Finding A Student Loan For Vocational and Trade Schools
Posted on May 6, 2007
Filed Under Student Loan News |
VoTech Student Loans
However, finding funding for a Vo-Tech or Trade school can be challenging. Not all lenders will make loans to these schools and a lot of these schools are not licensed or accredited. Traditional trade training such as Welding, Truck Driving or Machine Shop is a little easier to obtain these days than say a student loan to pay for Home Inspector, Cosmetology, Flight School, Culinary or Landscaping training.
Here are a few ways a person can fund their trip to a Vo-Tech or Trade School.
Student Loans For Vocational or Trade Schools
The Career Training Loan
One of the most poplular and useful student loans for Vo-Tech or Trade Schools is the Career Training Loan from Sally Mae. This loan allows you to borrow up to the full amount plus expenses related to your schooling. You’ll still be elgible for flexible repayment turns and interest rates like those students obtaining a student loan for a 4 year degree.
The Career Training Loan requires students to have an established credit history (does NOT mean perfect credit plus you can use a cosigner if you have to), be a U.S. Citizen or have established permanent residence. The school you choose must be accredited or licensed in the state they do business in.
The repayment of these student loans are flexible and the interest is reasonable for a student loan. Under the Standard repayment plan, minimum monthly payments are $30. With the interest-only repayment option, you make interest only payments while your in trade or vo-tech school and then roll over to a Standard repayment plan that includes repaying principle and interest when you get out.
Personal Student Loans
Some Vo-Tech and Trade Schools have payment plans of their own. Check with the School of your choice as to the offereing of repayment loans they may have. Interest rates may not be as favorable but the loans may be easeir to obtain than a traditional loan where a credit check is required.
I would try and void putting tuition for a Vo-Tech or Trade school on a credit card, even a low interest one. Be late on one payment or miss a payment and your interest can go through the roof, easily doubling your monthly payments.
If the tuition is reasonable to where you know you’ll be able to make monthly payments without stress every month, look at a Personal Loan from the bank you do business with. Chances are they have education type loans, some with payment deferrment. A check with you local Credit Union may uncover student friendly education loans.
As a last resort, look into a traditional personal loan with traditional monthly repayment options. If the monthly payment is low enough that you can pay it, then this may be your only option.
Pay As You Go
This is not as wishful thinking as it seems. Many students are paying their way through school by working full or part time and forgoing student loans all together. “What’s that you say?” “Work full or part time to pay for College?” “How ever will I be able to party or go to Spring Break?”
Obviously this is my personal choice. I hate debt and would rather sacrifice two years of partying and goofing off than to carry a school debt. Many others have the same philosopy.
There is a large army of vo-tech and trade school students who work days and go to school at night. Many others work nights and go to school during the day. The MAKE time to study and get their classroom work done. Yes, it is a sacrifice, but one well worth it considering they’ll have no Student Loan to repay when they graduate.
I’ve know Doctors and Attorney’s who’ve paid their way through school by working. Hey, the old timers say it builds character! If these people can do, you can too.
You don’t have to follow the menions of Students who obtain Student Loans for an education just because “everyone else does it”. Your wealth building will have a jump start when you graduate by paying for you school as you go. When all your student loan friends are whining about their student loan payments, you can whine about how difficult it is to choose an investment vehicle for your extra money you have each month! And the ones who made fun of you during school because you were always studying or working, you can ask them “How do you like me now” as they’re moping over their huge student loan financial problems after graduation.
VoTech Student Loans