Last Minute Student Loan Lenders for No Credit, No Co-signer or Quick Release Cosigner Loans

Shopping for a student loan when you have bad or no credit:

1. 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. Federal loans offer lower interest rates and come with income-driven repayment plans and forgiveness programs.

2. 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.

3. Compare loan features. When shopping for a private loan, compare offers to get the lowest interest rate you qualify for — especially if you have no or thin credit. Your rates will likely be higher. Also note whether the lender will postpone payments in case you have difficulty affording them, and for how long. That’s important. Find out how easily you can reach the lender by phone, email or live chat if you encounter a billing or customer service issue.

4. 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.

5. 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.

6. 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.

Have access to a co-signer?

Co-signing a private student loan is a big deal. Your co-signer will be just as responsible for repaying the loan as you are. But by opting for a loan with a fast release, you'll can let your parent, relative or friend off the hook sooner.

Almost all private student loans have a co-signer release option, but requirements vary — make sure you know all the fine print. Generally, you must:

1. MAKE AT LEAST 12 ON-TIME PAYMENTS

Depending on the lender, you must make 12, 24, 36 or 48 on-time payments before applying for a co-signer release. Often, those payments must be consecutive and without periods of forbearance. If you made fixed or interest-only payments during school, those may not count.

2. MEET THE INCOME AND CREDIT REQUIREMENTS

When you take out a student loan with a co-signer, you qualify based on their credit history and financial profile. To remove the co-signer, you must meet those requirements on your own.

You'll need good credit — a FICO score in the high 600s, at least — and enough income to afford your debt payments and other expenses. Most lenders also require that you graduate first and have U.S. citizenship or permanent resident status.

3. SUBMIT A CO-SIGNER RELEASE APPLICATION

Some lenders and servicers, including Sallie Mae, have co-signer release applications available online. Otherwise, contact your lender or servicer to request one.

You may need to disclose financial information including your income, housing payment and other debt payments. Your lender may also check your credit report and ask for income verification.

Release co-signers by refinancing student loans

If you can qualify for a lower interest rate on your own, student loan refinancing is generally a great option for co-signer release — it’ll remove your co-signer and save you money. You can refinance student loans in your own name if you have good credit, sufficient income and a track record of on-time payments.