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Pursuing a nursing degree can lead to a rewarding career, but paying for nursing school can be challenging. Tuition, fees, books, clinical supplies, and living expenses can add up quickly, particularly for students completing a four-year or graduate nursing program.

Fortunately, nursing students have several ways to help pay for school, including scholarships, grants, employer assistance, federal student loans, and private student loans. Some nurses may also qualify for loan repayment programs after graduation, particularly if they work in qualifying public-service or underserved settings.

Below, we explore the different nursing student loans available, how to apply for them, their pros and cons, and other ways to pay for nursing school.

What Are Nursing School Loans?

Nursing school loans are education loans that can help students pay for tuition, fees, books, supplies, and other eligible education expenses while pursuing a nursing degree. Depending on the program, students may use loans to help pay for an associate degree in nursing (ADN), Bachelor of Science in Nursing (BSN), graduate nursing degree, or other qualifying nursing program.

Nursing students may use both federal and private student loans. Federal loans generally offer more flexible repayment options and other protections, while private student loans can help fill funding gaps when federal aid and other resources aren’t enough.

Unlike grants and scholarships, student loans must generally be repaid with interest. However, some federal, state, employer, and service-based programs may help eligible nurses repay or have some of their student debt forgiven.

How Nursing School Costs Differ from Other Programs

The cost of nursing school varies widely depending on the type of program, school, location, and whether you attend a public or private institution. In addition to tuition, nursing students may have expenses for clinical supplies, uniforms, equipment, laboratory fees, licensing exams, and transportation to clinical sites.

Living expenses can also add substantially to the total cost of attendance. Before borrowing, it’s a good idea to review your school’s cost of attendance and financial aid offer to estimate how much you may need to cover out of pocket.

Recommended: Nursing School vs. Medical School

Types of Loans Available for Nursing School Students

Nursing students may have access to several types of federal, school-administered, and private loans. The best nursing school loan for you will depend on your program, financial need, credit history, and how much funding you need.

Direct Subsidized Loans

Direct Subsidized Loans are federal student loans available to eligible undergraduate students who demonstrate financial need and attend an eligible school at least half time.

One advantage of subsidized loans is that the federal government pays the interest while you’re enrolled at least half time and during the six-month grace period after you leave school. Because of this interest benefit, eligible students may want to consider subsidized loans before taking on other types of education debt.

Direct Unsubsidized Loans

Direct Unsubsidized Loans are available to eligible undergraduate, graduate, and professional students and aren’t based on financial need. However, annual and aggregate federal borrowing limits apply.

Interest begins accruing on an unsubsidized loan when the loan is disbursed, including while you’re in school. You generally don’t have to make payments while you’re enrolled at least half time, but unpaid interest can increase the amount you owe over time.

Direct PLUS Loans

Direct PLUS Loans include Parent PLUS Loans for eligible parents of dependent undergraduate students. They require a credit check for adverse credit history and aren’t based on financial need.

Grad PLUS Loans are no longer generally available to new graduate and professional student borrowers beginning July 1, 2026. A limited exception applies to certain students who were enrolled in the same program as of June 30, 2026, had borrowed a Direct Loan for that program before July 1, 2026, and remain continuously enrolled in that program.

HRSA Nursing Student Loan Program

The Health Resources and Services Administration (HRSA) offers the Nursing Student Loan (NSL), which is a federally funded, low-interest loan for nursing students with financial need. Applicants must be enrolled at least half-time in an approved RN program, such as a diploma, associate, bachelor’s, or graduate degree. Unlike federal Direct Loans, you do not apply directly through HRSA. Instead, participating nursing schools manage the applications and administer the funds. Availability depends on whether your school participates in the program.

Private Student Loans

Private student loans are offered by banks, credit unions, and online lenders. Nursing students may consider them when federal student loans, scholarships, grants, and other sources don’t cover the full cost of attendance.

Each private lender sets its own eligibility requirements, interest rates, fees, and repayment terms. Depending on the lender and borrower’s credit profile, a private loan may have a fixed or variable interest rate. Students with limited credit histories may need a cosigner to qualify or receive a more competitive rate.

Private loans generally don’t offer the same federal protections and repayment options as federal student loans, so it’s generally a good idea to explore federal aid before turning to private financing.

State-Based Loan Programs for Nursing Students

Some states offer loans, tuition assistance, or loan repayment programs for nursing students. These programs may be designed to encourage nurses to work in underserved communities or other areas experiencing a shortage of health care workers.

Eligibility, funding amounts, and service requirements vary by state. You can check with your state higher education agency, nursing board, or school financial aid office to find programs available in their area.

Recommended: Nursing School Prerequisites

Pros and Cons of Loans for Nursing School

Student loans can make it possible to complete a nursing program when savings, scholarships, grants, and other aid aren’t enough. But borrowing also creates a financial obligation that can continue after graduation.

Pros of Nursing School Loans

•   Helps cover education costs: Loans can help pay tuition and other eligible education expenses when other financial aid doesn’t cover the full cost.

•   Federal protections: Federal student loans generally offer repayment options and borrower protections that private loans may not provide.

•   Potential loan forgiveness: Some federal and service-based programs can forgive or repay eligible student debt for qualifying borrowers.

•   Can reduce financial strain while in school: Borrowing can help students manage education expenses without relying entirely on current income or savings.

Cons of Nursing School Loans

•   Debt after graduation: Loans must generally be repaid, with interest, after the borrower leaves school.

•   Interest costs: Interest can increase the total amount repaid, particularly when interest accrues while you’re in school.

•   Monthly payments: Student loan payments can take up part of a nurse’s income after graduation.

•   Private loan limitations: Private loans generally don’t provide the same federal repayment options, protections, or forgiveness programs.

Understanding Interest Accrual and Repayment Flexibility

Understanding how interest works can help nursing students manage their education debt. Direct Subsidized Loans receive an interest benefit while you’re in school at least half time and during the six-month grace period. Direct Unsubsidized Loans accrue interest from the time the funds are disbursed, including while you’re in school and during the grace period.

