Can I get a student loan with no credit check?

Many federal student loans do not require a credit check, but most private lenders do. With that said, you can often see the rates and terms you're eligible for with only a soft credit check, which won't impact your credit score.

Where can I get a student loan with bad credit?

You can get federal student loans from the U.S. Department of Education even if you have bad credit. This is because federal student loans do not have a minimum credit score requirement. Some private lenders, like Ascent and Funding U, also make an effort to provide student loans to borrowers with bad credit.

What credit score do I need for a student loan?

Many private student loan lenders do not disclose credit score requirements, but it's likely that you or your co-signer must have a credit score in the mid-600s to qualify. The higher your credit score, the more likely you are to be approved and the lower rates you'll receive.

Can you be denied student loans because of bad credit?

A bad credit score is one of the most common reasons borrowers are denied private student loans. Even if they don't disclose this information, private student loan lenders have minimum credit score requirements, so having any score under that threshold is grounds for denial.

Will applying for a bad-credit student loan impact my credit score?

Applying for a student loan could temporarily lower your credit score, since the lender will perform a hard credit check. However, you can prequalify with most lenders, which allows you to see what rates you're eligible for before going through the hard credit check. Any negative effects on your score should be temporary.

Should I take out a student loan or wait for my credit to improve?

Interest rates on federal and private student loans are rising as the Federal reserve hikes rates with the intent of slowing inflation. Federal student loan rates for the 2022-23 school year are more than a percentage point higher than they were in 2021-22, and 2022's rate hikes, along with the most recent rate hike in February of 2023, indicate that private lenders will likely raise rates in response. If you are considering refinancing or taking out a new private loan and don't expect rapid improvement to your credit score, it may be wise to act before rates rise further.

Best Student Loans For Bad Credit Or No Credit In November 2024

Compare top bad credit student loan lenders

When shopping for bad or no credit student loans, compare the lenders’ interest rates, repayment terms and loan amounts. Use this table to easily compare our top picks for bad credit borrowers.

LENDER	BEST FOR	MIN. CREDIT SCORE	APR	MIN. LOAN AMOUNT	MAX. LOAN AMOUNT
Federal student loans	Overall student loans	None	6.53%-9.08% fixed	None	$7,500 annually for dependent undergraduates, $12,500 annually for independent undergraduates and 100% total cost of attendance for graduate students
Ascent	Borrowers without a co-signer	Varies	Fixed: 3.69%-15.04%; Variable: 5.66%-15.16% (with autopay)	$2,001*	$400,000
Funding U	Undergraduate borrowers	None	Fixed: 8.49%-13.99% with autopay	$3,001	$20,000
MPower	International students	None	Starting at 13.72% with autopay	$2,001	$100,000
Edly	Income-based repayment	Not specified	Fixed: 8.49%-25.96%	$5,000	$25,000

*The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.

A closer look at the top student loans for bad credit

Before you choose a lender, take a deep dive into each of Bankrate’s top picks. These breakdowns include product highlights and who may benefit the most from applying with these lenders.

Best for Borrowers Without A Co-signer

Ascent

4.5

Bankrate’s editorial team scores student loan lenders based on loan amounts, APR ranges, online experience, fees and more. We also take into account bonus features that take some of the hassle out of student loans, like mobile apps and automatic payment discounts. Bankrate’s partners compensate us but our opinions are our own, and partner relationships do not influence our reviews.

See offers

Check rate with Credible

Min. credit score:: Not disclosed
Fixed APR From:: 3.69% –15.04%
Loan amount:: $2,001– $400,000
Term lengths:: 5 to 20 years
Min. annual income:: Not disclosed

Overview: In addition to standard co-signed loans, Ascent offers a unique outcomes-based non-co-signed student loan for college juniors and seniors. These loans are based on your future income. You may qualify if you're in a high-earning field of study. Borrowers with over two years of credit history can apply for a non-co-signed credit-based loan if they meet the minimum eligibility requirements.

Why Ascent is best for borrowers without a co-signer: Ascent is one of only a few lenders with a loan option that approves borrowers based on factors other than credit score, so you may not need a co-signer — even if you have no credit.

Pros
Cash back reward upon graduation.

Autopay discount of up to 1 percent.

Outcomes-based loan option.
Cons
Loan amount cap of $200,000 for undergraduates.

Yearly cap of $20,000 for outcomes-based loans.

High interest rates for outcomes-based loans.

What is a bad credit student loan?

