8 Student Loans for Bad Credit or No Credit
There are student loans available for borrowers with bad or no credit. But not everyone will qualify. Check lender to requirements to see about your situation.
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Federal student loans should be your first choice for borrowing with no or bad credit. But if there’s still a cost gap to fill, consider private student loan options without credit score requirements.
If you need a student loan, but you have bad credit or no credit history, federal student loans are your best option. They don’t require a credit history to borrow and offer flexible repayment options.
But federal loans do have borrowing limits. To fill a gap in college costs, you may need to take out a private student loan from a bank, credit union or online lender. Most private lenders require borrowers to have a credit score of 690 or above. If you don’t have credit or your credit history is thin, you have two options for private loans:
A private loan from one of the few lenders that don’t have credit or co-signer requirements, though you’ll pay higher interest rates.
A private loan with a co-signer who has good credit.
Here's how to shop for a student loan when you have bad or no credit:
Start with federal student loans. Fill out the Free Application for Federal Student Aid, known as the FAFSA to apply for federal student loans as well as qualify for free aid such as grants, scholarships and work-study. They offer lower interest rates and come with income-driven repayment plans and forgiveness programs.
Find a co-signer with good credit. To borrow private loans with a co-signer and get the most competitive interest rates, they’ll need to have a good credit score and steady income. If you opt for a co-signer, they’ll be responsible for your debt if you can’t repay it.
If you can’t find a co-signer, consider loans you can get independently. Some lenders offer private student loans without factoring in credit scores. Future income potential is usually considered instead. The higher your earning potential, the more likely you are to get competitive rates.
Compare loan features. When shopping for a private loan, compare offers to get the lowest interest rate you qualify for. Note whether the lender will postpone payments in case you have difficulty affording them, and for how long. That’s important. Find out if there are origination, prepayment or late fees, and how easily you can reach the lender by phone, email or live chat if you encounter a billing or customer service issue.
Opt for a fixed interest rate. Given the choice, a fixed interest rate is a safer bet than a variable interest rate. It won’t increase over time.
Keep an eye on the bottom line. Use a student loan calculator to see what kind of payment you’ll face after borrowing for multiple years.
Consider refinancing in the future. Once you’re out of school and have built a credit profile, you may be able to refinance private student loans to a lower interest rate. You’ll generally need solid income, a credit score of 690 or higher and a history of on-time debt payments.
Here are our picks for student loans for bad or no credit.
Student Loans for Bad Credit or No Credit
| Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
5.0/5 Best for Student loan for bad credit | None | 4.99-6.54% | N/A | ||
5.0/5 Best for Private loans for bad credit | Mid-600s | 4.74-15.32% | 4.74-15.32% | Check rateon College Ave's websiteon College Ave's website | |
5.0/5 Best for Private loans for bad credit | 670 | 3.85-7.91% | 4.44-8.89% | ||
5.0/5 Best for Private loans for no credit | Varies | 12.96-14.24% | 12.35-14.31% | Check rateon Ascent's websiteon Ascent's website | |
4.5/5 Best for Private loans for no credit | None | 7.49-12.99% | N/A | Check rateon Funding U's websiteon Funding U's website | |
4.5/5 Best for Private loans for no credit | None | 7.53-8.85% | N/A | ||
4.0/5 Best for Private loans for international students with no credit | N/A | 13.72-15.01% | N/A | Check rateon MPOWER's websiteon MPOWER's website | |
4.0/5 Best for Income-based private student loan for no credit | None | N/A | N/A |
Our pick for
Student loan for bad credit
Federal Subsidized/Unsubsidized Loan
None
4.99-6.54%
N/A
Federal direct loans offer generous repayment flexibility and among the lowest fixed-interest rates you’ll find.
- More flexible repayment options for struggling borrowers than other lenders.
- Subsidized loans do not collect interest while in school or during deferment.
- Lower interest rates compared with private lenders.
- You pay an origination fee.
- No credit check or minimum income is needed to borrow.
