Student Loan for Community College

Students pursuing an associate’s degree may find obtaining a student loan for community college more difficult than students looking to receive traditional four-year college diplomas. A student loan for community college through the federal government may not prove as easy to secure for these students, because only a minority of community colleges participate in Federal Family Education Loan Program (FFELP ) and the Federal Direct Loan Program (Direct Loans), the two main educational aid programs of the federal government. Whereas the cost of bachelor’s degrees can easily exceed $20,000 a year, an associate’s program usually costs less than $5,000 yearly, depending on the state and program.

Do you need a student loan for community college?
Apply for a student loan for community college today.

Some options for finding a student loan for community college may require students working towards an associate’s degree to research alternative loans for school.

Student loans for community colleges include:

• Federal loans, when available
• Private or alternative loans from banks or other lenders
• Community college loans from traditional student loan lenders
• State or school backed loans

Because federal loans take into account financial need as well as the estimated cost of attendance, students at community college may not receive as much federal funding as their respective counterparts at four-year universities and colleges. Compounding this problem, many community colleges do not participate in federal loan programs due to the relatively low cost of attendance and high number of part-time students. This forces many students attending community colleges to find other methods of funding their education. On average, 10% of students in these programs depend on federal aid to pay for school and 4% use private loans. With states, particularly those in the south, cutting the availability of federal aid to those attending non-traditional programs, students need to find new ways to secure a student loan for community college.

Students hoping to attain a student loan for community college from the federal government may not find that this option available, but many other opportunities for funding a community college education exist for the savvy student willing to research. Private or alternative loans remain one of the most popular choices. Though these loans do not receive federal backing, the smart borrower can find many competitive loans if he or she searches out a deal. These loans rely on a student or co-signer’s credit history, and for students who have reliable credit scores or an excellent co-signer, private or alternative student loans may prove a more cost efficient option than other types of loans available to students attending community college. Because these loans compete for business, lending institutions, by virtue of economic competition, tend to offer relatively reasonable interest rates and terms.
Though not all traditional student loan companies offer a student loan for community college students, many do. For instance, Sallie Mae and Student Loan Xpress both offer such funding. In both cases, these student loans may prove easier to pay back for students than the more traditional alternatives. For instance, Sallie Mae’s community college student loan program offers a 15-year repayment period, as compared to 10 years for traditional loans. Student Loan Xpress allows community college students to pay for school retroactively, or in reverse, an option not available with more traditional student loans. Many other similar companies offer dependable student loan programs that may be more flexible for individual community college students.

Borrowers looking for a student loan for community college may also check with their school or state to see if these entities make special loan offers for those seeking an associate’s degree. Many community colleges have loan programs sponsored by the school or state of which these students can take advantage. Though community college students may find it difficult to secure more traditional forms of funding for college, there are many non-traditional avenues open to the smart student.

Do you need a student loan for community college?
Apply for a student loan for community college today.