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Best student loans for bad credit
Top-notch loans for low- and no-score borrowers.
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
How we picked these lenders
When choosing these three lenders, we looked at the overall quality and prioritized flexible eligibility requirements, low interest rates and high borrowing limits.
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
Best for students with no credit: Ascent private student loans
540
Min. Credit Score
Min. Credit Score
2.46%
Starting APR
Starting APR
$200,000
Loan Amount
Loan Amount
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 | $1,000 |
|---|---|
| Max. Loan Amount | $200,000 |
| APR | 2.46% to 12.40% |
| Interest Rate Type | Fixed and variable |
| Min. Credit Score | 540 |
| Minimum Loan Term | 60 months |
| Maximum Loan Term | 240 months |
| Turnaround Time | Varies depending on certification time at your school |
Best for international students: Mpower Financing student loans
Not required
Min. Credit Score
Min. Credit Score
7.52%
Starting APR
Starting APR
$25,000
Loan Amount
Loan Amount
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 |
Best for high-performing students: FundingU student loans
Not required
Min. Credit Score
Min. Credit Score
7.99%
Starting APR
Starting APR
$10,000
Loan Amount
Loan Amount
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.
Best for flexible repayment options: College Ave Student Loan Refinancing
680
Min. Credit Score
Min. Credit Score
Starting APR
$150,000
Loan Amount
Loan Amount
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 |
| Interest Rate Type | Variable |
| Min. Credit Score | 680 |
| Minimum Loan Term | 60 months |
| Maximum Loan Term | 240 months |
Best for multiyear approval: Discover undergraduate student loans
Not stated
Min. Credit Score
Min. Credit Score
1.99%
Starting APR
Starting APR
Cost of attendance
Loan Amount
Loan Amount
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: 1.99% to 8.37% Fixed APRs: 4.49% to 9.49% |
| Interest Rate Type | Variable |
| Maximum Loan Term | 180 months |
| Turnaround Time | Typically 3 to 5 weeks |
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.
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.
Best for less than half-time students: Sallie Mae® Smart Option Student Loan
Not stated
Min. Credit Score
Min. Credit Score
1.25%
Starting APR
Starting APR
Cost of attendance
Loan Amount
Loan Amount
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 |
|---|---|
| Interest Rate Type | Variable |
| Minimum Loan Term | 60 months |
| Maximum Loan Term | 180 months |
| Turnaround Time | 10 days on average |
Disclaimer
This information is for undergraduate students attending participating degree-granting schools. Borrowers must be U.S. citizens or U.S. permanent residents if the school is located outside of the United States. Non-U.S. citizen borrowers who reside in the U.S. are eligible with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident) and are required to provide an unexpired government-issued photo ID to verify identity. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.
1 Lowest rates shown include the auto debit discount. Information advertised valid as of 11/25/2020. Interest is charged throughout the life of the loan—beginning with disbursement, during school, through any grace/separation period, and ending when the loan is paid in full. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a freshman. Borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month and may be suspended during periods of forbearance or deferment, if available for the loan.
2 Loan amount cannot exceed the cost of attendance less financial aid received as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount.
3 This repayment example is based on a typical Smart Option Student Loan made to a freshman borrower who chooses a variable rate and the Fixed Repayment Option for a $10,000 loan, with two disbursements, and a 10.81% variable APR. It works out to 51 payments of $25.00, 119 payments of $191.03 and one payment of $121.54, for a Total Loan Cost of $24,129.11. Variable rates may increase over the life of the loan.
This information is for undergraduate students attending participating degree-granting schools. Borrowers must be U.S. citizens or U.S. permanent residents if the school is located outside of the United States. Non-U.S. citizen borrowers who reside in the U.S. are eligible with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident) and are required to provide an unexpired government-issued photo ID to verify identity. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.
1 Lowest rates shown include the auto debit discount. Information advertised valid as of 11/25/2020. Interest is charged throughout the life of the loan—beginning with disbursement, during school, through any grace/separation period, and ending when the loan is paid in full. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a freshman. Borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month and may be suspended during periods of forbearance or deferment, if available for the loan.
2 Loan amount cannot exceed the cost of attendance less financial aid received as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount.
3 This repayment example is based on a typical Smart Option Student Loan made to a freshman borrower who chooses a variable rate and the Fixed Repayment Option for a $10,000 loan, with two disbursements, and a 10.81% variable APR. It works out to 51 payments of $25.00, 119 payments of $191.03 and one payment of $121.54, for a Total Loan Cost of $24,129.11. Variable rates may increase over the life of the loan.
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:
- Exhaust your federal loan options first
- Apply for private loans with a cosigner
- Take steps to build your credit before applying
- Scope out high-earning majors
- 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.
Student loan calculator
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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.
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