Best Student Loans for Bad Credit in 2025 (Even With No Cosigner)

Trying to pay for college with bad credit—or no credit at all—can feel overwhelming. But your credit score doesn’t have to hold you back.

Whether you’re brand-new to building credit or just haven’t had a chance to improve your score, several student loan options are designed for you. Some don’t require a credit check at all. Others take your grades or future income potential into account instead.

This guide covers the best student loans for bad credit, including federal loans and private lenders. We’ll also walk through how to apply, when to consider a cosigner, and which alternatives might help if you’re still coming up short.

Let’s get you one step closer to funding your education—without the stress.

Loan or lender	Rates (APR)	Min. credit score
U.S. Dept. of Education	5.50% – 8.05%	None*
Funding U	7.49% – 12.99%	None
Ascent	3.69% – 16.20%	Varies by loan type
MPOWER	13.98% – 17.08%	None
Edly	Income-based	None

*No adverse credit history for Direct PLUS Loans

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

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.

Company	Best for…	Rates (APR)	Rating (0-5)
4.7 View Rates	Best for undergrads	5.59% – 16.99%	4.7 View Rates
4.6 View Rates	Best for international students	5.59%	4.6 View Rates
4.4 View Rates	Best for deferred payments	3.69% – 16.20%	4.4 View Rates
3.9 View Rates	Best for income-based repayment	N/A*	3.9 View Rates

*Edly student loans are based on income, but the annual percentage rate won’t exceed 23%

Funding U

Best for Undergraduates

4.7 _/5

View Rates

Why we picked it

Funding U is an online private student loan lender specializing in no-cosigner student loans for undergraduate students. The company’s loans are designed for students of all credit and income levels. You can get preapproved with a soft credit check.

Funding U offers fixed interest rates between 7.49% to 12.99% APR, and once you’re approved, you’ll get a dedicated loan officer. Your eligibility for the loan is based on academic performance, not your FICO score.

To qualify, you must be a U.S. citizen, permanent resident, or have DACA status. You must also be 18 or older and enrolled at least half-time in a bachelor’s degree program at a four-year not-for-profit college. You can borrow up to $20,000, and you have several repayment options while in school, including interest-only payments or $20 minimum monthly payments.

Eligibility is based on academic performance, not your FICO score
Every approved borrower is assigned a dedicated loan officer for support
Check your rate without affecting your credit

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

4.4 _/5

View Rates

Why we picked it

Ascent is a private student loan company that offers student loans for undergraduate and graduate students, including DACA and international students. One interesting perk Ascent offers is a 1% cash-back reward upon graduation.

You can check your rate without hurting your credit and choose between fixed and variable rates. Rates are between 8.49% to 15.40% for loans without a cosigner. While in school, you can make interest-only payments, $25 payments, or defer your payments.

Remember that the non-cosigned outcomes-based loan is only available to juniors and seniors who meet their credit criteria.

Student loans based on school performance for juniors and seniors
Option to defer payments until after your leave school
Get 1% cash back for graduating
Check your rate without affecting your credit score

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

4.6 _/5

View Rates

Why we picked it

MPOWER is a private student loan company that offers fixed-rate student loans to international students. These loans do not require borrowers to have a credit history, but they do conduct a credit review where they look at public record information to see if students have had late payments or other delinquencies.

MPOWER offers financial support to students attending over 400+ colleges in North America. You can apply for loans for a variety of programs, including bachelor’s degrees, master’s degrees, law school, medical school, business school, certain boot camps, and more.

Interest rates start at 13.98% APR, but you can get a 0.25% discount if you enroll in automatic payments. You can borrow up to $100,000, but you must make interest-only payments while in school.

Fixed-rate loans for international students
No credit history required, but can’t have late payments or delinquencies
Interest-only payments required while in school

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

3.9 _/5

View Rates

Why we picked it

Edly offers private student loans for juniors and seniors, graduates, and career-based education that also offers a unique repayment strategy. Your monthly payments are based on your income, and you don’t start repaying your loans until your annual gross salary is $30,000 or more.

You do have to meet specific academic requirements to get approved for an Edly loan. They do not approve all majors, and you must be a U.S. citizen enrolled at a qualifying institution.

With Edly, you can borrow up to $15,000 per academic year, but the maximum you can borrow overall is $25,000.

Approval is based on a model that predicts career success
Cosigners are not required
Checking rates doesn’t affect your credit score

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

What credit score do I need for bad-credit student loans?

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 Unsubsidzed	None
Direct Plus	No adverse credit history
Funding U	None
Ascent	Varies by loan type
MPOWER	None
Edly	None

Can you get student loans for parents with bad credit?

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.

Is there a credit check for bad-credit student loans?

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.

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.

Erin Kinkade , CFP®, ChFC®

How to apply for bad-credit student loans

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.
Look into student loans for those without a cosigner. A few lenders offer student loans without a cosigner. These may have higher rates than federal loans or other private loans but could be necessary to help you cover college costs.

Alternatives to student loans for people with bad credit

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 odds of getting approved—and could even help you qualify for better interest rates. That’s because 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.

Should I add a cosigner to my student loan?

If you have bad or no credit, a cosigner can improve your chances of qualifying for a loan. Many 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.

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

Loan or lender	Rates (APR)	Min. credit score
U.S. Dept. of Education	5.50% – 8.05%	None; no adverse credit history for Direct PLUS
Funding U	7.49% – 12.99%	None
Ascent	4.09% – 16.08%	Varies by loan type
MPOWER	13.98% – 17.08%	None
Edly	Income-based	None