Yes, you can get student loans with bad credit. The federal student loans most borrowers rely on — Direct Subsidized and Unsubsidized Loans — require no credit check and have no minimum credit score. Federal PLUS Loans do look at your credit, but only for specific negative marks, and a denial can be reversed with an endorser or a successful appeal. Private lenders are the only ones that weigh a traditional credit score heavily, and even there a cosigner can get you approved.
Federal Direct Loans Do Not Check Your Credit
Direct Subsidized and Unsubsidized Loans are the first place to look. Eligibility depends on your enrollment at a participating school and the financial information you provide on the FAFSA. Your credit report is not part of the decision.
The two versions differ in one important way. Subsidized loans are available only to undergraduates with financial need, and the government pays the interest that builds up while you’re in school at least half-time, during the six-month grace period after you leave, and during approved deferments. Unsubsidized loans are available to both undergraduate and graduate students regardless of need, and interest starts accruing as soon as the money is disbursed.
For the 2025–2026 academic year, the fixed interest rate is 6.39% for undergraduate borrowers and 7.94% for graduate or professional students. A 1.057% origination fee comes out of each disbursement, so you receive slightly less than the amount you borrow but owe the full amount.1Federal Student Aid. Interest Rates and Fees for Federal Student Loans
How Much You Can Borrow
Federal law caps annual borrowing based on your year in school and your dependency status:
- Dependent undergraduates: $5,500 first year, $6,500 second year, $7,500 third year and beyond.
- Independent undergraduates: $9,500 first year, $10,500 second year, $12,500 third year and beyond.
- Graduate and professional students: up to $20,500 per year in unsubsidized loans (subsidized loans are not available at this level).
These figures combine subsidized and unsubsidized borrowing.2Federal Student Aid Partners. Annual and Aggregate Loan Limits – 2025-2026 Federal Student Aid Handbook If a parent is denied a PLUS Loan, a dependent undergraduate can borrow at the higher independent-student limits.
PLUS Loans Look at Credit, But Not the Way You’d Expect
PLUS Loans are for parents borrowing on behalf of dependent undergraduates and for graduate or professional students borrowing for themselves. They do involve a credit review, but the Department of Education does not look at your credit score. It checks for what regulations call an “adverse credit history.”3eCFR. 34 CFR 685.200 – Borrower Eligibility
You’ll be flagged as having adverse credit if your report shows either of the following:
- Accounts totaling more than $2,085 that are 90 or more days past due, in collections, or charged off within the past two years.
- A bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a federal student loan within the past five years.
Everything else on your credit report is irrelevant. A low score alone, thin credit, or a history of missed payments that don’t hit those thresholds does not disqualify you.
For 2025–2026, the fixed PLUS rate is 8.94%, with a 4.228% origination fee taken from each disbursement.1Federal Student Aid. Interest Rates and Fees for Federal Student Loans Both are higher than Direct Subsidized and Unsubsidized rates, so borrow those first.
If You’re Denied a PLUS Loan
A denial has three ways out. You can add an endorser — someone without an adverse credit history who agrees to back the loan, similar to a cosigner — and complete PLUS loan counseling.3eCFR. 34 CFR 685.200 – Borrower Eligibility You can appeal if the adverse finding rests on errors, accounts that aren’t yours, or outdated information; the appeal is filed online with supporting documents, and you still have to complete PLUS Credit Counseling.4Federal Student Aid. PLUS Loans – What to Do if You’re Denied Based on Adverse Credit History And if a parent is denied, the dependent student picks up eligibility for the higher unsubsidized limits.
Check Pell Grant Eligibility Before You Borrow
A Pell Grant is federal aid you never repay, and there is no credit check. For the 2026–2027 award year, the maximum is $7,395.5Federal Student Aid Partners. 2026-27 Federal Pell Grant Maximum and Minimum Award Amounts Your actual award depends on financial need, cost of attendance, and enrollment status. Eligibility runs through the FAFSA, so filing early protects your access to the full amount your situation supports.
Private Student Loans With Bad Credit
Private lenders treat student loans like any other consumer credit product. They pull your report, look at your score, and consider your debt-to-income ratio. Minimum scores generally sit somewhere between 640 and 680, though the exact threshold varies by lender. If your score is below that range, approval on your own is unlikely.
Adding a Cosigner
The usual workaround is a cosigner — often a parent or other relative with solid credit — who agrees to share full legal responsibility for the debt. If you miss payments or default, the lender can pursue the cosigner for the full balance plus interest, report the delinquency on both credit reports, and take the cosigner to court.6Consumer Financial Protection Bureau. If I Co-Signed for a Student Loan and It Has Gone Into Default, What Happens? Make sure whoever cosigns understands that risk.
Many private lenders offer a cosigner release after the primary borrower makes a set number of consecutive on-time payments — commonly 12 to 48 months — and shows enough income and credit history to stand alone. The specific rules vary by lender, and release is not automatic even after you hit the payment threshold.
What You Give Up Compared to Federal Loans
Private loans generally lack the protections that come with federal borrowing. Most do not offer income-driven repayment, hardship deferment, or forgiveness programs, and interest rates may be variable. A private loan with a cosigner can fill a gap after you’ve hit federal limits, but it belongs at the end of the list, not the beginning.
How to Apply
Every federal option — Direct Loans, PLUS Loans, Pell Grants, and most institutional aid — runs through the Free Application for Federal Student Aid. You file it electronically at studentaid.gov.7Federal Student Aid. Filling Out the FAFSA Form Before starting, have your Social Security number, your federal tax return, records of any untaxed income such as child support, and current balances for savings, investments, and real estate other than your primary home.8Federal Student Aid. FAFSA Checklist – What Students Need If a parent or spouse has to contribute information, they’ll need the same documents.
Once the FAFSA is processed, the schools you listed use your Student Aid Index to put together an aid package. When you accept a federal loan, you sign a Master Promissory Note, and the school’s financial aid office confirms the amount doesn’t exceed your cost of attendance before disbursing the funds.9Federal Student Aid. FAFSA Submission Summary
The federal deadline for the 2026–2027 FAFSA is June 30, 2027, but state and school deadlines are typically much earlier, and some aid runs out on a first-come, first-served basis.10Federal Student Aid. FAFSA Application Deadlines File as soon as the form opens. Private lenders have no shared deadline; you apply on the lender’s site with your financial details and cosigner information, and the school certifies that the loan doesn’t push you over your cost of attendance.
After You Borrow: Payments and Default
Federal loans include income-driven repayment plans that cap monthly payments based on what you earn rather than what you owe. If your income is very low, your payment can be as little as $0 per month while still counting toward eventual forgiveness. You apply through your loan servicer at no cost.11Federal Student Aid. Income-Driven Repayment Plans Private loans generally do not offer this.
Falling into default is worth avoiding harder than the bad credit that may have brought you here. On federal loans, default typically hits after 270 days of non-payment, and the government can collect without going to court: up to 15% of your disposable wages can be garnished administratively, and the Treasury can intercept your federal tax refund.12Federal Student Aid. What Are the Consequences of Default? There is no statute of limitations on federal student loan collections. On private loans, late and missed payments hit both your credit report and your cosigner’s from the first missed payment, not just after default.6Consumer Financial Protection Bureau. If I Co-Signed for a Student Loan and It Has Gone Into Default, What Happens?
If federal payments start feeling out of reach, call your servicer before you miss one. Switching to an income-driven plan or requesting a deferment or forbearance keeps you out of default while you sort out your finances.