How to Get Financial Aid for Trade School

Trade schools, also known as vocational schools or technical colleges, offer specialized and hands-on training in specific fields. These schools focus on developing occupation-specific skills required for employment and allow graduates to enter the workforce within two years or less.

Trade school programs cover a variety of disciplines, such as cosmetology, plumbing, and welding. They tend to have easier admissions than four-year schools and offer students smaller class sizes and real-world experience.

Although trade school is generally much less expensive than a bachelor’s degree, there are still costs to keep in mind. Fortunately, there are several options available to help you pay for trade school.

Trade school is typically much less expensive than a traditional four-year degree. In 2022-2023, the average annual cost of trade school was $15,070, according to the National Center for Education Statistics.

In contrast, the average tuition and fees for a four-year degree was $20,727, totaling over $82,000 for a four-year program.

The cost of trade programs can vary based on your chosen field of study and where the program is being offered. Public trade schools and community colleges typically offer the most affordable programs, while for-profit schools are usually more expensive.

The federally-funded Free Application For Student Aid (FAFSA) can be used for trade schools as long as the school is accredited and has a Federal School Code. Your FAFSA determines your eligibility for federal student loans, grants, scholarships, and work-study programs.

Attending an accredited trade school is important beyond ensuring that you will be eligible for federal aid. Accreditation means that your school meets teaching and assessment standards, and some certification or licensure agencies require that you graduate from an accredited school and program. Also, accreditation means that future employers will recognize your qualifications. Be sure to do your research before applying.

There are a variety of options for financial aid for trade schools, including federal aid, privately funded programs, scholarships, and grants.

Completing the FAFSA will automatically consider you for scholarships that can help you pay for trade school. Additionally, there are many private scholarships for trade school students.

Completing the FAFSA can also automatically qualify you for grants that can help pay for trade school, such as Federal Pell Grants and the Federal Supplemental Educational Opportunity Grant (FSEOG).

You may also be able to get state-level grant funding, depending on where you live. For example, California trade school students can receive additional financial aid for tuition, tools, and equipment through the Cal Grant C Award, which does not need to be repaid.

You can take out a federal student loan to cover the rest of your education. Student loans are backed by the federal government, and you do not have to start repaying them until six months after graduation. Income-driven repayment plans are also available, making repayment less of a burden.

If you opt for a federal loan, you will be required to pay interest, a percentage of the loan, in addition to the borrowed amount. The federal student loan interest rate for undergraduates is 6.53% as of 2024-2025.

Sometimes, your trade program won’t qualify you for federal aid. In these cases, banks and other financial institutions issue private student loans. Private loans often feature higher interest rates and more limited repayment options than federal loans. However, students who do not qualify for enough federal loans to pay for trade school may want to consider private loans.

Student loan lenders such as Sallie Mae and College Ave offer private student loan options to cover the cost of attending trade school. Both offer multiple repayment options and varying interest rates, depending on personal factors and prevailing interest rates.

If you’re planning to attend a trade school, start planning now on how you’re going to pay for it. Some options include saving, working during school, and employer reimbursement.