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6 Best Student Loans for Community College of March 2023

Apply for free financial aid first, then use federal student loans before turning to private lenders if you need help paying for community college.

By
Cecilia Clark
Feb 17, 2023

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Best Student Loans for Community College

LenderNerdWallet RatingMin. credit scoreFixed APRVariable APRLearn more
Federal Subsidized/Unsubsidized Loan

Federal Subsidized/Unsubsidized Loan

Read review
5.0/5

None

4.99-6.54%

N/A

5.0/5

Mid-600s

4.74-15.32%

4.74-15.32%

Check rateon College Ave's websiteon College Ave's website
Advantage Education Private Student Loan

Advantage Education Private Student Loan

4.5/5

Does not disclose

2.84-6.23%

N/A

Navy Federal Private Student Loan

Navy Federal Private Student Loan

3.0/5
Best for Private Student Loan

Does not disclose

4.63-13.74%

7.15-16.02%

Avenify Income Share Agreement

Avenify Income Share Agreement

5.0/5
Best for Income-share Private Student Loan

None

N/A

N/A

EDvestinU Private Student Loan

EDvestinU Private Student Loan

4.5/5
Best for Private Student Loan

750

7.52-10.64%

6.99-10.32%

Federal Subsidized/Unsubsidized Loan
Read review
Federal Subsidized/Unsubsidized Loan

Federal Subsidized/Unsubsidized Loan

5.0
NerdWallet rating
Min. credit score

None

Fixed APR

4.99-6.54%

Variable APR

N/A

Key factsBest first option for all student loan borrowers.
Pros
  • More flexible repayment options for struggling borrowers than other lenders.
  • Subsidized loans do not collect interest while in school or during deferment.
  • Lower interest rates compared with private lenders.
Cons
  • You pay an origination fee.
Qualifications
  • No credit check or minimum income is needed to borrow.
  • Loan amounts for undergraduates: $5,500 year one, $6,500 year two, $7,500 year three and thereafter, up to a total of $31,000
  • Independent students and graduate students have higher loan limits.
  • Undergraduate interest rate fixed at 3.73%, while grad students get higher 5.28% rate
Available Term Lengths10 to 25 years once repayment begins, depending on the repayment plan.
Key factsBest for students who want to make payments while they're still in school.
Pros
  • You can see if you’ll qualify and what rate you’ll get without a hard credit check.
  • More flexible repayment options than other lenders.
  • Six-month grace period extension is available.
Cons
  • You must be at least halfway through your repayment term before you can request a co-signer release.
Qualifications
  • Typical credit score of approved borrowers: Mid-700s.
  • Minimum income: $35,000 per year.
  • Loan amounts: $1,000 up to cost of attendance.
Available Term Lengths5, 8, 10 or 15 years
DisclaimerCollege 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. As certified by your school and less any other financial aid you might receive. Minimum $1,000. Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation. 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. This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. 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 3/1/2023. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
Advantage Education Private Student Loan

Advantage Education Private Student Loan

4.5
Min. credit score

Does not disclose

Fixed APR

2.84-6.23%

Variable APR

N/A

Key factsBest for nontraditional or part-time students.
Pros
  • Forbearance of 24 months is twice as long as most lenders.
  • Loans are available if you’re enrolled less than half time.
Cons
  • Loans may not be available depending on where you live or go to school.
  • Fewer repayment terms than other lenders offer.
  • You can't see if you’ll qualify and what rate you’ll get without a hard credit check.
Qualifications
  • Typical credit score of approved borrowers: Does not disclose.
  • Minimum income: Does not disclose.
  • Loan amounts: Minimum $1,000. Maximum depends on creditworthiness and debt-to-income ratio.
Available Term Lengths10 years

Our pick for

Private Student Loan

Navy Federal Private Student Loan

Navy Federal Private Student Loan

Min. credit score

Does not disclose

Fixed APR

4.63-13.74%

Variable APR

7.15-16.02%

Key factsAn option for members of Navy Federal Credit Union who can make small payments while in school.
Pros
  • Forbearance of 18 months is longer than many lenders offer.
Cons
  • Available only to existing Navy Federal Credit Union customers.
  • Only one repayment term: 10 years.
  • Payment required while in school and during the grace period.
Qualifications
  • Typical credit score of approved borrowers: Did not disclose.
  • Minimum income: A co-signer must earn $15,000 or more.
  • Loan amounts: $2,000 minimum to $120,000 for undergraduates, or $160,000 for graduate students.
Available Term Lengths10 years
EDvestinU Private Student Loan

