Best of

6 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 the lender's requirements to see if you could be eligible.

Last updated on June 21, 2024
Written by 
NerdWallet
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NerdWallet’s

Best of Award Winner
Best Student Loan For Independent Students
Ascent Non-Cosigned Student Loan
Ascent Non-Cosigned Student Loan
Ascent Non-Cosigned Student Loan
5.0
NerdWallet rating
Min. credit score
Low-Mid 600s
Fixed APR
12.63-14.59%
Variable APR
13.47-15.41%
on Ascent's website
More details

Why our nerds love it

Ascent scores highest among the few lenders offering private student loans that don’t require credit history or a co-signer, and it serves the most schools. Read our methodology

Read our methodology
See all winners

Student Loans for Bad Credit or No Credit

Lender
NerdWallet Rating
Min. credit score
Fixed APR
Variable APR
Learn more
Federal Subsidized/Unsubsidized Loan

Federal Subsidized/Unsubsidized Loan

Read review

None

5.50-7.05%

N/A

Ascent Non-Cosigned Student Loan

Ascent Non-Cosigned Student Loan

Check rate
on Ascent's website
on Ascent's website
2024 Best Student Loan For Independent Students
5.0
/5
Best for Private loans for no credit

Low-Mid 600s

12.63-14.59%

13.47-15.41%

Check rate
on Ascent's website
on Ascent's website
Funding U Private Student Loan

Funding U Private Student Loan

Check rate
on Funding U's website
on Funding U's website
4.5
/5
Best for Private loans for no credit

None

7.95-12.49%

N/A

Check rate
on Funding U's website
on Funding U's website

Our pick for

Student loan for bad credit

Federal Subsidized/Unsubsidized Loan
Read review
Federal Subsidized/Unsubsidized Loan

Federal Subsidized/Unsubsidized Loan

5.0
Min. credit score

None

Fixed APR

5.50-7.05%

Variable APR

N/A

Key facts

Federal direct loans offer generous repayment flexibility and among the lowest fixed-interest rates you’ll find.

Pros
  • 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 than many private lenders.
Cons
  • You pay an origination fee.
Qualifications
  • 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
Available Term Lengths10 to 25 years once repayment begins, depending on the repayment plan.
Read Full Review

Our pick for

Private loans for no credit

Ascent Non-Cosigned Student Loan
Check rate
on Ascent's website
on Ascent's website
Ascent Non-Cosigned Student Loan

Ascent Non-Cosigned Student Loan

Min. credit score

Low-Mid 600s

Fixed APR

12.63-14.59%

Variable APR

13.47-15.41%

Key facts

Ascent offers an outcomes-based option that doesn't require a co-signer and evaluates your application based on factors like earning potential, major and attendance in school.

Pros
  • Among the best for payment flexibility.
  • Grace period of 9 months is longer than most lenders.
Cons
  • International students are not eligible.
  • Freshmen, sophomores and those enrolled less than half-time are not eligible for the Outcomes-based loan.
Qualifications
  • 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.
Available Term Lengths5, 7, 10, 12 or 15 years
DisclaimerAscent’s undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations, terms and conditions may apply for Ascent's Terms and Conditions please visit: AscentFunding.com/Ts&Cs. Rates displayed above are effective as of 10/1/2024 and reflect an Automatic Payment Discount of 0.25% for credit-based college student loans and 1.00% discount on outcomes-based loans when you enroll in automatic payments. The Full P&I (Immediate) Repayment option is only available for college loans (except for outcomes-based loans) originated on or after June 3, 2024. For more information, see repayment examples or review the Ascent Student Loans Terms and Conditions. The final amount approved depends on the borrower’s credit history, verifiable cost of attendance as certified by an eligible school, and is subject to credit approval and verification of application information. Lowest interest rates require full principal and interest (Immediate) payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the examples above, based on the amount of time you spend in school and any grace period you have before repayment begins. 1% Cash Back Graduation Reward subject to terms and conditions. For details on Ascent borrower benefits, visit AscentFunding.com/BorrowerBenefits. The AscentUP platform is only available to eligible Ascent borrowers and subject to terms and conditions.
Funding U Private Student Loan
Check rate
on Funding U's website
on Funding U's website
Funding U Private Student Loan

Funding U Private Student Loan

4.5
Min. credit score

None

Fixed APR

7.95-12.49%

Variable APR

N/A

Key factsBest for high-achieving independent students enrolled in four-year programs who have small funding gaps.
Pros
  • You don't need a co-signer or credit to get a loan.
  • You can see if you’ll qualify and what rate you’ll get without a hard credit check.
Cons
  • Loans aren't available in 12 states.
  • Payment required while in school.
Qualifications
  • 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.
Available Term Lengths10 years
A.M. Money Private Student Loan

A.M. Money Private Student Loan

Min. credit score

None

Fixed APR

7.95-8.87%

Variable APR

N/A

Key facts

Best for students who have a strong GPA and attend one of the schools A.M. Money works with. They primarily work with students in Illinois that attend school in the state.

Pros
  • 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.
Cons
  • Works with a limited list of schools.
  • Charges an origination fee.
Qualifications
  • 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
Available Term Lengths10 years

Our pick for

Private loans for international students with no credit

MPOWER Private Student Loan
Check rate
on MPOWER's website
on MPOWER's website
MPOWER Private Student Loan

MPOWER Private Student Loan

Min. credit score

None

Fixed APR

12.99-15.99%

Variable APR

N/A

Key facts

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.

