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
College Ave undergraduate student loans		2.49% to 13.85%	Not stated	Starting at $1,000	5 to 15 years	Rates start at 2.84% for residents of all 50 states. Read College Ave’s disclosures for typical repayment examples, autopay discounts, and eligibility.	Get started	Compare	loading Fetching your data…
Sallie Mae® Smart Option Student Loan for Undergraduates		3.37% to 13.72%	Not stated	Starting at $1,000	5 to 15 years	Choose from over 8 different options for undergraduates, law students and more.Read Sallie Mae’s disclosures for typical repayment examples, autopay discounts, and eligibility.	Get started More Info	Compare	loading Fetching your data…
Ascent Funding		3.04% to 11.55%	None with cosigner	$2,001 – $200,000	5 to 15 years	Read Ascent Funding’s disclosures for typical repayment examples, autopay discounts, and eligibility.	Get started	Compare	loading Fetching your data…
Edly		No interest rate	No minimum	Up to $25,000	Varies	Read Edly's disclosures for typical repayment examples, autopay discounts, and eligibility.	Get started	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

Best for students with no credit

Ascent Funding

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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.

• Pros and cons

  Pros

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

  Cons

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

• More details

  Minimum Loan Amount	$2,001
  Max. Loan Amount	$200,000
  APR	3.04% to 11.55%
  Interest Rate Type	Fixed and variable
  Fixed rate	4.12% to 14.27%
  Minimum Loan Term	5 years
  Maximum Loan Term	15 years
  Requirements	Student must be US citizen, permanent resident, DACA recipient or US temporary resident, enrolled at least half-time in degree program at eligible institution. Cosigner must be US citizen or permanent resident, have 620+ credit score.

Pros

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

Cons

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

• More details

  Minimum Loan Amount	$2,001
  Max. Loan Amount	$200,000
  APR	3.04% to 11.55%
  Interest Rate Type	Fixed and variable
  Fixed rate	4.12% to 14.27%
  Minimum Loan Term	5 years
  Maximum Loan Term	15 years
  Requirements	Student must be US citizen, permanent resident, DACA recipient or US temporary resident, enrolled at least half-time in degree program at eligible institution. Cosigner must be US citizen or permanent resident, have 620+ credit score.

APR	3.04% to 11.55%
Loan amount	$2,001 – $200,000
Min. Credit Score	None with cosigner

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Best for international students

Mpower Financing student loans

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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.

• Pros and cons

  Pros

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

  Cons

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

• More details

  Minimum Loan Amount	$2,001
  Max. Loan Amount	$25,000
  APR	7.52% to 14.98%
  Interest Rate Type	Fixed
  Maximum Loan Term	10 years
  Requirements	F-1 student visa, attendance at partner university and in last two years of degree program

Pros

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

Cons

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

• More details

  Minimum Loan Amount	$2,001
  Max. Loan Amount	$25,000
  APR	7.52% to 14.98%
  Interest Rate Type	Fixed
  Maximum Loan Term	10 years
  Requirements	F-1 student visa, attendance at partner university and in last two years of degree program

APR	7.52% to 14.98%
Loan amount	$2,001 – $25,000
Min. Credit Score	Not required

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Best for high-performing students

FundingU student loans

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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.

• Pros and cons

  Pros

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

  Cons

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

• More details

  Minimum Loan Amount	$3,001
  Max. Loan Amount	$10,000
  APR	7.99% to 13.99%
  Interest Rate Type	Fixed
  Maximum Loan Term	10 years
  Requirements	Strong academics, full-time undergraduate student enrolled in a 4-year Title IV school, resident of eligible state, ages 18+, US citizen or permanent resident.

Pros

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

Cons

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

• More details

  Minimum Loan Amount	$3,001
  Max. Loan Amount	$10,000
  APR	7.99% to 13.99%
  Interest Rate Type	Fixed
  Maximum Loan Term	10 years
  Requirements	Strong academics, full-time undergraduate student enrolled in a 4-year Title IV school, resident of eligible state, ages 18+, US citizen or permanent resident.

