Best No-Credit-Check Student Loans

Student loans with no credit check can appeal to students with little credit history. The Consumer Financial Protection Bureau estimates that more than 80% of 18- to 19-year-olds don’t have a credit score.

If you lack a credit history and don’t have a creditworthy cosigner, you might still be able to pay for your education. We’ve found excellent options from the Department of Education and private lenders.

Lender	Best for	LendEDU rating
Dept. of Education	Federal student loans	Not rated
Funding U	Undergraduates	4.7/5
MPOWER	International students	4.6/5
Ascent	Deferred payments	4.3/5
Edly	Income-based repayment	3.9/5

Compare no-credit-check student loans

The Department of Education doesn’t generally require a credit check for student loans, but most private lenders do. The lenders below let you check your eligibility with a soft credit check, which doesn’t affect your credit score.

• Dept. of Education (Best for federal student loans)
• Funding U (Best for undergraduates)
• MPOWER (Best for international students)
• Ascent (Best for deferred payments)
• Edly (Best for income-based repayment)

How to qualify for no-credit-check student loans

When taking out student loans without a credit inquiry, it’s always best to start with federal student loans and then fill in the gap with private loans. The reason for this is simple: Federal loans come with fixed rates and additional repayment benefits.

You can follow a simple three-step process to get student loans with no credit check required: 

1. Fill out the FAFSA.
2. Review your federal student loan eligibility.
3. Compare private student loans.

Step 1: Fill out the FAFSA

Filling out the Free Application for Federal Student Aid (FAFSA) should be the first step for all students looking for financial aid. The Department of Education uses the information in your FAFSA to determine your eligibility for federal student loans, grants, and work-study programs.

You can complete and submit the FAFSA online. 

You’ll need to provide the following information:

• Your name and basic demographic information
• Dependency status
• Parents’ names and demographic information
• Financial information
• Information about the school(s) you’re applying to

Creating a Federal Student Aid (FSA) ID can speed up the application process when it’s time to sign and submit your form. Registering for an FSA ID and filling out the FAFSA is free. The federal FAFSA deadline is June 30 of each school year (e.g., June 30, 2025, for the 2024 – 2025 school year).

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Tip

You must submit the FAFSA every year you enroll in college to review your eligibility.

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Step 2: Review your federal student loan eligibility

Once you submit the FAFSA, you’ll get a Student Aid Index (SAI) that helps schools estimate your need for federal student loans and other aid. This is not a financial aid offer or award letter; you’ll get that from your school once you’re accepted. 

The U.S. Department of Education offers federal student loans through the Direct Loan Program to eligible undergraduate and graduate students, regardless of credit history. These loans include:

• Subsidized Direct Loans: These are available to undergraduates with demonstrated financial need, regardless of proof of income or credit score. Interest is subsidized for students while they’re still in school, during the repayment grace period, and if loans are put into deferment after graduation.
• Unsubsidized Direct Loans: These are available to undergraduates and graduate or professional students. Income and credit score do not matter, nor does financial need for this type of loan. Interest is not subsidized and continues to accrue while in school.

Another type of federal loan—the PLUS Loan—is available to graduate students and parents of dependent undergraduates. It requires a credit check, but borrowers with an adverse credit history can still qualify if they meet other requirements. 

The federal government imposes annual and aggregate federal student loan limits. If you’ve reached your limit without receiving enough money to cover your full cost of attendance, you might consider private student loans.

Step 3: Compare private student loans with no credit check

If you’ve exhausted your federal student loan options and still don’t have enough money to pay for school, private student loans with no credit check can help you cover the rest of your education costs. 

Your options will be limited; most private lenders prefer creditworthy borrowers they consider likely to repay. Having someone cosign a student loan for you could make it easier to get approved and get favorable terms. 

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Tip

If you find a cosigner, check out our picks for the best private student loans for an expanded list of choices.

