Student Loans for Community College: Borrow Only What You Need

Community college can be an affordable way to earn a degree or transfer credits to a four-year school, but tuition and other costs still add up. According to the College Board, the average tuition and fees at a public two-year college in 2024 – 2025 are $4,050 per year—though in some states, like California, tuition is as low as $1,440. Others, such as Vermont, exceed $8,600.

For students who need to cover tuition, books, and living expenses, student loans can help—but choosing the right lender matters. Unlike four-year colleges, community college students often need smaller loan amounts (sometimes as little as $1,000 per semester), which not all lenders accommodate.

In this guide, we highlight the best federal and private student loans for community college based on:

• Minimum loan amounts (to ensure you can borrow only what you need)
• Enrollment requirements (some lenders allow part-time students, while others require at least half-time enrollment)
• Repayment flexibility (e.g., in-school deferment or interest-only payments)
• Borrower benefits (such as cosigner release and financial planning tools)

By choosing the right loan, you can avoid borrowing more than necessary while keeping payments manageable. Let’s explore the best options for financing your community college education.

Can you get federal student loans for community college?

Yes. Federal student loans are often the best first option for community college students since they offer fixed interest rates, flexible repayment plans, and no credit requirements.

📌 Important facts for community college students:

• You must be enrolled at least half-time to qualify for federal loans.
• Loans cover tuition, books, and living expenses at accredited schools.
• Federal borrowing limits are the same whether you attend a community college or a four-year university. If you only need a small amount—say, $1,000—to cover your tuition, you might be better off taking out a private student loan.

Type of loan	Rates	Annual $ limit	Best for
Direct Subsidized	6.53%	$3,500 – $5,500	Those with financial need; no interest while in school
Direct Unsubsidized	8.08%	$5,500 – $12,500	All, regardless of financial need
Parent PLUS	9.08%	Up to full CoA*	Parents borrowing on behalf of kids

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Tip

If you qualify for Direct Subsidized Loans, max them out first—the government covers interest while you’re in school.

How to apply:

1. Complete the FAFSA to determine your eligibility.
2. Check with your school’s financial aid office for available aid options.
3. Consider federal loans first.

Private student loans for community college

Using private student loans to pay for community college could make sense if you’ve reached your federal loan limit. Most private loans require a credit check to qualify. If you haven’t built up sufficient credit history yet, you may need a cosigner to get approved.

College Ave

Sallie Mae

Best for Cosigners

4.8 _/5

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Why we picked it

⭐ Low borrowing minimums, flexible enrollment requirements, and strong cosigner options for students with little or no credit history.

Sallie Mae is one of the most flexible private lenders for community college students. It allows borrowers to attend school less than half-time, making it a solid choice for students balancing work, family, or other commitments while taking a few courses.

Another major benefit? If you need a cosigner, Sallie Mae makes it easier to release them after just 12 on-time payments—a shorter requirement than most lenders. Plus, Sallie Mae offers free credit score tracking, which can help you build your financial profile while in school.

✅ Why community college students like it:

• Borrow as little as $1,000—great for smaller tuition bills
• No minimum enrollment required—qualify even if taking just one class
• Cosigner release after 12 on-time payments
• Free credit score tracking for financial planning

📌 Good to know: Sallie Mae doesn’t offer soft credit checks to check your eligibility, so applying will result in a hard inquiry on your credit report.

Loan details

Rates (APR)	4.25% – 15.70%
Loan amounts	$1,000 – 100% of certified costs
In-school repayment plans	Deferred, fixed, or interest-only
Repayment terms	10 or 15 years

Earnest

Best for No Fees

4.7 _/5

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Why we picked it

⭐ No fees, flexible repayment options, and a longer grace period give community college students extra breathing room.

Earnest is a solid choice for community college students who want to avoid extra costs while borrowing for school. Unlike some lenders that tack on origination, late payment, or prepayment fees, Earnest charges none—helping you save money in the long run.