Pros
  • 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.
Cons
  • Payment required while in school.
  • Offers only one repayment term: 10 years.
Qualifications
  • MPOWER considers future income potential but does not factor in credit scores.
  • Loan amounts: Minimum $2,001. Maximum loan is $100,000, limited to $50,000 per academic period.
Available Term Lengths10 years
DisclaimerNote: Our loan does not support Canadian citizens studying in Canada. Canadian Permanent Residents and U.S. citizens are considered “international” when studying in Canada. International students, U.S. citizens, U.S. permanent residents, and DACA recipients in the U.S. or Canada. ‘International’ means you are a non-U.S. citizen or U.S. non-permanent resident studying at a university in the U.S., or you are a non-Canadian citizen or Canadian non-permanent resident studying at a university in Canada. ‘DACA’ means the Deferred Action For Childhood Arrivals Program initiated by the U.S. Department of Homeland Security in 2012. In order to qualify as a DACA Student, you must have applied for, and been granted, DACA status by USCIS. As a graduate student, you can borrow with a fixed interest rate of 12.99% (13.98% APR¹). This is the maximum rate and will not increase. However, MPOWER offers borrowers a way to qualify for a discount; a 0.25% rate discount is possible by making your loan payments through automatic withdrawal from your bank account. If you qualify for this discount, your rate will be 12.74% (13.72% APR²). ¹[International graduate student with regular interest rate] The APR is calculated using the following assumptions: A loan is approved in the amount of US$10,000 with a 5% origination fee of US$500. The student will start making payments 45 days after loan disbursement. Payments will be interest only until graduation, plus an additional 6-month grace period. The remaining months of repayment are calculated using a 120-month amortization schedule. All payments are made on-time, a forbearance is never utilized, and there is no pre-payment of any principal. At an APR of 13.98%, the monthly payment amount is US$113.66 for the first 30 months. For the next 120 months, the monthly payment amount is about $156.71. ²[International graduate student with discounted interest rate] The APRs with discounts are calculated using the following assumptions: A loan is approved in the amount of $10,000 with a 5% origination fee of US$500. The student will start making payments 45 days after loan disbursement. The borrower signs up for automatic debit immediately after the loan is disbursed and remains on it for the life of the loan, which reduces the rate by 0.25%. At an APR of 13.72%, the monthly payment is US$111.47 for the first 30 months. For the last 120 payments, the monthly amount is US$155.17. Undergraduate Students in the U.S. or Canada As an undergraduate student, you can borrow with a fixed interest rate of 13.99% (15.01% APR³). This is the maximum rate and will never increase. However, MPOWER offers borrowers a way to qualify for a discount; a 0.25% rate discount is possible by making your loan payments through automatic withdrawal from your bank account. If you qualify for this discount, your rate will be 13.74% (14.75% APR⁴). ³[International undergraduate student with regular interest rate] The APR is calculated using the following assumptions: A loan is approved in the amount of $10,000 with a 5% origination fee of $500. The student will start making payments 45 days after loan disbursement. Payments will be interest only until graduation plus an additional 6-month grace period. The remaining months of repayment are calculated using a 120-month amortization schedule. All payments are made on-time, a forbearance is never utilized, and there is no pre-payment of any principal. At an APR of 15.01%, the monthly payment amount is $122.41 for the first 30 months. For the next 120 months, the monthly payment amount is $162.97. ⁴[International undergraduate student with discounted interest rate] The APRs with discounts are calculated using the following assumptions: A loan is approved in the amount of US$10,000 with a 5% origination fee of US$500. The student will start making payments 45 days after loan disbursement. The borrower signs up for automatic debit immediately after the loan is disbursed and remains on it for the life of the loan, which reduces the rate by 0.25%. A forbearance is never utilized and there is no prepayment of any principal. At an APR of 14.75%, the monthly payment is US$120.22 for the first 30 payments. For the last 120 payments, the monthly amount is US$161.39.

Our pick for

Income-based private student loan for no credit

Edly Non-Cosigner Student Loan
Check rate
on Edly's website
on Edly's website
Edly Non-Cosigner Student Loan

Edly Non-Cosigner Student Loan

Min. credit score

Varies

Fixed APR

N/A

Variable APR

9.40-23.00%

Key factsBest for seniors and graduate students with small funding gaps and no co-signer or credit history.
Pros
  • No credit history required.
  • Available to students without a co-signer.
Cons
  • Borrowers have to repay 2.25X the borrowed amount if they want to pay off the loan early.
  • Low income forbearance is not automatic and interest accrues.
  • Not available to borrowers in Colorado, Connecticut, Iowa, Maine, Nebraska, Vermont and West Virginia.
Available Term Lengths5 years of payments and up to 10 years with deferment periods.

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 26 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.

Last updated on June 21, 2024

Frequently asked questions

  • 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; an ISA like Stride Funding; or MPOWER if you're an international student.

  • 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.

  • 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 670 to qualify.

  • 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.

  • 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.

To recap our selections...

NerdWallet's Student Loans for Bad Credit or No Credit

  • Federal Subsidized/Unsubsidized Loan: Best for Student loan 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 Non-Cosigner Student Loan: Best for Income-based private student loan for no credit

Further reading

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