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Here are four options if you’re looking for a private student loan with no credit check or cosigner.

4 best no-credit-check lenders

Funding U

Best for Undergraduates

4.7 _/5

LendEDU Rating

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Why we picked it

Funding U is the best no-credit-check student loan option for undergraduates. Unlike many private lenders, Funding U focuses not on your credit history but on whether your academic achievements suggest you’re likely to repay your loan.

Students can apply online and prequalify for a loan in just two minutes without affecting their credit scores. But if you get approved and decide to borrow, the lender will check your credit report in the underwriting process to verify the debt and prevent fraud.

• No fees or prepayment penalties
• No cosigner needed
• Get preapproved in minutes

Loan details

Rates (APR)	8.49% – 13.99%
Loan amounts	$3,001 – $20,000
Repayment terms	5 or 10 years
In-school repayment plans	Full, interest-only, $20 flat
Enrollment	Full time at a four-year college
States	All except Alaska, Idaho, Kentucky, Maine, Mississippi, Montana, Nevada, New Hampshire, North Dakota, Rhode Island, South Dakota, and Wyoming
Credit score	None required
Income	No minimum

MPOWER

Best for International Students

4.6 _/5

LendEDU Rating

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Why we picked it

MPOWER loans are best for international students and DACA recipients without a credit history, but U.S. citizens can apply. MPOWER checks your credit history if available, but one is not required to apply. Instead, the company focuses on your future earning potential.

The company accepts any currency during repayment because loans are available to students from over 190 countries. No prepayment penalties apply if you pay off your loan early.

• Schools in the U.S. and Canada are eligible
• 0.25% autopay discount
• Free visa support letter and job board access

Loan details

Rates (APR)	13.98% – 17.08%
Loan amounts	$2,001 – $100,000
Repayment terms	10 years
In-school repayment plans	Full or interest-only
Enrollment	Undergrad or grad student within 2 years of graduation or about to begin a 1- or 2-year program
States	All 50 states
Credit score	None required
Income	No minimum

Ascent

Best for Deferred Payments

4.3 _/5

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Why we picked it

Ascent is best for juniors and seniors who are looking for non-cosigned loans with deferred payments. It lets you prequalify without affecting your credit score. However, if you apply, Ascent will run a credit check to gauge your eligibility. 

Juniors and seniors who don’t qualify for the credit-based loan can apply for Ascent’s Outcomes-Based Loan. You don’t need credit to qualify for this loan, just a solid academic record and a minimum 3.0 GPA.

• Autopay discount of up to 1%
• 1% Cash Back Back Graduation Reward
• Grace periods from 9 to 36 months, depending on the program and level of study

Loan details

Rates (APR)	4.29% – 16.76%
Loan amounts	$2,001 – 100% of certified costs
Repayment terms	5, 7, 10, 12, 15, or 20 years
In-school repayment plans	Progressive, full, interest-only, $25 flat, or deferred
Enrollment	At least half-time
States	All 50 states, Washington, D.C., and Puerto Rico
Credit score	None required for Ascent’s Outcomes-Based Loan
Income	None required for Ascent’s Outcomes-Based Loan

Edly

Best for Income-Based Repayment

3.9 _/5

LendEDU Rating

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Why we picked it

Edly is the best option for juniors, seniors, and grad students with limited credit seeking an income-based repayment option. With Edly, approval hinges on your school and program rather than your credit score. That’s why Edly can approve nearly three times more borrowers than other private lenders.

You won’t pay an interest rate with an Edly loan. Repayment is based on your salary and only begins once you have an annual gross income of over $30,000.

