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

Public community colleges can offer a more affordable alternative to four-year schools, with significantly lower tuition costs.

According to the College Board, for the 2024-25 academic year, average community college tuition and fees were $4,050 for in-district students. That's less than half the $11,610 average at public four-year in-state schools.

Current private student loan rates

This affordability, combined with the availability of student loans, makes community colleges an accessible choice for many students. Federal student loans are usually the best first step, offering lower rates and key borrower protections. Private student loans can fill the gap if federal loans don't cover all your costs.

For private community college loans, those from College Ave stand out as among the best available through the Credible platform, thanks to the lender's competitive rates, no fees, and flexible repayment plans. Ascent and Sallie Mae are also worth considering among the best lenders for community college loans.

Best private student loans for community college

College Ave

Ascent

Sallie Mae

Abe

Citizens

MEFA

Nelnet Bank

Custom Choice

INvested

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. Based on our findings, we assigned a score out of five stars to each lender. 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?

As a community college student, you can qualify for both federal and private student loans. For federal loans, your school must participate in federal aid programs, and you have to be enrolled at least half-time in an eligible degree or certificate program. Part-time students usually don't qualify, but those in standard two-year programs generally do.

Private loans are also available, with many lenders catering to community college students. However, they usually have higher interest rates and lack federal loan benefits, like income-driven repayment plans and potential forgiveness, so consider them as secondary options.

Federal loans for community college

If you're a community college student enrolled at least half-time, you might qualify for federal Direct Subsidized Loans, Direct Unsubsidized Loans, or both. Eligibility for Direct Subsidized Loans hinges on financial need, and they offer the advantage of not accruing interest until six months after school ends, potentially saving you a significant amount in interest. On the other hand, Direct Unsubsidized Loans begin accruing interest immediately upon disbursement and do not require proof of financial need.

Congress sets the interest rate for federal student loans annually, and they are the same for all borrowers. For the 2024-25 school year, the interest rate for Direct Subsidized and Direct Unsubsidized federal student loans is 6.53% for undergraduate students.

Learn More: Direct Subsidized vs. Unsubsidized Student Loans

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

The amount you personally can borrow each year might be lower than the annual loan limits shown. Your 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 get federal student loans, you have to submit the Free Application for Federal Student Aid (FAFSA) each year you need funding. You'll need to provide details like your Social Security number, net worth, and tax returns. After your application is reviewed, 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 have fewer borrower protections and higher interest rates than federal loans.

Private student loan rates and trends

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.