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.

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.

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 pursuing professional certificate courses or training 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.