• Prequalify in 30 seconds
• Adjust your payments if your income changes
• 4-month grace period for non-cosigned loans

Loan details

Rates (APR)	Not disclosed; No more than 23% effective APR
Loan amounts	$5,000 – $15,000; $25,000 lifetime limit
Repayment terms	84 months
In-school repayment plans	Full, deferred, or flat $25
Enrollment	At least half-time
States	All states except Colorado, Iowa, Maine, Vermont, and West Virginia
Credit score	No minimum
Income	No minimum to apply

Our expert’s take

Chloe Moore

CFP®

Federal student loan interest rates are the same for all borrowers and are set annually by Congress. This rate is fixed for the life of the loan. If you have a high credit score, you can qualify for the best interest rates with private loans. Sometimes, these rates can be lower than federal rates. Expect to pay a higher interest rate on a no-credit-check student loan.

Steps after taking out student loans with no credit check

The benefits of no-credit-check student loans don’t stop at covering tuition. After you’re approved, you can use these loans to establish your credit.

Every month, your lender will report your payment—or lack thereof—to the credit bureaus. If you repay your loans as agreed, you’ll see your credit score climb. Falling behind on your payments could damage your burgeoning score. 

Our expert’s recommendation

Chloe Moore

CFP®

If possible, look for ways to build credit early. Two easy ways to do this are being added as an authorized user to a parent’s credit card (assuming they have good credit and make on-time payments) or getting a secured credit card. If you don’t have time to build your credit, consider federal student loans before no-credit-check private loans.

To maximize the potential benefit to your credit, try these strategies:

• Pay on time, every time. Payment history makes up 35% of your credit score, so staying current on your loan is essential.
• Ask your lender whether it imposes payment cutoff times. If it does, submit your payments ahead of that deadline so they post on time.
• Consider dividing your payments into weekly or biweekly installments. This can help you save on interest and pay off your loan faster.

Our expert’s advice

Chloe Moore

CFP®

Student loans affect your credit score like any other loan. Making on-time payments and keeping your total debt to a minimum are effective ways to improve your credit over time. It’s important to be mindful of how much student loan debt you’re taking on and what income you expect to earn in your field after graduation. 

Building a positive payment history with your no-credit-check loan is well worth the effort. Should you need additional funding for school, you’ll likely have the credit score needed to qualify with even more lenders.

You may even be able to borrow at lower rates and with better terms. Even better than having options is having affordable options—and the work you put in now can help you secure both.

FAQ

What are no-credit-check student loans?

No-credit-check student loans are a type of loan that does not require the borrower to undergo a credit check during the application process. These loans are typically designed for students who have limited or poor credit histories and might not qualify for traditional private student loans.

Instead of relying on the borrower’s credit score, lenders may consider other factors such as income, employment history, and educational background when approving the loan.

How do no-credit-check student loans work?

No-credit-check student loans work by assessing the borrower’s eligibility based on criteria other than credit history. Lenders may consider factors such as the borrower’s current income, the school they are attending, and the expected future income after graduation.

These loans often require a cosigner, such as a parent or guardian, who has a stronger credit history. These loans may come with higher interest rates and stricter repayment terms to mitigate the risk the lender takes.

Who is eligible for no-credit-check student loans?

Eligibility for no-credit-check student loans often extends to students who have limited or no credit history, making it difficult for them to qualify for traditional private student loans. These loans may also be available to students who have poor credit but demonstrate the ability to repay the loan through other means, such as a steady income or a reliable cosigner.

Specific eligibility requirements vary by lender, so applicants should check the criteria of the loan they’re considering.

Are interest rates higher for no-credit-check student loans?

Yes, interest rates are generally higher for no-credit-check student loans compared to traditional student loans because lenders perceive a higher risk in lending to individuals without established credit histories or with poor credit.

Lenders charge higher interest rates to compensate for this increased risk and may impose additional fees. Borrowers should review the terms and conditions of these loans to understand the total cost of borrowing and ensure they can manage the repayment terms.

How we selected the best no-credit-check 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 no-credit-check student loans

Lender	Best for
Dept. of Education	Federal student loans
Funding U	Undergraduates
MPOWER	International students
Ascent	Deferred payments
Edly	Income-based repayment