A bad credit student loan is a private or federal student loan that's tailored to individuals with a poor credit score — 580 or lower — or thin credit history. Like other student loans, they can only be used for approved academic related expenses, like tuition, books or room and board.

Most private student loan lenders require that borrowers be in excellent financial shape or have a creditworthy co-signer to get approved. However, lenders that cater to students with bad credit consider factors beyond their score, like academic performance, enrollment or projected career outcomes.

How bad credit student loans work

Bad credit student loans are distributed by the Education Department or by a private loan servicer. Funds are often sent directly to your school and are reflected in your student account, rather than your bank account.

It's common for bad credit lenders to tack on higher interest rates and offer smaller loan amounts than you'd get with a traditional student loan. This is because the lender assumes less risk with creditworthy borrowers. So, it's important to maximize your federal student loans before turning to private regardless of your credit standing. If you do need to take out a private loan, having a creditworthy co-signer can help improve your rate and loan terms.

Bad credit student loans come with usage restrictions that are set by each lender. However, some private lenders are more lenient than others. For example, one lender may approve necessary technology expenses, like a laptop or tablet, while another could prohibit technology purchases.

Types of bad credit student loans

Federal and private student loans are the two primary types of bad credit student loans. Aside from using a co-signer with good credit on a student loan, there aren't many other options for borrowers.

Some schools offer private loans or need-based aid through the financial aid office. However, these may come with higher rates or could come with strict application timelines, so do your research and consult the aid office before applying.

Pros and cons of bad credit student loans

Taking out student loans can be an overwhelming process, especially for those with less-than-ideal credit. For most, a college education is a hefty expense so it's important to look at the potential advantages and disadvantages that come with a bad credit student loan.

Pros

Flexible eligibility: Most bad credit loans advertise flexible eligibility requirements and gauge approval on multiple factors, not just credit score.
Can help you build credit: Consistently making your monthly payments will improve your repayment history, which makes up the largest portion of your FICO credit score.
Co-signer optionality: Many student loan lenders require a co-signer, but they can be helpful when you have bad credit. There are also some bad credit lenders that don't require a co-signer.

Cons

Higher interest rates: Bad credit loans come with higher interest rates than other student loans. If you have a large loan and a high rate, you could be on the hook for thousands of dollars in accrued interest on top of your principal loan amount.
Smaller borrowing amounts: Many private student loan lenders offer loans that cover up to the total cost of attendance, but it's harder to qualify for a larger loan with a low credit.
Potential credit risk: If you fail to make the monthly payments your credit could suffer, making it harder to get approved for other loans or products in the future.

Federal vs. private bad credit student loans

Federal and private bad credit student loans serve the same purpose but are very different when it comes down to the details. Here are some of the key differences between federal and private student loans:

	PRIVATE STUDENT LOANS	FEDERAL STUDENT LOANS
Maximum loan amount	Depends on lender, may be up to $400,000 as per the featured lenders	$7,500 annually for dependent undergraduates, $12,500 annually for independent undergraduates and 100% total cost of attendance for graduates
Interest rates	Around 4% to 17%; may be fixed or variable	6.53% to 9.08% fixed for 2024-25
Fees	Varies by lender	Origination fee of 1.057% to 4.228%
Benefits	Choice between fixed and variable rates, may be able to use a co-signer for better rates	Access to income-driven repayment plans, long deferments and forbearances, no credit check required for most loans
Drawbacks	High rates for bad credit, limited forbearance options, no federal benefits	Lower loan limits, limited repayment terms
Qualification requirements	Depends on lender; may require a creditworthy co-signer	Meet basic eligibility criteria

Current bad credit student loans interest rates

Interest rates on federal and private student loans are rising, mainly due to the Federal Reserve’s rate hikes over the past year. Federal student loan rates for the 2024-25 school year broke long-standing records and increased by over a percentage point when compared to the 2023-24 academic rate ranges.

Though the Fed is holding rates steady now, it will take time for the rates to come back down. In the same vein, private rates are impacted by macroeconomic trends and have steadily been on the rise.

If you are considering refinancing your loan or taking out a new private loan and don't expect rapid improvement to your credit score, it may be wise to take on a co-signer.

How to shop for a student loan with bad credit or no credit

Federal student loans don't rely on creditworthiness for approval or rates, making them the best option for getting a student loan with bad credit. Regardless of if you fall into this category, you'll need to fill out the Free Application for Federal Student Aid (FAFSA). This application opens on Oct. 1, and it's best to apply early.

