Trade schools offer a cost-effective opportunity to dive in and learn, hands-on, the skills required for specific professions. If you’re considering attending a trade school or completing a vocational program, there are financing options available to support you as you take the next step in your career.
What Types of Trade School Loans Are Available?
Just like attending a four-year university, you can apply for federal or private school loans to cover trade school expenses. Each type has their own application process and benefits, which we explain in another blog article if you’re wondering about Federal vs Private Student Loans.
Should I Use Student Loans for Trade School?
A vocational program is an investment in yourself, but whether it’s a sound financial investment depends on your personal situation. Below are several factors to consider when deciding to take out school loans for trade school.
When it’s Worth it to Use Student Loans for Trade School
- You’ll have opportunities to land a job in your chosen field. It’s important to do your research before choosing your career and what trade school you would like to attend. Is the industry you’re interested in expanding? Are there job openings in your area? The last thing you want to do is graduate without opportunities to put your education into action.
- You’re committed to your new career. If you’re all-in on leveraging the skills you’ll learn to follow a long-term career path, taking a loan out to cover the cost of your trade school or vocational program will benefit you long-term. Enjoying your profession is priceless. If that’s not enough, you’ll likely have higher earning potential as you gain tenure in your field. The U.S. Bureau of Labor Statistics publishes wage data to help you understand what your future potential wage might be and if you’ll be able to afford your student loan payments.
- Your program is accredited. Accreditation makes your education more reputable and helps with the job search after graduation. It’s also a requirement to qualify for most student loans. You can verify if your specific program is accredited by using the U.S. Department of Education’s registry or asking your school’s admissions office directly. If you plan to apply for federal student loans, it’s also worth searching the Federal Student Aid Office’s Federal School Code List.
- You can’t afford to attend trade school without borrowing. It’s obvious, but taking out a student loan is logical if you are unable to qualify for scholarships or cover educational expenses on your own. Student loans can be a better solution than a personal loan as they typically offer better interest rates and more flexible repayment options.
When it is Not Worth It to Use Student Loans for Trade School
- You can afford it, even if it makes your budget tight. Avoid student loans if you’re able to cover the cost out-of-pocket. While student loans can be helpful to those who need them, you will ultimately be better off overall if you can avoid using student loans to get your diploma.
- Your employer offers educational stipends. Some employers have funds set aside for employees pursuing further education, especially if it’s related to the industry that you’re currently working in. Ask if your employer offers this benefit and what their requirements are for using it.
- Your trade school offers payment plans. Some vocational programs offer installment plans where payments can be made as you attend classes. This allows you to break up the overall cost into more manageable fees and negates the need for a student loan.
How to Get Loans for Trade School?
To apply for federal student loans, you must submit a Free Application for Federal Student Aid (FAFSA) for review. Completing the FAFSA also makes you eligible to receive state or school-specific financial aid. Once all parties have reviewed your application, you’ll be notified of any federal loan programs and/or grants available to you.
If you are unable to qualify for federal aid or you’re simply interested in shopping around for the best rate, private student loans like Sallie Mae® trade school loans are another option. Private student loans are offered by banks and credit unions, and the application process consists of a credit check that will influence your overall interest rate. If you’re wondering how to finance your vocational training program, we’ve got you covered. Check out our guide on How to Choose the Right Student Loan.
Final Thoughts
Trade or technical school can be a sound investment in your future. If you’re unable to pay for an accredited program out-of-pocket, whether as a lump sum or through a payment plan, don’t let the cost hold you back – student loans are a resource for pursuing your educational goals.
If you’re looking into private student loans to cover the cost of trade school or your vocational program, TwinStar Credit Union can help. We’ve partnered with Sallie Mae® to provide you with options to cover your education costs.
Our private student loans feature:
- Competitive rates
- Multiple repayment options
- No origination fees No prepayment penalty1
For more information about our private student loan options, visit our student loans page.
1 Although we do not charge a penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note—first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.