It sounded too good to be true: a free tram that could be transformed into the classroom of students' dreams.

Abbotsford Primary School was among 130 state schools vying for a piece of Victorian history through the Andrews government’s retired tram scheme.

Abbotsford Primary School students Calypso, Kai'en, Benson, Mike and Kaila, L to R, were making plans for their 'free' tram until they realised how much it would cost Credit:Eddie Jim

The trams would be provided to successful state and non-government schools for free, with VicTrack footing the bill for their transportation and foundations.

But weeks after lodging an application for one of the retired yellow and green trams, the state school received a letter from the Victorian School Building Authority explaining it would have to fork out an estimated $30,000 in upfront costs. These included asbestos and lead paint removal and shading.