Best Student Loans For Community College Of 2025

Among undergraduate and graduate student loan options, federal direct subsidized loans are the cheapest and most flexible. Only undergraduate borrowers with financial need—as determined by the information in the Free Application for Federal Student Aid, or FAFSA—can get subsidized loans. The government will pay the interest when students are in school, during their grace period and when they put their loans into deferment.

The interest rate on subsidized loans is one of the lowest you’ll find, and no co-signer is required. All eligible undergraduate borrowers qualify and they receive the same rate regardless of credit history. Most importantly, borrowers of federal subsidized loans have access to income-driven repayment options that can lower the amount due and loan forgiveness for those who work in public service fields.

While there is an origination fee of 1.057%, it’s lower than what many private lenders offering loans without a co-signer charge.

Loan terms: 5, 7, 10, 15 and 20 years

Loan amounts available: $5,000 minimum; no maximum, except for associate’s degree graduates, who can refinance up to $50,000.

Eligibility:   Must be enrolled at least half-time in a school that participates in the federal direct loan program. Must be an undergraduate and be determined to have financial need.

Forbearance options:  Forbearance available for up to three years in certain circumstances. Enrolling in an income-driven repayment program can lower monthly payments and result in loan forgiveness after 20 to 25 years.

Federal direct unsubsidized loans offer low fixed interest rates, and this type of loan isn’t credit-based and doesn’t require a co-signer. All eligible undergraduate borrowers qualify, and they receive the same rate regardless of credit history.

While there’s a chance the most creditworthy borrowers could get a lower interest rate with a private student loan, they’ll miss out on a range of consumer protections that might be useful in the future. Borrowers of federal direct unsubsidized loans have access to income-driven repayment options that can lower the amount due and loan forgiveness for those who work in public service fields.

Direct unsubsidized loans come with an origination fee of 1.057%, while most private loans do not. But in many cases, the low interest rate and loan benefits make the fee worth it.

Loan terms: Terms of 10 to 25 years are available, depending on the repayment plan.

Loan amounts: Loan amounts up to $12,500 per year and $57,500 in aggregate in aggregate are available.

Eligibility: You must be enrolled at least half-time in a school that participates in the federal direct loan program.

Forbearance options: Forbearance available for up to three years in certain circumstances. Enrolling in an income-driven repayment program can lower monthly payments and result in loan forgiveness after 20 to 25 years.

Co-signer release policy: N/A

Custom Choice provides private student loans to undergraduate and graduate students. This lender stands out due to its competitive interest rates and no-fee structure; borrowers will never pay late fees, origination fees or prepayment penalties.

Custom Choice also offers a few unique benefits, including a Graduate Reward that reduces your loan’s principal balance by 2% when you get your degree.

Loan terms
Seven, 10 or 15 years

Loan amounts
$1,000 to $99,999 annually ($180,000 aggregate limit)

Eligibility
Borrowers must be U.S. citizens, permanent residents or eligible non-citizens (DACA recipients). Eligible non-citizens must apply with a creditworthy co-signer who is a U.S. citizen or permanent resident.

Forbearance options
Forbearance is available in increments of up to two months with a 12-month cap over the life of the loan.

Co-signer release policy
Co-signer release is available after 36 consecutive on-time principal and interest payments.

College Ave offers a solid all-around private loan product with a few unique features. Borrowers can choose an eight-year term, which is in addition to the typical five-, 10- and 15-year terms many lenders provide. Borrowers can also access an extended six-month grace period beyond the initial payment-free six months allowed after separating from school.

Loan terms
Five, eight, 10 and 15 years, depending on the degree

Loan amounts
$1,000 up to 100% of the school-certified cost of attendance

Eligibility
There’s no minimum credit score for borrowers who use co-signers, but co-signers must have a minimum credit score in the mid-600s.

Forbearance options
Forbearance is available for up to 12 months in three- to six-month increments.

Co-signer release policy
Co-signer release is available at the midpoint of the loan term. For example, if you have a 10-year loan term, your co-signer may be eligible for release after five years.

*The most creditworthy applicants who choose the shortest repayment term available and who make full monthly payments while in school qualify for the lowest rates.

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 03/03/2025. 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.

Rhode Island Student Loan Authority, known as RISLA, is a nonprofit based in Rhode Island that lends to students across the country. It offers two different loan types for undergraduate students, which each come with their own fixed interest rates. One loan requires immediate repayment, and one lets you defer payments until six months after you leave school. Everyone who qualifies for each of the loan types gets the same rate, which makes it easy to compare RISLA loans with others you’ve qualified for.

For borrowers who struggle to afford their loan after graduating, RISLA is one of the only private lenders to offer an income-based repayment plan, which limits payments to 15% of income for a 25-year period.

RISLA was a winner of Forbes Advisor’s best private student loans of 2020 awards. Learn more here.

Loan terms
10 and 15 years

Loan amounts available
$1,500 to $50,000 per year, with a $180,000 aggregate limit per borrower

Eligibility
Applicants or co-signers must show a minimum income of $40,000 per year and a minimum credit score of 680.

Forbearance options
Forbearance is available for up to 24 months.

Co-signer release policy
Co-signer release is available after 24 consecutive months of on-time payments. Periods during which borrowers use income-based repayment do not qualify.

Citizens Bank’s parent loan offers comparatively low interest rates, and borrowers can qualify for an interest rate discount of up to 0.50% if they have an existing account with the bank. (Student loans are available in all states, but checking and savings accounts are only available in Connecticut, Delaware, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Vermont.)

Citizens Bank also offers a relatively rare loan modification program, introduced in spring 2020, that allows for reduced monthly payments for a period of 12 months. That’s in addition to the industry-standard 12 months of forbearance.

Loan terms
Five, 10 and 15 years

Loan amounts
$1,000 to $350,000 (depending on degree)

Eligibility
Parent applicants and students must be U.S. citizens, permanent residents or eligible non-citizens with creditworthy co-signers. Students must attend school at least half-time.

Forbearance options
Forbearance of up to 12 months throughout the life of the loan may be available in two-month increments.

Co-signer release policy
Co-signers can be released from the loan after 36 consecutive on-time payments.

SoFi is perhaps best known as a student loan refinance lender, but it also makes loans to undergraduates, graduate students, law and business students and parents. Its undergraduate student loan product offers mostly industry-standard features, plus a couple perks: no late fees and an interest rate discount of 0.125% if your co-signer already uses another SoFi product.

Loan terms
Five, seven, 10 and 15 years

Loan amounts
$1,000 up to the total cost of attendance

Eligibility
SoFi doesn’t disclose credit score or income requirements. However, SoFi borrowers typically have scores as low as 650.

Forbearance options
Borrowers can apply for hardship forbearance on SoFi’s website; however, the website doesn’t specify the number of months or years forbearance may be available.

Co-signer release policy
Co-signer release is available after 24 months of principal and interest payments, subject to credit approval.