Yes, you can get student loans with bad credit. Many federal student loans don’t require a credit check at all, and some private lenders approve borrowers without a cosigner by looking at academic performance or future income instead of credit history.
This guide breaks down your best student loan options for bad credit in 2026, starting with federal loans and then covering private lenders that work with students who have limited or poor credit, including no-cosigner options. We’ll also explain when private loans make sense, what to watch out for, and how to improve your approval odds.
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Can you get student loans with bad credit?
Yes, you can still qualify for student loans even if you have bad credit or no credit history.
Many federal student loans don’t use your credit score, and some private lenders approve borrowers based on factors like academic performance, enrollment status, or expected income instead of traditional credit criteria.
The key is understanding which options actually consider credit and which ones don’t. For most students, federal loans are the easiest place to start. Private loans can also work, but approval standards vary widely by lender.
| Situation | Best option |
|---|---|
| No credit or bad credit | Federal student loans |
| Bad credit, no cosigner, you’ve exhausted federal loan options | Funding U, Ascent (outcomes-based) |
| International student | MPOWER |
| Income-based repayment | Edly |
Federal student loans for bad credit
Most federal student loans don’t require a credit score, making them ideal for students with bad or no credit. To access these loans, you’ll need to complete the FAFSA.
Below, we have a quick look at your options.
If you know you need a private student loan for bad credit, click here to jump down to that section.
Direct Subsidized Loans
- Who qualifies? Undergraduate students with financial need
- Credit check? ❌ None
- Interest rate: 5.50% (fixed)
- Max loan amount: $23,000 total
- Repayment perks: No interest during school or deferment
- Learn more
Direct Unsubsidized Loans
- Who qualifies? Undergraduate and graduate students
- Credit check? ❌ None
- Interest rates: 5.50% (undergrad), 7.05% (grad)
- Max loan amount: $57,500 for undergrads; $20,500/year for grads
- Repayment perks: Optional in-school payments
- Learn more
Direct PLUS Loans
- Who qualifies? Graduate students and parents of undergrads
- Credit check? ✅ Required (no adverse credit)
- Interest rate: 8.05% (fixed)
- Max loan amount: Up to full cost of attendance
- Repayment perks: Optional in-school payments, 6-month grace period
- Learn more
Best private student loans for bad credit (including no-cosigner options)
Federal loans have some of the most flexible repayment options and typically have lower interest rates than private loans. However, if you need additional funding or aren’t eligible for federal loans, here are the best private student loan lenders for bad credit.
Funding U
Best for Undergraduates
Why it works for bad credit
- No credit score or cosigner required
- Approval based on grades, major, and school, not credit history
Funding U is built specifically for undergraduates who don’t have strong credit, or any credit at all. Approval is based on academic performance and school factors rather than a FICO score, and a cosigner isn’t required.
Good fit if you’re an undergrad at a four-year nonprofit school and don’t have established credit yet.
Loan details
| Rates (APR) | 5.59% – 16.99% |
| Loan amounts | $3,001 – $20,000 |
| Repayment terms | 5 or 10 years |
| Repayment plans | Interest-only or $20 fixed |
| Enrollment | Full-time |
| States | 38 states, excluding AK, ID, KY, ME, MS, MT, NV, NH, ND, RI, SD, and WY |
| Credit score | None |
| Annual income | None |
Ascent
Best for Deferred Payments
Why it works for bad credit
- Non-cosigned loan options available for qualified juniors and seniors
- Multiple in-school payment options to manage cash flow
Ascent offers multiple paths for borrowers with limited or imperfect credit, including outcomes-based loans for upperclassmen and options that don’t require a cosigner. It also rewards responsible borrowing with a graduation cash-back bonus.
Best for students who expect their financial situation to improve after graduation.
Loan details
| Rates (APR) | 3.69% – 16.20%* |
| Loan amounts | $2,001 – $200,000 |
| Repayment terms | 5, 7, 10, 12, or 15 years |
| Repayment plans | Interest-only, $25 flat, or deferred |
| Enrollment | At least half-time |
| States | All 50 states |
| Credit score | Varies by loan type |
| Annual income | Varies by loan type |
MPOWER
Best for International Students
Why it works for bad credit
- No U.S. credit history or cosigner required
- Designed for international and DACA students
MPOWER focuses on students who can’t qualify elsewhere due to lack of U.S. credit history. While it does review public records, it doesn’t require a traditional credit score or cosigner.
