Best Student Loans For Technical School

Best Student Loans For Technical School

Traditional four year college programs aren’t a good fit for everyone. A good alternative for many, however, is going to a technical (or trade) school. 

Technical schools offer students training in a specific profession or trade. Common fields technical schools offer training in include cosmetology, culinary arts, business administration and computer technology.

But just because trade school is not the traditional way of getting a post-secondary education, that does not mean that there is no financial aid for them. 

There are student loans available for those attending technical schools. Below we look at some of the best options you should check out when looking for one of these loans. 

Best Student Loans For Technical School

Federal Loans For Technical School

When it comes to loans, often the first, and best, place to look are at the ones offered by the Federal government. The reason for that is because Federal Direct Loans are among the most affordable student loans programs out there. 

Aside from being the most affordable, they are also one of the most student-friendly loans. They offer low interest rates, and easy repayment plans. They also offer a six month grace period after graduation. 

But not all trade or technical schools will qualify for student loans offered by the Federal government. For a trade school to be eligible for a Federal student loan, it must be an accredited institution. 

This means that the trade school is officially recognized as well as meets the minimum standards of education. 

For a trade school student to qualify for a Federal student loan, they must be taking a course that is a prerequisite for a degree program. 

There are two Federal Direct Loans for students studying in technical or trade schools. Those are the:

  • Federal Direct Subsidized Loan – This type of student loan is available for undergraduate trade school students with financial needs. But the student must enroll at least half-time in a program that is a prerequisite to a degree or certificate. In this type of loan, the U.S. Department of Education will pay for all the interest. The loan amounts are determined by financial need, as well as the student’s overall cost of tuition.
  • Federal Direct Unsubsidized Loan – This is similar to the first loan. However, the loan amounts are determined by the school. They are also based on the overall cost of tuition less any other financial aid already received. Also, unlike the first type of loan, you will be responsible for paying for the interest on the loan. 

Private Student Loans For Technical School

Unlike the student loans offered by the Federal government, private lenders are less strict in their requirements for eligibility. But student loans offered by private lenders tend to have higher interest rates as well as strict repayment terms. 

Their offers are based on credit and income requirements rather than financial need. Certain private lenders have offers for career training programs. These include Sallie Mae and Wells Fargo.

If you are looking to go the private loan route, check out the student loans for technical school from these 3 lenders. 

  • Wells Fargo
  • Chase Bank
  • Sallie Mae