How To Pay for Trade School: 7 Methods

Universal Technical Institute is making $15 million per year in scholarships and grants available to qualifying trade school students!^1,10

Trade school is an investment that helps students embark on a path toward a meaningful job and possible career growth. To make this investment, you can consider available options to cover your trade school costs—from scholarships and grants to employer-sponsored tuition reimbursement programs.¹⁴

If you’re considering work in the automotive, diesel, motorcycle, marine, CNC machining, collision repair or welding industries, you’re probably wondering how to pay for trade school. By taking advantage of available funding options, you can train for a job you’re passionate about. 

Learn about seven ways to pay for trade school by reading our post below!

Key Summary Points

• Trade school represents a valuable investment toward a career, offering paths in various industries such as automotive, diesel and welding. Financial aid options are available to help those who qualify cover costs.¹⁰
• Scholarships for trade school students don't require repayment and can be based on diverse criteria, including location and veteran status. Websites like Scholarships.com match students with applicable scholarships.
• Federal grants, including the Pell Grant and the Iraq and Afghanistan Service Grants, provide non-repayable financial aid to students demonstrating exceptional need. Completing the FAFSA form is essential for eligibility.
• Federal student loans offer low interest rates and income-driven repayment plans for trade school students. Direct subsidized and unsubsidized loans are available with repayment starting approximately six months after graduation.
• Other financial aid options include federal Parent Loans (PLUS Loans) for covering additional costs, private student loans from banks or credit unions, and Tuition Reimbursement Incentive Programs (TRIP) that offer benefits like loan repayment assistance and sign-on bonuses for students who commit to work for specific employers post-graduation.³⁶

Read: 5 Reasons To Enroll in Ignite 2024 — for high school students!

1. Trade School Scholarships

A scholarship is gift aid that doesn’t have to be paid back. Aspiring trade school students may qualify for all types of scholarships based on their unique backgrounds and interests.

Scholarships.com lists many types of vocational scholarships, including scholarships for veterans. When you sign up for an account on the site, you’ll automatically get matched up with scholarships you qualify for, including ones for people living in specific locations!    

Read: Are Scholarships Available for Trade School?

2. Federal Grants/FAFSA for Trade School

Federal grants are given out by the federal government and do not have to be repaid, unlike a loan. One type of federal grant is a Federal Pell Grant. Federal Pell Grants are given to undergraduate students who display exceptional financial need and who haven’t yet earned a postsecondary degree.

There are also federal Iraq and Afghanistan Service Grants, available to those who had a parent or guardian die as a result of military service in Iraq or Afghanistan.

To apply for a federal grant, you’ll need to fill out the Free Application for Federal Student Aid, also known as the FAFSA form. You may be wondering, "Does FAFSA pay for trade schools?" Once you provide information about your or your parents’ financial details, including federal tax information, you'll be able to see if you qualify for a grant. FAFSA completion is also required for financial aid like student trade school loans.

3. Federal Supplemental Educational Opportunity Grant (FSEOG) Program

The Federal Supplemental Educational Opportunity Grant (FSEOG) program is another federal grant program. This program provides need-based grants to help low-income students with their postsecondary education costs.

To qualify for this program, the first step is to fill out the FAFSA form. FSEOG grants are typically given out to students with exceptional needs who are also Federal Pell Grant recipients.

Read: Diesel Mechanic vs. Auto Mechanic Training: How To Choose

4. Federal Student Loans for Trade School

Federal student loans are trade school loans offered by the federal government. Unlike gift aid, which doesn’t have to be repaid, student loans will have to be paid back—typically with interest.

Federal student loans are low-interest and help cover the cost of trade school. Direct subsidized loans are given to students who demonstrate financial need. The interest rate terms are slightly better than direct unsubsidized loans, another form of federal student trade school loans, which don’t require a demonstration of financial need.

One of the pluses of federal student loans versus private loans is that federal loans have relatively low fixed interest rates. You’ll know what you’ll need to pay over the life of the loan, without the interest rate going up.

Another potential option is income-driven repayment plans. With this type of plan, you can pay a set percentage of your income to repay your loan.