A great option if you’re studying in the U.S. and don’t have access to U.S.-based credit support.
Loan details
| Rates (APR) | 5.59% |
| Loan amounts | $2,001 – $100,000 |
| Repayment terms | 10 years |
| Repayment plans | Interest-only |
| Enrollment | At least half-time |
| States | All 50 states, Puerto Rico |
| Credit score | None |
| Annual income | Not disclosed |
Edly
Best for Income-Based Repayment
Why it works for bad credit
- No credit score or cosigner required
- Payments scale with income instead of fixed monthly amounts
Edly takes a different approach by tying repayment to your income instead of your credit score. Approval depends on academic and career factors, and payments don’t begin until you earn a minimum income.
Best for students in approved majors who want downside protection if income is lower after graduation.
Loan details
| Rates (APR) | Based on your income, but won’t exceed 23% |
| Loan amounts | $5,000 – $25,000 |
| Repayment terms | 60 payments or 2.25x the borrowed amount |
| Repayment plans | None |
| Enrollment | Full-time |
| States | Not disclosed |
| Credit score | None |
| Annual income | None |
Eligibility and approval factors
Even when credit is part of the application, it’s rarely the only factor lenders consider. Approval for student loans with bad credit usually depends on a mix of your enrollment status, income (or future earning potential), and whether you apply with a cosigner.
Below, we break down the most common eligibility questions borrowers ask when applying with bad or limited credit.
What credit score do I need?
The credit score you need to qualify for a student loan depends on the lender. Some lenders may have different requirements for borrowers who can add a cosigner. Here’s a recap of the credit score requirements from the lenders listed above.
| Loan or lender | Min. credit score |
| Federal Subsidized | None |
| Federal Unsubsidized | None |
| Direct Plus | No adverse credit history |
| Funding U | None |
| Ascent | Varies by loan type |
| MPOWER | None |
| Edly | None |
Is there a credit check?
Yes, all lenders will check your credit if you’re applying for a bad-credit student loan. You must supply your full legal name and Social Security number. The lender will then notify you whether you’re eligible for a loan.
Checking your credit doesn’t always mean the lender will use it to determine eligibility. Check the lender’s language to see what role the credit check may play.
Do I need a cosigner?
You don’t need one, but if you have bad or no credit, a cosigner can improve your chances of qualifying for a loan. Most private lenders will require a cosigner because most students don’t have a sufficient credit history to qualify for a loan.
If you have a creditworthy cosigner, apply for a loan with one of the lenders from our list of the best student loan companies.
If you don’t, the private lenders above offer no-cosigner student loans.
Can parents with bad credit borrow?
Parents with bad credit can qualify for Parent PLUS Loans, which are available to parents of undergraduate students. The federal government will run a credit check if you apply for a Parent PLUS loan. Parents of graduate or professional students are not eligible for a Parent PLUS loan.
Bad credit won’t limit a parent’s ability to take out a Parent PLUS loan, but an adverse credit history can.
Some private lenders offer loans to parents of students, but most require a good credit score to be eligible. If credit is a concern for a parent, the best option may be to let the child borrow through one of the options listed above, where they can prequalify without a hard credit check and then compare offers.
For students with bad credit due to no credit history, I suggest obtaining a secured credit card, making on-time monthly payments, and paying off the credit card each month. This will help increase your credit score, eventually allowing you to refinance your bad-credit student loans.
How to apply for student loans with bad credit
When shopping for federal or private student loans for bad credit, take the following steps to make sure you choose the best option.
- Exhaust all your scholarship and grant options. Apply for scholarships and grants before applying for a student loan because you don’t need to repay grants and scholarships.
- Check whether you are eligible for a work-study program. Work-study is a program where you get an on-campus job as part of your financial aid package. To land a work-study gig, complete the FAFSA as soon as possible because these positions are limited.
