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 are included below.
If you have already exhausted your federal aid, school aid and scholarship opportunities, and are in need of funding for school, here’s our larger list of top-rated private student loan lenders: Best Private Student Loans: Reviewed and Ranked.
Annual Percentage Rates (APRs) displayed are effective as of 08/01/2026 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.
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/
The following examples for a $10,000 loan show a 48-month in-school period plus 9 months of grace prior to a full repayment term for 60-months (variable rate), with examples of (i) Interest Only payments, (ii) $25 Minimum payments, (iii) Deferred repayment, and (iv) Immediate Repayment options.
* Interest Only Repayment: 5.89% APR, with 57 payments of $49.08 while in-school/grace, 60 payments of $192.84 during the repayment term, and a total cost of $14,368.54.
* $25 Minimum Payment: 6.52% APR, with 57 payments of $25.00 while in-school/grace, 60 payments of $233.97 during the repayment term, and a total cost of $15,463.01.
* Deferred Repayment: 6.71% APR, with no payment while in-school/grace, 60 payments of $269.84 during the repayment term, and a total cost of $16,175.28.
* Immediate Repayment: 3.64% APR, with 60 payments of $182.55, and a total cost of $10,953.09.
The following examples for a $10,000 loan show a 48-month in-school period plus 9 months of grace prior to a full repayment term for 180-months (highest variable rate), with examples of (i) Interest Only payments, (ii) $25 Minimum payments, (iii) Deferred repayment, and (iv) Immediate Repayment options.
* Interest Only Repayment: 16.30% APR, with 57 payments of $135.75 while in-school/grace, 180 payments of $148.94 during the repayment term, and a total cost of $34,546.75.
* $25 Minimum Payment: 15.07% APR, with 57 payments of $25.00 while in-school/grace, 180 payments of $256.92 during the repayment term, and a total cost of $47,672.31.
* Deferred Repayment: 15.25% APR, with no payment while in-school/grace, 180 payments of $291.22 during the repayment term, and a total cost of $51,619.42.
* Immediate Repayment: 16.05% APR, with 180 payments of $147.21, and a total cost of $26,495.61.
Annual Percentage Rates (APRs) displayed are effective as of 08/01/2026 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.
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/
The following examples for a $10,000 loan show a 48-month in-school period plus 9 months of grace prior to a full repayment term for 60-months (variable rate), with examples of (i) Interest Only payments, (ii) $25 Minimum payments, (iii) Deferred repayment, and (iv) Immediate Repayment options.
* Interest Only Repayment: 5.89% APR, with 57 payments of $49.08 while in-school/grace, 60 payments of $192.84 during the repayment term, and a total cost of $14,368.54.
* $25 Minimum Payment: 6.52% APR, with 57 payments of $25.00 while in-school/grace, 60 payments of $233.97 during the repayment term, and a total cost of $15,463.01.
* Deferred Repayment: 6.71% APR, with no payment while in-school/grace, 60 payments of $269.84 during the repayment term, and a total cost of $16,175.28.
* Immediate Repayment: 3.64% APR, with 60 payments of $182.55, and a total cost of $10,953.09.
The following examples for a $10,000 loan show a 48-month in-school period plus 9 months of grace prior to a full repayment term for 180-months (highest variable rate), with examples of (i) Interest Only payments, (ii) $25 Minimum payments, (iii) Deferred repayment, and (iv) Immediate Repayment options.
* Interest Only Repayment: 16.30% APR, with 57 payments of $135.75 while in-school/grace, 180 payments of $148.94 during the repayment term, and a total cost of $34,546.75.
* $25 Minimum Payment: 15.07% APR, with 57 payments of $25.00 while in-school/grace, 180 payments of $256.92 during the repayment term, and a total cost of $47,672.31.
* Deferred Repayment: 15.25% APR, with no payment while in-school/grace, 180 payments of $291.22 during the repayment term, and a total cost of $51,619.42.
* Immediate Repayment: 16.05% APR, with 180 payments of $147.21, and a total cost of $26,495.61.
Annual Percentage Rates (APRs) displayed are effective as of 08/01/2026 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.
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/
The following examples for a $10,000 loan show a 48-month in-school period plus 9 months of grace prior to a full repayment term for 60-months (variable rate), with examples of (i) Interest Only payments, (ii) $25 Minimum payments, (iii) Deferred repayment, and (iv) Immediate Repayment options.
* Interest Only Repayment: 5.89% APR, with 57 payments of $49.08 while in-school/grace, 60 payments of $192.84 during the repayment term, and a total cost of $14,368.54.
* $25 Minimum Payment: 6.52% APR, with 57 payments of $25.00 while in-school/grace, 60 payments of $233.97 during the repayment term, and a total cost of $15,463.01.
* Deferred Repayment: 6.71% APR, with no payment while in-school/grace, 60 payments of $269.84 during the repayment term, and a total cost of $16,175.28.
