized to operate in its state.
If your school isn’t accredited, 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
How to apply for a trade school loan
1. Submit the FAFSA
This is your first step to accessing federal aid, including Pell Grants and student loans. You’ll list your trade school’s Federal School Code so it can receive your info.
2. Accept federal aid
Review your financial aid package. Accept grants and scholarships first, then federal loans, starting with Subsidized.
3. Apply for private loans if needed
Use private lenders like College Ave or Sallie Mae to cover remaining costs. Compare rates and terms. Adding a cosigner can improve your approval odds.
4. Choose the best loan offer
Pick the loan with the best rate, repayment flexibility, and terms. Read the fine print.
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.
Alternatives to student loans
Trade school grants
- Pell Grant: Up to $7,395 if you qualify
- Skills Training Grants: Funded by the Department of Labor
Scholarships
Look for scholarships from your school, trade associations, unions, or third-party organizations.
Income-share agreements (ISAs)
With an ISA, a school or private entity covers your tuition in exchange for a percentage of your income after graduation. Be sure to understand all terms before committing.
Tuition reimbursement
Employers like Home Depot offer tuition assistance. Ask about this benefit and confirm any post-graduation work requirements.
FAQ
Can you get student loans for career training or vocational school?
Yes, if your program is accredited. Most federal and private lenders require the school to meet Department of Education standards.
Can you get student loans for trade school with bad credit?
Yes. Federal loans don’t require a credit check. For private loans, adding a cosigner can help if your credit is limited.
Can you get financial aid for trade school?
Yes. Accredited trade schools may accept FAFSA-based aid, including Pell Grants, state grants, and federal loans.
How long does it take to repay trade school loans?
Federal loans offer 10-year standard terms (longer if income-driven). Private loans typically range from five to 15 years.
Are trade school loans eligible for forgiveness?
Yes, if the loans are federal and the school or program meets eligibility criteria. Check for IDR forgiveness or PSLF options.
How we chose the best trade school student loans
LendEDU evaluates student loan lenders to help readers find the best student loans. Our latest analysis reviewed 725 data points from 25 lenders and financial institutions, with 29 data points collected from each.
This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives. These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.
Recap of trade school student loans
| Company | Best for… | Rating (0-5) |
|---|---|---|
| Best Trade School Loans | ||
| Best for Cosigners | ||
| Excellent Borrower Support | ||
| Best for No Cosigners |
For most students, the best strategy is to start with federal loans and maximize grants and scholarships. Then use private lenders like College Ave or Sallie Mae to cover any gaps. If affordability is a concern, Edly’s income-based repayment structure may help keep payments manageable.
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.