Student Loans for Community College

If you’re looking for student loans for community college, you have more options than you may realize, which can make your education even more affordable.

Can you get student loans for community college?

Yes, you can use student loans to fund community college, just like a four-year degree at a public or private university. Options include federal and private student loans.

We recommend borrowing first from federal student loans and then making up any difference with private student loans.

If you need private student loans for community college, you have plenty of lenders to choose from. This guide outlines our top-rated choices.

Federal student loans for community college

Type of loan	Rates	Best for
Direct Subsidized Loan	6.53%	Undergraduates who qualify for need-based aid
Direct Unsubsidized Loan	8.08%	Undergraduates whose families earn too much income to be eligible for Subsidized Loans but still need student loans for community college
Direct PLUS Loans	9.08%	Parents who plan to help their kids get through community college

Federal student loans are administered through the U.S. Department of Education. Community college students interested in federal student aid, including federal loans, must fill out the Free Application for Federal Student Aid (FAFSA) to apply.

The advantages of federal student loans include:

• Low rates. Federal student loans might offer lower interest rates, especially if you have less-than-perfect credit. With certain loans, the government will pay the interest for you while you’re in school or on a deferment.
• Fixed rates. The interest rate on the loan will never change.
• Easier approval. Most federal student loans don’t require a credit check or cosigner as a condition of approval.
• Flexible repayment. The Department of Education offers several payment programs to borrowers, including income-driven repayment plans.
• Deferment and forbearance. Borrowers experiencing financial hardship may be able to pause loan payments through deferment or forbearance.

Now we’ll take a look at the different federal student loan options for community college students to help you decide which ones might best fit your situation.

Direct Subsidized Loan

Direct Subsidized Loans are administered through the same program as Direct Unsubsidized Loans. The two main differences are:

1. Direct Subsidized Loans are based on financial need.
2. The Department of Education pays the interest on them while you’re enrolled at least half-time, during the grace period, and during deferment periods.

First-year undergraduate students who are still dependents can borrow up to $3,500 in Subsidized Loans for the year. The annual Subsidized Loan limit increases to $4,500 for the second year of enrollment and $5,500 per year for the third year and beyond.

Direct Unsubsidized Loan

Direct Unsubsidized Loans are available to eligible undergraduate students. Financial need is not a consideration for these loans. The cost of attendance at your school and any other aid you receive determine the amount you can borrow. 

The government does not subsidize the interest on Direct Unsubsidized Loans at any time. So interest will accrue on your loan even if you’re enrolled in school or you’ve deferred payments. 

Parent PLUS Loan

Parent PLUS Loans are for parents who want to help their undergraduate students pay for college. Eligible parents can borrow up to the school’s cost of attendance, less any other financial aid received.

The Department of Education checks your credit history when determining eligibility for Parent PLUS Loans. Borrowers with an adverse credit history may not qualify. Parents also must meet the general eligibility requirements for student aid, including being a U.S. citizen or eligible noncitizen, having a valid Social Security number, and demonstrating financial need.

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.

Interest rates and fees can also work differently for private student loans compared to federal loans. Rates may be fixed or variable, and lenders can charge a variety of fees and penalties. Private lenders aren’t obligated to offer income-driven repayment options or deferment periods to borrowers.

Finding the right lender to work with can require research. To save you time in your search, we’ve put in hours of research into lenders to determine which were the best. As a result, you’ll find five of the best student loans for community college below.

College Ave

Sallie Mae

Best for cosigners

4.8 _/5

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Why we picked it

Sallie Mae is one of the few lenders that serves part-time students, including community college students attending less than half-time. Non-U.S. citizens who live in the U.S., including DACA students, can also apply with a qualified cosigner.

• Student loans for undergraduates, graduates, and career training
• Lower interest rates when you choose an in-school repayment plan
• Cosigner release after 12 on-time principal and interest payments
• No prepayment penalties or origination fees
• No minimum enrollment requirements

• Doesn’t offer a soft credit check to check your eligibility
• Limited repayment terms of 10 or 15 years

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 large loans

4.7 _/5

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Why we picked it

Earnest is a solid lender, especially when it comes to large loans: You can borrow as much as $250,000). Like many lenders, it offers a 0.25% autopay discount. The company also seems to recognize that post-college life isn’t always easy, and you could use a few breaks.

• Loans for undergraduates, graduates, parents, and more
• Choose an in-school repayment plan or defer payments
• No fees, including late payment or origination fees
• The 9-month grace period is longer than other lenders
• Skip one payment per year without penalty
• Check your eligibility in two minutes without affecting your credit score

• Doesn’t allow for cosigners to be released
• Must be enrolled at least half-time
• Not available in Nevada

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

SoFi is a reputable lender. If you become a SoFi member, it does its best to offer you reasons to continue taking out loans with the company, such as offering financial planning from credentialed advisors and rate reductions on future loans.