Calculate how much you need: Your cost of attendance will determine which lenders and types of loans you look for. Federal student loans typically have lower loan limits than private student loans, so you may need to combine multiple loan types.
Fill out the FAFSA: The FAFSA determines what type of federal need-based aid you may be eligible for, and it's also required if you want access to federal student loans.
Compare rates and terms: If you have less-than-stellar credit, your best bet is applying for a federal student loan. However, if you're considering private loans, prequalify with multiple lenders to compare rates and terms.
Consider a co-signer: If you have thin or no credit history, you should also consider getting a co-signer for your loan. A co-signer with a good credit score can improve your eligibility odds.

Getting a bad credit student loan

The application for bad credit loans is often completed online and is a relatively quick process. Before diving straight into the application, familiarize yourself with the steps and what the lender needs from you.

How to get federal student loans

To apply for federal student loans, you just need to fill out the FAFSA. Once that’s processed, your school will send you a financial aid award letter, which discloses your loan eligibility and limit for that specific academic year. The only exception is the PLUS loan. It requires a credit check, though there is no minimum credit score.

If you accept the loan, the funds will be sent directly to your school. Your financial aid office will then deposit it and issue you a check for any leftover amount.

How to get private student loans

Although the application and eligibility requirements vary by lender, it's standard for most to require the following information:

Your full name.
Date of birth.
Social Security number.
Financial information, like income and assets.
Contact information.
Your school and intended field of study

If you have a co-signer, they will also need to share these details when they apply. Keep in mind that some lenders have different requirements for co-signers, like a higher minimum credit score or income requirement.

Before filling out the official application, lenders will often conduct a soft credit pull to see if you're eligible. Also known as prequalification, this process doesn't impact your credit score and lets you see your approval odds and predicted rates. If you're satisfied with your preliminary offer, you can then choose to go through with the formal application.

Repaying a bad credit student loan

Federal direct loans come in two forms, subsidized and unsubsidized. Subsidized loans have an interest-free six-month grace period after graduation. Federal unsubsidized loans begin accruing interest immediately after disbursement, but borrowers aren't required to make payments while in school.

Private student loans operate a bit differently, with some lenders requiring full or interest-only payments while enrolled. Others may not require payments until graduation, but keep in mind that interest will accrue during this time unless stated otherwise.

Although each private lender is different, most have a couple fixed repayment options for borrowers to choose from that can range anywhere from five to 25 years. Some may offer alternative repayment plans or temporary hardship forbearance, but this isn't common.

On the other hand, federal loans have a variety of forgiveness and repayment options, including fixed repayment options that last between 10 and 30 years. Borrowers who qualify can also enroll in an income-driven repayment (IDR) plan or an occupation-based plan, like Public Service Loan Forgiveness. These plans lower the borrower's monthly payment and forgive the remaining debt after making 20 to 25 years of qualifying payments.

Alternatives to student loans

If you don’t qualify for a bad credit student loan, there are several options you can explore, including not going to a four-year school altogether.

Before setting your sights on that degree, ask yourself the following questions:

Is there an online coding bootcamp or certification program that I could enroll in?
Does my career field absolutely necessitate a degree?
What is the ROI of my degree?
Is there an apprenticeship program that suits my career goals?

Keep in mind that some of the alternatives below are school dependent, but it doesn't hurt to look through every possibility.

Max out your federal aid potential and then apply for merit- and need-based scholarships offered by your school and outside organizations.
Call the admissions office to see if the school offers reduced tuition for working an on-campus job. Unlike federal work-study, there is no hourly standard, but some schools will offer free tuition for working a full-time position while enrolled.
Some schools offer tuition waivers to students who qualify after applying for federal aid. The waivers are institution-specific, but are often need-based and contingent upon academic performance.
Some employers offer tuition reimbursement as a benefit. Few will cover the entire cost of attendance — it's more common for employers to reimburse up to a specific amount per semester. As a bonus, the first $5,250 per employee per year is tax-deductible.
High-demand fields of study are often more incentivized than others. For example, you could earn scholarships and grants from organizations like Teach For America or the NurseCorps for working a qualifying position after graduation.
There are a few work colleges across the nation that exist to help students with their tuition costs. Often four-year liberal arts schools, students must work a specific number of hours per semester in a qualifying position. These are government-monitored programs and must meet Education Department standards.
There are a few major-specific schools, like the Curtis Institute of Music, that will pick up the tab for students who wish to hone in one specific subject.
Over 30 states currently offer tuition-free community college for associates degrees. The tuition is typically covered by need-based grants and scholarships to students who express financial need. Each state has different requirements, so do your research to make sure you qualify before banking on a state-issued grant.
Accredited online schools are often less expensive due to the lack of fees that physical schools charge, even for commuter or part-time students. Colleges, like the Curtis Institute of Music, can make an online higher education even more affordable by offering free courses or discounted tuition costs.
Although it's not a simple solution, the U.S. Coast Guard, Air Force, Military, Merchant Marine and Naval academies offer free college opportunities to service members.