Federal student loans also offer repayment options that can provide flexibility after graduation. Depending on your loans and circumstances, available options may include a standard repayment plan or an income-based plan. The repayment plan you choose can affect monthly payments and total amount paid over time.

Applying for Nursing Student Loans

The application process depends on whether you’re seeking federal, school-administered, or private student loans. Here’s a general overview.

Comparing Loans

If you’re considering federal student aid, start by completing the Free Application for Federal Student Aid (FAFSA®). The FAFSA is used to determine eligibility for federal grants, work-study, and federal student loans, as well as some state and school-based aid.

After receiving your financial aid offer, you’ll want to compare the amount of aid available with your school’s cost of attendance. Grants and scholarships generally don’t have to be repaid, so it’s wise to consider those options before borrowing.

If you need student loans, it’s generally wise to review your federal loan options before private loans because federal loans can offer benefits such as income-based repayment and potential forgiveness programs.

For example, Public Service Loan Forgiveness (PSLF) can forgive the remaining balance on eligible Direct Loans after a borrower makes 120 qualifying monthly payments while working full time for a qualifying government or nonprofit employer and meeting other program requirements.

If federal loans don’t cover the remaining cost, you may want to compare private student loan offers from multiple lenders. Be sure to look at the annual percentage rate (APR), any fees, repayment options, cosigner requirements, and whether the interest rate is fixed or variable.

Applying for Loans

Federal nursing student loans generally require the FAFSA. If you’re offered federal student loans, you’ll typically need to accept the amount you want to borrow through your school’s financial aid process and complete any required loan counseling and promissory note.

School-administered programs, such as HRSA’s Nursing Student Loan program, have their own application process through participating schools.

Private student loans don’t require the FAFSA. Instead, students apply directly with the lender. The lender may review the borrower’s credit history, income, and other financial information. Students with limited credit may need a cosigner.

After Applying

It’s a good idea to start the financial aid process early. Federal student aid is tied to the academic year and must go through your school’s financial aid process before funds can be disbursed.

Private student loan applications can often be completed online, and some lenders provide decisions or prequalification results quickly. However, the time required to finalize a loan and send funds to a school varies by lender and school.

Setting Up Repayment While in School

You generally don’t have to make payments on federal Direct Subsidized or Direct Unsubsidized Loans while you’re enrolled at least half time. However, making voluntary payments toward accruing interest on an unsubsidized loan while you’re in school can help keep the balance from growing as much.

Before making extra payments, check your loan servicer’s instructions to make sure the payment is applied as intended. Students generally want to keep enough money available for current education and living expenses before making extra loan payments.

Alternative Financing Options for Nursing Students

Student loans are only one way to pay for nursing school. Scholarships, grants, employer assistance, and service-based programs can reduce the amount you need to borrow.

Nursing Corps Scholarship Program

The HRSA Nurse Corps Scholarship Program can provide eligible nursing students with tuition, fees, other educational costs, and a monthly stipend. In exchange, recipients commit to working after graduation at an eligible health care facility with a critical shortage of nurses.

The scholarship can be valuable for students who are willing to meet the program’s service requirements. Because the program has specific eligibility rules and application periods, you’ll want to review the requirements before relying on it to fund your education.

Grants

Grants can come from the federal government, states, colleges, nonprofit organizations, and other sources. Because grants generally don’t have to be repaid, they can help reduce the amount a nursing student needs to borrow.

Complete the FAFSA to determine whether you qualify for federal and other need-based aid, and check with your nursing school’s financial aid office for additional opportunities.

Employer Sponsorship

Some employers offer tuition assistance or other education benefits to employees who are pursuing nursing degrees or additional nursing credentials.

If you plan to work while attending school, you might ask your employer whether it offers tuition reimbursement, direct tuition payments, scholarships, or other education benefits. Check whether the program requires you to remain with the employer for a certain period after completing your education.

Nursing School Loan Repayment Assistance Programs

Loan repayment assistance programs can help eligible nurses repay some of their student debt in exchange for a service commitment. These programs are often designed to encourage nurses to work in communities or facilities with shortages of health care professionals.

One example is the HRSA Nurse Corps Loan Repayment Program. It is available to eligible registered nurses, advanced practice registered nurses, and nurse faculty. Participants generally commit to at least two years of service at an eligible critical shortage facility or school of nursing. The program can repay 60% of qualifying nursing education debt for the initial two-year commitment, with the possibility of additional repayment for an optional third year.

Other programs may be available through states, employers, the military, or health care organizations. Requirements vary, so it’s important to check each program’s eligibility and service requirements before enrolling.

Military Programs for Nursing Education Funding

Military programs can provide financial assistance to students pursuing nursing careers in exchange for military service. Depending on the program, benefits may include tuition assistance, scholarships, stipends, or other education benefits.

Programs and eligibility requirements vary among branches of the military and can change over time. Students considering this option will want to review the service commitment and other requirements carefully before signing an agreement.

The Takeaway

Nursing students have several ways to help pay for school, including federal and private student loans, HRSA Nursing Student Loans, scholarships, grants, and employer assistance. Federal loans generally offer more repayment flexibility and borrower protections than private loans, while private loans can help fill remaining funding gaps.

Before borrowing, it’s wise to compare your financial aid options and consider ways to reduce the amount you need to borrow. After graduation, nurses may also qualify for federal forgiveness or service-based loan repayment programs that can help manage eligible student debt.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

How do nursing students get loans?

Nursing students can apply for federal student loans by completing the Free Application for Federal Student Aid (FAFSA®) and reviewing the loans offered through their school’s financial aid package. Students may also apply for school-administered programs, such as HRSA’s Nursing Student Loan program, if their school participates. Private student loans are available directly from banks, credit unions, and online lenders. Students will generally want to consider federal loans before private loans because they may offer more flexible repayment options and borrower protections.

Can nursing school loans be forgiven?

