Getting A Student Loan For Community College
Although a two-year degree costs less than other options, you might still need financial assistance to fund the expense. If you want to pursue higher education in a community college, you may learn that your preferred institute doesn’t accept federal loans or that you have already exhausted the federal loan limit. In either of these cases, your next best choice is to apply for a private loan.
However, most private college loans don’t offer the benefits that federal loans do such as deferment, forbearance, and multiple income-based repayment plans.
Getting Financial Aid
Attending a community college instead of a four-year university can still get expensive. These schools allow you to get financial help beyond scholarships from the federal government. You’ll need to fill out your free application for federal student aid (FAFSA) paperwork and send it in.
Universities generally use FAFSA to determine what level of financial aid you can get. After submitting your FAFSA, a student aid report will be issued. You can start applying for financial aid, this includes loans.
Federal student loans are considered to be the best option for students and one of the easiest student loans to obtain. Students can get a loan at any stage of education with low-interest rates through the direct loan program. This type of loan has fixed interest rates, easy repayment plans, forbearance, and deferment.
Some of the federal loans you can use for community college are:
- Direct Unsubsidized Loan: This is a non-need-based, low-interest loan option with flexible repayment terms that are offered to undergraduate and graduate students
- Direct Subsidized Loan: The amount of interest has to be paid during the period of deferment. You’ll have to attend school half-time or more at an accredited university to be eligible for this loan
- Direct Parent PLUS Loan: This loan is designed for parents of students. It allows your parents to borrow loans in their name to help pay for your education
The CARES Act and Financial Aid
Due to the current pandemic and rising college debt, the federal government launched the CARES Act in March 2020 to provide some relief to student loan holders. At its core, this act ensures that federal student loans are put in forbearance until September 30, 2020. During this period, interest won’t be accrued on the debt.
A part of this act is also aimed at providing additional financial assistance to students. Out of the total $14 billion allocated to universities, $6 billion will be used to support students for the next semester.
Some institutions are using CARES Act funds to provide extra scholarships and grants. The student will have to check with the school to find out if it has received the aid. The student should also ask how the funds will be allocated to the students. The students need to meet the requirements to receive financial aid funding.
Opt For An Associate's Degree
In regards to degrees and career training, a community college gives many options to its students. Some of the benefits are mentioned below:
- Lower tuition fees: The first two years of your higher education will consist of the same set of classes, no matter which school or major you choose. Attending a community college for two years helps you to save a significant amount of money when taking the basic classes. This directly reduces the amount of money you’ll have to borrow for a four-year school
- Lower living costs: When you attend school, tuition isn’t the only cost you should consider. You’ll have to consider the extra costs of care, maintenance, gas, and other living expenses. Attending a local school for two years likely means that you’re living at home. Living at home helps to save expenses each month on rent
- Greater flexibility: Attending these schools can be beneficial since the majority of personal growth is achieved in the first few years of graduation
- Easy to work: This type of college allows you to earn an associate degree. This leads to higher earnings. This income can help you to pay for school and graduate with less debt in the future
Community colleges offer many wonderful opportunities for students. These schools act as a bridging course for university degrees. It also helps serve education for students who can’t afford to study in universities. Students who are in need can receive help from loans and scholarships offered by a community college. Apply today and achieve your dreams.