Another major perk? Earnest offers a nine-month grace period after you leave school, which is three months longer than most lenders. That means more time to find a job or get settled financially before loan payments kick in. Plus, if you ever need a little flexibility, Earnest lets you skip one payment per year without penalty.

✅ Why community college students like it:

• No fees—ever. No origination, late payment, or prepayment fees.
• Nine-month grace period—longer than most lenders offer.
• Skip one payment per year if needed.
• Check your eligibility in minutes with a soft credit check.

📌 Good to know: Earnest requires at least half-time enrollment, so it’s not the best fit if you’re taking fewer than six credits per semester.

Loan details

Rates (APR)	4.29% – 16.85%
Loan amounts	$1,000 – 100% of certified costs
In-school repayment plans	Full, interest-only, fixed, or deferred
Repayment terms	5, 7, 10, 12, and 15-year increments

SoFi

Best Member Benefits

4.7 _/5

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Why we picked it

⭐ Great for students who want more than just a loan—financial advice, career resources, and member benefits.

SoFi isn’t just a lender—it’s a financial community that offers benefits including free financial planning, career coaching, and even networking events. If you’re planning to transfer after community college or want guidance on managing student debt and future goals, SoFi is an excellent option.

It also offers a rate discount for taking out multiple loans, which can be useful if you plan to continue borrowing for a four-year degree after completing community college. Plus, you can earn and redeem rewards to put toward loan payments, helping you chip away at debt faster.

✅ Why community college students like it:

• Free financial planning
• Rewards program—use points to lower your loan balance
• Rate discount if you borrow more than once
• No fees—no origination, prepayment, or late fees

📌 Good to know: SoFi requires at least half-time enrollment, so it won’t work if you’re taking just one or two courses.

Loan details

Rates (APR)	4.19% – 15.86%
Loan amounts	$5,000 – 100% of certified costs
In-school repayment plans	Full, interest-only, fixed, or deferred
Repayment terms	5, 7, 10, 15 or 20 years

ELFI

Best Student Loan Advisors

4.5 _/5

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Why we picked it

⭐ Dedicated loan advisors help first-time borrowers feel confident about their options.

ELFI is a standout choice for community college students who want hands-on guidance during the loan process. Every borrower gets a dedicated student loan advisor to help answer questions, compare repayment plans, and make informed decisions.

ELFI also offers competitive interest rates and flexible repayment terms, making it a solid choice for students juggling work, family, or other commitments while in school.

✅ Why community college students like it:

• Personalized loan advisor to guide you through the process
• Choose between in-school repayment or full deferment
• Check your rate without affecting your credit score
• No origination or prepayment fees

📌 Good to know: ELFI requires at least half-time enrollment, so students taking just one or two classes won’t qualify.

Loan details

Rates (APR)	3.98% – 14.22%
Loan amounts	$1,000 – 100% of certified costs
In-school repayment plans	Full, interest-only, fixed, or deferred
Repayment terms	5, 7, 10, or 15 years

How to choose the best community college student loans

Not all student loans work well for community college students, so it’s important to choose one that fits your needs. Here’s what to look for:

1. Minimum loan amounts: Community college tuition can be low, so find a lender with a minimum loan that suits your needs.
2. Enrollment requirements: If you’re taking fewer than six credits, check whether the lender allows part-time or less-than-half-time enrollment.
3. Repayment flexibility: Look for in-school deferment or low monthly payment options to keep costs manageable.
4. Fees and interest rates: Compare fixed vs. variable rates, and avoid lenders with origination fees or prepayment penalties.
5. Cosigner options: If you lack credit history, choose a lender with strong cosigner release terms.
6. Transfer-friendly terms: If you plan to move to a four-year school, consider a lender that offers rate discounts or future borrowing benefits.

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Tip

Prequalify with multiple lenders to compare rates before committing to a loan.

As a financial planner, I think starting at community college is an excellent option for families who can’t cover the costs of a four-year college out of pocket. I would prefer to see my family pay for community college in cash or work while in school to pay tuition. By the time kids transfer to a four-year college for the last few years of school, at this point, I’m more comfortable with families taking out loans to pay for it. 

