Student Loans for Community College

Finding student loans for community college is straightforward with the right information. This guide covers federal and private loan options, helping you compare lenders and choose a loan that fits your budget and educational goals.

With clear guidance, you can secure the funding you need without taking on unnecessary debt.

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.

Click here to jump to our reviews of the best private student loans for community college.

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.

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Tip

If you’re eligible for Direct Subsidized Loans, we recommend maxing out these loans before anything else.

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Click below to expand the description of each federal loan type.

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

Sallie Mae stands out for community college students who may need a cosigner. It’s one of the few lenders that supports part-time and less-than-half-time enrollment. This flexibility is valuable for students balancing education with work or other commitments, and Sallie Mae also offers competitive cosigner options. U.S. residents and non-citizens, including DACA students, can apply with a qualified cosigner.

With flexible repayment options, Sallie Mae lets students make interest-only or fixed payments while in school to manage costs or defer payments until after graduation. Students have access to Sallie Mae’s free study resources and FICO score tracking, which can be beneficial for community college students planning to transfer to a four-year institution.

• 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 strong option for community college students who may need larger loan amounts, offering up to $250,000 for eligible borrowers. This lender combines flexibility with borrower-friendly policies, including the ability to choose an in-school repayment plan or defer payments until after school.

Earnest also offers unique benefits for students who may need financial flexibility post-graduation. Its nine-month grace period is longer than most, providing extra time before repayment begins. Students can skip one payment each year without penalty, a valuable feature for those balancing finances in early career stages.

• No fees, including late payment or origination fees
• 9-month grace period
• Skip-a-payment benefit
• 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 well-established lender offering benefits that go beyond student loans, making it a valuable choice for community college students who want more than just financial aid. SoFi members gain access to financial planning from credentialed advisors, which can help students budget for school and prepare for future financial goals.

SoFi also provides a rate discount for taking out multiple loans, which could be useful for students planning to continue their education after community college. The SoFi app lets borrowers earn and redeem reward points toward loan repayment. SoFi’s membership benefits and holistic financial support make it an attractive option for community college students seeking a supportive lender.

• 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

ELFI stands out for community college students who want personalized support in navigating their loan options. Each borrower is paired with a dedicated student loan advisor who helps them understand their options and secure the funding they need with confidence. ELFI’s advisors ensure students feel informed about the process and can choose the best repayment plan for their needs.

Borrowers can choose between in-school repayment or deferring payments until after graduation, making ELFI a flexible choice for students balancing other commitments. ELFI offers a straightforward and supportive experience tailored to student needs, especially those seeking clarity and guidance in their financing journey.

• 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)	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 private lenders work with community college students, so it’s essential to understand key factors when comparing loans. Follow these steps to find the best loan for your needs:

1. Check enrollment requirements

Community college students often study part-time, so confirm whether a lender accepts part-time or less-than-half-time enrollment. Many lenders require at least half-time enrollment, which could affect your eligibility.

2. Compare interest rate types

Decide between fixed and variable rates. Fixed rates stay the same for the life of the loan, providing predictable payments, while variable rates may start lower but could rise. Choose what best fits your budget and tolerance for potential rate changes.

3. Evaluate loan limits and minimums

Check the minimum amount each lender requires you to borrow; it can vary. Also, note the maximum amount you can borrow over time to ensure the lender can cover your full educational needs if you plan to continue studies after community college.

4. Understand repayment options

Look at the repayment options available. Some lenders allow interest-only payments or full deferral while you’re in school. Consider grace periods and options for hardship deferment to ensure you can manage payments even if your financial situation changes.

5. Review fees and penalties

Some lenders charge origination fees or prepayment penalties, which increase the cost of your loan. Seek out lenders with low or no fees, especially if you plan to pay off the loan early to save on interest.

6. Research customer service and support

Good customer service can make loan management easier. Look for lenders with reliable support, such as accessible customer service hours, online account tools, and strong reviews. Knowing you can easily reach a support team can be valuable over the loan term.

7. Consider cosigner requirements and options

Many community college students need a cosigner to qualify for private loans. Some lenders offer cosigner release after a period of on-time payments, which can ease the commitment for both you and your cosigner. Look into this option if you might need a cosigner.

8. Check for loan forgiveness and discharge options

Some lenders offer loan discharge in cases of school closure, permanent disability, or death. While rare, it’s worth knowing if your lender provides these options for extra security.

By reviewing these factors, you’ll be better equipped to choose a student loan that aligns with your financial needs and educational goals at community college.

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.

Catherine Valega, CFP®

Once you’ve narrowed your list of lenders down to a few top choices, you can prequalify with a soft credit check, and apply with the lender that offers you the best rates and terms.

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 2024 – 2025 academic year, the average tuition with fees at two-year institutions nationwide is $4,050. 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

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