How to get a federal or private student loan when you have bad credit​

Bad credit should not affect getting an education with the help of a federal or private student loan. 

While a bad credit score will reduce your chances of getting a loan, there are still avaible options when it comes to federal and private student loans. There are options for borrowers with a lower credit score to get federal or private student loans.  

As your credit score starts to improve after getting a student loan, more options and flexibility will become available with a student loan refinance.  

I have bad credit. How can I get a student loan?

If you have bad credit, you can still qualify for a federal student loan and some private student loans. 

The first thing you will want to do when looking to get a student loan when you have bad credit is determine your financial needs and decide whether a federal or private student loan is the right option for you. You can decide which is right for you by checking the requirements and seeing which ones you meet or are best for your financial situation. 

What does it mean to have bad credit?

When you have bad credit, lenders will view you as a higher risk when you apply to borrow money. Credit is scored on a scale from 300 to 850 and reflects your borrowing worthiness.  

The breakdown of scores in the 300-850 range is: 

• Poor credit: 300-579
• Fair credit: 580-669
• Good credit: 670-739
• Very good credit: 740-799
• Exceptional credit: 800-850

Is it possible to get a student loan without a cosigner?

Yes, it is possible to get a federal or private student loan without a cosigner. 

You can get a federal student loan without a cosigner as these loans typically do not require a credit check but are based more on the financial need of the student. Some private student loans will not need a cosigner if the borrower has a strong credit score, income or academic performance. However, to increase your chances of qualifying for a private loan with a lower credit score, you may need a cosigner. 

Is there a difference between getting federal or private student loans?

Yes, the main difference is that federal student loans are government-backed and can have more lenient qualification requirements, while private loans from banks or other lenders tend to come with stricter guidelines.  

Federal student loans tend to be accessible as they do not typically require a credit check for undergraduate loans. Private student loans usually require a strong credit history or creditworthy cosigner. Federal student loans can also come with protection and repayment options that pivvate student loans do not offer. 

What can I do if my credit score improves after getting a student loan?

If your credit score has improved after getting a student loan, refinancing your student loan could be beneficial. With a student loan refinance, you could secure a lower rate, reduce your monthly payments, consolidate multiple student loans, and add or remove a cosigner. However, refinancing your federal student loans into a private loan will remove any protections or forgiveness that federal loans offer. 

When your credit score improves, you gain freedom to refinance your student loan in a way that could improve your financial situation. Refinancing with a lower credit score or using a refinance to add or remove a cosigner could get you a lower rate on your student loan. This may reduce your monthly payments.  

Another benefit of a student loan refinance is the opportunity to consolidate multiple student loans into one monthly payment.  

If your credit score has dropped since getting your student loan or refinancing your student loans sound like it could benefit you, start on a student loan refinance application today! 

_{This student loan refinance marketplace is presented by Rate for marketing purposes only. When you click the button to “Continue” you are leaving Rate and entering the marketplace. The marketplace is operated by FitBux, Inc., which facilitates connections to third-party Platform Partners (such as LendKey and Splash Financial) and their lending institutions, and may receive compensation when you complete a loan transaction. Rate and Fitbux are affiliated companies under common ownership. Clicking the “Continue” button you will be sharing your information with third party Platform Partners LendKey and Splash Financial, and agree to be subject to the terms of use and privacy policies posted by these third parties. Rate is not a lender, does not participate in credit decisions, and does not receive compensation in connection with any loan transaction. Prequalified rates are informational only, do not constitute offers of credit, and are subject to change. Final rates may differ based on your credit profile and other factors. Lowest rates require highly creditworthy applicants and may require a cosigner. All credit decisions are made solely by lending institutions in their discretion. This platform does not represent all available loan options. Product availability varies by state. Not financial advice — consult a qualified advisor before refinancing.}