- Use federal student loans. Federal student loans often have lower interest rates and better repayment terms, including income-driven repayment plans and student loan forgiveness options. Complete the FAFSA to see what federal loans you are eligible for.
- Look for a creditworthy cosigner. A cosigner with a good credit score may help you qualify for private student loans with lower interest rates. The cosigner should understand the risks before finalizing the loan application.
Alternatives if you don’t qualify
Getting denied by one lender doesn’t mean you’re out of options. Before you give up, try checking with a few other lenders, especially those that work with students who have limited or no credit history.
If student loans still aren’t in the cards, here are a few other ways to pay for school.
Ask a cosigner to help
Having a trusted cosigner with good credit can improve your chances of approval and even help you qualify for better interest rates. A cosigner legally agrees to repay the loan if you don’t, which reduces the lender’s risk.
It’s a big ask, but if you have a parent, guardian, or close friend who’s willing to help, it could make a huge difference in your ability to afford college.
Best for cosigners: Sallie Mae Student Loans
Sallie Mae offers flexible private student loans and is a standout option for borrowers applying with a creditworthy cosigner. Its loans cover a wide range of expenses (tuition, books, even a laptop), and you can check your rate in minutes without affecting your credit.
Use a personal loan for non-tuition expenses
Most personal loan lenders don’t allow their loans to be used for college tuition or other direct educational expenses. But depending on the lender, you might be able to use a personal loan for related costs, like housing, food, transportation, or supplies, especially if you’re not currently enrolled.
It’s still a good idea to double-check the fine print before applying. And keep in mind that personal loans typically have shorter repayment terms and higher interest rates than student loans, so they’re best used as a last resort for short-term needs.
Best for little to no credit: Upstart Personal Loans
Upstart looks beyond your credit score when evaluating your application. If you need help covering essential non-tuition expenses while in school, it may be worth exploring, especially if you’re just starting to build credit.
Get a strategic part-time job
Many companies offer part-time workers tuition reimbursement opportunities. From the company’s point of view, it’s an enticing perk that helps talent stick around. As a part-time employee, you get an opportunity to fund your education.
Companies that offer tuition reimbursement to part-time employees include:
- Amazon
- Chipotle
- FedEx
- Home Depot
- Publix
- Starbucks
- Target
- UPS
Depending on the company, you might be eligible for tuition help on day one or need to wait several months.
Each company’s tuition reimbursement program has different rules, but part-time employment with the right company can cover some of your tuition costs.
FAQ
Can you get student loans for living expenses with bad credit?
Yes, student loans are not just for tuition. You can use them for several school expenses, including books, food, transportation, and other living expenses.
Fill out the FAFSA form or apply to a private lender indicating the total amount of money you need. Your school will deposit money that doesn’t go toward tuition in your account, and you can use that money for your living expenses, regardless of your credit score.
How can I improve my credit for better approval odds?
Improving your credit will make it easier the next time you borrow money. Start by paying all your bills on time every month. Your on-time payment history counts for 35% of your credit score; even one late payment can result in a 100-point drop. You can also set up automatic payments to avoid missing a payment.
The next most important factor is your credit utilization ratio: your credit balance divided by your total credit card limit. The Consumer Financial Protection Bureau explains that keeping that ratio below 30% shows lenders you’re responsible.
If it’s above 30%, it could hurt your credit score. If you already have a credit card, avoid opening new accounts or closing old accounts because doing so can lead to a short-term ding in your credit score.
How we chose the best bad-credit student loans
LendEDU evaluates student loan lenders to help readers find the best student loans. Our latest analysis reviewed 725 data points from 25 lenders and financial institutions, with 29 data points collected from each.
This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives. These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.
Recap of the best bad-credit student loans
About our contributors
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Written by Catherine CollinsCatherine Collins is a personal finance writer and author with more than 10 years of experience writing for top personal finance publications. As a mother to boy/girl twins, she is passionate about helping women and children learn about money and entrepreneurship. Cat is also the co-host of the Five Year You podcast.
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Edited by Kristen Barrett, MATKristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their three senior rescue dogs. She has edited and written personal finance content since 2015.