8 Student Loans for Bad Credit or No Credit
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.
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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.
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 more on 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, as well as how to shop for a loan if you have 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.
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 more on 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, as well as how to shop for a loan if you have no credit.
Student Loans for Bad Credit or No Credit
Lender | NerdWallet rating | Min. credit score | Fixed APR | Variable APR | Learn more |
---|---|---|---|---|---|
![]() Federal Subsidized/Unsubsidized Loan | Best for Student loan for bad credit | None | 4.99- | N/A | Read review |
Ascent Independent Student Loan Check rate on Ascent's website | Best for Private loans for no credit | Varies | 8.58- | 6.62- | Check rate on Ascent's website |
Funding U Private Student Loan Check rate on Funding U's website | Best for Private loans for no credit | None | 7.49- | N/A | Check rate on Funding U's website |
![]() A.M. Money Private Student Loan | Best for Private loans for no credit | None | 7.08- | N/A | Read review |
![]() MPOWER Private Student Loan Check rate on MPOWER's website | Best for Private loans for international students with no credit | N/A | 4.89- | N/A | Check rate on MPOWER's website |
![]() Prodigy Private Student Loan | Best for Private loans for international students with no credit | N/A | N/A | 7.52- | Read review |
![]() Stride Funding Income Share Agreement Check rate on Stride's website | Best for Income Share Agreement | None | N/A | N/A | Check rate on Stride's website |
![]() Avenify Income Share Agreement | Best for Income Share Agreement for Nursing Students | None | N/A | N/A | Read review |
Our pick for
Student loan for bad credit
Federal Subsidized/Unsubsidized Loan

Min. credit score
NoneFixed APR
4.99-Variable APR
N/AOur pick for
Private loans for no credit
on Ascent's website
Ascent Independent Student Loan
Min. credit score
VariesFixed APR
8.58-Variable APR
6.62-on Ascent's website
on Funding U's website
Funding U Private Student Loan
Min. credit score
NoneFixed APR
7.49-Variable APR
N/Aon Funding U's website
A.M. Money Private Student Loan

Min. credit score
NoneFixed APR
7.08-Variable APR
N/AOur pick for
Private loans for international students with no credit

on MPOWER's website
MPOWER Private Student Loan

Min. credit score
N/AFixed APR
4.89-Variable APR
N/Aon MPOWER's website
Prodigy Private Student Loan

Min. credit score
N/AFixed APR
N/AVariable APR
7.52-Our pick for
Income Share Agreement

on Stride's website
Stride Funding Income Share Agreement

Min. credit score
NoneFixed APR
N/AVariable APR
N/Aon Stride's website
Our pick for
Income Share Agreement for Nursing Students
Avenify Income Share Agreement

Min. credit score
NoneFixed APR
N/AVariable APR
N/AStudent 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 you 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 January 20, 2022
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 Independent 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
- Prodigy Private Student Loan: Best for Private loans for international students with no credit
- Stride Funding Income Share Agreement: Best for Income Share Agreement
- Avenify Income Share Agreement: Best for Income Share Agreement for Nursing Students
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; ISAs like Stride Funding or Avenify; 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 690 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.