The traditional path of attending a four-year university isn't for everyone, and many people are turning to trade education instead. Trade education provides hands-on experience and practical skills that can lead to high-paying jobs in industries like healthcare, technology, and skilled trades. However, financing trade education can be challenging. Student loan debt is a significant burden, and not everyone has access to the resources they need to pay for school. In this blog post, we'll explore the future of financing trade education and look at some of the predictions and trends that are shaping the industry.
Predictions
Over the past few years, we have seen a growing trend in public funding for trade education. The cost of trade education will continue to rise. According to the National Center for Education Statistics, the average cost of tuition and fees for vocational schools is $15,130 per year. As the demand for skilled workers continues to rise, schools are likely to charge even more for trade education. According to the National Center for Education Statistics, the federal government provided $1.3 billion in funding for vocational education in 2018. This funding is likely to continue to increase as policymakers recognize the need to train workers for the jobs of the future.
The number of students seeking trade education will also continue to increase. The Bureau of Labor Statistics predicts that employment in skilled trades will grow by 3.9% between 2020 and 2030. As more people turn to trade education to prepare for these jobs, the number of students seeking financing for their education will increase.
Trends
One of the most significant trends in the financing of trade education is the rise of income share agreements (ISAs). ISAs allow students to finance their education without taking on debt and instead pay a percentage of their income once they enter the workforce. According to the National Association of Student Financial Aid Administrators, ISAs grew by 300% from 2016 to 2019. Proponents argue that companies like Mia Share that offer ISAs help align the interests of schools and students, as schools only get paid if students succeed in their careers.
Alternative financing options will emerge. In addition to ISAs, other alternative financing options are likely to emerge in the coming years. Some schools are experimenting with crowdfunding campaigns, while others are partnering with companies that provide financing specifically for trade education. Mia Share already offers other innovative tuition solutions like Payment Plans and Hybrid models that allow students to pay a portion of their tuition, instead of all upfront.
Another trend is the increasing use of technology in student financing. With the rise of fintech startups, like Mia Share, there are more ways than ever for students to access financing and manage their student loans. For example, Mia Share offers income verification and helps students find the best financing options available to them
Results
As the cost of trade education continues to rise and the number of students seeking financing increases, it's clear that there is a need for alternative financing options. ISAs and other alternative financing options can provide students with the resources they need to pay for their education without taking on massive amounts of debt. The future of financing trade education is uncertain, but one thing is clear: the industry is changing, and students, schools, and lenders will need to adapt to keep up with the trends.
In conclusion, financing trade education is a challenge, but it's also an opportunity. As we look to the future, it is clear that the financing of trade education will continue to evolve. With the increasing demand for skilled workers and the rise of technology, it is more important than ever to find new and innovative ways to finance trade education. By exploring alternative financing options like ISAs and Payment Plans, and staying up-to-date with industry trends, students and schools can work together to create a brighter future for skilled workers in America.