APR	7.99% to 13.99%
Loan amount	$3,001 – $10,000
Min. Credit Score	Not required

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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

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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.

• Pros and cons

  Pros

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

  Cons

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

• More details

  Minimum Loan Amount	$5,000
  Max. Loan Amount	$150,000
  APR	3.44% to 7.99%
  Interest Rate Type	Variable
  Fixed rate	3.99% to 7.99%
  Minimum Loan Term	5 years
  Maximum Loan Term	20 years
  Requirements	You're a graduate of an approved Title IV undergraduate or graduate program, at least 18 years old and an American citizen or a permanent resident of the US. You meet College Ave Refi’s underwriting requirements.

Pros

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

Cons

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

• More details

  Minimum Loan Amount	$5,000
  Max. Loan Amount	$150,000
  APR	3.44% to 7.99%
  Interest Rate Type	Variable
  Fixed rate	3.99% to 7.99%
  Minimum Loan Term	5 years
  Maximum Loan Term	20 years
  Requirements	You're a graduate of an approved Title IV undergraduate or graduate program, at least 18 years old and an American citizen or a permanent resident of the US. You meet College Ave Refi’s underwriting requirements.

APR	3.44% to 7.99%
Loan amount	$5,000 – $150,000
Min. Credit Score	680

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Best for multiyear approval

Discover undergraduate student loans

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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.

• Pros and cons

  Pros

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

  Cons

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

• More details

  Minimum Loan Amount	$1,000
  Max. Loan Amount	Cost of attendance
  APR	Variable APRs: 1.79% to 11.09% Fixed APRs: 3.99% to 11.59%
  Interest Rate Type	Variable
  Fixed rate	3.99% to 11.59%
  Maximum Loan Term	15 years
  Requirements	Must be enrolled at least half-time at an eligible school with satisfactory academic progress and seeking a degree. Must be a US citizen, permanent resident or international student.

Pros

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

Cons

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

• More details

  Minimum Loan Amount	$1,000
  Max. Loan Amount	Cost of attendance
  APR	Variable APRs: 1.79% to 11.09% Fixed APRs: 3.99% to 11.59%
  Interest Rate Type	Variable
  Fixed rate	3.99% to 11.59%
  Maximum Loan Term	15 years
  Requirements	Must be enrolled at least half-time at an eligible school with satisfactory academic progress and seeking a degree. Must be a US citizen, permanent resident or international student.

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.

APR	Variable APRs: 1.79% to 11.09% Fixed APRs: 3.99% to 11.59%
Loan amount	Starting at $1,000
Min. Credit Score	Not stated

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Best for less than half-time students

Sallie Mae® Smart Option Student Loan for Undergraduates

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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.

• Pros and cons

  Pros

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

  Cons

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

• More details

  Minimum Loan Amount	$1,000
  Max. Loan Amount	Cost of attendance less financial aid
  APR	3.37% to 13.72%
  Interest Rate Type	Variable
  Fixed rate	3.75% to 13.72%
  Minimum Loan Term	5 years
  Maximum Loan Term	15 years
  Requirements	US citizens, US permanent residents and international students residing in the US with an unexpired government-issued ID and creditworthy cosigner who is a US citizen or permanent resident

Pros

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

Cons

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

• More details

  Minimum Loan Amount	$1,000
  Max. Loan Amount	Cost of attendance less financial aid
  APR	3.37% to 13.72%
  Interest Rate Type	Variable
  Fixed rate	3.75% to 13.72%
  Minimum Loan Term	5 years
  Maximum Loan Term	15 years
  Requirements	US citizens, US permanent residents and international students residing in the US with an unexpired government-issued ID and creditworthy cosigner who is a US citizen or permanent resident

Disclaimer

Read Sallie Mae’s disclosures for typical repayment examples, autopay discounts, and eligibility.

APR	3.37% to 13.72%
Loan amount	Starting at $1,000
Min. Credit Score	Not stated

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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