Student loans for trade schools: tips and hints

Svetlana May 05 2022

Trade schools are a great investment of your money and time. They can help you gain the skills you need to get started in a career with a great salary, without incurring the steep cost of going to a four-year university. However, trade school programs aren’t free, and many students need loans to fund their education. Here are some things you should know about student loans for trade schools before deciding whether they’re right for you.

What do you mean by trade school?

A trade school or training unit is set up by an industry or large business to provide apprenticeship education and similar courses. These programs are designed to give students the specific skills they need for their chosen career, usually in a shorter time frame than degree programs.

There are many reasons why students might choose a trade school over a more traditional college program. The biggest advantage of trade schools is that they tend to be much less expensive than four-year colleges and universities. Many programs also offer job placement assistance, which can help graduates get a foot in the door of the industry they’re studying. Finally, for students who already know what kind of career they want to pursue, a trade school can provide them with exactly the training and skills they need to hit the ground running in their field.

Some common trade school programs include culinary arts, plumbing, and heating, electrical work, mechanical repair and maintenance, cosmetology, welding, auto repair and maintenance, nursing assistant training, medical assisting, or billing/coding. Some students even choose to get a degree in plumbing or HVAC from a university that also has a specialized trade school for those subjects.

While the benefits of attending a trade school are many, there are also some important things to consider before you take out loans for your education. For one thing, because most trade schools don’t provide as much financial aid as traditional colleges and universities do, it’s likely that you’ll need to take out student loans in order to cover your tuition and living expenses. This can add up quickly, especially if you’re enrolled in a program that takes longer than two years to complete.

Another factor to consider is the job outlook for graduates of your chosen trade school program. While it is true that many trade schools offer placement assistance as part of their curriculum, this isn’t always guaranteed. And even if you are able to find a job in your field right away, it might not pay enough to make your student loan payments feasible.

Before committing yourself to a certain career path, be sure to do thorough research on the quality of employment opportunities available in the field you want to enter after graduation.

If after considering all these factors, you decide that a trade school is a right choice for you, there are a few steps you can take to increase your chances of getting accepted and obtaining the financial aid you need to fund your education.

Can you get a student loan for a trade school?

There are both government and private student loans available to pay for trade school, as well as other possibilities. Many or all of the businesses featured on LendEDU provide recompense. Here are the most common ways to finance trade school:

Government loans- The US government offers two types of loans for students attending a trade school: Stafford Loans and Perkins Loans. Stafford Loans are available to all students, regardless of financial need, while Perkins Loans are only available to students with exceptional financial needs. Both types of loans have fixed interest rates, meaning that the interest rate will not change over the life of the loan.

Private loans- Private student loans are offered by banks, credit unions, and other private lenders. These loans typically have variable interest rates, meaning that the interest rate can go up or down over the life of the loan. Private student loans also usually have higher interest rates than government loans.

Scholarships and Grants- Scholarships and grants are a great way to finance your education without having to take out loans. Many trade schools offer scholarships and grants to students who demonstrate financial need or academic excellence. You can also search for scholarships and grants from outside organizations.

Work-study programs - Work-study programs are another way to earn money to help pay for your education. These programs allow you to work part-time while you’re attending school, and the money you earn goes towards your tuition and other expenses.

What are the 4 types of student loans?

There are four types of government student loans:

  • Direct subsidized loans.
  • Direct unsubsidized loans.
  • Direct PLUS loans.
  • Direct consolidation loans.

A direct subsidized loan helps you pay for your education by offering a low, fixed interest rate. This type of loan is available to students who demonstrate financial need. This type of loan does not require a credit check, and you only pay interest on the loan while you’re in school. Also, the benefits of the interest subsidy provided by a direct subsidized loan may be lost if you do not make your scheduled loan payments.

In contrast, a direct unsubsidized loan is available to students regardless of need. This type of loan has a slightly higher fixed interest rate than the subsidized loan, and you are responsible for paying all associated interest on the loan. They contrast in the credit check department as well; while a direct unsubsidized loan does not require a credit check, a PLUS loan does.

There are two types of PLUS loans: parent PLUS loans and graduate PLUS loans. Parent PLUS loans help parents pay for their child’s undergraduate education, while graduate PLUS loans help graduate or professional students pay for their own education. Both types of PLUS loans have higher interest rates than the subsidized and unsubsidized loans, and you are responsible for paying all associated interest on the loan.

