Best Student Loans for Community College in January 2024
Updated: February 19, 2024
Advertising & Editorial Disclosure
Community college is often a more affordable option for higher education — but it has its own expenses. To pay for tuition and associated education expenses, including textbooks, transportation and housing, students can turn to scholarships, grants and other financial aid. However, private student loans are another alternative if those aren't enough.
To find the best student loans for community college students, MoneyGeek evaluated several providers based on 35+ factors: loan affordability, accessibility, customer service, flexibility and transparency.
Ascent Review
- Ascent
Best for students with no co-signer.
- 4.36%–14.08%Fixed APR Range
- 1.47%–11.31%Variable APR Range
- $2,001–$200,000Loan Amount Range
- Non-U.S. citizens and temporary residentsCo-signer
Ascent offers student loans to undergraduates, graduates, international and DACA students on a co-signed or non-co-signed basis, allowing many students of varied circumstances to pursue higher education. Ascent’s private student loans for community college can cover up to the entire cost of education, with interest rates varying based on whether your loan is co-signed or non-co-signed.
MoneyGeek ranks Ascent highly thanks to its flexible repayment options and added incentives to help borrowers. For instance, by enrolling in automatic payments, you can take advantage of a 0.25% reduction in interest rates and defer payments for up to 9 months after graduation. Ascent offers a referral program that rewards borrowers with $525 for each friend they refer to the company.
Pros
- Flexible repayment plans
- Reward of up to $525 for each referred friend
- Prepayment or origination penalties are not charged
- Deferred payment for up to nine months after graduation
- Offers co-signed and non-co-signed loans to undergraduates
Cons
- Minimum income requirement for non-co-signed loans
- Non-co-signed fixed APR limit of 16.24%
- GPA requirement of 2.9 and above for non-co-signed loans for juniors and seniors
College Ave Review
- College Ave
Best for flexible repayment terms.
- 4.43% - 17.99%Fixed APR Range
- 5.59% - 17.99%Variable APR Range
- $1,000 minimum, no maximumLoan Amount Range
- Not requiredCo-signer
College Ave, established in 2014, is a lending company specializing in providing student loans to borrowers at all levels of education. It offers a range of loan options with the flexibility to accommodate the unique needs of each borrower.
For borrowers seeking student loans for community college, College Ave offers funds up to the total cost of education, depending on your financial circumstances. Repayment options include deferred, flat, interest-only and full principal and interest payments. Students also have a term option between five to 15 years. Ascent does not charge any origination fees and offers an interest rate discount if you enable AutoPay.
Pros
- No prepayment penalty fee
- Flexible repayment terms
- No origination fee
- Borrow up to the total cost of education
- Quick approval
Cons
- Satisfactory academic progress (SAP) required
- Funding may take up to 10 business days
- Late payment fee applies
Sallie Mae Review
- Sallie Mae
Best for students who need flexible repayment plans.
- 3.50%–13.83% Fixed APR Range
- 1.37%–11.76%Variable APR Range
- $1,000 minimum, no maximumLoan Amount Range
- Allowed but not requiredCo-signer
With roots dating back to 1972 as a public banking corporation, Sallie Mae offers graduate, undergraduate and career training student loans. It offers community college students a choice between variable or fixed interest rates. By scheduling automatic payments, you can get a 0.25% discount.
Pros
- No origination or prepayment penalty fees
- Flexible repayment plans
- 0.25% discount with autopay
- Borrow up to the total cost of education
- Allows borrowers to study online or be enrolled less than half time
Cons
- Funds release may take up to 10 days
- Late fee of 5%
- Lowest APR only available for interest repayment plans
SoFi Review
- SoFi
Best for those who want no fees and plenty of benefits.
- 3.22%–11.16%Fixed APR Range
- 1.10%–11.68%Variable APR Range
- $5,000 minimum, no maximumLoan Amount Range
- OptionalCo-signer
Since 2011, SoFi has offered student loans with flexible terms and an easy application process. SoFi offers numerous benefits to help community college students finance their education.
You can defer payments until after graduation and take advantage of SoFi's repayment assistance programs in case of financial hardship. SoFi also offers several discounts, including the Family Rate discount (0.125%), the AutoPay discount (0.25%) and the Continuing Scholar discount (0.125%). If you opt to have a co-signer, SoFi allows you to release them after 24 months of consecutive on-time payments.
