Can You Get a Student Loan With Bad Credit? A Guide for 2025

College tuition is on the rise. The average tuition and fees at a public, four-year college are $11,610 for in-state residents and as high as $43,350 for a nonprofit four-year school, according to the latest data from the College Board. Student loans can cover these costs when other financial aid is insufficient, but you might face some borrowing restrictions if you have bad credit.

Current private student loan rates

What is a bad credit score?

What constitutes a bad credit score depends on the scoring model you use. The FICO scoring model classifies credit scores below 580 as “poor,” while VantageScore 3.0 considers scores below 600 to be poor.

A bad credit score signals to lenders that you’re not handling your credit responsibly. Bad-credit borrowers typically receive higher interest rates than those with good credit, as they present a greater risk to lenders.

Can you get a student loan with bad credit?

You might still be able to get a student loan with bad credit. 

Your credit score informs lenders about how well (or poorly) you’ve managed past and current credit responsibilities. 

A high credit score can not only help you get approved, but it also unlocks competitive interest rates and sometimes more repayment term options to choose from. 

When your credit score is low, it’s usually a red flag to private lenders that you might have trouble repaying your loan on time.

Typically, you need good credit to get approved for a private student loan. A “good” FICO credit score is at least 670.

Start with federal student loans

If you have a less-than-ideal credit score, consider federal student loans first. A credit check generally isn’t part of the federal requirements for student loans, which is why maximizing your federal loan borrowing limit can be the best path forward in most situations.

Direct Subsidized and Unsubsidized Loans, which are the most common types of federal student loans, are available to students regardless of their credit history. Both types are available to eligible undergraduate students, though subsidized loans are only offered to undergraduates demonstrating financial need.

Graduate and professional students are ineligible for subsidized loans but might qualify for unsubsidized Direct Loans. These loans have a fixed rate and available repayment terms starting at 10 years.

Submit a Free Application for Federal Student Aid (FAFSA) to see if you qualify for Direct Loans despite having bad credit.

Check Out: How To Register for the FAFSA

Direct PLUS Loans for graduates, professionals, and parents

If subsidized or unsubsidized Direct Loans aren’t an option, graduate and professional students or parents of dependent undergraduates can explore Direct PLUS Loans.

PLUS loans require a credit check, but it doesn’t gauge your eligibility based on a minimum credit score. Instead, the Department of Education checks if you have an adverse credit history, like a bankruptcy, repossession, or foreclosure in the past five years, among other adverse credit outcomes.

If you do, you’ll need to secure an endorser (also known as a cosigner) with a clean credit record who agrees to repay the loan if you can’t. Otherwise, your only other option to move forward with a PLUS Loan is to provide documentation proving that the adverse credit mark was a result of an extenuating circumstance.

In either situation, you’ll also need to undergo credit counseling for PLUS loan borrowers to get the loan.

Use a cosigner

Regarding private student loans, some lenders may offer the option to include a cosigner on your loan agreement. A cosigner is an individual who meets the lender’s income and credit criteria and agrees to take liability for any unpaid loan balance you fail to pay.

By leveraging a cosigner’s creditworthiness, you have a better chance of getting approved and securing a better interest rate and terms. Since this is a major responsibility, a cosigner is typically someone with a close relationship to the primary borrower (for example, the student’s parent, spouse, grandparent, or older sibling).

Some lenders offer a cosigner release feature in their loan agreements. If your credit improves later on, this feature lets you remove your cosigner’s obligation from the debt. But you’ll need to meet the lender’s release requirements first.

Look into bad-credit student loans

Some private student loans are specifically designed for students with no or low credit. These loans operate similarly to a traditional private student loan but might offer lower borrowing amounts, higher interest rates, or a shorter term.

When shopping around for bad-credit student loans, make sure you’re weighing details like unique eligibility requirements, loan-related fees, deferment options (if any), and whether they offer flexible repayment (e.g., interest-only payments while in school).

Pros and cons of bad-credit student loans

Bad-credit student loans have benefits and downsides to consider.

Pros:

• Offer access to the funds you need: While bad-credit student loans often have higher interest rates, they can allow you to get the funding you need for your education if you’ve hit your federal student loan limits.
• Can help you build credit: Making your student loan payments on time every month can help you boost your credit score. 
• A cosigner can help you get a better rate: If you have a creditworthy cosigner, you can qualify for a lower rate on your loan, even if your credit is bad.

Cons:

• Higher interest rates: Bad-credit loans typically have higher interest rates, meaning you’ll pay more for your loan than you would with good credit.
• Able to borrow less: Larger loans can take longer to pay off, so lenders typically won’t approve borrowers with bad credit for large loan amounts.
• Could add to your cycle of debt: If your credit score is low because you’re trapped in a cycle of credit card debt, for example, adding another loan on top of that can make the problem worse. If you’re unable to make your student loan payments, your credit could suffer even more.

Research alternative financing

Federal and private student loans are just one type of financial aid you can turn to. Alternative aid options to look into include: 

• Grants: This kind of aid typically doesn’t typically have to be repaid. You can find these at the federal and state levels, as well as through your school, private companies, and nonprofits.
• Scholarships: This is another form of gift aid that awards students based on financial need or merit. You can get a scholarship for certain areas of study, communities, interests, and/or skills. 
• Income-share agreements (ISAs): ISAs are a type of alternative loan that offers lump-sum financing up front for school, which you’ll repay using a fixed percentage of your future salary for a certain number of years. 

Improve your credit before applying

If you still have several years of school ahead before graduating, it might be a good idea to start improving your credit today. This could work in your favor the next time you need a loan.

Your credit is impacted by multiple factors, but here are some of the most immediate and effective ways to improve it:

• Repay debt on time: A large part of your FICO score (35%) is calculated based on your payment history. This includes whether you've made the minimum monthly payment on time for your outstanding debts. Make sure that you're paying off your student loans and other debts on time and for the full amount due.
• Lower unpaid debt balances: Your debt, such as credit card balances, can affect your student loan approval. If you lean on your credit too heavily, lenders might perceive you as a high-risk borrower who's financially overextended. Before applying for a student loan with bad credit, consider paying down your other revolving debt.
• Avoid opening new accounts: When you apply for new lines of credit, lenders conduct a hard credit check, which temporarily lowers your credit score. Applying for new credit cards or other installment loans in addition to your student loan within a short period could drag your score down when you’re trying to improve it. 
• Review your credit report: Sometimes your credit score might be dragged down by a data reporting error on your credit report. For example, your score could be lowered if the report includes a defaulted debt that's actually not yours. Request a copy of your free credit report from AnnualCreditReport.com, and if you see a mistake, submit a dispute with each of the three credit bureaus: Experian, Equifax, and TransUnion.

Look into refinancing student loans with bad credit

If you have existing student loans and want to potentially lower your interest rate and simplify repayment, you can look into student loan refinancing. This process allows you to possibly save hundreds to thousands of dollars on interest and change your repayment term. For example, you can extend your repayment period to lower your monthly payment, or you can shorten your repayment term to pay off your loans faster and save on interest charges. You may also be able to switch from a variable-rate loan to a fixed one, if you're interested in having more predictable payments.

Though refinancing comes with several benefits, you may not be able to qualify for better terms with bad credit. Lenders generally look for a FICO score of at least 670, and the lowest rates are reserved for those with excellent credit. However, you can prequalify with multiple lenders on their websites to find out what rate you may qualify for, all without hurting your credit.