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Key takeaways
- Finding lenders who will issue loans for community college may be trickier than securing a lender for four-year university programs.
- While 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.
Although community college is often much less expensive than traditional four-year universities, it can still come with a hefty price tag. Scholarships and grants are the best first step if you need help paying for community college, but you can also apply for student loans to fill any funding gaps.
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 parents
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Citizens Bank offers loans to students enrolled at least half time in a degree-granting program. This lender affords more options than many of its competitors — borrowers may make payments while still enrolled in school, if they choose to do so. Interest-only payments are another available option for borrowers looking to build positive credit.
Citizens is our top choice for parents due to the discounts available for existing customers. It also offers multiyear approval, making it easy for parents to know funding is covered for the length of their student’s time at community college.
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Pros
- Autopay discount of 0.25 percent for borrowers with a qualifying Citizens Bank account
- Multiyear approval available
- Multiple refinance options available
Cons
- No prequalification option
- Limited eligibility details available online
- Most undergraduates must have a cosigner to qualify
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 earning a certificate at a degree-granting school 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 credit score in the mid-600s
- Forbearance period is short compared to competitors
How to find the best loan for community college
The best student loan for students 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.
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. Also remember to check for bad-credit student loans if your credit health isn’t in the best shape. Private student loan lenders have unique requirements, so get prequalified to see exactly what terms and rates you might be eligible for.
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.
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