Some nursing school loans may qualify for forgiveness or repayment assistance, but eligibility depends on the loan type and program requirements. Nurses may qualify for programs such as Public Service Loan Forgiveness (PSLF) if they meet the program’s requirements. Other federal, state, and HRSA programs may repay some eligible nursing education debt in exchange for working in qualifying facilities or underserved areas. Private student loans generally don’t qualify for federal forgiveness programs, although some employers or state programs may offer assistance.

What is the average student loan amount for a nurse?

Borrowing varies widely based on the type of nursing program, school, location, financial aid received, and whether the student has other sources of funding. An associate degree program may require less borrowing than a bachelor’s or graduate nursing program. Students can also reduce their loan needs through scholarships, grants, employer tuition assistance, and other aid. Looking at your school’s cost of attendance and financial aid package can help you estimate how much you may need to borrow.

Are there special programs for nurses working in underserved areas?

Yes. Several programs are designed to encourage nurses to work in underserved or high-need communities. For example, the HRSA Nurse Corps Loan Repayment Program can repay a portion of eligible nursing education debt for qualifying nurses who commit to working at an eligible critical shortage facility. States and other organizations may offer additional loan repayment or scholarship programs. These programs generally have specific requirements related to the nurse’s license, workplace, loan type, and length of service.

Can nurses qualify for public service loan forgiveness (PSLF)?

Yes. Nurses may qualify for Public Service Loan Forgiveness (PSLF) if they meet all program requirements. Generally, a nurse must have eligible federal Direct Loans, work full time for a qualifying government or nonprofit employer, be employed in qualifying work, and make 120 qualifying monthly payments under an eligible repayment plan. PSLF is based primarily on the borrower’s employer and loan and payment requirements, not the nursing profession itself. Private student loans don’t qualify for PSLF.

What is the best student loan for nursing school?

For many nursing students, federal Direct Subsidized Loans are a good first option if they’re eligible because the federal government pays the interest during certain periods. Direct Unsubsidized Loans may also be useful when additional federal funding is needed. Students will generally want to consider federal loans before private loans because federal loans can offer repayment flexibility and borrower protections. The best nursing school loan option depends on your eligibility, financial need, program, borrowing amount, and ability to repay the debt after graduation.

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Photo credit: iStock/erdikocak

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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Private student loans are often used to bridge the gap between what a student receives in federal funding and the cost of attending college. While private loans can help students pay for their education, they don’t come with federal benefits such as income-driven repayment plans or forgiveness.

But there are ways to make private loan repayment easier. If you refinance private student loans at a lower interest rate and/or with more favorable terms than your existing loans, you can generally save money over the life of the loan. Here’s what to know about refinancing private student loans to decide if this option is right for you.

Can I Refinance My Private Student Loans?

Borrowers can refinance private student loans if they qualify. If you have a steady job, a good credit score, and a solid financial profile, you may be eligible for a lower interest rate or better terms with student loan refinancing.

A new interest rate and longer loan term can mean a lower monthly payment — though you may pay more interest over the life of the loan if you refinance with an extended term. By contrast, a shorter term will likely raise your monthly payment, but you’ll pay off your loan sooner. A student loan refinancing calculator lets you crunch the numbers to see how different scenarios play out.

It’s important to note that the terms student loan consolidation vs. refinancing are often used interchangeably, but there are key differences between them. Those wondering how to consolidate private student loans should be aware that private loans can’t be consolidated, but they can be refinanced. Only federal student loans can be consolidated with a federal Direct Consolidation Loan.

If you have both private and federal loans, you might choose to refinance part of your student loans — your private loans, say — but not your federal loans. (Refinancing federal student loans makes them ineligible for federal programs and protections.)

Pros and Cons of Refinancing Private Student Loans

There are advantages and disadvantages to private student loan refinance, and it’s critical to weigh them carefully when exploring whether to refinance.

Pros:

•   You may qualify for a lower interest rate, which could save you money.

•   Refinancing might help you get more favorable loan terms.

•   Your monthly payments might be lower if you opt for a longer loan term.

•   Combining your loans through refinancing can streamline your payments and make them easier to manage.

Cons:

•   To get the lowest interest rates when refinancing, you’ll need a credit score of 720 or higher.

•   You’ll generally need a steady income, stable employment, and a low debt-to-income ratio to qualify for refinancing.

•   Choosing to extend your loan term to lower your payments means you’ll typically end up paying more in interest over the life of the loan.

•   Opting for a shorter loan term to pay off your loans faster means your monthly payments will likely be higher.

Recommended: Cost to Refinance Student Loans

How to Refinance Private Student Loans

Wondering how to refinance private student loans? If you’re interested in pursuing a private student loan refinance, here’s how to get started:

Prepare Your Financial Information

To provide a rate quote for you, most lenders will need some personal financial information, such as your existing student loan debt, credit, and income.

Check Rates With Multiple Lenders

When it comes to student loan refinancing rates, private lenders set their own rates and terms. That means it’s important to shop around. In addition to getting a rate estimate (which involves a soft credit check that shouldn’t impact your credit score), you can compare loan terms, eligibility requirements, fees, and other features the lender may offer, such as deferment or forbearance programs.

Consider a Cosigner

Depending on your credit and financial history, applying with a creditworthy cosigner may help you secure a better interest rate.

To refinance with a cosigner, choose someone who is creditworthy and willing to take on the responsibility. Make sure they understand that cosigning means they are responsible for the loan if you are unable to pay your debt.

Choose a Lender and Lock in Your Terms

As you review the options from different lenders, consider the amount of interest you’ll pay over the life of the loan and factor in the cost of any fees. Depending on how long the term length is, for example, the lowest student loan interest rate might not translate to the lowest amount of total interest you’ll pay.

Finalize Your Application and Keep Paying

Gather your personal information and documentation to back up the information you supplied during the initial rate check. That typically includes proof of citizenship, Social Security number, verification of your income such as pay stubs or tax returns and loan statements for the loans you’d like to refinance. Submit the application and wait to hear back from the lender (how long approval takes varies by lender). Be sure to continue to make payments on your existing loans while you wait for your new loan to be approved.