• Use reward points earned in the mobile app for repayment
• Financial planning services
• No fees
• Rate discount for taking out multiple student loans
• Check your rate without affecting your credit score

• Must be enrolled at least half-time
• Higher minimum balance than other lenders

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

If you want an expert’s guidance to secure funding for your education, ELFI’s student loan advisors are here to help. ELFI is an excellent, reputable company dedicated to guiding you through the process with ease and confidence.

• Student loans for undergraduates, graduates, and parents
• Choose between in-school repayment and deferred payments
• Speak with a dedicated student loan advisor
• Check your rates without affecting your credit score

• Must be enrolled at least half-time
• Doesn’t disclose how long it takes before a cosigner can be released

Loan details

Rates (APR)	4.50% – 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 private student loan lenders work with community college students. As you shop for private student loans, consider:

• Enrollment requirements. Typical requirements include being enrolled at least half-time at an eligible higher education institution.
• Interest rates. Variable rates can be attractive while they’re low, but if rates increase, you may pay more for your loan than you would with a fixed rate.
• Loan limits. Many lenders have a minimum amount you’re required to borrow and a maximum aggregate loan limit.
• Repayment terms. Some lenders allow for interest-only payments while in school, but not all do. Also, consider whether grace periods or hardship deferments are allowed.
• Fees and penalties. Some lenders charge origination fees for processing the loan and prepayment penalties to discourage borrowers from repaying the loan early. Check whether these fees apply and how they affect your overall loan cost.
• Customer service and support. Look for lenders that provide robust customer service support, including online account management, customer service hours, and responsiveness. Research lender reviews and ratings to understand other borrowers’ experiences and satisfaction.
• Cosigner requirements and benefits. Many private student loans require a cosigner, especially for community college students with limited credit history. Some offer a cosigner release option after a certain number of on-time payments, which can benefit both you and your cosigner.
• Loan forgiveness and discharge options: Understand the conditions under which your loan may be forgiven or discharged, such as in cases of school closure, disability, or death.

By considering these factors, you can make an informed decision and choose the best student loan for your community college education.

Our expert’s advice

Catherine Valega

CFP®

As a financial planner, I think starting at community college is a terrific 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.

How to apply for community college student loans

If you’re interested in getting a student loan, here are the next steps to take.

Consider your federal options first

Thanks to their low, fixed interest rates, federal student loans are often the first place borrowers look for student aid. To qualify, start by filling out the FAFSA, which determines your eligibility for federal student loans.

You can complete the FAFSA online at the Department of Education website. You’ll need your:

• Social Security number or Alien Registration Number (if you are not a U.S. citizen)
• Federal income tax returns, W-2s, and other records of money earned. (Note: You may be able to transfer your federal tax return information into your FAFSA using the IRS Data Retrieval Tool.)
• Bank statements and records of investments (if applicable)
• Records of untaxed income (if applicable)
• A username and password for the U.S Department of Education’s website to sign electronically

If you’re a dependent student, you’ll also need the same information for your parents. Once you submit the FAFSA, all the information you provide will determine whether you qualify for aid, what type of loans you can take out (Subsidized or Unsubsidized), and how much aid you’re eligible for.

You’ll get a Student Aid Report (SAR) that summarizes your application and provides an estimate of how much federal aid you’re eligible for. You aren’t obligated to accept any or all of the federal loans you’re eligible for.

You can use the SAR to decide what type of aid you want for school. First, be sure to accept all free money, such as grants or scholarships, followed by work-study funding, and last, student loans. This reduces the amount you borrow and what you’ll repay.

Use private loans to fill the gaps 

If you have a shortfall in federal student aid, you can apply for private student loans next. The exact process is different for every lender, but generally, it involves filling out the application online and submitting any required supporting documentation. 

You might need:

• Social Security numbers for yourself and your cosigners, if applicable
• Personal information (e.g., date of birth, address, and phone number)
• Income documentation, including pay stubs and tax returns
• Rent or mortgage payment information

You may also need to tell the lender where you plan to attend school and what degree you’re seeking.

Private student loans have pros and cons. Although variable rates may start low, they can rise at any time during the life of the loan. Also, the rates you qualify for often hinge on your credit score. Without a high credit score, a cosigner may be necessary, and not every lender allows for cosigner release.

Remember that private student loans don’t provide the same protections as federal student loans. Private lenders can offer rate discounts, deferments, forbearance, or even loan forgiveness in certain instances, but these benefits and features are optional.

Are student loans needed for community college?

Many students need loans for community college.

Whether you need them can depend on the cost. For the 2023 – 2024 academic year, the average tuition with fees at two-year institutions nationwide was $3,990. If tuition and fees are higher where you plan to attend school, federal loans may not be enough.

To put the cost of community college in perspective, here’s a sample of high and low averages from three states.

State	Avg. tuition & fees (2-year colleges)
California	$1,440
New Mexico	$2,130
Vermont	$8,660

Are there other financial aid options for community college?

Student loans can make it easier to pay for community college, but other possibilities exist 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.

Eligibility depends on your state residency and enrollment status. You may need to complete the FAFSA or a separate state program application to take advantage of free or low-cost community college. Funding may be limited to one year of enrollment or may cover multiple years.

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

State	Program Name	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	Hawaii 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