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It is possible to borrow a student loan with bad credit. Federal student loans, with the exception of Direct PLUS Loans, do not require a credit check.
Private loans, on the other hand, generally do review a borrower’s credit history to inform their lending decisions.
Read on for more information on student loans, how credit scores are used in a lender’s decision-making process, and how to get a student loan with bad credit.
Key Points
• Federal student loans typically do not require a credit check, except for Direct PLUS Loans.
• With private student loans, lenders generally check a borrower’s credit score and history for approval.
• Applicants with bad credit may need a cosigner to secure a private student loan.
• Building credit through responsible financial habits such as paying down debt and making bill payments on time can improve future lending options.
• Refinancing student loans with a stronger credit score could result in lower interest rates and better repayment terms.
Getting a Federal Student Loan
When applying for most federal student loans, the status of your credit is not usually a factor. One exception is if you are in default on an existing federal loan, which may hinder your ability to qualify for more federal funding.
In order to take out federal student loans, you first need to fill out the Free Application for Federal Student Aid (FAFSA®). If you are a dependent student, you will also need your parents to fill out their portion of the FAFSA.
Are You a Dependent Student?
Not sure if you’re a dependent student or not? You very likely are if you are under the age of 24, even if you’re financially independent and even if your parents don’t claim you as a dependent on their tax forms anymore.
If you’re under the age of 24, there are a few ways you wouldn’t be considered a dependent student, including if you are legally emancipated, an orphan, married, an armed services veteran or currently serving active duty, or if you have legal dependents other than a spouse.
Subsidized and Unsubsidized Student Loans
The FAFSA is used to determine your financial aid award, including both Direct Unsubsidized or Subsidized Loans.
Subsidized Federal Loans take financial need into account, and the federal government will pay the interest that accrues on these types of loans while the borrower is attending college. So, the principal amount that is initially borrowed will remain the same until after graduation.
Unsubsidized Federal Loans don’t take your financial need into account, and you are responsible for paying any interest that accrues, including while you’re in school and during times of deferment or forbearance.
Another type of federal Direct Loan is called the PLUS Loan, and it’s available to parents of students if they want to help fund their children’s college education. These loans were also available for graduate/professional students through the Grad PLUS program, but the program is no longer available to most new borrowers as of July 1, 2026. According to the Department of Education, all Direct PLUS Loan applicants go through a credit check because a qualification of the loan is that the borrower can’t have an “adverse credit history.”
Getting Private Student Loans
If you find that sources of funding such as federal student loans, scholarships, grants, or earnings from work-study will not be enough to fund your education, then private student loans may be another option to consider. Note that private student loans do not come with the same borrower protections afforded to federal loans (such as federal forgiveness programs, income-driven repayment plans, or deferment options) and are usually considered after all other options have been reviewed.
When it comes to private student loans, you may be asking yourself, can I get a student loan with bad credit? Private lenders are more likely to rely on credit scores and credit history when determining their lending decisions.
So if you currently have a lower credit score, or not enough credit history, you may want to consider applying with a cosigner who has solid credit history, which can help strengthen the loan application. And if you haven’t really established your own credit history yet, a private lender will also likely want a cosigner for at least two reasons:
• There is scant record to demonstrate how responsibly you would pay back a loan.
• About 15% of your FICO® Score is based on the length of your credit history (and 90% of lenders use FICO Score when making lending decisions).,
Recommended: Student Loans Without a Cosigner
Development of Credit Scores
Credit scores were developed by the three major credit bureaus and the Fair Isaac Corporation (FICO) in the late 1980s and have now been widely adopted by the financial industry. Before the development of such scores, lenders needed to slog through credit reports that were sometimes pages long, and then make lending decisions that, at least in part, were based on these reports. Under that system, it was easier for the biases of lenders to play a role in lending decisions.
With credit scores, information is quickly summarized, and lenders can establish objective requirements about what type of credit is needed before a cosigner is required and/or a loan can be approved.
Recommended: How Do Student Loans Affect Your Credit Score?
How Credit Scores Are Used
When applying for a private loan, as mentioned previously, about 90% of lenders refer to your FICO Score as a sort of risk “litmus test.”
For example, say you apply for a private student loan. The lenders will review your application, including your credit score, and they can approve it or deny it.
Besides your credit score, lenders will likely look at factors such as how many loans you currently have, your payment history, and the amount of time in which you’ve responsibly used credit.
Recommended: Can You Get a Student Loan With No Credit History?
Building Credit Scores
Thirty percent of your FICO Score is based on how much money you owe. This means that reducing your debt may help build creditworthiness. These are some ways to help pay off debt and potentially strengthen a credit score:
• Make monthly payments on time.
• Prioritize paying off your credit card balance monthly.
• Consider reducing the interest rate on your debt by consolidating credit card debt into a personal loan, which generally has lower interest rates than credit cards.
• Snowball down the debt. With the snowball method, if you have debt spread across multiple credit cards, you start by paying off the account with the smallest balance while making minimum payments on the rest. Then move to the next smallest bill, paying as much as you can on that one until it’s paid off, and so forth.
• Limit the amount of spending done with a credit card.
Once your credit gets stronger, you may want to consider refinancing any existing student loans you have. With student loan refinancing, you take out a new private loan to replace the old loan, ideally with a lower interest rate and a better term. Be aware that without a lower interest rate, you may pay more interest over the life of the loan if you refinance with an extended term.
If you currently have student loans and you’re wondering if refinancing might be a good option for you, using a student loan refinance calculator can help you determine how much you might save.
Should you refinance your student loans? If you can get a better rate and term with a stronger credit score, it may be worth it. However, it’s important to note that refinancing federal student loans makes them ineligible for federal programs and protections. If you don’t need to use those programs, you may want to explore refinancing.
Recommended: Student Loan Refinancing Guide
The Takeaway
It is possible to get a student loan with bad credit. Aside from Direct PLUS Loans, federal student loans do not require a credit check.
However, private student loans usually do require a credit check. Credit scores and credit history are used to determine a borrower’s creditworthiness and can affect whether an applicant is approved for a private loan and the term and rate they qualify for. Keep in mind that if the rate you get is higher than you hoped for, you can always work on strengthening your credit over time and then consider refinancing student loans.
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.
FAQ
Do student loans require a credit check?
Most federal student loans don’t require a credit check, although Direct PLUS Loans are an exception. Private student loans typically consider your credit history, so having bad credit may make approval more difficult.
Can you get a private student loan with bad credit?
It may be possible, but private lenders generally use your credit score and credit history when evaluating applications. If your credit is limited or poor, applying with a cosigner who has a stronger credit history may improve your chance of approval.
How can you improve your credit before applying for a student loan?
Making payments on time, reducing debt, paying credit card balances, and limiting credit card spending may help strengthen your credit over time. A stronger credit profile could give you access to better borrowing options in the future.
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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 .
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