Best of

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.

NerdWallet
By
Last updated on February 23, 2024
Edited by
✅ Fact checked and reviewed
Des Toups
Edited by
✅ Fact checked and reviewed

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NerdWallet's student loans content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in consumer lending. Their work has appeared in The Associated Press, The New York Times, The Washington Post, Nasdaq, MSN, ABC News, MarketWatch and many other national and regional media outlets. They also have appeared on NerdWallet's “Smart Money” podcast, as well as local TV and radio.
NerdWallet’s Best-Of Award Winner
Best Student Loan For Independent Students
Ascent Non-Cosigned Student Loan
Ascent Non-Cosigned Student Loan
5.0
NerdWallet rating
Check rateon Ascent's website
on Ascent's website
WHY OUR NERDS LOVE ITAscent Independent Student Loan scores highest among the few lenders offering private student loans that don’t require a credit history or a co-signer.
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
Best for Student loan for bad credit

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
5.0
/5
Best for Private loans for no credit

Low-Mid 600s

12.94-14.93%

13.27-15.18%

College Ave Undergraduate Student Loan

College Ave Undergraduate Student Loan

Check rate
on College Ave's website
on College Ave's website
5.0
/5
Best for Private loans for bad credit

Mid-600s

4.07-15.48%

5.59-16.69%

Check rate
on College Ave's website
on College Ave'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

12.94-14.93%

Variable APR

13.27-15.18%

Key facts

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.

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 future-income 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; and terms and conditions may apply. For Ascent Terms and Conditions please visit: AscentFunding.com/Ts&Cs. Rates are effective as of 3/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require interest-only 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 repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
Funding U Private Student Loan

Funding U Private Student Loan

4.5
Min. credit score

None

Fixed APR

6.99-12.99%

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 history 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 14 states.
  • Payment required while in school and during the grace period.
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

7.53-8.85%

Variable APR

N/A

Key facts

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.

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, benchmarked to the federal PLUS loan rates.
Cons
  • Works with a limited list of schools.
  • Charges an origination fee.
  • Does not allow for bi-weekly payments via autopay.
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 bad credit

College Ave Undergraduate Student Loan
Check rate
on College Ave's website
on College Ave's website
College Ave Undergraduate Student Loan

College Ave Undergraduate Student Loan

Min. credit score

Mid-600s

Fixed APR

4.07-15.48%

Variable APR

5.59-16.69%

Key factsBest for students who want to make payments while they're still in school.
Pros
  • 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.
Cons
  • You must be at least halfway through your repayment term before you can request a co-signer release.
Qualifications
  • Typical credit score of approved borrowers: Mid-700s.
  • Minimum income: $35,000 per year.
  • Loan amounts: $1,000 up to cost of attendance.
Available Term Lengths5, 8, 10 or 15 years
DisclaimerCollege Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. As certified by your school and less any other financial aid you might receive. Minimum $1,000. Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 3/7/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
ISL Private Student Loan

ISL Private Student Loan

Min. credit score

660

Fixed APR

3.85-8.40%

Variable APR

5.59-10.71%

Key factsBest for low-interest loans with consumer-friendly features, like a generous forbearance policy.
Pros
  • Forbearance of 24 months is longer than many lenders offer.
  • No late fees.
Cons
  • Only offers 2 loan terms.
Qualifications
  • 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.
Available Term Lengths10 or 15

Our pick for

Private loans for international students with no credit

MPOWER Private Student Loan

MPOWER Private Student Loan

Min. credit score

None

Fixed APR

13.74-15.01%

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 and during the grace period.
  • 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 $25,000 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

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, Iowa, Maine, 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 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.

Last updated on February 23, 2024

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
  • College Ave Undergraduate Student Loan: Best for Private loans for bad 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
  • ISL Private Student Loan: Best for Private loans for bad 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

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.

Further reading

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