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.
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 |
---|---|---|---|---|---|
![]() Federal Subsidized/Unsubsidized Loan | Best for Student loan for bad credit | None | 4.99- | N/A | Read review |
College Ave Private Student Loan Check rate on College Ave's website | Best for Private loans for bad credit | Mid- | 3.99- | 3.99- | Check rate on College Ave's website |
![]() ISL Private Student Loan | Best for Private loans for bad credit | 670 | 3.85- | 4.44- | Read review |
Ascent Independent Student Loan Check rate on Ascent's website | Best for Private loans for no credit | Varies | 9.83- | 9.05- | 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 | 7.53- | 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 | 13.72- | N/A | Check rate on MPOWER's website |
![]() Edly Private Student Loan | Best for Income-based private student loan | 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 bad credit
on College Ave's website
College Ave Private Student Loan
Min. credit score
Mid-Fixed APR
3.99-Variable APR
3.99-on College Ave's website
ISL Private Student Loan

Min. credit score
670Fixed APR
3.85-Variable APR
4.44-Our pick for
Private loans for no credit
on Ascent's website
Ascent Independent Student Loan
Min. credit score
VariesFixed APR
9.83-Variable APR
9.05-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
7.53-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
13.72-Variable APR
N/Aon MPOWER's website
Our pick for
Income-based private student loan
Edly Private Student Loan

Min. credit score
NoneFixed APR
N/AVariable APR
N/ACurrent 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 Jan. 11, 2023, are:
Minimum fixed interest rate - 7.27%.
Maximum fixed interest rate - 15.01%.
Minimum variable interest rate - 6.12%.
Maximum variable interest rate - 13.81%.
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. Average rates showed larger increases over the past month. 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 January 11, 2023
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
- College Ave Private Student Loan: Best for Private loans for bad credit
- ISL Private Student Loan: Best for Private loans 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
- Edly Private Student Loan: Best for Income-based private student loan
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.