The final type of government student loan is a consolidation loan. This type of loan allows you to combine all of your federal student loans into one loan with a single monthly payment. Consolidation loans have fixed interest rates and flexible repayment terms, and they are available to both undergraduate and graduate students. Additionally, you may be eligible for federal loan forgiveness programs if you consolidate your loans.

Private loans

In addition to government loans, there are also a number of private student loans available. These loans typically have higher interest rates than government loans, but they may offer more flexible repayment terms and options. Some common types of private student loans include:

  • Student Choice private student loans.
  • Alternative education financing options.
  • Private student loan refinancing options.

Scholarships and grants are another way to pay for trade school, offering students an alternative to taking out a loan or using other forms of financing like credit cards or personal savings accounts. There are many scholarships and grants available from trade schools, as well as from other organizations and agencies.

Work-study programs can also help you finance your education by allowing you to earn money while still attending school. Finally, you may be able to combine federal student loans with private loans through a consolidation loan or refinance your student debt.

Private student loans are a great option if you need additional financing to pay for trade school. These loans offer a range of flexible repayment options and may have lower interest rates than other forms of debt, such as credit cards or personal loans. There are also a number of private scholarships and grants available specifically for students in trade schools, as well as work-study programs that can help you earn money while attending school.

Additionally, you may be able to combine your federal student loans with private student loans through consolidation or refinancing. Whatever your financial needs, there is likely a loan or financing option available to help you pay for trade school!

How much does the average student pay in student loans per month?

According to the US Department of Education's National Center for Education Statistics, the average monthly student loan payment is $460, which is based on historical averages and median salaries among college grads. The typical borrower takes 20 years to repay their student debt. However, it's important to note that student loan payments will vary depending on a number of factors, including the amount of debt you have, your interest rate, and your repayment plan.

If you're thinking about going to trade school, it's important to carefully consider all of your financing options before deciding whether or not to take out student loans. Federal student loans typically have lower interest rates and more flexible repayment terms than private loans, making them a better choice for many borrowers.

However, if you need additional financing or are unable to qualify for federal loans due to credit history or other factors, private loans may be an option worth considering. Whatever your financial needs, there is likely a loan or financing option available that can help you pay for the cost of a trade school. So do your research, and choose the option that is best for you!

Can a 17-year-old get a student loan for college?

Even if you are under the age of 18, you do not need to have your parents cosign your federal student loans because the 'defense of infancy' does not apply to federal student loans. (The defense of infancy assumes that a minor is unable to enter into contracts and considers any such contract void. However, this defense does not apply to federal student loans.)

There are several factors that will determine whether or not you are eligible for a student loan, including your age and credit history. In general, the minimum age requirement for most federal student loans is 16 years old. However, some private lenders may require that you be at least 18 to qualify for a loan.

If you do not meet these requirements or have a limited credit history, it may be difficult to get approved for a student loan on your own. In this case, it may be necessary to get a parent or other trusted adult to cosign your loan in order to improve your chances of approval.

Ultimately, the best way to determine if you're eligible for a student loan is to contact the financial aid office at the school you're interested in attending and speak with a counselor about your options. They will be able to help you understand the requirements and assist you in applying for loans.

Is it better to pay off student loans for trade schools fast?

It is more cost-effective to pay off your student debt sooner rather than later since like most other debts, it accrues interest while you have a balance. It reduces the amount of time that the debt has to build interest, so you'll pay less in the long run.

The best way to pay off your student debt fast is to make larger payments as often as you can. You can also consider refinancing your loans to get a lower interest rate and shorter repayment terms. This will lower the amount of interest you accrue over time and help you pay off your debt faster.

Another option is to enroll in an income-driven repayment plan, which could lower your monthly payments based on your income and family size. This could free up some extra cash each month that you can use to make additional payments on your debt.

Whatever you do, try to avoid deferment or forbearance, as this will only cause your debt to grow larger and take longer to pay off. If you're struggling to make your payments, contact your loan servicer to discuss your options and find a solution that works for you.

Bottom line

If you are thinking about going to trade school, it is important to carefully consider your financing options and choose the option that is best for you. Federal student loans typically have lower interest rates and more flexible repayment terms than private loans, making them a better choice for many borrowers.

However, if you need additional financing or are unable to qualify for federal loans, private loans may be an option worth considering. To determine your eligibility for a student loan and find the best way to pay off your debt fast, contact the financial aid office at your chosen school and speak with a counselor about your options.