Students will need to complete the FAFSA to qualify for federal student loans. They’ll have to repay the loans after school is completed, starting at around six months after graduation.

Read: Frequently Asked Questions on UTI’s Social Media

5. Federal Parent Loans for Trade School

Parents (and in some cases, stepparents) of dependent students who are applying to trade school can apply for a federal parent loan called a direct PLUS loan. PLUS loans are available for trade school costs that aren’t covered by other forms of financial aid. Like federal student loans, PLUS loans must be repaid with interest. PLUS loans have a fixed interest rate for the life of the loan.

Like all federal financial aid, filling out the FAFSA is a requirement to be eligible for a PLUS loan. Then, a parent or stepparent should contact UTI’s Financial Aid Department online or at 800-832-7308 to go through the next steps for obtaining a PLUS loan.

H2: 6. Private Student Loans for Trade School

A private student loan is a loan a student would get from a private lender, like a bank, credit union or state agency. There’s no need to fill out the FAFSA to get a private loan. You’ll apply directly through the lender’s website or by contacting them over the phone or in person to apply. According to Sallie Mae, you should apply for a private student loan after you’ve made your school decision and know how much you need to borrow.

Private student loans typically don’t have terms that are as beneficial as federal student loans. For example, interest rates tend to be higher. There also might not be a six-month grace period for repayment like there is for federal student loans.

And if you choose a private student loan with a variable interest rate, rates can go up much higher than if you’d locked in a low rate with a federal student loan.

It’s good to have private student loans as an option, though. They can help students who want to focus on school full-time instead of working and can cover school expenses that other financial aid doesn’t cover.

Read: Why You Should Take Advantage of UTI’s Advanced Placement Opportunities

7. Tuition Reimbursement Incentive Programs

Tuition Reimbursement Incentive Programs (TRIP) are a form of financial aid providing unique advantages to students. With TRIP, when a student agrees to work for a certain employer after graduation, that employer will help pay off the student’s loans.¹⁴ TRIP is a win-win for many students. They get a job after employment, and they get assistance with student loan payments.

Other components of TRIP may include relocation assistance, hiring incentive packages, sign-on bonuses and tool purchase assistance. Contact our Financial Advisors online or call (866) 819-9406 to learn about current TRIP opportunities at Universal Technical Institute (UTI).

Trade School Financial Aid FAQs

1. Is trade school free?

Typically, no, trade schools aren’t free. Trade school costs can be less expensive than traditional four-year universities, and the programs are usually shorter, too. But there are still tuition requirements.

2. What is the difference between a loan and a grant?

A loan, whether it’s a federal student loan or a private student loan, is a form of financial aid that will need to be paid back, typically with interest. To be eligible for federal student loans, students have to fill out a FAFSA form.

A grant is a form of gift aid, which does not have to be paid back. Usually, grants are provided based on financial need. To be eligible for a federal grant like the Pell Grant, students have to fill out the FAFSA form.    

3. Is there federal financial aid for trade schools available?

Yes, federal financial aid options are available for students attending technical schools, including grants and federal student loans. Students can apply for these resources by filling out the FAFSA form, which determines eligibility based on financial need and other criteria.

4. Does FAFSA cover vocational schools?

Absolutely! Vocational school students are eligible to apply for federal financial aid for trade schools through FAFSA, which includes grants and loans that can help cover tuition and related expenses. By providing information about their financial situation, students who qualify can gain access to crucial funds for their education.

5. Are there any work-study programs available for students in trade schools?

Yes, many trade schools offer work-study programs that allow students to work part-time while attending classes. These programs help students gain valuable work experience in their field of study while also earning money to assist with educational costs. However, availability can vary by school, so it's best to check with your institution for specific offerings.

Read: Empowering Success: Things You Should Know About UTI’s Student Coaching Program

Still Have Questions About How To Pay for Trade School? UTI Is Here to Help!

Don’t let financial need hold you back from attending trade school at UTI! There’s a variety of options that can help you pay for trade school as you train for a fulfilling career.¹⁰

If you need to learn more about how to pay for trade school, contact our Financial Aid office at 800-834-7308 to learn about your options.