No-Credit-Check Student Loans in 2025: Best Options for Students With Limited Credit

Getting denied for a student loan—whether it’s a federal PLUS loan or a private one—can be frustrating and confusing. Maybe you don’t have a credit history yet, or the credit you do have isn’t strong enough. Maybe you found someone willing to cosign, but their credit score didn’t pass the lender’s requirements either. Or, perhaps you’re an international student or DACA recipient worried that your citizenship status or lack of U.S. credit will hurt your chances.

Whatever your situation, the good news is that you still have options. Some lenders and programs are designed specifically for students with no credit or no eligible cosigner. Others look beyond your credit report to factors like academic performance, career potential, or the school you attend.

In this guide, we’ll walk you through several student loan options that don’t rely on traditional credit checks—so you can move forward with your education, even if your credit history is a work in progress.

Table of Contents

1. Federal student loans that don’t require a credit check
2. Best private student loans with no credit check
   1. Funding U
   2. MPOWER
   3. Ascent
   4. Edly
3. How to qualify for no-credit-check student loans
4. Repayment tips for student loans with no credit check

Federal student loans with no credit check

The absolute best place to start when you need college financing and don’t have credit is federal student loans and financial aid. 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. 

Here’s a quick glance at the federal student loan types, who’s eligible, and if they require a credit score. Check out our complete federal student loans guide for more information.

Loan type	Eligible students	Credit check required?
Direct Subsidized	Undergrads with financial need	No
Direct Unsubsidized	Undergrads, grads, and professional students	No
Parent PLUS	Parents of dependent undergrads	Yes
Grad PLUS	Grad and professional students	Yes

Best private student loans with no credit check

If you were denied a federal Parent PLUS or Grad PLUS loan because of a credit issue—or you’ve already used all your federal loan eligibility—private student loans might be your next option. But most private lenders require either you or a cosigner to have good credit, often a score in the mid-600s or higher. That can be a hurdle if you’re just starting out financially or your cosigner doesn’t meet those standards either.

The good news is that a few private lenders take a different approach.

• Some evaluate academic factors like your school, major, GPA, and expected graduation date to determine whether you’re likely to repay.
• Others focus on your future earning potential—especially if you’re studying in a high-demand field—rather than your current income or credit history.
• A few structure loans more like income share agreements (ISAs) or flat-fee repayment plans, where you repay based on how much you earn after graduation.

These options can give you more flexibility and access, even if you don’t have a credit score—or a qualifying cosigner.

Below are our top picks for no-credit-check student loans. While none of these lenders require a strong credit history for approval, some may still run a soft or hard credit inquiry during the process for verification or fraud prevention.

Funding U

Undergraduates Without Credit or a Cosigner

4.7 _/5

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Why we picked it

Funding U is ideal for undergraduates with no credit and no eligible cosigner. Instead of using credit scores, it looks at your GPA, major, class year, and graduation timeline to decide if you’re likely to repay. It’s a strong option if you were denied a private loan due to limited credit—or your cosigner didn’t qualify.

• Approval based on academic track record
• No cosigner required
• No fees or prepayment penalties

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

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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

Outcomes-Based Loan for Juniors and Seniors

4.4 _/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)	12.86% – 15.40%
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

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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

How to qualify for no-credit-check student loans

If you’re applying for a student loan without strong credit—or without a cosigner—here’s what to expect and how to prepare:

• You may still need to verify identity and income. Even if lenders don’t use credit scores, they often request proof of enrollment, academic transcripts, or estimated graduation date.
• Some lenders ask for your GPA or major. Academic standing or field of study may be used to evaluate your likelihood of repaying the loan.
• Be ready to share future plans. Lenders like MPOWER or Edly may ask for expected income after graduation or post-college employment goals.
• Expect limits on loan amounts. No-credit-check loans often come with lower borrowing caps than traditional loans with a cosigner.
• If you have a cosigner with low credit, proceed with caution. A weak cosigner may hurt your chances—or result in worse loan terms. In many cases, applying on your own with a lender that doesn’t require a cosigner may be the better move.
• International or DACA students may need extra documentation. This could include a passport, visa, or proof of U.S. school enrollment.

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.

Repayment tips for 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. 

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.

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.

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.