- Loan amounts for undergraduates: $5,500 year one, $6,500 year two, $7,500 year three and thereafter, up to a total of $31,000
- Independent students and graduate students have higher loan limits.
- Undergraduate interest rate fixed at 3.73%, while grad students get higher 5.28% rate
Our pick for
Private loans for bad credit
College Ave Private Student Loan
Mid-600s
4.74-15.32%
4.74-15.32%
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- More flexible repayment options than other lenders.
- Six-month grace period extension is available.
- You must be at least halfway through your repayment term before you can request a co-signer release.
- Typical credit score of approved borrowers: Mid-700s.
- Minimum income: $35,000 per year.
- Loan amounts: $1,000 up to cost of attendance.
ISL Private Student Loan
670
3.85-7.91%
4.44-8.89%
- Forbearance of 24 months is longer than many lenders offer.
- No late fees.
- Only offers 2 loan terms.
- Typical credit score of approved borrowers or co-signers: 670.
- Minimum income: No minimum income.
- Loan amounts: $1,001 or $2,001, based on residency and school location, up to cost of attendance minus other aid received.
Our pick for
Private loans for no credit
Ascent Non-Cosigned Student Loan
Varies
12.96-14.24%
12.35-14.31%
Ascent offers a future income-based option that doesn't require a co-signer and evaluates your application based on factors like earning potential, major and attendance in school.
- Among the best for payment flexibility.
- Grace period of 9 months is longer than most lenders.
- International students are not eligible.
- Freshmen, sophomores and those enrolled less than half-time are not eligible for future-income based loan.
- Typical credit score of approved borrowers: Did not disclose.
- Minimum income: $24,000 per year for credit-based loan. No minimum for future-income based loan.
- Loan amounts: $2,001 to $200,000 per year with an aggregate loan limit of $200,000 for credit-based loan. $2,001 to $20,000 per year for future-income based loan.
Funding U Private Student Loan
None
7.49-12.99%
N/A
- You don't need a co-signer or credit history to get a loan.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Loans aren't available in 14 states.
- Payment required while in school and during the grace period.
- Typical credit score of approved borrowers: 650.
- Minimum income: No minimum, but borrowers must demonstrate they can pay $20 per month toward their loan.
- Loan amounts: $3,001 up to $10,000.
A.M. Money Private Student Loan
None
7.53-8.85%
N/A
Chicago Student Loans by A.M. Money is best for students who don’t have a co-signer, have a strong GPA and attend one of the schools A.M. Money works with. It is affiliated with Illinois, but lends to schools all over the country.
- GPA is used to determine eligibility instead of credit or a co-signer.
- Offers a hard-to-find, temporary income-based repayment option for up to 36 months.
- All borrowers get the same fixed rate, benchmarked to the federal PLUS loan rates.
- Works with a limited list of schools.
- Charges an origination fee.
- Does not allow for bi-weekly payments via autopay.
- Typical credit score of approved borrowers: Credit and a co-signer are not required. Approval is based on GPA.
- Minimum income: No minimum. Approval is based on GPA.
- Loan amounts: $2,001 up to the full cost of attendance, maximum $50,000
Our pick for
Private loans for international students with no credit
MPOWER Private Student Loan
N/A
13.72-15.01%
N/A
While MPOWER’s interest rates are relatively high, the lender offers a hard-to-find option: student loans for international students without requirements for a credit score or a co-signer.
- Offers a hard-to-find option: non-co-signed student loans for international and DACA students.
- Borrowers are assigned a dedicated student loan advisor.
- Borrowers can request forbearance of up to 24 months, which is longer than many lenders offer.
- Payment required while in school and during the grace period.
- Offers only one repayment term: 10 years.
- MPOWER considers future income potential but does not factor in credit scores.
- Loan amounts: Minimum $2,001. Maximum loan is $100,000, limited to $25,000 per academic period.
Our pick for
Income-based private student loan for no credit
- No credit history required.
- Available to students without a co-signer.
- No payment required if borrower's income is less than $30,000 per year.
- Borrowers have to repay 2.25X the borrowed amount if they want to pay off the loan early.