What to Consider Before Refinancing Private Student Loans

If you’re thinking of refinancing, odds are you’re hoping to lower your interest rate, simplify the repayment process, and save money. In order to get a low rate that will make refinancing worth it, it’s a good idea to look at your overall finances before you apply.

Typical Eligibility Requirements

Lenders generally make offers based on a variety of factors including proof of a stable job, a healthy cash flow, a good credit score, and a reliable history of paying back previous debts. If you are refinancing without a cosigner, you will typically need to meet these requirements to qualify.

If you need to, take some time to work on building your credit to increase your chances of getting a better interest rate.

What to Look For in a Refinance Lender

When choosing a private student loan refinance lender, look for a lender with competitive interest rates. Ask about any fees, such as origination fees, and whether or not there’s a penalty for paying off student loans early. Inquire about any flexible repayment options they may have, whether they offer any features like a forbearance program if a borrower experiences financial difficulty, and how they handle customer service. Finally, read reviews of the different lenders to see what borrowers say about them.

Recommended: Guide to Refinancing Student Loans With Bad Credit

Refinance My Private Student Loan

If you’re wondering whether to refinance your private student loans, it can be helpful to look at the interest rates on your loans and your monthly payment amount. If you can refinance private student loans with better terms than those of your existing loans and you won’t need access to federal benefits for any federal loans, refinancing might be an option for you.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Can student loans be forgiven if refinanced?

No. Private lenders generally do not offer programs similar to the federal loan forgiveness programs. If you refinance federal student loans, you’ll have a new private loan with new terms and you’ll no longer have access to federal benefits and protections, including forgiveness.

Why would you refinance student loans?

Refinancing student loans allows you to replace your existing loans with a new loan with new terms. You may be able to save money if you refinance with a lower interest rate or if you shorten the length of your loan term to pay off your loan faster.

Refinancing may also give you the opportunity to change the terms of your existing loan to remove a cosigner, for instance, and also to simplify your repayment process by replacing multiple loans with a single loan.

Can I refinance both federal and private student loans?

Yes, you can refinance private and federal student loans with a private lender. When you refinance, you replace your existing loans with a new loan, ideally one with more favorable terms. If you refinance federal loans, however, you will lose access to federal benefits and protections.

Do I need a cosigner to refinance my private student loans?

Whether you need a cosigner depends on your credit and financial history. If you don’t have strong credit and a solid financial background, you may need a cosigner to qualify for refinancing in order to get better rates and terms.

How does refinancing private student loans affect my credit score?

Refinancing student loans may temporarily affect your credit score when you submit an application for the loan. That’s because lenders do a hard check on your credit, which may cause your credit score to drop a few points temporarily.

Can you refinance student loans multiple times?

Yes, you can refinance student loans multiple times — there is no limit on the frequency. However, one thing to keep in mind is that when you refinance multiple times within a fairly short period, the multiple hard credit checks involved may have a negative (although temporary) impact on your credit score.

Can private loans be consolidated?

The only way private student loans can be consolidated (or combined) is through refinancing. Refinancing replaces all your old loans with one new loan with new terms. Federal student loans can be consolidated through the federal Direct Loan Consolidation program.

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This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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Figuring out how to pay for school can be stressful, especially when tuition and other education costs add up quickly. Understanding financial aid vs. student loans can help you identify funding options that may reduce how much you need to pay out of pocket or borrow.

Financial aid is a broad term that includes grants, scholarships, work-study funds, and student loans. When financial aid that doesn’t need to be repaid isn’t enough to cover your education costs, you may consider federal student loans. If there’s still a funding gap, private student loans from banks, credit unions, and online lenders may be another option.

Below, we take a closer look at financial aid vs. student loans, how the FAFSA® fits into the process, and the similarities and differences between these ways of paying for college.

What Is Financial Aid?

Financial aid is money or other assistance that helps students and families pay for college, career school, or graduate school. It can come from the federal or state government, a college or university, or private organizations.

Financial aid may help cover eligible education expenses such as tuition, fees, room and board, books, supplies, and transportation. The types and amounts of aid you may qualify for depend on factors such as financial need, academic or other qualifications, school policies, and the source of the aid.

The Free Application for Federal Student Aid (FAFSA®) is the starting point for federal student aid. Many states and schools also use FAFSA information when determining eligibility for their own aid programs. You generally need to complete the FAFSA each year you want to be considered for federal student aid.

There are several main types of financial aid:

•   Scholarships: Scholarships are a form of financial aid that generally doesn’t need to be repaid. Schools, employers, companies, nonprofit organizations, and other private groups may award scholarships based on factors such as academic achievement, athletic ability, talents, community involvement, field of study, or financial need.

•   Grants: Grants generally don’t have to be repaid and are often based on financial need. Federal grants include the Pell Grant, which can provide up to $7,395 for the 2026–27 award year, subject to eligibility requirements.

•   Federal Work-Study: The Federal Work-Study Program provides eligible students with part-time jobs so they can earn money to help pay for education expenses. Work-study funds aren’t simply paid upfront; students generally need to find and work an eligible job to earn the money.

•   Student loans: Student loans are borrowed money that must generally be repaid with interest. Federal student loans are offered through the U.S. Department of Education, while private student loans are offered by private lenders.

Is Financial Aid a Loan?

No. Financial aid is a broad category that includes several ways to help pay for school, and student loans are just one type of financial aid.

Some financial aid, such as grants and scholarships, generally doesn’t have to be repaid. Federal Work-Study allows eligible students to earn money through part-time employment. Student loans, on the other hand, are borrowed money that must generally be repaid with interest.

For example, a college’s financial aid offer might include a Pell Grant, a scholarship, Federal Work-Study, and a federal student loan. The grant and scholarship generally don’t have to be repaid, while the loan does.

What Are Student Loans?

Student loans are money borrowed from the federal government or a private lender to help pay for education expenses. Unlike grants and scholarships, student loans generally must be repaid, along with interest that accrues according to the terms of the loan.