* Immediate Repayment: 3.64% APR, with 60 payments of $182.55, and a total cost of $10,953.09.
The following examples for a $10,000 loan show a 48-month in-school period plus 9 months of grace prior to a full repayment term for 180-months (highest variable rate), with examples of (i) Interest Only payments, (ii) $25 Minimum payments, (iii) Deferred repayment, and (iv) Immediate Repayment options.
* Interest Only Repayment: 16.30% APR, with 57 payments of $135.75 while in-school/grace, 180 payments of $148.94 during the repayment term, and a total cost of $34,546.75.
* $25 Minimum Payment: 15.07% APR, with 57 payments of $25.00 while in-school/grace, 180 payments of $256.92 during the repayment term, and a total cost of $47,672.31.
* Deferred Repayment: 15.25% APR, with no payment while in-school/grace, 180 payments of $291.22 during the repayment term, and a total cost of $51,619.42.
* Immediate Repayment: 16.05% APR, with 180 payments of $147.21, and a total cost of $26,495.61.
If you’re looking for additional lender options, check out College Ave and Sallie Mae, who are both highly rated private student loan lenders:
| Company | Best for… | Rating (0-5) |
|---|---|---|
Terms & Disclosures
Information advertised valid as of 08/10/2026. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s). All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. College Ave Student Loan Servicing, LLC, NMLS#1263410 NMLS Consumer Access College Ave’s student loan products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or BTG Pactual Bank, N.A., member FDIC |
Best Overall |
Terms & Disclosures
Information advertised valid as of 08/10/2026. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s). All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. College Ave Student Loan Servicing, LLC, NMLS#1263410 NMLS Consumer Access College Ave’s student loan products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or BTG Pactual Bank, N.A., member FDIC |
Terms & Disclosures
Information advertised valid as of 08/11/2026 Borrow responsibly Loans for Undergraduate & Career Training Students are not intended for graduate students and are subject to credit approval, identity verification, signed loan documents, and school certification. Student must attend a participating school. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., and apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident). Requested loan amount must be at least $1,000. 1. Loan application must be submitted to see available rates. 2. Although we do not charge you a penalty or fee if you prepay your loan, any prepayment will be applied as provided in your promissory note — first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal. 3. Based on a comparison of the percentage of students who were approved with a cosigner to the percentage of students who were approved without a cosigner from October 1, 2023 to September 30, 2024. 4. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. 5. Advertised APRs for undergraduate students assume a $10,000 loan with a 4-year in-school period, a 6-month grace, and the longest loan term offered. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. 6. Savings comparison assumes a freshman student receives a $10,000 Smart Option Student Loan with the most common variable rate as of January 2025 and the longest loan term offered. 7. Examples of typical transactions for a $10,000 Smart Option Student Loan with the most common fixed rate, Fixed Repayment Option, two disbursements, a 4-year in-school period, and a 6-month grace: For a borrower with the shortest loan term, it works out to 16.16% fixed APR, 51 payments of $25.00, 119 payments of $296.32 and one payment of $41.82, for a total loan cost of $36,578.90. For a borrower with the longest loan term, it works out to 16.38% fixed APR, 51 payments of $25.00, 177 payments of $265.54 and one payment of $173.00, for a total loan cost of $48,448.58. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not. SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION. Sallie Mae loans are made by Sallie Mae Bank. |
Best for Fast Cosigner Release |
Terms & Disclosures
Information advertised valid as of 08/11/2026 Borrow responsibly Loans for Undergraduate & Career Training Students are not intended for graduate students and are subject to credit approval, identity verification, signed loan documents, and school certification. Student must attend a participating school. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., and apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident). Requested loan amount must be at least $1,000. 1. Loan application must be submitted to see available rates. 2. Although we do not charge you a penalty or fee if you prepay your loan, any prepayment will be applied as provided in your promissory note — first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal. 3. Based on a comparison of the percentage of students who were approved with a cosigner to the percentage of students who were approved without a cosigner from October 1, 2023 to September 30, 2024. 4. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. 5. Advertised APRs for undergraduate students assume a $10,000 loan with a 4-year in-school period, a 6-month grace, and the longest loan term offered. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. 6. Savings comparison assumes a freshman student receives a $10,000 Smart Option Student Loan with the most common variable rate as of January 2025 and the longest loan term offered. 7. Examples of typical transactions for a $10,000 Smart Option Student Loan with the most common fixed rate, Fixed Repayment Option, two disbursements, a 4-year in-school period, and a 6-month grace: For a borrower with the shortest loan term, it works out to 16.16% fixed APR, 51 payments of $25.00, 119 payments of $296.32 and one payment of $41.82, for a total loan cost of $36,578.90. For a borrower with the longest loan term, it works out to 16.38% fixed APR, 51 payments of $25.00, 177 payments of $265.54 and one payment of $173.00, for a total loan cost of $48,448.58. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not. SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION. Sallie Mae loans are made by Sallie Mae Bank. |
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.