Best student loans for bad credit

A credit score below 580 can make funding your education difficult, especially if you exhausted federal loans and grants. But there are options out there — just make sure to weigh all of the pros and cons before choosing a lender.

Compare the best private student loan for bad credit

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Name	Product	APR	Min. Credit Score	Loan amount	Loan Term
EDvestinU Private Student Loans		4.092% to 8.609% with autopay	675	$1,000 – $200,000	7 to 20 years	Straightforward student loans for undergraduate and graduate students.	Get started More Info	Compare	loading Fetching your data…
CommonBond Private Student Loans		3.74% to 10.74%	700	$5,000 – $500,000	5 to 15 years	Finance your college education through this lender with a strong social mission and terms that fit your budget.	Get started More Info	Compare	loading Fetching your data…
Edvisors Private Student Loan Marketplace		Varies by lender	Varies by lender	Varies by lender	Varies by lender	Quickly compare private lenders for your school and apply for the right student loan.	Get started More Info	Compare	loading Fetching your data…
Credible Labs Inc. (Student Loan Platform)		Starting at 1.24% with autopay	Good to excellent credit	Starting at $1,000	5 to 20 years	Get prequalified rates from private lenders offering student loans with no origination or prepayment fees.	Get started More Info	Compare	loading Fetching your data…

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3 best private student loans for bad credit

All three of these lenders offer loans that don’t use credit as a factor for approval. So you may be eligible, even with low or no credit.

• Ascent: Best for students with no credit
• Mpower: Best for international students
• FundingU: Best for high-performing students

Check eligibility

on Ascent Funding’s secure site

Best for students with no credit: Ascent Funding

None with cosigner
Min. Credit Score

3.27%
Starting APR

$200,000
Loan Amount

• Info
• Pros and cons
• Details

Ascent is well-known for working with students who struggle with credit and don’t have a cosigner. In fact, if you meet all of the other requirements for the loan, credit score isn’t even considered. However, loans are capped at $20,000 for borrowers applying for future income-based loans without a cosigner.

• Can apply for loans that aren’t credit-based
• Transparent terms and costs
• Autopay discount and cashback reward available

• Loans capped at $20,000 for noncredit loans
• Limited repayment plans for noncredit loans
• Freshmen and sophomores are not eligible

Min. Loan Amount	$2,001
Max. Loan Amount	$200,000
APR	1.82% to 10.32%
Interest Rate Type	Fixed and variable
Minimum Loan Term	60 months
Maximum Loan Term	180 months
Turnaround Time	Varies depending on certification time at your school

Read review

Best for international students: Mpower Financing student loans

Not required
Min. Credit Score

7.52%
Starting APR

$25,000
Loan Amount

• Info
• Pros and cons
• Details

Mpower provides loans to international and domestic students who struggle to get funding elsewhere. You don’t need to have a cosigner, collateral or credit history. Also, loans are available to students attending school in both the US and Canada.

• No credit score required
• Autopay discount available
• International students may be eligible

• High interest rates compared to other lenders
• Limited terms and repayment plans
• Multiple fees

Min. Loan Amount	$2,001
Max. Loan Amount	$25,000
APR	7.52% to 14.98%
Interest Rate Type	Fixed
Maximum Loan Term	120 months
Turnaround Time	4 to 8 days for approval

Read review

Best for high-performing students: FundingU student loans

Not required
Min. Credit Score

7.99%
Starting APR

$10,000
Loan Amount

• Info
• Pros and cons
• Details

FundingU is another lender that doesn’t use your credit score to approve or deny your loan. Instead they use their SMaRT (Student Merit and Risk Test) scoring model. This takes into account non-credit variables like your academic success, likelihood to graduate on time and projected earnings for your major. However, the company does not disclose their interest rates online so they could be very high.

• Credit score and debt-to-income ratio aren’t used
• Provides a dedicated loan advisor who acts as an advocate
• Autopay discount available

• Not available in all states
• Low maximum loan amounts
• Strict GPA and graduation requirements

Min. Loan Amount	$3,001
Max. Loan Amount	$10,000
APR	7.99% to 13.99%
Interest Rate Type	Fixed
Maximum Loan Term	120 months
Turnaround Time	6 to 8 days for approval

3 more private lenders that allow a cosigner

You may still get approved for a loan with a more traditional lender if you apply with a cosigner. Our top three picks include options for flexible repayments, multiyear approval and less than part-time students.

Read review

Best for flexible repayment options: College Ave Student Loan Refinancing

680
Min. Credit Score

Starting APR

$150,000
Loan Amount

• Info
• Pros and cons
• Details

CollegeAve understands that you might not have enough credit history to get a loan on your own, and encourages borrowers to use a cosigner. Once you have the loan, you can choose from multiple repayment plans and loan terms to tailor the loan to your needs.

