As Mal said, CC's are the most common ways of getting a 3rd tier education. I'll toss in a few things I've found interesting as I've "progressed" through the system, though, just because I can't think of any more to explain that Ethan or Mal hasn't said.
On the topic of federal financial aid, it doesn't actually take into account how much the school in question costs when handing out payments. Whether or not you're going to a private school costing 50K annually or a community college costing less than 1K, FAFSA is still going to give you around 5K if you're in the lowest income bracket. Then the next year that amount will decrease slightly, and the next year more, and so on. In my case, it's going to result in me getting my 5K and 4K (maybe, not sure yet) in years when I won't actually be going to schools that cost that much. So that's interesting.
There's also in-state and out-of-state tuition, which probably perfectly exemplifies (in my eyes) just how fucked up the UC/CSU system is. Long story short, schools charge more/less based on what state you've established residency in, and sometimes it's a lot more for out of state students. In my case, I want to go out-of-state, but it doesn't really make any sense to without moving up there for a year, because I'd be paying about 35K rather than the 12K that resident students pay. What really puts the salt in the wounds is that CSUs (second tier usually, there are a few exceptions) cost about 12K annual, the same price as 1st tier state school if you're a resident. UC's cost about the same as those 1st tier out-of-state schools paying out of state tuition. I'm not sure if any of that made sense, but my main point is that UC's are completely overpriced, as you could go to a comparable out-of-state school and pay less, even if you'd be in the non-resident tuition bracket.