The 6 best student loans for community college

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.

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.

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.

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.

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.

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.