Building good credit takes time—and if your score isn’t strong yet, it can feel like another barrier to higher education. The good news is, your credit history doesn’t have to stop you from getting a student loan. In fact, many federal student loans don’t consider credit scores at all. And even private loans may still be an option with the right co-signer.
Here’s what to know about getting a student loan when you have bad credit.
Federal Student Loans Don’t Require Good Credit
Federal student loans are generally accessible even if you have bad credit. Most types don’t involve a credit check, making them a reliable option for many students. To apply, you’ll need to complete the Free Application for Federal Student Aid (FAFSA®), which assesses your financial need but doesn’t consider your credit history.
Here are the main types of federal student loans:
- Direct Subsidized Loans: These are for undergraduate students with demonstrated financial need. The government pays the interest while you’re in school at least half-time, during the grace period, and during deferment periods.
- Direct Unsubsidized Loans: Available to both undergraduate and graduate students, these loans don’t require you to demonstrate financial need. You’re responsible for all the interest, which accrues from the time the loan is disbursed.
- Direct PLUS Loans: Designed for graduate or professional students and parents of dependent undergraduates, these loans do require a credit check. However, there’s no minimum credit score requirement. Instead, the focus is on whether you have an adverse credit history, such as recent defaults or bankruptcies. If you do, you might still qualify by obtaining an endorser (similar to a co-signer) or by documenting extenuating circumstances.
- Direct Consolidation Loans: If you have multiple federal student loans, you can combine them into a single loan with a fixed interest rate. This can simplify repayment and may provide access to alternative repayment plans. Note that consolidating doesn’t lower your interest rate; it calculates a weighted average of your existing rates, rounded up to the nearest one-eighth percent.
Private Student Loans May Be Harder to Get
Private student loans are offered by banks, credit unions, and online lenders—not the government. These lenders do look at your credit history when deciding whether to approve your application and what interest rate to offer.
If your credit score is low or you haven’t built credit yet, you may still qualify with the help of a co-signer. A co-signer is usually a parent or relative with good credit who agrees to repay the loan if you can’t. Their strong credit profile can help you secure better loan terms.
It’s important to know that private loans can be more expensive than federal loans, especially for borrowers without good credit. Interest rates, fees, and repayment options vary widely between lenders. That’s why it’s a good idea to compare multiple offers and read the terms carefully before borrowing.
What If You Struggle to Repay?
Falling behind on student loan payments—especially with private loans—can hurt your credit over time. Unlike federal loans, private lenders aren’t required to offer income-driven repayment plans or temporary relief options. If you’re having trouble keeping up, contact your lender early to ask about any hardship programs they may offer.
For federal loans, you may qualify for deferment, forbearance, or an income-driven repayment plan that adjusts your monthly payment based on your income and family size. These options may help you stay on track and avoid default.
If you’re overwhelmed by your student debt, looking into student debt relief could be worth considering. Depending on your situation, it may help simplify payments or provide some breathing room—but it’s important to research your options carefully and avoid scams.
Key Takeaways on Student Loans and Credit
- You can still get a federal student loan even if you have bad credit. Most don’t involve a credit check.
- Private student loans do look at your credit history, but a co-signer can make approval easier.
- Federal loans usually offer more flexible repayment options than private loans.
- If you’re struggling to pay, explore federal relief programs or talk to your lender about possible solutions.
