Student Loans With No And Bad Credit Score

This article deals with the issue of getting a student loan without involving credit score. This highlights the advantages of federal loans as they do not require a credit score and also tells you how to deal with private loans with no or bad credit score

Updated by Anuroop C on 7th September 2020

The cost of education has been rising significantly since the past years. So are the costs associated with it, like accommodation, books, study material, etc. A vast majority of families sending their children to college often require financial help. Though all the scholarships and grants options are exhausted, costs mostly never meet and student loans become the only way to pay for college. However, many fail to qualify due to their bad credit score. One option that can be explored is the no credit check loans.

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7 Options for private student loans with a bad and no credit score

Private Student Loan Lenders always ask for a credit score. A minimum credit score of 690 is required to qualify as a good credit score. If you have a bad credit score (Credit score that ranges between 300 and 629) or if you have no credit score(usually for Students just starting college), there are the following ways to get a Student loan from a private lender.

Few private lenders are listed below who provides student loan with no/bad credit : 

Private lenders
Rate of interest
A.M. Money Private Student Loan 7.08 - 8.06%
Funding U private student loan 7.99-14.99%
Mpower 7.52-13.63%
Ascent 3.53 -14.50%
Stride Funding NA
Avenify NA
College Ave 650(other prequalification applicable)

A.M. Money Private Student Loan

  • A.M. Money Private Student Loan provides loans with a minimum of 660 credit score to none as a min credit score. Though they work only with a limited list of schools.

  • Provides temporary income-based repayment option for 3 years


  • Stride has many benefits which include not making payments if you're unemployed.

  • Credit check -None
  • Provide fee-free career services, including job placement support

  • It's not available in South Carolina.


  • Similar to stride Mpower require payments while in school.

  • They do not have longer repayment terms.

  • Forbearance of 2 years and the international student is eligible to take loans with Mpower


  • Ascent has a wide range of loans available

  • Credit check - 540 - 600

  • But very few repayment term lengths

  • Like other lenders, they offer 2-year forbearance

Funding U private student loan

  • Stride does not provide its service to many states and also not provide forbearance while the student is at school. Yet, they approve loans with no credit checks and no cosigner.

  • Credit check -Average credit heck - 650

  • These loans apply to international /DACA students.


  • Focus for loans only to nursing students, which is not applicable for Nursing certificate programs.

  • Credit check -None

  • Offers discount and you not required to make payment during unemployment

College Ave

  • Credit check - 600

  • Not flexible cosigner release programs

  • Grace period available with flexible repayment options

People with bad credit or no credit scores can also get student loans for their college expenses. It is possible to get a student loan with no credit check or bad credit and the most obvious choice is the Federal Student Loans. You can also get a student loan without a credit check from private lenders, but there is always a catch. You will most probably need a cosigner, although sometimes a cosigner may not be required. This article mentions two ways to proceed in case you don’t have a good credit score.

Private student loans with a Cosigner

To get a private student loan, a cosigner with a good credit score is usually required to sign up along with the applicant to qualify for a Student loan. It means that the cosigner shall be equally responsible for the repayment of your student loans. In case you miss out on a payment, then it shall affect their credit scores, thereby being held responsible for your mistakes. That is the reason why a cosigner is required. Though you can opt to release your cosigner once you project a good credit score. Student loans from a private lender with a cosigner can help you get a good rate of interest on your student loans while borrowing. Doing proper research is important as it can help you get a better Student Loan from a Private Lender. 

Private student loans without a Cosigner

Though it is tough to find a lender who can give you a student loan without a Credit score or a good credit score, it is not impossible. Private Student Loan lenders tend to increase the rate of interest for your loan amount if you have a bad credit score. 

They usually check with your future income potential, based on your course, your year of study, and the school you are studying in. A higher future income potential shall increase your chance of getting a Student loan with a lesser rate of interest and a better repayment plan and a higher principal amount.  But this is a rare case as many other factors can come into play and affect your chances of getting a student loan.

                                       Looking for student loans? Find the best student loans just for you.

Do Federal student loans require a credit score check?

Federal Student Loans do not require a credit score check. However, you must meet the eligibility criteria to get a Federal Student Loan. Getting a Federal Student Aid for paying your college tuition must be your number of priority, be with a good credit score or a bad credit score as they do not require a credit history and come with several benefits such as Income-Driven Repayment Plans or the loans forgiveness. Best Federal Loans are Direct Subsidized Loans, where the government pays the interest while you are enrolled in your college. Though Unsubsidized Direct Loans have a lower interest rate comparatively, the interest accumulates during your years of study in college.

