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Best student loans for bad credit or no credit in April 2025

Written by
Lauren Nowacki
Edited by
Jennifer Lee
Reviewed by
Emmanuel Nyame
Edited by
Jennifer Lee
Reviewed by
Emmanuel Nyame
Updated Apr 01, 2025

What to know first: Regardless of the student loan type, it's best to start with federal loans. Most don’t require a credit check, and they come with competitive fixed rates and robust borrower protections. You can also pursue private student loans to supplement federal funding.

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A closer look at the top student loans for bad credit

Before you choose a lender, take a deep dive into each of Bankrate’s top picks. These breakdowns include product highlights and who may benefit the most from applying with these lenders.

Rating: 4.4 stars out of 5
4.4
Bankrate review
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Overview: Most federal student loans don’t require a credit check, so these loans are easily the best option for students with poor credit or no credit history. Federal student loans also come with competitive interest rates, and you may choose from several repayment options. Graduate students may borrow up to their full cost of attendance in grad PLUS loans, while Direct Subsidized and Unsubsidized Loans have borrowing caps for graduate and undergraduate students.

Read Bankrate's Expert Federal Student Loan Review
Fixed APR
6.53%–9.08%
Loan amount
$5,500- $12,500 per year (up to $57,500 in total)
Loan term
10-25 yrs
Est. APR
6.53%–9.08%
Loan amount
$5,500- $12,500 per year (up to $57,500 in total)
Min credit score
Not specified
Loan term
10-25 yrs
Origination fee
Not specified
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an Federal Student Loans loan. Federal Student Loans is also a good match for people who prefer access to customer service seven days a week.
Rating: 4.7 stars out of 5
4.7
Bankrate review
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Overview: In addition to standard cosigned loans, Ascent offers a unique outcomes-based non-cosigned student loan for college juniors and seniors. These loans are based on your future income. You may qualify if you're in a high-earning field of study. Borrowers with over two years of credit history can apply for a non-cosigned credit-based loan if they meet the minimum eligibility requirements.

Read Bankrate's Expert Ascent Review
Fixed APR
3.39%–14.85%
Loan amount
$2k - $400,000
Loan term
5-15 yrs
Est. APR
3.39%–14.85%
Loan amount
$2k - $400,000
Min credit score
Not specified
Loan term
5-15 yrs
Origination fee
Not specified
Pros
  • Financial hardship forbearance of up to 24 months
  • AscentUp internship program
  • Financial wellness tools and resources
Cons
  • Higher maximum rate than most lenders
  • Only students attending specific schools are eligible
  • Must be enrolled for at least half time
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an Ascent loan. Ascent is also a good match for people who prefer access to customer service seven days a week.
Rating: 3.5 stars out of 5
3.5
Bankrate review
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Overview: Funding U does not use credit scores to make lending decisions. Instead, it considers an individual borrower's academic achievements, career path and GPA alongside credit history — like late payments and collections items. This makes it a great option for borrowers without a credit history or a cosigner. While Funding U limits loan amounts to $20,000 per academic year, it's worth considering for undergraduates who need funds in addition to their federal loan allotment.

Read Bankrate's Expert Funding U Review
Fixed APR
8.49%–13.99%
Loan amount
$3k– $20k
Loan term
5-10 yrs
Est. APR
8.49%–13.99%
Loan amount
$3k–$20k
Min credit score
Not specified
Loan term
5-10 yrs
Origination fee
Not specified
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an Funding U loan. Funding U is also a good match for people who prefer access to customer service seven days a week.
Rating: 3.4 stars out of 5
3.4
Bankrate review
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Overview: Founded by two international students in 2014, MPower is one of the few student loan servicers that has flexible citizenship and residency requirements. Though all services are provided completely online, MPower does have two offices — one in the U.S. and the other in India.

Read Bankrate's Expert MPower Review
Fixed APR
11.16%
Loan amount
$2k– $100k
Loan term
10-20 yrs
Est. APR
11.16%
Loan amount
$2k–$100k
Min credit score
Not specified
Loan term
10-20 yrs
Origination fee
Not specified
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an MPower Financing loan. MPower Financing is also a good match for people who prefer access to customer service seven days a week.
Rating: 3.6 stars out of 5
3.6
Bankrate review
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Overview: Edly is one of the few student loan companies on the market that offers income-based repayment (IBR) loans. Based in New York, the company touts its products as a private student loan alternative due to its affordability and unique payment structure. The lender also claims that borrowers without a cosigner are three times more likely to get approved than they would with a traditional lender. 

Read Bankrate's Expert Edly Review
Fixed APR
8.49%–25.96%
Loan amount
Not specified
Loan term
5-7 yrs
Est. APR
8.49%–25.96%
Loan amount
Not specified
Min credit score
Not specified
Loan term
5-7 yrs
Origination fee
Not specified
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an Edly loan. Edly is also a good match for people who prefer access to customer service seven days a week.

Calculate your student loans for bad credit or no credit payment

Use Bankrate's calculator to find the perfect loan repayment plan for you. Enter different loan amounts, terms and interest rates to compare estimated monthly payments and see how much total interest you'll pay.

How to compare student loans for bad or no credit

Finding the right student loan for bad or no credit requires some comparison shopping. That means finding lenders that offer the loan you need, then comparing their offers and finding the most affordable option with the repayment timeline you need. To find the best option, follow these steps:

  1. Determine how much you need and whether you'll have a cosigner.
  2. Get prequalified with lenders that offer the type of loan and amount you need.
  3. Compare lenders based on the loan terms they offer based on your situation: estimated APR, loan term, loan amount.
  4. Use a student loan calculator to compare your estimated monthly payments based on your offers.
  5. Choose the lender and loan that offers the best terms based on your financial goals and situation.

