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Having bad credit (or none at all) doesn’t have to stop you from getting a student loan.
Most federal student loans from the Department of Education don’t require a credit check or cosigner. Plus, there are a handful of private lenders that will approve a private student loan with no credit check. And if you have a cosigner, you may meet a private lender’s credit requirements, even if you don’t have good credit yourself.
Thanks to these options, a bad or nonexistent credit history doesn’t have to stand in the way of obtaining the financing you need for your education.
- Why do lenders check my credit?
- Borrow federal loans without credit
- Private student loans with no credit check
Why do student lenders check my credit?
Most private lenders check your credit to assess how likely you are to repay your debt. A good credit score suggests that you pay your loans back on time, while a poor score can indicate the potential for late payments or even default.
“Your credit score can give lenders an idea of how you’ve managed your credit in the past, as it factors in your payment history, debt you currently have, how long you’ve had credit accounts, and other metrics,” said Jill Desjean, a senior policy analyst at the National Association of Student Financial Aid Administrators.
Private student loan lenders often look for a credit score of 670 or higher when evaluating your application for a loan. If you (or your cosigner) has good credit, the lender is more likely to trust that you’ll pay your loan back in full and on time.
Related: Credit Score Needed for Federal & Private Student Loans
Of course, if you’re a student, you may be too inexperienced financially to have built a good credit score — or any credit score, for that matter. That’s why nearly 91% of undergraduates borrowed a private student loan with a cosigner in the 2022-23 school year, according to a report from Enterval Analytics.
Applying with a cosigner (which we’ll discuss below) isn’t an option for everyone, though. An alternative to borrowing with a cosigner is opting for a federal student loan or a private student loan with no credit check.
Federal loans with no credit check
Before borrowing a private student loan, it’s usually a good idea to max out your eligibility for federal student loans from the Department of Education. You have a few options:
- Direct Subsidized Loans: These are available to undergraduate students with demonstrated financial need — no credit check required.
- Direct Unsubsidized Loans: Available to both undergraduate and graduate students, these loans have no financial need requirement and there’s no credit check involved.
- PLUS Loans: These are available to graduate and professional students or parents of undergraduates. PLUS Loans do involve a credit check, but your specific credit score doesn’t matter. You simply can’t have “adverse credit,” which typically equates to a prior delinquency, bankruptcy, foreclosure, tax lien, or similar action in the past five years.
Federal student loans come with relatively low fixed interest rates that are standardized. In other words, everyone who qualifies for a specific loan gets the same interest rate, no matter their financial history. Subsidized loans even come with an added perk — the government will pay your accrued interest while you’re in school, during your grace period, and during other eligible times of nonpayment.
In addition, federal loans are eligible for a variety of repayment plans, forgiveness programs, and other borrower protections. However, Direct Subsidized and Unsubsidized Loans come with borrowing limits, so it’s possible to max out your eligibility.
Related: The Complete List of Student Loan Forgiveness Programs
Private student loans with no credit check
Credit score requirements vary by lender, so it’s worth shopping around and comparing private loans. Here are some steps you can take to find a private student loan with flexible credit criteria:
1. Apply for a private student loan with no credit check
There are a handful of lenders that offer private student loans without a credit score requirement. However, these often come with a trade-off. In exchange for more relaxed credit standards, lenders may charge higher interest rates than other student loans.
- Ascent offers an outcome-based loan to college juniors and seniors with a GPA of 2.9 or higher. Instead of reviewing your credit, Ascent considers alternate factors like your school, major, and academic performance.
- Funding U provides loans to undergraduates based on your academic performance and career path. The lender reviews your credit history but doesn’t look at your credit score. Borrowers that have had significant credit issues may find it hard to qualify, but if your score is low simply because you haven’t had time to build your credit file, you could have better luck.
- MPOWER Financing and Prodigy Finance both offer loans to international students without requiring a cosigner or collateral. Rather than depending on your credit, these lenders instead consider your future earning potential.
The companies in the table below are Credible’s approved partner lenders.
| Lender | Fixed Rates From (APR) | Variable Rates From (APR) |
|---|---|---|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 4.48%+10 | 6.03%+10 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 4.43%+1 | 5.8%+ |
|
||
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
|
4.41%+2,3
| 5.49%+2,3 |
|
||
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 4.43%+ | 5.36%+ |
|
||
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 6.25%+7 | 8.11%+7 |
|
||
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 4.6%+8 | 7.37%+8 |
|
||
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 5.35%+ | N/A |
|
||
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 4.50%9 - 15.49%9 | 6.37%9 - 16.70%9 |
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your credit score. 100% free! |
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Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available | 10Ascent Disclosures | 1Citizens Disclosures | 2,3College Ave Disclosures | 11Custom Choice Disclosures | 6Discover Disclosures | 7EDvestinU Disclosures | 8INvestEd Disclosures | 9Sallie Mae Disclosures |
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2. Search for low-credit student loans
While most lenders require a credit score starting in the mid- to high-600s, others design their loans specifically for borrowers with poor credit. Shop around to find a lender that has more flexible borrowing criteria. Keep in mind, however, that a lender that accepts weak credit might charge higher interest rates and/or fees.
Related: 4 Best Student Loans for Bad Credit
3. Add a cosigner
Applying with a cosigner can help you qualify for a private student loan and access better interest rates. A cosigner is typically a family member or friend with good credit and a stable income who agrees to share responsibility for your debt.
Having a cosigner on your application reduces risk in the eyes of the lender, since your cosigner is equally responsible for paying back the loan if you fall behind. The danger, however, is that your cosigner’s credit will be damaged if you miss payments.
4. Consider an income-share agreement
Like a student loan, an income-share agreement (ISA) provides upfront college funding while you complete your degree. But instead of repaying that debt with a fixed payment plus interest, you pay the lender a percentage of your income for a set number of years after leaving school.
ISA lender Edly, for example, provides up to $25,000 to pay for school. After you finish school and start earning at least $30,000 per year, you’ll pay a predetermined portion of your income for five to seven years.
There’s a risk to this type of borrowing, however. Depending on how much you earn and the terms of your ISA, you may repay significantly more than you borrowed. If you expect to earn a high salary, this method could cost more than a traditional loan.
Say you borrowed $10,000 in the form of an ISA, with a seven year repayment term. Your first job pays you $60,000 annually with a 2% yearly increase. Here’s how that could compare to a $10,000 student loan.
| Income-share agreement | Student loan | |
|---|---|---|
| Original loan | $10,000 | $10,000 |
| Terms | 4% of salary for 7 years | 7% interest for 7 years |
| Total interest costs | $6,800 | $2,678 |
| Total amount paid | $16,800 | $12,677 |
5. Find a part-time job
If you can earn money while working toward a degree, you might reduce the amount you need to borrow in student loans. An on-campus, off-campus, or online job could help you cover your living expenses without having to take on unnecessary debt.
Related: How to Go to College for Free
Checking rates will not affect your credit
Eric Rosenberg and Sarah Li-Cain have contributed to the reporting for this article.