Student loans can typically be used for eligible education-related expenses, such as tuition, fees, room and board, books, supplies, and other costs included in a school’s cost of attendance.

There are two main categories of student loans: federal and private. It’s important to understand how they differ before deciding whether borrowing is necessary.

Federal Student Loans

Federal student loans are offered through the U.S. Department of Education. They generally offer fixed interest rates and certain borrower protections and repayment options that aren’t available with private student loans.

Students need to complete the FAFSA each year to be considered for federal student loans. A school’s financial aid office uses FAFSA information, along with other information, to determine the federal aid a student may be eligible to receive and to put together the school’s financial aid offer.

Federal Direct Loan programs include:

•   Direct Subsidized Loans: These loans are available to eligible undergraduate students with financial need. The federal government generally pays the interest while the borrower is enrolled at least half-time and during the six-month grace period after leaving school.

•   Direct Unsubsidized Loans: These loans are available to eligible undergraduate, graduate, and professional students. Financial need isn’t required, but the borrower is responsible for interest that accrues while the loan is outstanding.

•   Direct PLUS Loans: Parent PLUS Loans are available to eligible parents of dependent undergraduate students. As of July 1, 2026, new graduate and professional students can generally no longer receive Direct PLUS Loans, although borrowers who meet a limited exception may remain eligible.

•   Direct Consolidation Loans: These loans allow eligible federal student loan borrowers to combine multiple federal student loans into one Direct Consolidation Loan with a single monthly payment. The interest rate is generally a weighted average of the interest rates on the loans being consolidated.

Private Student Loans

Students can also use private student loans to help cover college costs. These loans are offered by banks, credit unions, and online lenders.

Private student loans can help fill a gap when scholarships, grants, other financial aid, and federal student loans don’t cover all eligible education expenses. Unlike federal student loans, private lenders set their own eligibility requirements, interest rates, fees, repayment terms, and other loan conditions.

Private student loans are typically credit-based. A lender may consider factors such as your credit history, income, debt, and enrollment status. Students with limited credit histories may need a cosigner to qualify or receive a lower interest rate.

Private student loans generally don’t offer the same federal borrower protections and repayment options as federal student loans, so it’s important to compare them carefully with federal options before borrowing.

Recommended: Scholarships and Grants to Pay Off Loans

Financial Aid vs Student Loans Compared

Student loans are a type of financial aid, but financial aid includes much more than loans. This distinction is important when comparing your options for paying for school.

Grants and scholarships generally don’t have to be repaid, while student loans generally do. Work-study isn’t a loan or a grant; instead, it allows eligible students to earn money through a part-time job.

Similarities

Financial aid and student loans have several things in common:

•   Both can help cover education costs: Financial aid and student loans can help pay eligible expenses such as tuition, fees, books, supplies, room and board, and other costs included in your school’s cost of attendance.

•   Both can be part of a financial aid offer: A school’s financial aid offer may include grants, scholarships, work-study funds, and student loans.

•   FAFSA can play an important role: The FAFSA is used to determine eligibility for federal student aid and is also used by many states and schools when awarding their own financial aid.

•   Eligibility requirements apply: Different types of aid have different requirements. For example, grants may be based on financial need, scholarships may be based on merit or other criteria, and private student loans typically consider credit and income.

Differences

The biggest difference between financial aid and student loans is that financial aid is a broad category, while student loans are a specific type of aid that creates a debt that generally must be repaid.

Here are some other key differences:

	Financial Aid	Student Loans
What it includes	Grants, scholarships, work-study, and student loans	Federal and private education loans
Repayment	Depends on the type. Grants and scholarships generally don’t need to be repaid; work-study is earned through employment	Generally must be repaid, plus interest
Eligibility	May be based on financial need, merit, school requirements, or other criteria	Federal loans have federal eligibility requirements; private loans generally consider credit, income, and other lender requirements
FAFSA	Required for federal aid and used by many states and schools	Required to be considered for federal student loans
Debt	Grants, scholarships, and work-study generally don’t create debt	Creates a debt obligation that must generally be repaid
Sources	Federal and state governments, schools, and private organizations	Federal government, banks, credit unions, and other private lenders

Pros and Cons of Financial Aid

Financial aid can make college more affordable, particularly when you qualify for grants and scholarships that don’t have to be repaid. However, the amount and type of aid available can vary, and not all financial aid reduces your costs in the same way.

Pros of Financial Aid

•   Can reduce borrowing: Grants and scholarships can help cover education costs without creating student loan debt.

•   Multiple options: Financial aid can include grants, scholarships, work-study, and loans, giving students several ways to help pay for school.

•   May be based on need or merit: Depending on the program, you may qualify based on financial need, academic achievement, talents, or other criteria.

•   Can come from different sources: Federal and state governments, colleges, nonprofit organizations, employers, and other private groups may offer financial aid.

Cons of Financial Aid

•   May not cover the full cost: Financial aid may fall short of your school’s total cost of attendance.

•   Eligibility varies: Each type of aid has its own eligibility requirements, and some programs have limited funding.

•   Some aid requires work: Federal Work-Study funds require you to work an eligible job to earn the money.

•   Some aid creates debt: Student loans are financial aid, but they generally must be repaid with interest.

Pros and Cons of Student Loans

Student loans can help students cover education costs when other sources of financial aid and available funds aren’t enough. But borrowing creates a repayment obligation, so it’s important to understand the costs and terms before taking out a loan.

Pros of Student Loans

•   Can fill funding gaps: Student loans can help cover eligible education expenses after other sources of funding are considered.

•   Federal options offer protections: Federal student loans generally offer borrower protections and repayment options that private loans don’t provide.

•   No immediate full repayment: Student loans allow you to spread repayment over time rather than paying the full costs at the start of each semester.

•   Can help cover a range of costs: Loan funds can generally be used for eligible expenses included in your school’s cost of attendance.

Cons of Student Loans

•   Must generally be repaid: Borrowed money must typically be repaid, even if your financial circumstances change.