Bad- or no-credit student loan interest rates

Credit scores and credit history show how well a person handles their debt, like making on-time payments and staying below their credit limits. This helps lenders determine how much of a risk it is to lend money to a borrower. 

A low credit score, for whatever reason, may signal to lenders that it can be riskier to lend. To help protect their investment, the lender will require a cosigner with better credit or impose a higher interest rate on bad- or no-credit loans. Student loans for bad- or no-credit borrowers tend to be higher than loans for good-to-excellent credit borrowers and range from 8 percent to 26 percent if you don't have a cosigner.

Federal student loans for undergraduates do not take credit into consideration when approving you for the loan or determining your interest rate. The interest rate for federal student loans is the same for each borrower, regardless of their credit, and there are multiple repayment terms available. That's why federal student aid should be your first option for student loans.

These are the current federal student loan rates for the 2024-25 school year.

Loan type Borrower Fixed interest rate Loan fee
Direct Subsidized Loans and Direct Unsubsidized Loans Undergraduate students 6.53% 1.057%
Direct Unsubsidized Loans Graduate or professional students 8.08% 1.057%
Direct PLUS Loans Parents and graduate or professional students 9.08% 4.228%
PRIVATE STUDENT LOANS FEDERAL STUDENT LOANS
Maximum loan amount Depends on lender, may be up to $400,000 as per the featured lenders $7,500 annually for dependent undergraduates, $12,500 annually for independent undergraduates and 100% total cost of attendance for graduates
Interest rates Around 4% to 17%; may be fixed or variable 6.53% to 9.08% fixed for 2024-25
Fees Varies by lender Origination fee of 1.057% to 4.228%
Benefits Choice between fixed and variable rates, may be able to use a cosigner for better rates Access to income-driven repayment plans, long deferments and forbearances, no credit check required for most loans
Drawbacks High rates for bad credit, limited forbearance options, no federal benefits Lower loan limits, limited repayment terms
Qualification requirements Depends on lender; may require a creditworthy cosigner Meet basic eligibility criteria

What are student loans for bad credit?

A bad credit student loan is a private or federal student loan that's tailored to individuals with a poor credit score — 580 or lower — or thin credit history. Like other student loans, they can only be used for approved academic related expenses, like tuition, books or room and board.

Most private student loan lenders require that borrowers be in excellent financial shape or have a creditworthy cosigner to get approved. However, lenders that cater to students with bad credit consider factors beyond their score, like academic performance, enrollment or projected career outcomes.

Pros and cons of bad credit student loans 

Taking out student loans can be an overwhelming process, especially for those with less-than-ideal credit. For most, a college education is a hefty expense, so it's important to look at the potential advantages and disadvantages that come with a bad-credit student loan.

Pros

  • Flexible eligibility: Most bad credit lenders may gauge approval on multiple factors, not just credit score.
  • Can help you build credit: Consistently making your monthly payments will improve your credit score.
  •  Cosigner optionality: While cosigners can help get your better terms, you don't need one to be able to get a loan.

Cons

  • Higher interest rates: Bad credit loans come with higher interest rates, meaning you're paying more to borrow. 
  • Smaller borrowing amounts: It's harder to qualify for a larger loan with a low credit score, so you might not be able to fully fund your education with one loan. 
  • Potential credit risk: If you fail to make the monthly payments your credit score could drop even more.
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BANKRATE EXPERT FAQ

Ask the experts: Can a student loan help you build a better credit score?

Mark Kantrowitz

Bankrate Expert Contributor, Student Loans

"Student loans can help you build a better credit score if you make every required payment on time, by the due date. Whatever you do, don’t default and don’t be late with a payment or skip a payment. This can ruin an otherwise good credit score. Sign up for autopay, where the monthly payment is automatically transferred from your bank account to the lender. Not only are you less likely to be late with a payment, but many lenders will reduce your interest rate as an incentive."

Andrew Pentis

Writer and Consumer Lending Analyst

"Your credit is impacted when you apply for, borrow and repay a student loan. On-time repayment has the greatest potential to drive your credit score upward. That's because your payment history comprises 35 percent of your FICO score (and a large percentage of your other score types). If you repay your education debt on schedule, you'll build a positive payment history and a higher credit score. On the flip side, though, not repaying your loan on time can damage your credit report and score."

How to get a student loan with bad- or no-credit

Before diving straight into the application, first calculate how much you need to borrow. You want to max out your federal aid, including scholarships, grants and loans, first. Federal student loans typically have lower loan limits than private student loans, so you may need to combine multiple loan types. To determine how much you need to borrow with private loans, subtract your federal aid from your cost of attendance to see how much isn't covered.

Once you know how much you need, follow these steps:

  1. Get pre-qualified with a few lenders and pick the best offer for your situation.
  2.  Fill out the online application with your chosen lender and provide your contact information and financial information and upload any requested documents.
  3. Once approved, the lender will work with your school to disburse the funds.
Education Icon

The Free Application for Student Aid (FAFSA) determines what type of federal need-based aid you may be eligible for, and it's also required if you want access to federal student loans. The FAFSA application opens on Oct. 1 for the following school year, and it's best to apply early.

Frequently asked questions

How we chose the best bad credit student loan providers  

Bankrate's trusted personal loans industry expertise

Read our full methodology

48

years in business

25

lenders reviewed

16

loan features weighed

400

data points collected

To select the best personal loans, Bankrate’s team of experts evaluated over 40 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four main categories:

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.