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Free Community College Is Dead — and Still Possible
Free community college was cut from the federal budget bill, but its advocates aren't done fighting for it.
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Colin Beresford is a former NerdWallet student loans writer. He previously was an automotive business writer for Car and Driver magazine and is a graduate of the University of Michigan.
Karen Gaudette Brewer Lead Assigning Editor | Core Personal Finance
Karen Gaudette Brewer leads the Core Personal Finance team at NerdWallet. Previously, she guided students and their families through the ins and outs of paying for college and managing student debt on the Higher Education team. Helping people navigate complex money decisions and feel more confident brings her great joy: as the daughter of an immigrant, from an early age she was the translator of financial documents and the person who called the credit card company to fix fraud.
She joined NerdWallet with 20 years of experience working in newsrooms and leading editorial teams, most recently as executive editor of HealthCentral. She launched her journalism career with The Associated Press and later worked for The (Riverside) Press-Enterprise, The Seattle Times, PCC Community Markets and Allrecipes.com.
She is a graduate of the 2022 Poynter Institute Leadership Academy for Women in Media. Her writing has been honored by the Society for Features Journalism and the Society of Professional Journalists. In addition, she’s the author of two books about the Pacific Northwest.
NerdWallet ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Fixed APR
3.47-17.99%
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1)All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2)As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3)This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 12/2/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
Variable APR
4.99-17.99%
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1)All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2)As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3)This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 12/2/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
NerdWallet ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Fixed APR
3.49-15.49%
Lowest rates shown include the auto debit. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Advertised APRs are valid as of 11/25/2024. Loan amounts: For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time. Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not.
Variable APR
4.92-15.08%
Lowest rates shown include the auto debit. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Advertised APRs are valid as of 11/25/2024. Loan amounts: For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time. Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not.
Credible lets you check with multiple student loan lenders to get rates with no impact to your credit score. Visit their website to take the next steps.
Until late October, community college in the U.S. was the closest it's ever been to becoming free for everyone nationwide.
A $45.5 billion proposal for two years of free community college, part of the Biden administration's "Build Back Better" agenda, promised students a path to attain a college degree without student loans — a transformative pledge in a country that collectively holds over $1.7 trillion in student loan debt. The proposal would've covered all tuition and fees associated with attending community college.
But after surviving several revisions to the forthcoming, scaled-back $1.75 trillion domestic investment proposal — also known as the "Build Back Better" bill — two years of free community college was cut. Other proposals aimed at higher education are expected to make it into the budget, including an increase to the Pell Grant and funding for historically Black colleges and universities and other minority-serving institutions.
Had the proposal made it into law, it would've soon paid for itself, according to an analysis from Bloomberg News and Georgetown University's Center on Education and the Workforce.
If every state had implemented free community college, the study projected, higher wages for those who earned bachelor's and associate degrees would boost GDP by $170 billion and tax revenues by $66 billion every year for the next decade. The analysis found that the increase in GDP would've resulted from more workers receiving higher wages after attaining bachelor's or associate degrees.
Community colleges are already a crucial part of job training in the U.S; in 2019, roughly 49% of all employed college-educated Americans attended a community college. Moreover, community colleges educate a higher proportion of minority students compared with traditional four-year colleges.
Martha Parham, senior vice president of public relations at the American Association of Community Colleges, said via email that the AACC is disappointed the proposal for free community college was dropped. Still, she was "also proud that community colleges are being discussed at the highest policy levels as solution providers for increasing the number of skilled workers in America."
Free community college proponents say they're not giving up
Two years of free community college won't make it into the federal budget for 2022, but those who have fought for it say they aren't finished pushing to get the proposal into law.
"I'm going to get it done," President Joe Biden said in an October CNN town hall. He added that first lady Jill Biden, who currently teaches at a community college, wouldn't be happy with him if he didn't. More recently, Education Secretary Miguel Cardona told the Detroit Free Press in November that he would continue to advocate nationwide for free community college.
Some members of Congress have echoed the sentiments, including some of the original sponsors of the free community college proposal. Since 2015, when the proposal was first introduced, lawmakers such as Sen. Tammy Baldwin, D-Wis., have pushed to make community college free nationwide.
Sen. Patty Murray, D-Wash., said in an email that the widespread support for free community college, from Congress to the White House, has created momentum behind the proposal. That momentum, she said, motivates her to continue pushing for free community college.
"We must build on the progress we make to get students and workers the support they need to succeed," said Murray, a co-sponsor of the proposal. "Just like President Biden — and community college champions like Senator Baldwin — I won't stop fighting until we finally make community college tuition-free."
Free or not, community college has much to offer
In most parts of the country, community college still carries a price tag, but that doesn't mean it's not a good option for higher education.
Community colleges generally offer associate degrees, which can take at least two years to complete. Someone with an associate degree earns $938 a week on average, or $157 more than someone with a high school diploma and no college, according to 2020 data from the Bureau of Labor Statistics. Those with an associate degree are also less likely to be unemployed than someone with a high school diploma only.
Although you'll have to pay to attend community college in most states, the costs are still significantly lower than most public four-year colleges. For example, tuition for the 2021-22 academic year at an in-district two-year college was $3,800, while an in-state public four-year college cost $10,740, according to the College Board.
Eighteen states already offer free community college to at least some students, according to the Campaign for Free College Tuition, a nonprofit that aims to make college more affordable. In addition, there are states, such as Tennessee, that make two years of public community or technical college free for residents.
For those who want a bachelor's degree from a traditional college, two years of community college, then transferring to a four-year school for completion is typically the least expensive path. However, if this is your intention, make sure the credits you earn from community college will transfer to the college you wish to attend.
