To fill a gap in college costs, you may need to take out a private 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 requirement (though you’ll pay higher interest rates).
A private loan with a co-signer who has good credit.
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 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 and don't have a co-signer, you can consider 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.
Also consider a student loan with the fastest co-signer release: A co-signer release lets your parent, relative or friend off the hook for your student loan once you prove you’re capable of making payments on your own.
To get a co-signer release you must have at least one year of on-time payments and meet the lender's requirements on your own. If you have the opportunity to release your co-signer or be removed from a student loan you co-signed, seize it. There are two ways to remove a student loan co-signer:
Co-signer release.
Student loan refinancing.
If you qualify for a lower interest rate, student loan refinancing is generally the better option — 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.
If you can’t get a better interest rate through student loan refinancing, or you want to avoid the hassle of comparing interest rates and switching lenders, pursue a co-signer release.
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Review offers, from our partners, to shop for a student loan with no credit score or without a co-signer. 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.
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.
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 requirement (though you’ll pay higher interest rates).
A private loan with a co-signer who has good credit.
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 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 and don't have a co-signer, you can consider 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.
Also consider a student loan with the fastest co-signer release: A co-signer release lets your parent, relative or friend off the hook for your student loan once you prove you’re capable of making payments on your own.
To get a co-signer release you must have at least one year of on-time payments and meet the lender's requirements on your own. If you have the opportunity to release your co-signer or be removed from a student loan you co-signed, seize it. There are two ways to remove a student loan co-signer:
Co-signer release.
Student loan refinancing.
If you qualify for a lower interest rate, student loan refinancing is generally the better option — 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.
If you can’t get a better interest rate through student loan refinancing, or you want to avoid the hassle of comparing interest rates and switching lenders, pursue a co-signer release.
---
Review offers, from our partners, to shop for a student loan with no credit score or without a co-signer. 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.
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.
Almost all private student loans have a co-signer release option. Each lender has slightly different requirements; check with yours to make sure you know all the fine print. Generally, you must:
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.
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.
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.
It’s possible to apply for student loan refinancing with a co-signer.
Some student loan refinance lenders — including CommonBond, Laurel Road and PenFed — offer co-signer release. But other refinance lenders, such as SoFi and Earnest, don’t.
