4 Student Loans for Bad Credit or No Credit
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You don’t need a credit check to qualify for most federal student loans, making them an ideal first choice for borrowing with no or bad credit. Federal student loans also offer flexible repayment options, fixed interest rates and forgiveness programs.
However, federal loans have borrowing limits. If there’s still a cost gap to fill, consider private student loans from a bank, credit union or online lender that doesn't have credit score requirements or accepts co-signers.
Here are our picks for student loans for bad or no credit. Continue reading for tips on how to apply for student loans when you have bad credit.
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- 35+ student loans lenders reviewed and rated by our team of experts.
- 10+ years of combined experience covering higher education and student loans.
- Objective, comprehensive star-rating system assessing 43 categories and 40+ data points across student loan origination and student loan refinance.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Why trust NerdWallet
- 35+ student loans lenders reviewed and rated by our team of experts.
- 10+ years of combined experience covering higher education and student loans.
- Objective, comprehensive star-rating system assessing 43 categories and 40+ data points across student loan origination and student loan refinance.
- Governed by NerdWallet's strict guidelines for editorial integrity.
NerdWallet's
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.
Student Loans for Bad Credit or No Credit
Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
5.0 /5 | None | 6.39-7.94% | N/A | ||
2024 Best Student Loan For Independent Students 5.0 /5 | Low-Mid 600s | 12.98-14.93% | 12.87-14.81% | See Offers on Ascent's website | |
4.5 /5 | None | 7.95-12.49% | N/A | See Offers on Funding U's website | |
4.0 /5 | None | 12.99-15.99% | N/A | See Offers on MPOWER's website |
Our pick for
Best student loan for bad credit
Federal Subsidized/Unsubsidized Loan
None
6.39-7.94%
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.
Our pick for
Private loans for bad or no credit
Ascent Non-Cosigned Student Loan
Low-Mid 600s
12.98-14.93%
12.87-14.81%
- 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: $30,000 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 yearsDisclaimer*Ascent’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. Annual Percentage Rates (APRs) displayed above are effective as of 7/1/2025 and reflect an Automatic Payment Discount of 0.25% on credit-based college student loans submitted prior to 6/1/2025, a 0.5% discount for on credit-based college student loans submitted on or after 6/1/2025 and a 1.00% discount on outcomes-based loans when you enroll in automatic payments. Loans subject to individual approval, restrictions and conditions apply. Loan features and information advertised are intended for college student loans and are subject to change at any time. 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. Variable rates may increase after consummation.1% Cash Back Graduation Reward subject to terms and conditions. For details on Ascent borrower benefits, visit AscentFunding.com/BorrowerBenefits. Ascent applicants and borrowers that agree to the AscentUP Terms of Service and Privacy Policy, as well as students associated with an Ascent parent loan application, have access to the AscentUP platform.
Funding U Private Student Loan
None
7.95-12.49%
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
MPOWER Private Student Loan
None
12.99-15.99%
N/A
- Key factsBest for international students and students with Deferred Action for Childhood Arrivals, or DACA, status.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 yearsDisclaimerNote: 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.
Can I apply for student loans with bad credit?
Even with bad or no credit, you can still apply for student loans. Here are the steps to take:
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 free aid such as grants, scholarships and work-study. Federal student loans don't have credit requirements, and they come with income-driven repayment plans and forgiveness programs.
Supplement with co-signed private loans. If federal loans don't cover your expenses and you need a private loan, applying with a co-signer with good credit and steady income will help you qualify and get a good rate. Your co-signer will 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 that don't factor in credit scores when determining eligibility. Instead, they consider factors like future income potential, major and GPA.
Compare loan features. When shopping for a private loan, compare offers to get the lowest interest rate you qualify for. Find out if there are origination, prepayment or late fees, and note whether the lender will postpone payments in case you have difficulty affording them. Finally, determine 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 since it won’t increase or change over time.
Keep an eye on the bottom line. Use a student loan calculator to see your monthly payments and total interest costs.
How to get private student loans with bad 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 may be higher.
Most private lenders require borrowers to have a credit score in the mid-600s or higher. 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.
A private loan with a co-signer who has good credit.
Can I refinance student loans with bad credit?
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, good credit and a history of on-time debt payments.
Federal student loans can also be refinanced. However, this is a risky move, because refinancing federal loans makes you permanently ineligible for federal protections like loan forgiveness and monthly payments based on your income.
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 alternatives
If you don’t qualify for student loans due to poor credit, there are alternatives to college to consider. Apprenticeships, trade school, community college and bootcamps offer educational training that typically costs less than a four-year degree.
You may also be able to find jobs that will pay for college. Starbucks, for instance, pays 100% of employee tuition for a first-time bachelor’s degree through Arizona State University’s online program.
STUDENT LOAN RATINGS METHODOLOGY
Our survey of more than 19 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 June 5, 2025
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 Funding U.
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 in the mid-600s or higher to qualify.
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.
NerdWallet's Student Loans for Bad Credit or No Credit
- Federal Subsidized/Unsubsidized Loan: Best for Best student loan for bad credit
- Ascent Non-Cosigned Student Loan: Best for Private loans for bad or no credit
- Funding U Private Student Loan: Best for Private loans for bad or no credit
- MPOWER Private Student Loan: Best for Private loans for bad or no credit