EDvestinU Private Student Loan

Min. credit score

750

Fixed APR

7.52-10.64%

Variable APR

6.99-10.32%

Key factsBest for students from New Hampshire.
Pros
  • In-person support and counseling are available.
  • Deferment/forbearance of 24 months is longer than many lenders.
Cons
  • You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.
Qualifications
  • Typical credit score of approved borrowers or co-signers: 787.
  • Minimum income: $30,000.
  • Loan amounts: $1,000 up to your total cost of attendance.
Available Term Lengths7, 10 or 15 years.
DisclaimerAPR or "annual percentage rate," projected monthly payments, and total cost of loan examples are based on a $10,000 loan disbursed in two equal disbursements with a 7, 10, or 15 year repayment. Lowest rates require immediate repayment. The examples assume a 0.50% interest rate reduction for authorizing our servicer to automatically deduct monthly payments from a savings or checking account. Loans that are in a deferment (including borrowers who elect deferred repayment), grace period, or forbearance are not eligible to enroll and receive the automatic payment benefit until they enter into repayment. Once the repayment period commences, the borrower may enroll in automatic payment. Borrowers enrolled in immediate or interest-only repayment are eligible to enroll in automatic payment once all disbursements on the loan have been made and the loan is considered fully disbursed. The interest rate reduction for authorizing our servicer to automatically deduct monthly payments from a savings or checking account will not reduce the monthly payment, but will reduce the monthly finance charge, resulting in a lower total cost of loan. Variable APR rates may increase or decrease depending on fluctuations in the London Interbank Offered Rate (LIBOR) index. Monthly interest rate accrual is based on the published One-Month London Interbank Offered Rate (“LIBOR”) as of the last business day of the previous month plus your applicable margin. As of October 30, 2020 the One–Month LIBOR rate is 0.14%.

Our pick for

Income-share Private Student Loan

Avenify Income Share Agreement

Avenify Income Share Agreement

Min. credit score

None

Fixed APR

N/A

Variable APR

N/A

Key factsBest for nursing students who need money to finish their degree
Pros
  • Periods of unemployment count toward your payment total.
  • Lending decisions are not based on your credit score.
  • You receive a discount for paying off your ISA early.
Cons
  • Funding is available only to nursing students.
  • Nursing certificate programs currently aren’t eligible.
  • You must be within 12 months of graduation to qualify.
Qualifications
  • Eligibility is based on factors like your GPA and potential cost of living, not credit score.
  • Loan amounts: $1,000 to $15,000.
  • Income share percentages: Typically range from 1.5% to 7.5%; average is 3.99%.
Available Term Lengths5 years, but can extend to up to 10 years.

Can you go to community college for free?

More and more states have passed laws making community college tuition-free for residents. Several schools and cities also offer programs that make public college more affordable.

Be aware, though, that some programs require you to exhaust federal and state grants first, so you should still fill out the Free Application for Federal Student Aid, or the FAFSA. You may also have to pay for living expenses like rent, food and transportation and school expenses like a computer, books and fees.

» MORE: How much is community college tuition?

How to shop for a community college student loan

  1. Use grants first. Fill out the FAFSA as soon as possible after Oct. 1, when it opens, to get access to financial aid like the Pell Grant. These grants cover much of the cost of community college for students with low incomes and don't need to be repaid. The FAFSA will also give you access to state and school grants.

  2. If you need loans, choose federal loans first. These offer lower interest rates than private loans and come with the option to tie the payments to your income after you leave school. That can help you avoid falling behind on payments. The FAFSA will qualify you for federal loans. Some community colleges do not participate in the federal loan program.

  3. Build good credit, or add a co-signer, when applying for private loans. If you need to make up for a gap in financial aid, private loans are your last stop. Students with good credit, generally a score of 690 or higher, will get the lowest interest rates. Students under age 21 often don’t have the credit history required to get a private loan in their own names. Use a co-signer to qualify or to get a better rate; alternatively, search for private loans you can get without a co-signer.

  4. Make sure your school is eligible. Some lenders will make loans to students pursuing associate degrees at four-year schools only. When exploring your options, make sure your community college is on the private lender’s list of eligible schools.

  5. Compare loan features. When shopping for a private loan, compare offers to get the lowest student loan interest rate you qualify for. Note whether the lender will postpone payments in case you have difficulty affording them — known as forbearance — and for how long. Prioritize lenders that will let you release the co-signer after a period of time so they are not responsible for the debt.

  6. Opt for a fixed interest rate. Fixed interest rates are a safer bet than variable interest rates because they won’t increase over time.

  7. Watch the bottom line. Use a student loan calculator to see how much you’ll owe per month after borrowing for multiple years.

STUDENT LOAN RATINGS METHODOLOGY

Our survey of more than 29 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.

We consider 40 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.

The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.

Last updated on February 17, 2023

To recap our selections...

NerdWallet's Best Student Loans for Community College of March 2023

  • Federal Subsidized/Unsubsidized Loan
  • College Ave Private Student Loan
  • Advantage Education Private Student Loan
  • Navy Federal Private Student Loan: Best for Private Student Loan
  • Avenify Income Share Agreement: Best for Income-share Private Student Loan
  • EDvestinU Private Student Loan: Best for Private Student Loan

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