Bad-Credit Student Loan Options in September 2026

Student loans for bad credit can be challenging to find, but there are still ways to borrow money for college if you have a low credit score or limited credit history. Federal student loans have no credit score requirements, making them a popular option with bad-credit borrowers. 

If federal student loans aren't enough to cover the cost of your education, you can turn to private student loans to bridge the gap. While private loans have minimum credit score criteria, you have other options, such as adding a cosigner to your application, to improve your chances of qualifying for a loan.

Here's what you need to know about taking out student loans with bad credit.

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Can you get a student loan with bad credit?

You can get a student loan with bad credit, but your options depend entirely on whether you apply for federal or private student loans.

Credit scores affect your ability to secure funding in two main ways:

1. Federal student loans (best for bad credit)

For most federal student loans, your credit score doesn’t matter.

• No credit check: The government does not check your credit history for standard undergraduate Direct Subsidized or Unsubsidized federal student loans.
• Equal rates: Everyone receives the same fixed interest rate, regardless of their credit score.

2. Private student loans (most difficult for bad credit)

Private lenders view a low credit score as a major red flag.

• Credit requirements: To get approved on your own, you typically need “good” credit, which is a FICO score of at least 670.
• Higher costs: If you are approved with bad credit, lenders will charge you significantly higher interest rates, costing you more over the life of the loan.
• Fewer options: A low score limits your choice of repayment terms and lender perks.

What’s considered bad credit for student loans?

A bad credit score is a rating that signals to student loan lenders that you pose a higher risk as a borrower. The specific number that defines a “bad” score depends on the credit scoring model being used:

• FICO score: Anything below 580 is classified as “poor.”
• VantageScore 3.0: Anything below 600 is classified as “poor” or “very poor.”

How a bad credit score affects borrowing

• High risk: A bad credit score suggests a history of missed payments, high debt utilization, or poor credit management.
• Higher interest rates: To compensate for the risk, lenders charge bad-credit borrowers significantly higher interest rates for student loans.
• Loan denials: A bad score can make it difficult to get approved for student loans or other debt, such as mortgages and auto loans.

Federal student loans for bad credit

If you have a low 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 the federal loan borrowing limit can be the best path forward in most situations.

Direct Subsidized and Unsubsidized Loans, the most common types of federal student loans, are available to students regardless of their credit history. 

Parent PLUS loans require a credit check, but not a minimum credit score. The Department of Education looks for an adverse credit history, like recent bankruptcy, foreclosure, or repossession. If you have one, you’ll need an endorser (the equivalent of a cosigner for private student loans) who has good credit or documentation showing that your adverse credit was due to extenuating circumstances. 

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

Private student loans for bad credit 

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

A few lenders also offer loans that don’t consider credit, but other criteria. For example, Ascent offers private student loans to college juniors and seniors without a qualified cosigner, basing eligibility on factors like GPA, major, program, school, and cost of attendance.

Student loan options for parents with bad credit

If you're a parent with bad credit, you have two main student loan options:

Parent PLUS loans

Parent PLUS loans have historically allowed you to borrow up to your child’s school-certified cost of attendance, minus other financial aid received. A credit inquiry that checks for an adverse credit history — such as a recent bankruptcy or foreclosure — is required to qualify, but there’s no minimum credit score needed. 

As of the 2026-27 school year, parent PLUS loans are capped at $20,000 per year per dependent student and $65,000 total per student. Existing borrowers may be able to continue using parent PLUS loans under the full cost-of-attendance rules for up to three more academic years.

Private parent loans

Some private lenders offer parent loans, but they typically require a minimum credit score and strong income. If you have bad credit, qualifying may be more difficult — though a steady income or other financial strengths could improve your chances with certain lenders.

Current private student loan interest rates for parents range from 2.84% to 17.99% for fixed rates and 3.89% to 17.99% for variable-rate loans through Credible. Applying with a cosigner can also improve your eligibility and help you qualify for lower rates. Between September 2025 and August 2026, borrowers who applied with a cosigner through Credible prequalified for rates that were 1.61 percentage points lower than those who didn’t.  

Use a cosigner to get a student loan with bad credit

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.

How to improve your credit before applying for a student loan

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 these 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, which includes whether you've made minimum monthly payments on time on your outstanding debts. Make sure 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 can 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 free copy of your credit report from AnnualCreditReport.com. If you find a mistake, submit a dispute with each of the three credit bureaus: Experian, Equifax, and TransUnion.
• Become an authorized user: Asking a responsible loved one to add you as an authorized user on their credit card can help build and improve your credit, as their history of on-time payments is added to your credit report.

Alternatives to student loans 

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 have to be repaid. You can find college grants 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, with many deadlines in late summer and early fall. 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.