Student loans

Guide to paying for community college

March 06, 2025 – 5 mins

How to get help paying for community college

Attending community college is becoming more popular than ever—but how do you pay for it? You’ve got a few options, from free money like grants and scholarships, to federal and private student loans.

Free money for community college

When paying for community college, always start with submitting the FAFSA® (Free Application for Federal Student Aid). Applying makes you eligible for some of the $150 billion in grants, scholarships, and work-study funds—all money for school that you don’t have to pay back.

Grants: These are given out by federal and state governments and are usually need-based.
Scholarships: Want free money for school? Students can get scholarships for merit, financial need, or for things like your hobbies and interests. One easy way to search for scholarships is with Scholly® Scholarships by Sallie^SM. You don’t have to register—and you can use filters to narrow down your search based on your background, major, the state you live in, and more.
Work-study: Federal work-study is financial aid that lets you work part-time at a school-approved job, so you can earn money for your expenses. Your financial aid offer will let you know if you’re eligible for one.

Student loans to pay for community college

After federal financial aid, you may need more money to fill in any gaps—that’s where a student loan can help. There are two types of student loans: federal and private.

Federal student loans are provided by the federal government. Some benefits of federal student loans include:

Flexible repayment options that can be changed
No credit check
Standard interest rate

How to apply: When you submit the FAFSA^®, you apply for student loans, too. The amount you’re approved for will be in your financial aid offer. You’re able to decide if you want to accept the loan or not.

Private student loans are offered through banks, credit unions, and other financial institutions. The lender you choose will do a credit check to see if you’re eligible, so having a cosigner may help you get approved and potentially get a lower interest rate. Some benefits of getting a private student loan for community college include:

A choice of fixed or variable interest rate
Your choice of repayment option, like in-school or deferred
You may be able to borrow a higher amount of money (up to the cost of attendance) than with federal loans

How to apply: You can apply for a private student loan that may cover a full year’s worth of expenses directly from the lender’s website.

Finding the right private student loan

The right student loan will be able to help you cover all the things you need for school. Here are some things to think about as you explore taking out a private student loan:

Know what you need: How much will each year of community college cost? Research the cost of attendance for the schools you’re interested in to see how much tuition, room and board (if you’re living on campus), supplies, and fees may cost. Once you know this, you’ll have a starting amount of how much money you’ll need.
Research and compare: Private student loan lenders have different interest rates, repayment types, and fees. It’s important to weigh all your options to find the best loan for you. Think about making a spreadsheet of different loans to see which one makes sense for your goals.
Learn the language: You might find new words and phrases in your research that you’re not familiar with. Before you take out a loan, make sure you understand common terms—this can help you with deciding what loan to go with.
Get advice: Ask your friends, family members, counselors, or anyone else you trust about how they paid for college. Did they get any scholarships or work-study? How did they feel about taking out student loans?

Speaking of the right student loan… the Sallie Mae® Smart Option Student Loan® can help cover up to 100% of your eligible costs for community college—tuition, room and board, supplies, you name it.^{footnote 3} You can choose between interest rate types and repayment options to repay your way.^{footnote 4} Plus, get a 0.25 percentage point discount on your interest rate when you sign up for auto debit.^{footnote 5}

Pay for community college without worries

Community college has so many benefits, so it’s no wonder that students choose to go. If you’re planning to apply and need to figure out how to pay for it, remember to start with federal financial aid, grants, and scholarships before researching the best private student loan for you.

footnote Sallie Mae does not provide, and these materials are not meant to convey, financial, tax, or legal advice. Consult your own financial advisor, tax advisor, or attorney about your specific circumstances.

footnote External links and third-party references are provided for informational purposes only. Sallie Mae cannot guarantee the accuracy of the information provided by any third parties and assumes no responsibility for any errors or omissions contained therein. Any copyrights, trademarks, and/or service marks used in these materials are the property of their respective owners.

footnote FAFSA® is a registered service mark of U.S. Department of Education, Federal Student Aid.

footnote 1. Although we do not charge you a penalty or fee if you prepay your loan, any prepayment will be applied as provided in your promissory note: first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.

footnote 2. Sallie Mae loans cover enrollment periods of up to 12 months. Students must apply for a new loan each school year. This approval percentage is based on students who were approved for a Sallie Mae undergraduate loan with a cosigner in the 2021/22 school year and were approved for another Sallie Mae undergraduate loan when they returned with the same or new cosigner in 2022/23. It does not include the denied applications of students who were ultimately approved in 2022/23.

footnote 3. Loan amount cannot exceed the cost of attendance less financial aid received as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time.

footnote 4. 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. Payments may be required during the grace/separation period depending on the repayment option selected. Variable rates may increase over the life of the loan.

footnote 5. Borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit 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 and may be suspended during periods of forbearance or deferment, if available for the loan.