- Not available to freshmen and sophomores receiving a four-year degree.
- Not available to borrowers in Colorado, Maine, Vermont and West Virginia.
Current student loan interest rates for bad credit and no-credit borrowers
The NerdWallet team of student loans experts analyzed reported rates from seven lenders who offer student loans to borrowers with bad credit or no credit. The analysis covers a period of 39 months. We did not consider lenders whose interest rate is tied to an income share agreement percentage. We did, however, consider lenders with and without minimum credit requirements.
Our analysis included four variables — average maximum fixed rates, average minimum fixed rates, average maximum variable rates and average minimum variable rates — for each lender on a month-over-month basis.
Not all lenders included offer variable rates.
The average rates as of Mar. 10, 2023, are:
Minimum fixed interest rate - 6.03%.
Maximum fixed interest rate - 15.15%.
Minimum variable interest rate - 6.05%.
Maximum variable interest rate - 14.79%.
Niche-lender rates — such as those specializing in bad and no-credit borrowers — tend to follow the trend line of private student loan origination interest rates in general. The reported rates represent lenders' advertised ranges.
In some cases, you may be better off with an income share agreement-type student loan. Instead of paying a predetermined interest rate on your borrowed balance, you will repay your loan based on an agreed upon percentage of your post-graduation income.
Make sure to weigh the risks before deciding on this type of loan.
Rates on loans designed for independent students, who may not have established credit, are typically higher than rates on credit-based loans.
Consider multiple lenders, your offered rates and the terms and conditions around repayment before you commit. Adding a creditworthy co-signer to an application for a credit-based loan could improve your offer.
Use this chart to gauge how your student loan offers measure against typical interest rate ranges.
Student loan options for parents with bad credit
Parents with bad credit have fewer options for parent loans. You'll likely need a guarantor or a co-signer to qualify.
Federal PLUS loans require parent borrowers to not have adverse credit history — a negative mark on your credit history such as charged-off payments, default or bankruptcy.
If your PLUS loan application is denied you can try to get an endorser (similar to a co-signer) who can qualify for a parent PLUS loan. Or you can appeal the decision with the Department of Education by providing documentation of extenuating circumstances.
Your next best option is to look for private student loans for parents that allow you to have a co-signer.
STUDENT LOAN RATINGS METHODOLOGY
Our survey of more than 29 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.
We consider 40 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.
The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
Read more about our ratings methodologies for student loans and our editorial guidelines.
Last updated on March 10, 2023
NerdWallet's Student Loans for Bad Credit or No Credit
- Federal Subsidized/Unsubsidized Loan: Best for Student loan for bad credit
- College Ave Private Student Loan: Best for Private loans for bad credit
- ISL Private Student Loan: Best for Private loans for bad credit
- Ascent Non-Cosigned Student Loan: Best for Private loans for no credit
- Funding U Private Student Loan: Best for Private loans for no credit
- A.M. Money Private Student Loan: Best for Private loans for no credit
- MPOWER Private Student Loan: Best for Private loans for international students with no credit
- Edly Private Student Loan: Best for Income-based private student loan for no credit
Frequently asked questions
- Where can I get a student loan with bad credit?
Start with federal undergraduate student loans, which don't require a specific credit score. For private loans consider lenders like Ascent and A.M. Money; ISAs like Stride Funding or Avenify; or MPOWER if you're an international student.
- Can you get a student loan with poor credit?
Most federal student loans don’t require a credit history, making them your best option if you have poor credit. Most private options require good credit or a co-signer with good credit.
- What credit score do you need for a student loan?
Federal student loans don't have a minimum credit score. If you need a private student loan after exhausting federal aid, you’ll typically need a FICO score above 690 to qualify.
- How can you get a private student loan with poor credit?
If you have poor credit, you’ll likely need a co-signer to qualify for a private student loan. A few lenders offer loans without credit or co-signer requirements — but their interest rates are higher.
- Are there student loans that don't require a credit check?
There’s no credit check for federal undergraduate student loans. While some private lenders don’t require a specific credit score, they may still check for negative credit history like loan defaults.