One of the notable downsides of borrowing from SoFi is that the application process may take four to six weeks, but this will still depend on your community college.
Pros
- International undergraduate students can apply
- No origination fees, application fees, prepayment penalties or late fees
- Co-signer release after 24 months of consecutive on-time payments
- No Satisfactory Academic Progress (SAP) requirement
- Offers unemployment protection
Cons
- Only offers loans to students of SoFi’s eligible school list
- Release of funds may take four to six weeks
- Discounts other than AutoPay are hard to qualify for
How to Get a Student Loan for Community College
Selecting a private student loan for community college is a significant financial decision. For this reason, it’s smart to understand the process and factors, and compare lenders and options before making a choice.
Begin with federal student loans
Federal student loans should be your first funding choice since they often come with a lower interest rate and repayment benefits and options. You can apply using the Free Application for Federal Student Aid (FAFSA) form online.
Turn to private lenders if necessary
If you’ve applied for federal student loans but don’t have enough funding to cover all your educational expenses, private student loans may be able to help.
Determine how much you need
Think about how much you’ll need to cover your expenses. Expenses can include tuition, books, materials, transportation, housing and other miscellaneous fees in your program.
Check the eligibility requirements
Private lenders have stricter requirements than federal student loans. You may be required to have a co-signer, a minimum credit score or a certain income.
Get prequalified from multiple lenders
Opt for lenders who offer prequalification. While it’s not your official rate, a prequalification offer can give you an idea of how much your interest rate and other terms might be. Getting quotes from several lenders can also help you determine who might give you the best overall offer.
Assess loan features and terms
When evaluating lenders, look at the loan’s interest rate, repayment term and fees. You will also want to see if there are any benefits or perks the lender may offer to borrowers.
Apply and start payments
After considering your choices, learn about the application process for your chosen lender. You can usually apply online, but some lenders may require contacting an agent or visiting in person. Upon approval, the lender will send the funds to your school, and any leftovers will be returned to you. At this point, you may begin repaying your loan and developing a debt management strategy.
Frequently Asked Questions About Student Loans
Getting a student loan for community college can help with various expenses, and there are many points to consider. Our answers to frequently asked questions about private student loans for community college may help you find the best option for your needs.
It’s possible to get student loans for community college. However, eligibility and requirements may vary depending on the lender.
A private student loan for community college can be used for any school-related expense like tuition, books, transportation, housing and more. However, you cannot use a student loan for expenses like purchasing a car.
If you have enough funds to fully cover your expenses at community college, then a federal or private student loan is not necessary.
It depends on the community college and the eligibility requirements. Most community colleges are not free, but you may qualify for scholarships or grants that cover the cost of attendance.
Apart from getting a private student loan for community college, students can opt for federal student loans, which have lower interest rates, and apply for scholarships and grants. Exhausting federal loans before applying for private student loans is a good idea. Family members may also be willing to subsidize your education.
Community colleges cost an average of $10,300 per year to attend.
It depends on the provider. Some providers can take weeks, while some may take a few days. Make sure to ask your desired lender for an estimate of how long the process may take.
Filling out FAFSA is the way to apply for federal student aid. If you need funds, filling out the FAFSA should be your first step. However, if you do not need additional funds, you can postpone filling out the FAFSA.
Methodology
We reviewed more than 30 private student loan lenders using 35+ individual data points across six key categories: loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.
Within each ranking criteria category, we considered several individual data points that we feel carry the most weight when choosing a private student loan lender. These factors include APR ranges, available loan amount, minimum credit score, minimum income amount, application fees and disbursement time.
Here at MoneyGeek, we value you, the consumer, so we also factor in each lender’s customer support, business ratings and additional features that could make your experience easier and more accessible — like prequalification, payment options and mobile apps.
After careful consideration and calculation, our picks are decided and chosen with your best interest in mind. Our personal loan recommendations and expert tips are meant to help you make the best decision when choosing a lender that meets your needs.
sources
- Education Data. "Average Cost of Community College." Accessed February 10, 2023.
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