How to pay for community college

One of the main advantages to community college is that it tends to be less expensive compared to a four-year college or university. But you may still need assistance, such as student loans, to fill in any funding gaps.

Here are four ways to pay for community college.

How to pay for community college

The good news is that you can pay for community college in several ways. Since it’s more affordable, sources such as grants, scholarships, and even community college student loans can help you stretch your money even further.

How you end up paying for community college will depend on your individual situation, but here are some of the best financing options.

1. Consider tuition-free programs

Tuition-free programs, also known as college promise programs, are available in a number of states and are typically geared toward high school students who want to attend a two-year college. More specifically, they’re designed to increase enrollment for lower-income students by aiming to tackle the costs of higher education.

If you’re looking to save money and live in a state that has one of these programs, consider whether you could benefit, especially if you can attend your preferred community college. Don’t forget to check the eligibility requirements, such as meeting minimum GPA, field of study, and enrollment status.

Some examples of tuition-free programs include:

• Nevada Promise Scholarship
• Rhode Island Promise
• Tennessee Promise

2. Use grants and scholarships

Grants and scholarships are also available for students who attend community colleges. You’ll find plenty out there, so do your research and see which ones you may qualify for. The best part is that you won’t have to pay back any of the money you receive.

While grants are available though your state or the federal government, they’re usually based on financial need.

You can look at places such as foundations, charitable organizations, and even businesses for scholarship opportunities. You may be able to apply to many different ones and cover a decent amount of your educational costs. Check with your school’s financial aid office to find additional scholarship opportunities you may be eligible for.

Each scholarship may have different requirements, such as submitting an essay or a copy of your high school transcript, so make sure you can meet them before you apply.

3. Take out federal student loans

If you can’t pay your community college tuition yourself or have exhausted your grant and scholarship opportunities, consider applying for federal student loans next.

You can apply for most federal student loans without a credit check, and you don’t need a cosigner. You’ll also get benefits and protections, such as access to income-driven repayment plans, forbearance, and even loan forgiveness.

To apply for federal student loans, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA) each academic year. Schools use the information on the FAFSA to determine how much federal aid you’re eligible for. It’s a good idea to submit your FAFSA as soon as the application window opens, since a lot of aid is disbursed on a first-come, first-served basis.

The amount you can borrow in federal loans will depend on several factors, such as the school you attend, your dependency status, and year of education. These loans have limits to how much you can borrow, and you may not reach that amount depending on how much your tuition costs.

4. Turn to private student loans to fill any funding gaps

Private loans are typically seen as the last option for funding because they don’t offer the benefits that federal student loans provide. But applying for this type of student loan can help fill in funding gaps if you’ve exhausted all your other options.

When determining eligibility for a loan, most private lenders will require their applicants to go through a credit check and meet other requirements. For this reason, many borrowers — especially those who have limited or no credit history — will need to apply for a private student loan with a cosigner.

Keep in mind that each lender sets its own rates and terms, so shop around in order to find one that fits your needs, even if you have bad credit. Some lenders allow you to get prequalified without affecting your credit score.

When you’re ready to submit a full application, each lender may have a different process, but in general you’ll need to provide the following:

• Your full name
• Contact information, such as your address and phone number
• Cosigner information if you’re applying with one
• Your school of attendance, and whether you’re attending part- or full-time
• Financial information
• Agreement for the lender to check your credit history and score