How to Get Student Loans for Community College: Options and Strategies

For the 2024-25 academic year, the average tuition and fees at a public community college were $4,050 for in-district students, according to the College Board. That's less than half the $11,610 average at public four-year in-state schools. Even so, covering thousands of dollars in tuition, fees, and other expenses can still be a challenge.

If you need help paying for school, student loans can bridge the gap. Federal student loans are usually the best first step, offering the best interest rates and key borrower protections. If federal loans don't cover all your costs, private student loans can fill in the rest.

Among private lenders, College Ave stands out for community college students, thanks to its competitive rates, no fees, and flexible repayment plans. Ascent and Sallie Mae are also worth considering among the best lenders for community college loans.

Current private student loan rates

Best private student loans for community college

College Ave: Best overall

Ascent: Best no-cosigner loans

Sallie Mae: Best specialized loans

Abe: Best payment relief options

Citizens: Best for multi-year approval

MEFA: Best for good credit borrowers

Nelnet Bank: Best for competitive rates

Custom Choice: Best discounts and reward

INvested: Best for Indiana students

Why you can trust our Credible experts

The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology below.

Methodology

To determine the best community college student loan lenders, Credible collected more than 1,000 points of data on two dozen companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.

• Repayment options: 30%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 15%
• Customer support: 10%

While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.

Learn more about our methodology.

Can I get student loans for community college?

Both federal and private student loans are available to community college students, as long as your school is eligible.

To qualify for federal student loans, you'll need to enroll at least half-time in an associate degree or certificate program at a participating community college. If you're taking just one or two classes, you're unlikely to meet the eligibility requirements. However, students pursuing a full two-year program typically qualify for federal loans.

Private student loans are another option. While not all private lenders extend loans to community college students, many do. Remember that private loans don't offer the same benefits as federal loans, such as income-driven repayment or potential loan forgiveness.

Federal loans for community college

If you're enrolled at least half-time, you may qualify for federal student loans for community college. Depending on your financial situation, you could be eligible for Direct Subsidized Loans, Direct Unsubsidized Loans, or both. Here's how they differ:

• Direct Subsidized Loans: Students with demonstrated financial need may qualify for these loans. A key benefit is that these loans don't accumulate interest charges until six months after you leave school, which can lead to worthwhile interest savings.
• Direct Unsubsidized Loans: These loans don't require financial need, but interest starts accruing as soon as the funds are disbursed. This means you'll pay more in total interest compared to subsidized loans.

Learn More: Direct Subsidized vs. Unsubsidized Student Loans

Both of these loan types come with annual and aggregate borrowing limits as seen below:

Note that the amount you're eligible to borrow each year might be lower than the annual loan limit. Your actual eligibility depends on your school's cost of attendance and any other financial aid you receive, such as scholarships, grants, or work-study funds.

To access federal student loans, you must submit the Free Application for Federal Student Aid (FAFSA) each year you need funding. The application collects details like your Social Security number, net worth, and tax returns. After submitting, you'll receive a breakdown of the federal loans and other financial aid you qualify for.

Private student loans for community college

If you don't qualify for federal student loans or hit your borrowing limits, private student loans can help you pay for community college. However, private student loans often come with fewer borrower protections and higher interest rates than federal loans.

Although not all lenders offer student loans for associate degrees, many do. College Ave, Sallie Mae, Ascent, and Custom Choice are among those that help students pay for community college. Other private lenders like SoFi and ELFI require enrollment in a bachelor's degree program or higher to qualify for a loan.

As you explore your options, it's important to compare lenders to find the most affordable loan. Adding a cosigner could also improve your chances of approval and help you secure a lower interest rate. A cosigner is typically a parent or family member with good credit who shares responsibility for the loan and agrees to step in if you can't make payments.

Financial aid for community college

Student loans aren't the only way to cover the cost of attending community college. Explore other financial aid options below:

• Scholarships and grants: Scholarships and grants don't need to be repaid, which makes them one of the best ways to fund your education. Submitting the FAFSA puts you in the running for federal, state, and school-specific scholarships and grants. However, you can also apply for private scholarships and grants for even more free funding.
• Work-study programs: If you qualify for a work-study program through the FAFSA, you can earn money to help offset your education costs. Work-study jobs are often flexible and designed to fit around your class schedule.
• State-funded aid: Many states offer financial aid specifically for community college students. For example, the California Promise helps make community college more affordable by allowing colleges to waive enrollment fees for first-time, full-time students who don't qualify for the California College Promise Grant (a separate program for low-income students).

Can I go to community college for free?

As of 2024, more than 30 states offer tuition-free community college through grant programs. These programs generally fall into two categories:

• First-dollar funding: Covers tuition costs upfront, regardless of other financial aid you receive.
• Last-dollar funding: Kicks in after other financial aid is applied, filling any remaining tuition gaps.

Keep in mind, these programs generally only pay for tuition, meaning you might need to pay for additional educational expenses, such as room and board. ​​However, some states are expanding their programs to help with these costs. Massachusetts, for example, offers allowances of up to $1,200 for books and supplies based on the student's income level.

How to apply for community college loans

If you decide to apply for community college loans, use the steps below as a guide.

• Submit the FAFSA: This form is key to unlocking federal student loans, grants, and work-study opportunities. Schools use the information in your FAFSA to determine your eligibility for federal student aid.
• Search for private scholarships and grants: Apply for scholarships and grants from private organizations, community groups, and your school. These funds don't need to be repaid, so they're one of the best ways to minimize your out-of-pocket costs.
• Fill gaps with private loans: If your scholarships, grants, and federal loans don't fully cover your costs, private student loans can help. Be sure to compare lenders to find loans with competitive rates, flexible repayment terms, and minimal fees.

Tips for managing community college loans

As you navigate community college debt, the tips below can help.

Borrow only what you need

Since you'll need to repay any loans you take out, it's best to borrow conservatively to protect your future finances.

“Investigate all tuition assistance programs or local scholarships specifically tailored to community college students,” says Dr. Shaan Patel, founder and CEO of Prep Expert, a platform offering SAT and ACT preparatory courses.

“These sometimes go under the radar and can be less competitive than larger scholarships. Next, stay focused on completion — taking only classes that align with your degree path helps avoid extra semesters,” adds Patel, who says he received admission to top universities and over $500,000 in college scholarships.

Explore tuition-free programs

Some states offer tuition-free community college for eligible residents, making it possible to earn a degree without taking on significant debt. These programs often have specific requirements, such as maintaining a certain GPA or meeting income limits.

If your state has a tuition-free program, it's worth exploring. Contact your state's education agency or your college's financial aid office to learn about eligibility criteria and how to apply.

Budget while in school

Building and sticking to a budget during community college can help you borrow less and keep your finances in check. Start by calculating your expected expenses, including tuition, textbooks, and living costs, and create a plan to cover them. Look for areas where you can reduce spending, such as canceling unused subscriptions or opting for home-cooked meals instead of dining out.

“Textbooks are another ghost expense because you can easily cut expenses by balancing buying online with asking professors which ones are really required,” says Reyna Gobel, author of CliffNotes' “Graduation Debt: How to Manage Student Loans and Live Your Life.”

Work while in school

Balancing work and school is often a challenge. But when you work while attending school, you can use your earnings to offset educational costs and living expenses. Even taking on a part-time job can significantly alter your financial trajectory for the better after graduation.