Ask the experts: Can a student loan help you build a better credit score?

Mark Kantrowitz

Nationally recognized student financial aid expert

"Student loans can help you build a better credit score if you make every required payment on time, by the due date. Whatever you do, don’t default and don’t be late with a payment or skip a payment. This can ruin an otherwise good credit score. Sign up for autopay, where the monthly payment is automatically transferred from your bank account to the lender. Not only are you less likely to be late with a payment, but many lenders will reduce your interest rate as an incentive."

Frequently asked questions

Most federal student loans do not require a credit check, but private lenders do. However, many lenders offer prequalification, which allows you to see the rates and terms you're eligible for before you apply with no impact to your credit score.
Many private student loan lenders do not disclose credit score requirements, but it's likely that you or your co-signer will need to have a credit score in the mid-600s to qualify. The higher your credit score, the more likely you are to be approved and the lower rates you'll receive.
A bad credit score is one of the most common reasons borrowers are denied private student loans. Even if they don't disclose this information, private student loan lenders have minimum credit score requirements, so having any score under that threshold is grounds for denial.
Applying for a student loan could lower your credit score by a few points, since the lender will perform a hard credit check. However, you can prequalify with most lenders before applying, which allows you to see your eligible rates with only a soft credit check.
If you don't have a co-signer, your best bet at finding funding is federal student loans, as most don't require a credit check. The one exception is Direct PLUS Loans, which look for an adverse credit history but don't set a minimum credit score for approval.

With private student loans, whether or not you can get approved without a co-signer depends on the lender. Some have more flexible eligibility requirements, while others offer loans designed for borrowers without co-signers. These unique loans may use your academic performance or future earning potential to determine your eligibility and rates.

How we chose the best bad credit student loan providers

Bankrate's trusted personal loans industry expertise

Read our full methodology

48

years in business

25

lenders reviewed

14

loan features weighed

350

data points collected

To find the best bad credit student loan lenders, Bankrate's team of experts evaluated over 20 lenders. Each lender was then rated on a 14-point scale. The scale is split into three main categories:

Student loan availability is best described as how the product can meet the needs of many different types of borrowers. To get a high score in availability, the degree and location of a potential borrower should have a minimal effect on if they can qualify.
Interest rates, fees and co-signer requirements make up a large part of the affordability category. Whether there is a grace period and how long it is also factors into this part of the score.
Recurring payment options, app availability, online access and customer support hours all play a role in defining a lender's customer experience score. Lenders that make the repayment process as easy as possible receive top marks.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.

Best Student Loans For Bad Credit Or No Credit in November 2024

Check your personalized rates

Compare top bad credit student loan lenders

A closer look at the top student loans for bad credit

Best for Borrowers Without A Co-signer

Ascent

Pros & Cons

Eligibility & More

What is a bad credit student loan?

How bad credit student loans work

Types of bad credit student loans

Pros and cons of bad credit student loans

Pros

Cons

Federal vs. private bad credit student loans

Current bad credit student loans interest rates

How to shop for a student loan with bad credit or no credit

Getting a bad credit student loan

How to get federal student loans

How to get private student loans

Repaying a bad credit student loan

Alternatives to student loans

Apply for grants and scholarships

Work for the school

Waive the cost

Seek employer benefits

Choose an in-demand career or study

Attend a work college

Look into major-specific schools

Attend a community college with a free tuition program

Consider an online school with reduced or free tuition

Tap into armed forces benefits

Ask the experts: Can a student loan help you build a better credit score?

Can I get a student loan with no credit check?

What credit score do I need for a student loan?

Can you be denied student loans because of bad credit?

Will applying for a bad-credit student loan impact my credit score?

Can I get a student loan without a co-signer if I have bad or no credit?

How we chose the best bad credit student loan providers

Bankrate's trusted personal loans industry expertise

Availability

Affordability

Customer experience