Can I Get a Student Loan With Bad Credit? Federal and Private

Yes, you can get a student loan with bad credit. The most common federal student loans — Direct Subsidized and Unsubsidized Loans — do not involve a credit check at all, so your score is not a factor in qualifying. The federal PLUS Loan does check credit, but it looks only for specific negative items rather than a score, and offers workarounds if you are denied. Private loans are the strictest option, and those typically require a creditworthy cosigner if your own credit is weak.

Direct Subsidized and Unsubsidized Loans Skip the Credit Check

Direct Subsidized and Unsubsidized Loans are the starting point for anyone borrowing for college, and neither type involves a credit check or a cosigner requirement.¹ To qualify, you need to be enrolled at least half-time in a degree or certificate program at a school that participates in the federal loan program, a U.S. citizen or eligible noncitizen, and have a valid Social Security number.²

The subsidized version is awarded based on financial need, and the government pays the interest that builds up while you are in school at least half-time, during your grace period, and during certain deferment periods. The unsubsidized version is open regardless of need, but interest accrues from the day the loan is disbursed.

For undergraduate Direct Loans first disbursed between July 1, 2025, and June 30, 2026, the fixed rate is 6.39%.³ There is also an origination fee of 1.057% for loans disbursed between October 1, 2025, and September 30, 2026, which is subtracted from each disbursement before you see the money.⁴

How Much You Can Borrow

Annual limits depend on whether you are a dependent or independent student and how far along you are in school. For dependent undergraduates, the combined annual caps are:⁵

First year: $5,500 total, up to $3,500 subsidized
Second year: $6,500 total, up to $4,500 subsidized
Third year and beyond: $7,500 total, up to $5,500 subsidized

The lifetime aggregate limit for dependent undergraduates is $31,000, with no more than $23,000 in subsidized loans. Independent students qualify for higher limits.

PLUS Loans Check Credit, but the Standard Is Narrow

When Direct Subsidized and Unsubsidized Loans do not cover the full cost of school, parents of dependent undergraduates and graduate students can apply for a Direct PLUS Loan. This is the one federal loan that runs a credit check, but the standard is more forgiving than what a private bank would use.⁶ The government does not look at your credit score at all. It looks only for specific negative items that qualify as an “adverse credit history.”

Under federal regulations, you have an adverse credit history if either of the following is true:⁷

You have one or more accounts with a combined balance greater than $2,085 that are 90 or more days past due, or that were sent to collections or charged off within the past two years.
Within the past five years, you had a bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or a write-off of a federal student loan debt.

A low score with none of these items on your record will not by itself disqualify you. PLUS Loans do carry a higher origination fee than standard Direct Loans, 4.228% for loans disbursed between October 1, 2025, and September 30, 2026.⁴

If You’re Denied a PLUS Loan

A denial does not close the door. You have two ways forward:⁶

Get an endorser. An endorser works like a cosigner: someone with an acceptable credit history who agrees to repay the loan if you do not. You will also need to complete PLUS credit counseling.
Appeal the decision by documenting extenuating circumstances. If the debt that triggered the denial has since been paid in full, you can submit proof from the creditor on company letterhead. If the adverse item relates to a bankruptcy that was actually discharged more than five years ago, you would provide the discharge paperwork. PLUS credit counseling is required on this path too.⁸

Higher Direct Loan Limits When a Parent Is Denied

Here is a useful quirk of the system: if a parent applies for a PLUS Loan and is denied, the dependent student becomes eligible for the higher annual Direct Loan limits that normally apply to independent students:⁵

First year: $9,500 total, up to $3,500 subsidized
Second year: $10,500 total, up to $4,500 subsidized
Third year and beyond: $12,500 total, up to $5,500 subsidized

The extra amount comes entirely as unsubsidized loans, so interest accrues from disbursement. Even so, a parent’s poor credit can end up unlocking more borrowing capacity in the student’s own name, without any credit check on the student.

Private Student Loans Almost Always Require a Cosigner

Private student loans from banks and other lenders sit outside the federal system and follow their own rules. They evaluate your credit score, income, and debt-to-income ratio. If your credit is poor, qualifying on your own is unlikely.

Adding a cosigner with good credit, generally a score in the upper 600s or higher, can make approval possible. The cosigner is fully responsible for the debt if you fail to pay. The lender can pursue the cosigner for the entire balance, not just a portion, and any missed payment shows up on both credit reports.

Private rates come in fixed and variable forms. Variable rates move with market benchmarks, which means your payment can rise over time. Before signing anything, compare the total cost of a private loan over its full repayment term against any federal loan eligibility you have not yet used.

Cosigner Release

Many private lenders offer a cosigner release once you have shown you can carry the loan on your own. The typical requirement is 12 to 48 consecutive on-time payments, depending on the lender. Release usually requires a fresh credit check, proof of sufficient income, and graduation. Not every lender offers it, and approval is not automatic, so ask about the specific terms before you borrow rather than after.

How to Apply

Every federal student loan, whether it involves a credit check or not, starts with the Free Application for Federal Student Aid (FAFSA). Even if you assume your household earns too much for grants, filing the FAFSA is what makes you eligible to borrow.

Before you sit down with the form, pull together your Social Security number, federal tax information (the 2026–27 FAFSA uses 2024 tax data), records of any untaxed income such as child support received, and information about your family size and how many family members will be in college during the 2026–27 school year.⁹¹⁰¹¹

Anyone required to provide information on your FAFSA (you, a parent, or a spouse) is a “contributor,” and each contributor needs their own StudentAid.gov account. Every contributor must consent to having their federal tax information transferred directly from the IRS into the application. If a required contributor does not provide that consent, you will not be eligible for federal student aid, even if the tax data is entered manually.¹⁰

The 2026–27 FAFSA opens on October 1, 2025, and the federal deadline is June 30, 2027.¹¹ File as early as you can. Some state and school aid is awarded first-come, first-served, and many states set their own deadlines well before the federal cutoff. Once the form is processed, the schools you listed receive your results and use them to put together an aid package showing which loans, grants, and work-study amounts they can offer.¹⁰

1
Federal Student Aid. Federal Student Loans
2
Office of the Law Revision Counsel. 20 USC 1091 – Student Eligibility
3
Federal Student Aid. Interest Rates for Direct Loans First Disbursed Between July 1, 2025 and June 30, 2026
4
Federal Student Aid. FY 26 Sequester-Required Changes to the Title IV Student Aid Programs
5
Federal Student Aid. Annual and Aggregate Loan Limits
6
Federal Student Aid. PLUS Loans: What to Do if You’re Denied Based on Adverse Credit History
7
eCFR. 34 CFR 685.200 – Borrower Eligibility
8
Federal Student Aid. Appeal a Credit Decision Demo
9
Federal Student Aid. FAFSA Checklist: What Students Need
10
Federal Student Aid. Filling Out the FAFSA Form
11
Federal Student Aid. 2026-27 FAFSA Form