•   Interest adds to the cost: Interest can increase the total amount you repay over the life of the loan.

•   Can create long-term debt: Student loan payments can affect your budget for years after you leave school.

•   Private loans may offer fewer protections: Private student loans generally don’t provide the same federal repayment options and borrower protections as federal loans.

The Takeaway

Financial aid is an umbrella term for various funding options, while student loans are just one specific type. Grants and scholarships generally do not require repayment, whereas student loans must be paid back with interest, and work-study lets eligible students earn funds through part-time work. Submitting the FAFSA can help you determine whether you qualify for federal aid and may also help you access state and school aid. If you need to borrow, you’ll want to compare federal student loans with private options and understand the repayment terms before taking on debt.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

Is FAFSA a loan?

No. The Free Application for Federal Student Aid (FAFSA®) is an application used to determine whether you may qualify for federal financial aid. It isn’t a loan and doesn’t provide money by itself. Depending on your eligibility, completing the FAFSA may help you qualify for grants, work-study, federal student loans, and other forms of financial aid. Many states and colleges also use FAFSA information when determining eligibility for their own financial aid programs.

Does FAFSA loan or grant money?

The Free Application for Federal Student Aid (FAFSA®) doesn’t loan or grant money itself. It’s an application used to determine your eligibility for federal student aid. Based on your FAFSA information and other eligibility requirements, you may qualify for grants, federal student loans, work-study, or other aid. Your school typically sends you a financial aid offer explaining the types and amounts of aid available to you.

Can you get financial aid and student loans at the same time?

Yes. Student loans are one type of financial aid, so you can receive student loans along with other forms of financial aid. For example, your financial aid offer could include a Pell Grant, a scholarship, Federal Work-Study, and federal student loans. Grants and scholarships generally don’t need to be repaid, while student loans typically must be repaid with interest.

Do scholarships count as financial aid?

Yes. Scholarships are a type of financial aid. They may come from colleges, private organizations, employers, nonprofits, or other sources and can be awarded based on factors such as academic achievement, athletic ability, financial need, talents, or field of study. Scholarships generally don’t need to be repaid, although some may have conditions that require repayment if you don’t meet their requirements.

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Photo credit: iStock/Altayb

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

SOISL-Q426-006

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Student loans don’t just help you pay for your college education. They also allow you to build a credit history, which can be useful when it comes time to get a mortgage or take out a car loan.

The key, though, is to make regular on-time payments – or you may wind up with the sort of credit history that negatively impacts your ability to borrow money in the future.

Here’s a look at how student loans affect credit score.

How Is My Credit Score Calculated?

The relationship between student loans and credit score starts with how credit scores are calculated. There are several types of credit scores, but FICO scores are the most commonly used by top lenders.

A borrower’s FICO score is calculated using five categories of data found in their credit reports, with each category weighted differently.

Category	Weight in Scoring
Payment History	35%
Amounts Owed	30%
Length of Credit History	15%
New Credit	10%
Credit Mix	10%

Based on these calculations, there are a few ways a borrower can potentially build good credit and positively impact a credit score. Paying bills on time is a big one, since payment history is the most heavily weighted factor. Paying down existing debt and keeping credit card balances low may also have a significant effect.

Less impactful but also important strategies include diversifying the types of credit an individual has, avoiding opening too many new accounts at once, and keeping accounts open to lengthen the average age of their credit history.

Recommended: Can You Get a Student Loan With No Credit History?

What Student Loan Factors Affect My Credit Score?

How student loans affect a credit score generally comes down to a few different factors.

One of the biggest ways your student loans can affect your credit is whether or not you consistently make your payments on time. If you’re a responsible borrower who continually makes on-time student loan payments, you may see positive shifts in your credit score over time.

But if you fail to repay a loan or continually make late payments, your credit score will likely see a dip. And if you default on your student loan, your credit score could drop significantly. The lender might also send your account to a collections agency, and you may have a more difficult time securing credit in the future.

How Does a Late Student Loan Payment Affect My Credit Score?

Making payments on time is important, but what you might not realize is exactly how damaging late payments can be. It only takes one report of a 30-days past-due payment to negatively impact your score. Once a late payment is reported to the credit bureaus, it may remain on your credit report for up to seven years.

To help ensure your payments are on time, you might want to set up an automatic payment plan. Most lenders will even give you a small discount on your interest rate for enrolling in autopay. If you know you can’t make a payment on time, talk to your lender or loan servicer right away. The Education Department (for federal student loans) and even some private lenders offer loan deferment or forbearance. These options typically allow a borrower to temporarily suspend payments, which may minimize the impact on their credit score.

Does It Hurt to Pay Off Student Loans Quickly?

Paying off student loans quickly could impact your credit score. You might even see a small, temporary dip in your credit score right after paying off a student loan. There are several reasons for this. If student loans are your primary source of open credit, closing those accounts means you’re no longer building payment history.

Prematurely paying off a loan can also change a borrower’s credit mix or credit utilization.

But credit score is just one factor to consider when deciding how quickly to pay off a student loan. You may want to think about how much extra interest you’d pay by leaving the account open. Carrying a high loan balance could also make it harder to qualify for new loans, which is something to keep in mind when it comes time to buy a home or car.

What Happens When You’re Delinquent or Default on a Student Loan

Student loans may impact credit scores in a variety of ways, but the worst thing you can do is ignore your monthly loan payment. If you’re even one day late with a payment, you’ll be considered delinquent and may be charged a penalty.

Once a missed payment is more than 90 days delinquent, your loan servicer will report it to the three major national credit bureaus. This could lower your credit score and hurt your ability to get a new credit card or qualify for a car loan or mortgage.

After 270 days of a missed federal student loan payment, your status changes to default and your student loans are due in full immediately along with any accrued interest, fines, and penalties.

Will Rate Shopping Different Student Loan Lenders Hurt My Credit?

When you’re shopping around for the best interest rate possible on a private student loan, lenders may pull your credit file. This is called a hard credit inquiry, and each one might temporarily knock a few points off your credit score.

