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Key takeaways
- Loans geared for community college are rarer than loans for four-year university programs.
- Federal loans are typically the best option for student borrowers.
- Some private lenders offer unique perks and repayment options.
- Prequalify when possible so that you can compare rate eligibility before borrowing.
While most student loans are made with four-year institutions or graduate schools in mind, you can also find loans that can help with the costs of community colleges. Some of these loans allow students to be enrolled in any degree-granting program or even attend half-time or less.
The best student loan options will allow you to attend a two- or four-year community college and have a combination of low rates, special programs, a number of term options and few fees. Our top picks cover these features and more to help you find the best fit for your education.
6 best student loans for community college
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Federal student loans should always be your first choice when financing your community college education. Unlike private student loans, eligibility and interest rates aren’t based on creditworthiness or history, and you get benefits that private lenders don’t offer.
Direct Subsidized Loans and Direct Unsubsidized Loans are the two types of federal loans available: subsidized loans are offered to students who demonstrate financial need, and the government pays interest while you’re in school. Unsubsidized loans, on the other hand, accrue interest while you’re in school, though they’re available to all students.
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Pros
- No credit requirements
- Deferment and forbearance programs available if needed
- Income-based repayment options
Cons
- Origination fees apply
- Loans cap out between $5,500 and $12,500 annually
- Excellent-credit borrowers may find lower rates elsewhere
Best for outcomes-based loans without a cosigner
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Ascent offers three types of student loans for undergraduates, giving borrowers in a variety of financial situations plenty of options. You can choose from a credit-based cosigned loan, credit-based loan without a cosigner or an outcomes-based loan without a cosigner.
A number of hardship options and incentive programs make this lender an appealing option in the private loan space. And if you don’t need to borrow much to cover your education costs, you can take advantage of Ascent’s low minimum amount requirement.
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Pros
- Deferment and forbearance options available
- Low minimums available to borrow
- Rewards available, including a graduation cash back bonus
Cons
- Lower loan cap than some competitors
- Part-time students may have limited options
- Fewer repayment terms than some competing lenders
Best for income-based repayment plans
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RISLA stands for the Rhode Island Student Loan Authority. Despite its name, it’s a private student loan company that offers services in all 50 states and Washington D.C. RISLA stands out for its income-based repayment plans, a service you typically only see with federal student loans.
RISLA has no fees, reward programs and a 0.25 percent autopay discount. Out-of-state residents attending a Rhode Island school or Rhode Island residents attending any school qualify for an additional discount.
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Pros
- Multiyear loan program
- Variety of borrower protections
- Zero fees
Cons
- Only offers fixed APR
- Limited repayment options
- Loan amount caps
Best for borrowers with good credit
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With a selection of repayment options, several perks available to borrowers and positive reviews from customers, SoFi stands out as a contender in the private student loan market for undergraduates. Beyond being well liked, SoFi does not charge any fees — including origination or late fees. And to top it off, it has low rates for well-qualified borrowers.
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Pros
- No fees
- Multiple discounts, including a 0.25% autopay discount
- Many in-school repayment options
Cons
- High parent loan rates
- Lower repayment term cap of 15 years
- Stricter refinancing eligibility than competitors
Best for part-time students
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While most lenders require you to be enrolled in a bachelor’s degree program with at least half-time status, Sallie Mae offers loans to students enrolled less than half time. Students pursuing an associate degree and those pursuing professional certificate courses or training are also eligible to borrow from Sallie Mae.
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Pros
- Low minimum loan amount
- No origination fees
- Low minimum fixed rates
Cons
- Does not offer loan refinancing
- Eligibility requirements are not disclosed online
- APR caps are higher than some competitors
Best for multiyear approval
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College Ave offers undergraduate and graduate loans from $1,000 up to the full cost of attendance. It also offers an autopay discount, along with several repayment options, including full deferral while enrolled in school. Its many features and high funding cap in combination with multiyear approval make it a good fit for those who want to keep one lender through their time at community college.
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Pros
- Cosigner release available
- Several repayment options
- Prequalification available
Cons
- Limited eligibility transparency
- Cosigners must have a good credit score
- Higher refinance rates
How to find the best loan for community college
Follow the steps below to get the best loans for community college:
- Start by filling out the FAFSA: The best student loan is almost always a federal student loan. If your community college qualifies for federal aid, apply for as much money through the federal government as possible before turning to private lenders.
- Get prequalified with private lenders: If you need to take out private student loans, compare a few private lenders to find the best rates and terms for your financial situation. Private student loan lenders have unique requirements, so get prequalified to see exactly what terms and rates you might be eligible for.
- Consider bad credit options: Also remember to check for bad-credit student loans if your credit health isn’t in the best shape.
Ultimately, the best loan for you is the one that can give you an affordable monthly payment and reasonable terms. You may prioritize APR, repayment terms or hardship protections, but keep an eye out for special promotions or unique features.
Remember to apply for scholarships and grants, which you don’t have to repay. You might ultimately end up with lower student loan payments or eradicate them completely.
Bottom line
You have a number of options if you’re trying to find student loans for community college. Like regular four-year degree loans, your best option is to get federal student loans, as these offer more forgiving consumer protections and repayment options. If you need additional financing, you can prequalify with private loans to see which lender can offer you the best rates, terms and other perks.
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