You must first the process of applying to a student loan by filling out FAFSA(Free Application for Federal Student Aid). The form uses information about your family’s financial situation to determine your Expected Family Contribution (EFC). 

But, in most cases, Federal Student Loans alone do not fill the complete required amount and sometimes they do not amount to even a quarter of the total cost for college. In such conditions, it is important to look out for other options. They include Private Student Loans, personal loans, etc. 

How to look for student loans when you have bad credit scores?

It can be difficult to qualify for loans with bad credits. In most cases, most private student loans are given when you have a cosigner. Here is, what to do when you have bad or no credit.

  1. Compare the interest rates that are provided by each lender, if they provide forbearance or charge for late payments. Check for all these details before you take private loans. 

  2. Look out for fixed interest rates.

  3. Once you are employed with a stable income, you can opt to refinance with a lower rate of interest.

  4. Keep a track for loans you take, it is ideal not to choose many loans at multiple times.

  5. With choosing the right repayment plans you can always pay your loans back on time, so it should not concern you if you do not find a cosigner.

  6. Always consider applying for federal student loans as they do not require credit scores for approval.

  7. If you find no success with federal loans or other option, borrow your student loans with a cosigner who agree to be responsible for your loans.

  8. Consider refinancing your loans to get a lower rate of interest once you have a good income, or check for a cosigner with a good credit score to support you. 

You can apply for grants and scholarships which you do not owe back. Work part-time at school to save for your studies. Apply to be a resident advisor to get free housing. There are also many options to avoid debt.

Other options for getting student loans with no or low credit

There are some other options to get a Student loan with a bad credit score or no credit score. They are as follows:

Parent Loan

Your parents can take a loan on your behalf by giving their credit scores. In case your parents have already taken a student loan for you, another person can take a student loan on your behalf, provided they have a good credit score. Parent loans do not necessarily mean that only the students' parents can take a loan. Even a person you know and who are willing to help you out in your education can take a parent loan to help you with your college tuition.

State Loans

Not all. but some states offer valuable resources for students attending college in states that do sponsor student lending. For example, the Dakota Education Alternative Loan(DEAL) allows you to borrow up to $50,000 if you are studying in North or South Dakota, Minnesota, Wyoming, or Wisconsin, and all your Federal aid options are exhausted. Some others include SELF loans by The Minnesota Office of Higher Education (up to $10,000 annually), etc.

Personal Loans

This is the least recommended option, but still, it is possible to pay for your college expenses by taking out a personal loan with no credit check. It is highly advised that you borrow a personal loan to make expenses meet such as for study material or hostel fees but NOT your tuition fees. There are different types of personal loans such as Secured Loans and Unsecured Loans.

It is a very common issue of not having a good credit score. And it can be important for you to borrow a loan to complete your education. So you must try to cover your fees in Federal Student Aid, to the most. You must seek a private loan only after you have exhausted all your Federal Student Aid options. And personal loans should only be your last resort. But before you agree to get one of these loans it is important to read the fine print to understand all of the student loans and its terms
  and get a good idea of how much amount you will be paying in the end.

Once you have completed your school and built a solid credit profile, you can choose for a solid Student Loan Repayment Options or you can also opt for Student loan refinancing to a lower interest rate. Check out the Best Companies to Refinance Your Student Loans.

Research loans with local/regional banks and credit unions

Major banks and organizations have strict guidelines for lending money as they have criteria for borrowers like credit check and income level and after evaluating they grant loans. Likewise, the Local and regional credit unions have the underwriting guidelines that they use when issuing loans.

For the person who has a limited credit history, the credit unions can benefit the student, and sometimes the small lenders are also a great help.

Some of the benefits of credit unions

  • As being  a not-for-profit credit union offer lower interest rates as compare to private loan lenders

  • Credit unions work for their members and try best in providing the best of services to their members. And to get the benefits of union you have to be a member of the union and it is pretty easy as they have general requirements with a minimal amount of registration so it is better to join a local credit union. 

Find lenders that do an alternative credit check

Another option for the borrowers who are looking for a loan without a credit check is to find a lender that offers alternative credit checks. Today there are several private lenders on the online portal who are creating new and innovative ways to determine creditworthiness as it helps in getting chosen by the borrower more often. 

It doesn’t mean that the lenders won’t evaluate the credit history, they will, but if the student doesn’t have that good credit score they also look on the student's academic performance, future job prospects, etc when deciding on lending loans and they consider giving a broader range to evaluate the student’s profile and lending money accordingly.