• Multiple terms available
• Competitive low starting rates
• Cosigner release options

• Credit requirements aren’t transparent
• Forbearance and deferment unavailable

Min. Loan Amount	$5,000
Max. Loan Amount	$150,000
APR	2.94% to 5.09%
Interest Rate Type	Variable
Min. Credit Score	680
Minimum Loan Term	60 months
Maximum Loan Term	240 months

Read review

Best for multiyear approval: Discover undergraduate student loans

Not stated
Min. Credit Score

1.24%
Starting APR

Cost of attendance
Loan Amount

• Info
• Pros and cons
• Details

Discover is a well-known name for credit cards, but it also offers student loans — generally at pretty fair rates. You can qualify for loans up to your yearly cost of attendance, and you can prequalify for future loans with your initial application. But its required credit score is high, so students who have no credit or low credit will need a qualifying cosigner.

• Multiyear approval available
• Offers cash rewards for good grades
• No origination or late fees

• Only one term available
• No grace period following graduation
• Credit requirement of over 660

Min. Loan Amount	$1,000
APR	Variable APRs: 1.24% to 11.99% Fixed APRs: 4.24% to 12.99%
Interest Rate Type	Variable
Maximum Loan Term	180 months
Turnaround Time	Typically 3 to 5 weeks

Disclaimer

Disclaimer
1. Aggregate loan limits apply.
 2. Students who get at least a 3.0 GPA (or equivalent) qualify for a one-time cash reward on each new Discover undergraduate and graduate student loan. Reward redemption period is limited. Please visit DiscoverStudentLoans.com/Reward for any applicable reward terms and conditions.
3. Lowest APRs shown Discover Student Loans are available for the most creditworthy applicants for undergraduate loans, and include an interest-only repayment discount and Auto Debit Reward. The interest rate ranges represent the lowest and highest interest rates offered on Discover student loans, including undergraduate and graduate Loans. The fixed interest rate is set at the time of application and does not change during the life of the loan. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable margin percentage. For variable interest rate loans, the 3-Month LIBOR is 0.375% as of July 1, 2020. Discover Student Loans may adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the “interest rate change date”), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. Our lowest APR is only available to customers with the best credit and other factors. Your APR will be determined after you apply. It will be based on your credit history, which repayment option you choose and other factors, including your cosigner’s credit history (if applicable). Learn more about Discover Student Loans interest rates.

Read review

Best for less than half-time students: Sallie Mae® Smart Option Student Loan for Undergraduates

Not stated
Min. Credit Score

1.13%
Starting APR

Cost of attendance less financial aid
Loan Amount

• Info
• Pros and cons
• Details

SallieMae has been in the business of private student loans for many years. You can qualify for a Smart Option Student Loan even if you’re studying at less than half-time hours. In fact, you can use the loan for single classes, study abroad programs and summer or winter sessions.

• Available for students studying less than half time
• Six-month grace period
• Autopay discount available

• Not transparent about credit requirements
• Potentially high late fees
• Preapproval unavailable

Min. Loan Amount	$1,000
APR	1.13% to 11.23%
Interest Rate Type	Variable
Minimum Loan Term	60 months
Maximum Loan Term	180 months
Turnaround Time	10 days on average

Disclaimer

Disclaimer
Please read Sallie Mae’s disclosures which include typical repayment examples, autopay discounts, and eligibility.

How to get a student loan with bad credit

Working around bad credit to get a student loan can take extra research and a dash of creativity. You can read our guide to getting a student loan with bad credit to get more in-depth information. In the meantime, consider these tips:

1. Exhaust your federal loan options first
2. Apply for private loans with a cosigner
3. Take steps to build your credit before applying
4. Scope out high-earning majors
5. Rely on the total cost to guide your decision

How much will my loan cost me?

The overall cost of your loan can vary greatly based on factors like amount, loan term, repayment plan and interest rate. To get an idea of what your monthly payments might look like, use our calculator by entering in your potential APR, loan amount and term.

4 alternatives to a bad-credit student loan

Check out even more options — that don’t require a credit check — before you take out a personal loan.

• Work Study. This government-sponsored program assists colleges with employing active students. It allows you to work on campus with a schedule that works around your classes.
• Federal loans. If you absolutely need to take out loans, try federal loans first. You’re eligible for some without a credit check.
• Scholarships. Tons of different scholarships available, and the best part is the funds don’t have to be repaid. Look for ones that suit you best, and set an intention to apply for more than one.
• Crowdfunding. You can also reach out to your community. Try using GoFundMe or a similar crowdfunding site to allow friends and family to donate.

Bottom line

Having bad-credit doesn’t completely nix private student loans as an option. Specialty single-borrower and cosigner friendly loans exist and can help you fund your education — regardless of your credit. If you are looking for even more information on available loans, read our guide to student loans.

Frequently asked questions