5 Best Student Loans for Individuals with Low Credit Scores

Securing a student loan with a low credit score can be a daunting task. Traditional lenders often prioritize credit history, making it challenging for individuals with less-than-perfect credit to finance their education. However, there are still viable options available for students with low credit scores. In this article, we will explore some of the best student loans for individuals in this situation.

1. Federal Student Loans:

Federal student loans are an excellent option for students with low credit scores, as these loans do not require a credit check. The most common federal student loans include Direct Subsidized Loans, Direct Unsubsidized Loans, and Perkins Loans. These loans offer fixed interest rates and flexible repayment plans, making them a popular choice for many students. To apply for federal student loans, complete the Free Application for Federal Student Aid (FAFSA).

2. Private Student Loans with a Cosigner:

Private student loans from banks and credit unions often require a good credit score. However, if you have a low credit score, you can still qualify for a private student loan by applying with a cosigner who has a strong credit history. A cosigner is typically a parent, guardian, or relative who agrees to take responsibility for the loan if the borrower fails to make payments. By having a cosigner, you increase your chances of approval and may even secure a lower interest rate.

3. Online Lenders:

Some online lenders specialize in providing student loans to individuals with low credit scores. These lenders consider various factors beyond credit history, such as income potential and future earning prospects. Examples of online lenders that offer student loans to borrowers with low credit scores include Ascent, College Ave, and Earnest. These lenders may have higher interest rates compared to federal student loans, but they can still be a viable option for those in need of additional funding.

4. State-Based Student Loans:

Many states offer student loan programs specifically designed to assist residents with financing their education. These state-based loans often have more flexible credit requirements and favorable terms for borrowers. Research and inquire about state-specific student loan programs to determine if you qualify for any assistance.

5. Scholarships and Grants:

While not a traditional student loan, scholarships and grants are excellent alternatives to consider. These forms of financial aid do not have to be repaid, and they are awarded based on various criteria such as academic achievement, financial need, or specific talents. Explore scholarship opportunities through your school, local organizations, or online databases to reduce your reliance on loans and improve your overall financial situation.


Having a low credit score should not deter individuals from pursuing higher education. Federal student loans, private student loans with a cosigner, online lenders, state-based student loans, and scholarships/grants are all viable options for students with low credit scores. It’s crucial to explore these options, compare interest rates and terms, and select the best solution for your specific needs. Remember to borrow responsibly and consider improving your credit score over time to access more favorable loan terms in the future.