Community colleges offering two-year programs can be a wonderful option for students looking to gain a higher education in less time. It can also be a great option for those looking to save a little cash while bettering their current skills, prepping for a four-year university, or going for an associate degree.
Moreover, it can often save students thousands of dollars in the long run toward the career of their dreams. Though community college can cost far less than a four-year school, it still isn’t free. Here are a few helpful ways to gain a little financial assistance for your community college education journey.
Note: SoFi doesn’t offer student loans for community college at this time, though we do offer loans for bachelor’s programs and above.
Key Points
• Students attending community colleges can access federal student loans by completing the Free Application for Federal Student Aid (FAFSA®).
• Federal student loans include Direct Subsidized and Unsubsidized Loans, which offer benefits like fixed interest rates and income-driven repayment plans.
• While private student loans are an option, some lenders may have restrictions regarding community college students.
• Several states have their own student loan programs to assist community college students. These programs often provide competitive interest rates and may have residency or enrollment requirements specific to the state.
• Beyond loans, students should investigate scholarships, grants, and work-study programs. These forms of aid do not require repayment and can significantly reduce the need for borrowing.
Federal Student Loan Options for Community College
Federal student loans are available for both two- and four-year colleges. The process of applying for federal aid is the same, regardless of the school, as long as the Department of Education sees it as an “eligible degree or certificate program.” Vocational, career, trade, or online schools often offer federal loan options, but it’s not a guarantee. If you’re not sure whether your school participates in federal loan programs, you can confirm with your school before moving forward.
To apply for federal aid, including student loans, a potential student must fill out the Free Application for Federal Student Aid (FAFSA®). After submitting the FAFSA, the applicant will receive an award letter from each school listed on the FAFSA application. This will tell you what aid you qualified for. If you plan on applying for federal aid to attend community college, consider applying as early as possible.
The following types of federal student loans may be available for community college applicants.
Direct Subsidized and Unsubsidized Loans
When it comes to borrowing federal student loans, the government offers both subsidized and unsubsidized loans to assist students in covering the cost of higher education.
Direct Subsidized Loans are based on financial need and they come with a major benefit — the U.S. Department of Education pays the interest while the student is still enrolled in school at least half-time and for the loan grace period (usually the first six months after leaving school).
Direct Unsubsidized Loans are similar to subsidized loans except that they are not based on financial need, they are based on your cost of attendance and other financial aid you receive. As such, the borrower would be responsible for all accrued interest on the loan.
There is an annual limit to how much money undergraduate students can borrow in Direct Subsidized and Unsubsidized Loans. For example, the limit for your first undergraduate year is $5,500 for dependent students (and $9,500 for independent students).
Recommended: Comparing Subsidized vs Unsubsidized Student Loans
Direct PLUS Loans
Direct PLUS Loans are available to parents of dependent students. Unlike both Direct Subsidized and Unsubsidized Loans, when a person borrows a Direct PLUS Loan, he or she will be subject to a credit check. If the person has an adverse credit history, they may not be approved to borrow the loan.
If you are a parent of a dependent undergraduate student, you can receive a Direct PLUS Loan for the remainder of your child’s college costs not covered by other financial aid.
It’s important to note when a person borrows a Direct PLUS Loan, there are fees in addition to interest. With this loan, parents can borrow up to the cost of attendance (determined by the school) minus any other financial aid received. In order to obtain this loan, parents must qualify and their credit history will be checked. Interest will also accrue.
Private Student Loans for Community College
If a student does not receive enough aid through federal student loans or maxes out his or her eligibility for federal student loans, they can seek additional funding through private student loans. Private student loans can be borrowed from banks, credit unions, or online lenders. (Note: SoFi does not offer private student loans for community college at this time.)
Each institution has its own eligibility requirements, so each borrower will have to check with individual lenders to see about qualifications. Like federal loans, there is usually a limit to the amount you can borrow with private loans, which can vary by lender. The limit might be the cost of tuition, less the amount of aid the student is already receiving, for example. However, the limit on some private loans may be higher than the federal loan limit.
Keep in mind that private lenders aren’t required to offer the same borrower protections as federal student loans, such as a grace period or income-driven repayment plans. Because of this, private student loans are generally considered only after all other financing options have been thoroughly reviewed.
Recommended: A Complete Guide to Private Student Loans
State Loans for Community College
Federal and private student loans aren’t the only options. Several states also offer their own student loan programs to help students. To qualify for many of these loans, a student must be a resident of the state program they’re applying for, or an out-of-state student enrolled in a college or university within that particular state.
To find state loans for community college, visit your state’s higher education agency website or your school’s financial aid office.
Saving Post-Graduation with Student Loan Refinancing
Even if you went to community college, you may still graduate with student loan debt. If your loan debt feels overwhelming, you could consider refinancing your student loans.
With a student loan refinance, you may be able to get a better interest rate than what you originally qualified for or change the terms of your loan to fit your post-grad life. And you can focus on earning and saving for your future thanks to your hard-earned education.
The Takeaway
Community college students have a variety of options available to them when paying for their education. In addition to some scholarships or grants, students may use student loans, either federal or private, to help pay for college.
FAQ
Will student loans pay for all of college?
Student loans can help cover many college expenses, including tuition, fees, room and board, and supplies. However, they may not always cover the full cost, especially at more expensive schools. Loan limits, financial aid eligibility, and borrowing capacity all influence whether student loans will pay for all of college.
How much are student loans for an associate degree?
Student loans for community college are available, including for associate degrees. In order to borrow a federal student loan, potential borrowers must be enrolled in an eligible degree granting program, as defined by the U.S. Department of Education. These programs may include associate degree programs.
What do you do if you can’t afford college?
If you can’t afford college, consider evaluating the costs and programs available at different colleges. Consider factors like location and room and board, in addition to tuition. Also fill out the FAFSA form, which allows students to apply for federal financial aid, including grants and scholarships (which don’t typically need to be repaid) and federal student loans (which do need to be repaid). Consider contacting the financial aid office at your school for more personalized information.
SoFi Private Student Loans
Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
SoFi Loan Products
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
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