Don’t forget an important rule of thumb: Only take out student loans equal to what your anticipated first year’s post-college salary would pay. So if you anticipate earning $40,000, that’s the maximum amount you should have in college loans. But if you’re an engineer in a high-demand field, you may earn more, and could increase your max debt load.

Be sure to understand the full impact of your loan payments before you borrow a single dollar. If those loan payments impede your quality of life, consider working and earning tuition dollars before starting your studies.

Catherine Valega, CFP®

Other financial aid options for community college

Student loans can make it easier to pay for community college, but we recommend considering all the possibilities for funding your education. For instance, your state may offer grants or programs that will pay for some or all of the costs of community college.

Here’s a list of programs that offer help with paying for community college.

State	Program	Features
Arkansas	ARFUTURE Grant	Provides 2-year funding to students who enroll in high-demand or STEM fields
California	California College Promise Grant	CA residents who are first-time college students are eligible
Delaware	Delaware Student Excellence Equals Degree (SEED) Scholarship Program	Open to high school students who are accepted at an eligible school and complete the FAFSA
Hawaii	Hawai’i Promise Scholarship	Available to HI residents or eligible students who qualify for residency-exempt status
Kentucky	Work Ready Kentucky Scholarship	Open to KY residents with a high school diploma or GED who are studying for in-demand fields
Kansas	Kansas Promise Scholarship	KS residents can apply and must agree to live and work in the state for 2 consecutive years after graduation.
Maryland	Maryland Community College Promise Scholarship	Open to MD residents who enroll in approved degree programs and complete the FAFSA
Michigan	Michigan Reconnect	Designed for older MI residents who haven’t yet earned a college degree
Missouri	A+ Scholarship Program	Open to MO students who attend designated A+ high schools and meet other minimum requirements
Montana	Montana Promise Act	Open to students enrolled in tribal or community colleges in MT who complete the FAFSA
New Jersey	Community College Opportunity Grant	NJ residents who have not completed a degree and are within household income thresholds can apply
New Mexico	Opportunity Scholarship	NM residents who plan to enroll in at least 6 credit hours at a public college or university in NM toward a training certificate, associate degree, or bachelor’s degree may qualify
Oklahoma	Oklahoma’s Promise	Open to eligible OK high school students who meet income requirements
Oregon	Oregon Promise	OR residents must have a high school diploma or GED and meet GPA requirements.
Rhode Island	Rhode Island Promise Scholarship	Covers high school diploma and GED recipients who attend the Community College of Rhode Island
South Dakota	Build Dakota	Open to in-state and out-of-state students attending eligible technical schools in SD
Tennessee	Tennessee Promise	TN residents are eligible; students must complete community service hours for each term enrolled
Virginia	G3	Open to VA residents who qualify for in-state financial aid and have a household income equal to or less than 400% of the federal poverty level
West Virginia	West Virginia Invests	Open to WV residents who have not yet earned a college degree

In most cases, you don’t need to repay scholarships and grants, so this is free money you can use to pay for school. When searching for grant and scholarship funding, be sure to consider national programs as well as state, local, and school-specific programs.

FAQ

How many students attend community college?

Over 10 million students, or about 35% of undergraduates, are enrolled in community colleges across the nation. Some attend because they can continue to live at home or because they prefer a two-year path, although some community colleges offer four-year degrees. Still others attend because universities can be far more expensive than community colleges.

Can I transfer my student loans if I move from a community college to a four-year university?

If you transfer from a community college to a four-year university, your federal student loans will typically transfer with you. You may need to reapply for financial aid, but your current loans will continue to be part of your financial aid package. Private student loans can also be transferred, but check with your lender for specific terms and conditions.

How we chose the best student loans for community college

LendEDU evaluates student loan lenders to help readers find the best student loans. Our latest analysis reviewed 725 data points from 25 lenders and financial institutions, with 29 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best student loans for community college