• Trade schools are a popular, lower-cost alternative to four-year universities for launching a career.
• Students can apply for financial aid, including grants and federal loans, by submitting the FAFSA.
• Apprenticeships and employer assistance programs offer ways to get paid while learning a trade.

More students are choosing trade schools as a faster, lower-cost way to launch their careers compared to attending a four-year university. And while it’s true that trade school certifications usually cost less than a college degree, they are still an investment.

Depending on what field you’re entering, you may be able to take advantage of grants, scholarships, work-study programs or apprenticeships that cover much of your educational expenses. But if you still need help covering the remaining balance, there are federal and private student loan options available as well.

Here’s what you need to know about paying for trade school and where to get started. 

Ways to pay for trade school without loans

Before borrowing money for trade school, look for funding options that can reduce how much you have to pay out of pocket. Scholarships, grants, employer assistance and apprenticeships may cover some or even all of your education costs without adding to your student loan debt.

Find grants and scholarships 

Grants and scholarships are a good place to start because, unlike student loans, they generally don’t have to be repaid. Trade school students may qualify for funding from their school, government programs, nonprofit organizations, community groups or industry associations.

Start by checking with your school’s financial aid office to see if it offers scholarships, grants or other tuition assistance. The school may also be able to connect you with local or industry-specific opportunities. You can also search for scholarships through community organizations, professional associations and chambers of commerce in your area.

Learn on the job with employer programs and apprenticeships

If you’re already working, check whether your employer offers tuition assistance or reimbursement for career training. These programs can help cover some of your education costs, particularly if you’re pursuing training related to your current job or an in-demand field.

An apprenticeship is another option if you want to earn money while you train. Many skilled trades, including plumbing, electrical work and HVAC, offer apprenticeship programs that combine paid, on-the-job experience with classroom instruction. Depending on the program, you may be able to work toward a recognized credential while earning a paycheck.

Can you get financial aid for trade school?

Many students can get federal financial aid for trade school, but eligibility depends on both the student and the school or program. Your trade, vocational or career school generally must participate in federal student aid programs for you to receive federal grants, loans or work-study.

You can check your school’s accreditation through the U.S. Department of Education’s Database of Accredited Postsecondary Institutions and Programs. You should also ask the school’s financial aid office whether your specific program is eligible for federal student aid.

The next step is to complete the Free Application for Federal Student Aid, or FAFSA. The FAFSA is used to determine your eligibility for federal aid and may also be used to award state and school-based assistance. Depending on your eligibility and program, financial aid may include:

• Federal Pell Grants
• Federal Supplemental Educational Opportunity Grants (FSEOG)
• Federal Direct Subsidized and Unsubsidized Loans
• Federal Work-Study
• State or school-based financial aid

Beginning with the 2026-27 award year, the new Workforce Pell Grant program expands Pell Grant eligibility to certain short-term workforce training programs, which may make federal grant aid available to more trade and career students.

When to take out federal student loans for trade school

If employer programs, grants and scholarships don’t fully cover the cost of your schooling, your next step is to explore federal student loans. You can use federal student loans to cover the cost like courses, tools and equipment, and living expenses. 

Students in eligible trade, career, technical or vocational programs are generally treated as undergraduate students for federal student aid purposes. That means you are typically subject to the same loan limits as undergrad students at traditional colleges and universities. 

Undergraduate students can generally borrow between $5,500 and $12,500 per year in federal loans depending on their circumstances. How much you’re eligible for depends on whether you’re considered independent or dependent, and how many years you’ve been in your school’s program. Undergraduate federal loans taken out between July 1, 2026 and July 1, 2027 have a fixed interest rate of 6.52%.

When to take out private loans for trade school

If federal loans and other funding options still don’t cover the full cost of attending your trade or vocational program, you might consider taking out a private student loan to fill the remaining funding app.

Unlike federal student loans, private loans are issued by banks, credit unions and other private lenders. Your interest rate and eligibility generally depend on factors such as your credit history, income and whether you apply with a cosigner. Depending on your credit profile, you may qualify for a private loan rate that’s comparable to or even lower than the federal student loan rate.

However, private loans typically don’t offer the same borrower protections and repayment options as federal loans, such as income-driven repayment plans and federal loan forgiveness programs. It’s generally best to use federal student loans before private loans and borrow only what you need to cover your remaining education costs.

Before applying, make sure the lender offers loans for your specific trade school or career program. Not all private student loan lenders fund vocational or career training. Compare several lenders based on interest rates, fees, repayment terms, cosigner requirements and options for pausing or reducing payments if you experience financial hardship.

Best private loans for trade school

Not all private lenders offer loans for trade and vocational training. Among major private loan providers, Sallie Mae, College Ave and Ascent Funding are the most notable companies that offer loans for trade school and career education. 

Bottom line: Paying for trade school

When paying for trade school, start with funding you don’t have to repay. Look for grants and scholarships, complete the FAFSA to see what federal aid you’re eligible for, and explore employer assistance or apprenticeship programs that can help reduce your out-of-pocket costs.

If you still have a funding gap, federal student loans are generally the next option to consider because they offer fixed interest rates and borrower protections that private loans typically don’t. Private student loans can help cover remaining costs, but compare rates, repayment terms and borrower protections before choosing a lender.

For students who need private financing for an eligible trade or career program, Sallie Mae and College Ave are among the major lenders that offer loans specifically for career training.

FAQs

Are there student loans for trade schools?

Yes. Most accredited trade and vocational schools are eligible for federal student loans. Some private lenders, including Sallie Mae and College Ave, offer student loans for trade schools. 

Will FAFSA pay for a trade school?

Yes, many trade schools are eligible for federal loans, grants and work-study programs through FAFSA.

Can FAFSA money be used for trade school?

In many cases, yes. FAFSA money can be used for accredited trade schools that accept federal aid.

Can you get financial assistance for trade school?

Yes. Many trade school students are eligible for federal Pell Grants, work-study programs, federal loans and other forms of financial assistance.