To help prevent this, try to shop for rates, submit loan applications, and finalize your loan within 14 to 45 days. Researching rates and getting quotes ahead of time can give you a good idea of whether you’ll qualify for a loan before you formally apply.

You may also want to get prequalified with lenders to get a sense of the interest rate you would receive without a “hard” credit pull, which might affect your score. You cannot get a loan without an eventual hard inquiry, but getting prequalified may allow you to compare interest rates without impacting your credit score.

Will Refinancing Student Loans Help My Credit?

Because refinancing involves taking out a new private loan with new terms to pay off existing debt, refinancing student loans affects your credit — both positively and negatively.

In the short-term, student loan refinancing will involve a hard credit inquiry and may cause a temporary ding to your credit. As long as you keep your loan shopping to a short period, multiple inquiries will generally be treated as one, and should have a minimal impact on your score.

The credit score needed to refinance student loans is typically at least 650, and scores of 720 or higher are generally required to qualify for the lowest interest rates.

In the long-run, refinancing student loans at a lower interest rate may have an indirect positive impact on your credit. For example, if refinancing lowers the amount you pay each month, you may be more likely to make payments on time. You may also pay off your loans faster, which can help you reduce your overall debt and may positively impact your score. (Note: You may pay more interest over the life of the loan if you refinance with an extended term.)

If you refinance federal loans with a private lender — in effect, turning your federal loans into a private loan — credit bureaus don’t view these two types of loans any differently. However, when you refinance your federal loans, you will lose certain federal protections, such as income-driven repayment plans, deferment or forbearance, and loan forgiveness programs.

Recommended: How Can Consolidating Student Loans Affect Your Credit?

Do I Need a Good Credit Score to Take Out a Student Loan?

Your credit score may be a factor when you’re applying for a student loan. It all depends on the type of loan you’re planning to take out. Most federal loans don’t have a minimum credit requirement, which is why nearly every borrower gets the same interest rate regardless of their financial profile. However, federal PLUS loans for parents require that borrowers do not have an adverse credit history.

Credit scores are typically more of a factor with private student loans. Lenders often consider your score when determining student loan approval and interest rate. In general, the better your score, the better your rate will be.

Which Credit Scores Do Private Lenders Use?

When considering your student loan application, most private lenders look at your FICO^® score. This score, which ranges from 300 to 850, helps lenders determine whether to extend credit and at what interest rate.

Because FICO is used widely throughout the lending industry, including by mortgage lenders and credit card providers, it gives lenders an apples-to-apples comparison of potential borrowers.

The Takeaway

Student loans may help borrowers establish a solid credit history, which could ease the way for future borrowing opportunities and attractive interest rates. The key is to pay what you owe on time, every time.

Paying a loan off early or shopping around for rates might cause a small, temporary dip in credit scores. Being late with a payment — or missing payments — may lower your credit score and hurt your ability to qualify for another loan, among other consequences.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Do student loans help build credit?

Student loans may be an opportunity for borrowers to help build credit and establish a solid credit history, which may help when it’s time to get a mortgage or take out a car loan. Making consistent on-time payments is key.

How can I improve my credit score if I have student loans?

Payment history is the biggest factor in your overall credit score, so making consistent, on-time payments on your student loans may positively impact your credit.

How is my credit score determined?

Your credit score is calculated using five different categories of data. These include payment history, amounts owed, length of credit history, new credit, and credit mix.

Do student loans affect my ability to get a mortgage or auto loan?

Yes, student loans may impact your ability to get a mortgage or car loan. Making student loan payments on time consistently may help build your credit and create a credit history, which could be helpful for getting a mortgage or car loan. Conversely, failing to make on time payments can negatively impact your credit, as could carrying a high loan balance, which could make it more difficult to qualify for a mortgage or auto loan.

Does having a cosigner affect how student loans impact my credit score?

Having a creditworthy cosigner on a student loan may help you qualify for a lower interest rate if your own credit is poor. If you consistently make on time payments on your loans, this may help you build credit over time.

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About the author

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This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

SOSLR-Q426-007

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If you’re considering borrowing student loans, you may be wondering whether it’s possible to get a student loan without a credit history or a credit check.

The answer is yes. Most federal student loans do not require a credit check, so you may be able to qualify even if you have no credit history. The U.S. Department of Education generally does not consider your credit score or credit history when determining eligibility for federal Direct Loans. Instead, qualifying depends on factors such as your enrollment and financial aid application.

Private student loans generally require a credit check. If you have limited or no credit history, you may need a creditworthy cosigner to qualify. Some private lenders also offer loans without a cosigner, but they may still evaluate your credit and other factors when deciding whether to approve your application and what interest rate to offer.

Below, we explore how to get a student loan with no credit, including qualification requirements for federal and private student loans and ways to start building your credit profile.

Federal vs Private Student Loans

Student loans generally fall into two categories: federal loans offered through the U.S. Department of Education and private loans offered by banks, credit unions, and other private lenders.

The two types of loans differ in how you qualify, how interest rates are determined, and what repayment protections are available. Here’s a closer look.

Types of Federal Student Loans

If you’re searching for “student loans with no credit check,” federal Direct Loans generally fit that description. Most federal student loans don’t require a credit check or a cosigner.

One type is the Direct Subsidized Loan, which is available to eligible undergraduate students with financial need. The federal government pays the interest that accrues on subsidized loans while you’re enrolled at least half-time, during the six-month grace period after you leave school, and during certain periods of deferment.

Direct Unsubsidized Loans are another type of federal student loan that doesn’t require a credit check. They are available to eligible undergraduate, graduate, and professional students, and financial need is not required. Interest begins accruing when the loan is disbursed, including while you’re in school.

Federal Direct Loans can also offer repayment options and borrower protections that private student loans generally don’t provide. Depending on the loan and your circumstances, these can include deferment, forbearance, income-driven repayment, and certain loan forgiveness programs.

