Being denied a student loan, even with a cosigner, can be disheartening, but it doesn’t mean your college plans are over. About 64% of cosigned private student loan applications were denied in 2020, so you’re not alone.
Let’s walk through exactly what to do next and explore options for students who want to avoid using a cosigner altogether.
Understand the role of a cosigner
Private lenders require a cosigner when the student can’t meet credit or income requirements alone. A cosigner agrees to repay the loan if you default, making your application less risky for the lender.
Find out why you were denied
The lender is required by law to tell you why your application was denied. Common reasons include:
- Low credit scores (student or cosigner)
- Insufficient income
- High debt
- Recent bankruptcies or missed payments
- Citizenship or enrollment issues
Check your and your cosigner’s credit reports for errors at AnnualCreditReport.com.
The actual denial doesn’t hurt your credit score. However, it is marked on your credit report as a hard inquiry. The effect on your credit score is low, but it can harm you if you have several hard inquiries.
Lenders can take that to mean you’re always looking for credit. If you’re applying with several lenders to compare offers, it’s best to do this all at the same time so potential lenders can see you’re shopping for a specific loan, not just going out and trying to get credit.
Take action with these 7 options
1. Apply with a different lender
Not all lenders have the same criteria. You may be denied by one and approved by another.
It’s OK to reapply immediately through a different lender that may have less strict guidelines, but if you choose to reapply with the same lender, it’s best to wait and work on the items that need improvement. That could mean increasing income or lowering overall debt
2. Find a new cosigner
If possible, ask another qualified family member or close friend with stronger credit to cosign.
3. Improve your credit
Build your score with a secured credit card, on-time payments, or small personal loans. Check your score regularly and dispute errors.
4. Explore federal student loans
Direct Subsidized and Unsubsidized Loans don’t require a cosigner. Revisit your FAFSA and speak with your school’s financial aid office to confirm eligibility.
5. Consider non-cosigned private student loans
Some lenders specialize in loans that don’t require a cosigner:
Ascent Funding, LLC products are made available through Bank of Lake Mills or DR Bank, each Member FDIC. Subject to credit approval. 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 06/01/2026 and reflect an Automatic Payment Discount (ACH). The ACH discount consists 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/
Ascent Funding, LLC products are made available through Bank of Lake Mills or DR Bank, each Member FDIC. Subject to credit approval. 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 06/01/2026 and reflect an Automatic Payment Discount (ACH). The ACH discount consists 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/
Ascent Funding, LLC products are made available through Bank of Lake Mills or DR Bank, each Member FDIC. Subject to credit approval. 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 06/01/2026 and reflect an Automatic Payment Discount (ACH). The ACH discount consists 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/
6. Explore alternative funding options
Look into income-share agreements (ISAs), tuition payment plans, or crowdfunding for education
7. Talk to your financial aid office
Your school may offer emergency grants, payment plans, or help you file an appeal for more aid.
About our contributors
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Written by Lindsay VanSomerenLindsay VanSomeren is a personal finance writer living in Suquamish, Washington. She's passionate about helping people manage their money better so that they can live the life they want. In her spare time, she enjoys outdoor adventures, reading, and learning new languages and hobbies.
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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 pack of senior rescue dogs. She has edited and written personal finance content since 2015.