Trade School Student Loans
Your Career Starts Here
So you’re going off to learn a trade, but it’s no less expensive than some of the college programs you’ve seen. You cannot qualify for federal loans and many of the private alternative loans you’ve checked out don’t include your needs either.
Types of Trade Schools
“Trade school” is sort of an antiquated term for college style programs that offer students a fast track to a career. The old-fashioned meaning of the term conjures up images of welding and automotive schools, but today there is a whole new world of “trades” available to students interested in skipping the liberal arts scene.
You may be interested in computer networking or programming, cosmetology or culinary school, or learning the ropes of a paralegal. Or maybe you are simply interested in a good old-fashioned trade program in automotive repair or construction and contracting. Here's a list of many common areas to study at a trade school:
- Culinary Arts
- Real Estate
- Auto Body and Mechanics
- Aviation Mechanics
- Carpentry
- Commercial & Industrial Maintenance
- Construction & Building
- Diesel Mechanic
- Electrician Trade
- Flight/Aviation
- Gardening/Landscape Design
- Gunsmith
- HVAC Training
- Locksmith
- Marine & Watercraft
- Mechanical Drafting
- Plumbing
- Motorcycle Repair
- Truck Driving
- Welding
The New Trade School
You think of it and there is likely a program for it. Almost any type if highly specialized career has its own school or training program. The types if folks pursuing a “trade” are changing, as well. We’re not just talking about college-age kids who want an alternative to a liberal arts degree; we’re also including those individuals who are looking for a career change or homemakers who want a career, period. Programs in real estate, travel, web design, and many healthcare professions lead to lucrative careers.
Limits to the FFELP and Alternative Loan Programs
The Federal Family Education Loan Program, including the Stafford Loans and PLUS Loans, is not designed for students in non-traditional higher education programs, which very much limits the program’s use. Typically applicants must be engaged in a degree program at a college or university on either a full-time or part-time basis. And funds are limited anyway.
Alternative student loan products through private lenders and student loan providers are ubiquitous and offer affordable to high-end loans with high borrowing limits and reduced fees. Some lenders, especially those whose specialty is student loans, are able to eliminate typical loan fees and ease up on approval requirements. Still, many of these products require applicants to be enrolled full or part-time in an accredited four-year college, which puts them out of the running for students in trade programs.
Optional Loans
A small number of lenders now have found their niche with offering more granular loans designed for those students whose educational plans lie outside the traditional scope of higher education.
The Career Training Loan from Sallie Mae is one of the most practical and necessary products for students pursuing a trade program. The loan allows applicants to apply with a co-borrower if necessary, borrow up to the full cost for the program along with all related expenses and still benefit from flexible repayment terms and interest rates. The opportunity to cover “related expenses” is especially convenient for trade programs that may require you buy specialized tools and materials for your work.
The Education One Undergraduate/Career Education Loan through Chase is geared toward a wide range of student who may require flexibility in a loan product and will be able to have access to the financial resources they may need. Applicants are accepted from four-year, two-year and technical and trade schools with the only requirement that you be attending at least half time. Like the Sallie Mae product, the loan allows you to borrow for related expenses, as well, which may even cover living costs.