Private Student Loans

If you still have funding gaps after tapping federal aid, including federal student loans, you might consider exploring private student loans. These loans are available through banks, credit unions, and other nongovernment lenders. Private lenders generally consider your credit history and credit score when evaluating an application, and those factors can affect whether you qualify and what interest rate you receive.

If you have little or no credit history, you may need a cosigner to qualify. A cosigner is someone who agrees to repay the loan if you don’t. A cosigner with a strong credit history may also help you qualify for a lower interest rate or better loan terms.

Cosigning is a significant financial responsibility. The cosigner is legally responsible for repaying the loan if the primary borrower doesn’t, and missed payments can affect both people’s credit histories. Many private student loan lenders offer a cosigner release after a consecutive string of on-time payments, but this option isn’t universal and requires meeting strict credit criteria.

No-Cosigner Private Student Loan Options

Some private lenders offer student loans without requiring a cosigner. However, “no cosigner” does not necessarily mean “no credit check.” A lender may still review your credit history and score, along with other information, when evaluating your application.

Depending on the lender, other factors may include your income, employment, school, degree program, or expected ability to repay the loan. Requirements vary, so it can be useful to compare multiple lenders before applying.

Applying for Student Loans With FAFSA^®

To apply for federal student aid, start by completing the Free Application for Federal Student Aid (FAFSA^®). The FAFSA is free and does not commit you to borrowing a federal student loan.

Schools use information from the FAFSA to determine eligibility for federal financial aid, which can include grants, work-study, and federal student loans. Your school will generally provide an aid offer explaining the types and amounts of aid available to you.

If you’re offered federal Direct Loans, you can decide whether to accept all, some or none of the amount offered.

Applying for Private Student Loans

To get a private student loan, you typically apply directly with the lender. Each lender sets its own eligibility requirements, interest rates, fees, and repayment terms.

Private student loans generally don’t offer the same borrower protections as federal student loans. For example, private lenders may offer fewer options for postponing or reducing payments if you experience financial hardship, and private loans generally don’t offer federal income-driven repayment plans or federal forgiveness programs.

For that reason, it generally makes sense to explore federal financial aid and other sources of funding before taking out a private student loan. If you do need a private loan, it’s a good idea to compare offers from multiple lenders and review the terms carefully.

Recommended: How to Ask Someone to Cosign your Private Student Loan

Parent PLUS Loans

Parents of dependent undergraduate students may be able to borrow a federal Parent PLUS Loan to help pay for their child’s education. Unlike other types of federal student loans, Parent PLUS Loans require a credit check. The Department of Education checks for an adverse credit history rather than using the same type of credit-based underwriting commonly used for private loans.

If a parent is denied a Parent PLUS Loan because of adverse credit history, there may be options to qualify with an eligible endorser or by documenting extenuating circumstances. A dependent student may also be eligible for additional Direct Unsubsidized Loan funds in some circumstances.

Tips for Building Credit

Having little or no credit history doesn’t necessarily prevent you from getting federal student loans. However, building a credit history while you’re in school could make it easier to qualify for other types of credit later, including some private student loans.

Your credit score is based on information in your credit reports. For FICO^® Scores, a score of 670 to 739 is generally considered good.

One way to begin building your credit file is to use a credit account responsibly and make payments on time. Payment history, the amount of debt you owe, the length of your credit history, new credit applications, and your mix of credit accounts can all affect your FICO Score.

Credit utilization is another factor to consider. This measures how much of your available revolving credit you’re using. Keeping balances relatively low compared with your credit limits can have a positive impact on your credit profile, although there is no specific utilization percentage that guarantees a particular credit score.

You can also check your credit reports regularly for errors. Monitoring your credit can help you understand what lenders may see when you eventually apply for credit.

The Takeaway

Most federal Direct student loans don’t require a credit check, so you can generally qualify even if you have no credit history. Direct Subsidized and Direct Unsubsidized Loans are among the federal options that don’t require a credit check or cosigner.

Private student loans generally do require a credit check. If you have little or no credit history, you may need a creditworthy cosigner, although some lenders offer no-cosigner options. Before borrowing privately, it’s wise to compare your options and consider federal student loans and other sources of financial aid first.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

Can I get a student loan if I have no credit history?

Yes. Most federal student loans don’t require a credit check, so you can generally qualify even if you have no credit history. Direct Subsidized and Direct Unsubsidized Loans are examples. Private student loans typically require a credit check, and you may need a cosigner if you have little or no credit history. Some private lenders offer no-cosigner loans, but they may still consider your credit history, income and other factors when reviewing your application.

Do federal student loans require a credit check?

Most federal student loans don’t require a credit check. Direct Subsidized and Direct Unsubsidized Loans generally don’t require one, while Parent PLUS Loans do. For PLUS Loans, the Department of Education looks for an adverse credit history rather than using a traditional credit score-based approval process.

How can I qualify for a private student loan without a cosigner?

Some private lenders offer student loans without a cosigner. To qualify, you may need to meet the lender’s credit, income, enrollment, or other eligibility requirements on your own. If you have little or no credit history, qualifying without a cosigner can be difficult. Requirements vary by lender, so it’s a good idea to compare multiple options and review interest rates, fees, and repayment terms before choosing a loan.

Are there grants or scholarships I should apply for before borrowing with no credit?

Yes. Grants and scholarships generally don’t need to be repaid and can reduce how much you need to borrow. Start by completing the FAFSA, which can help determine your eligibility for federal grants and other financial aid. You can also look for scholarships through your school, state, employers, community organizations, and other sources. Because eligibility varies, applying for multiple opportunities may increase your chances of receiving additional aid.

Does having a cosigner affect their credit too?

Yes. A cosigned student loan generally appears on the cosigner’s credit report, so the loan can affect their credit history and potentially their credit score. If payments are made on time, the account may contribute to a positive payment history. However, missed or late payments can hurt the cosigner’s credit as well as the borrower’s. A cosigner is also legally responsible for repaying the loan if the primary borrower doesn’t.

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This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

SOISL-Q426-005

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