If you are a student with fair or bad credit looking to qualify for a loan best for your credit score, there are varieties of bad credit loans you can apply for. While it is quite impossible to get any type of loan, there are student loans for bad credit you can get.
To get student loans with bad credit, you should consider taking federal student loans because they do not require a credit check. Aside from this, they offer more flexible repayment terms, which include loan forgiveness if you select a specific repayment term or if you work in public service. It is also possible for you to qualify for a private student loan, but you will need a co-signer with strong credit and stable income.
In cases where you do not have a co-signer to qualify for the loan with bad credit, there is a wide range of loans you can compare and shop around for to find the best student loans. In this write-up, we’ve helped you curate some of the best student loans for bad credit in 2024.
6 Best Student Loans for Bad Credit of 2024
When searching for the best student loans for bad or no credit borrowers, you need to compare the interest rates, loan amounts, and repayment terms of different lenders. By doing this, you can easily select the best lender for your needs. As I mentioned earlier, some loans carry no credit check while others require a co-signer. The following are the 6 best student loan lenders for bad credit in 2024:
1. Federal direct subsidized loans
Of all of the student and graduate loan options we have, federal subsidized loans are the most affordable and flexible student loans. This loan is open only to undergraduates seeking financial help.
While the students take loans, the government pays off the interest while students are in school throughout the grace period or when they place their loans on adjournment. However, the interest rates on these loans are some of the lowest you would find while searching, and no cosigner is required.
2. Federal direct unsubsidized loan
This lender offers low fixed rates, requires no no-signer, and neither is it credit-based. Every undergraduate student is eligible for this loan. This lender also offers the same rates to students irrespective of their credit record.
Federal direct unsubsidized loan borrowers are given access to income-driven repayment options that can reduce the amount borrowed and loan forgiveness for borrowers who work in public service fields.
3. Ascent undergraduate future income-based loan
This loan is one of the two student loans offered by Ascent to students without requiring a co-signer. This lender aims to ensure lenders with bad credit who do not qualify for other loans from Ascent that do not require a co-signer.
Whether you are eligible or not depends on your school, time to graduate, educational program, CGPA, and other factors. However, this loan is only available for college seniors and juniors, but they must have a CGPA of 2.9 and above to be eligible.
4. Chicago Student Loans by A.M. Money
This loan is similar to Ascent’s Future income-based loan. Students are eligible for this loan based on their CGPA and educational background instead of their credit. This lender does not allow students to take loans with co-signers.
5. Funding U
Funding U does not offer loans based on credit records, and it does not require borrowers to get a co-signer. Students qualify for loans based on what year they are in school, work and academic background, graduation prospects, current courses, and future earnings. However, this is not the same in every state, and this lender offers lower rates to senior college students with higher academic performance.
6. Prodigy Finance
Most international students do not qualify for federal student loans, but this lender offers loans to international students without requesting a co-signer. However, students need to attend a qualifying school in one of the 18 countries where Prodigy Finance is available. Every interest rate is variable, which means they can change due to market conditions, and rates are offered depending on the student’s course of study and future earnings.
FAQs
Can you Get a Student Loan with Bad Credit?
You can get student loans with bad credit, but it depends on your situation. Most federal student loan types do not require a credit check to offer loans. As long as you qualify for the loan, you will be approved for it.
How do I Find Out My Credit Score?
If you are not sure about your credit score, there are different ways to check it for free. Your credit card issuer or your bank may offer free score checking as a membership cheer-up. Some lenders, like Capital One and Discover, also allow credit scores to everyone, irrespective of whether they are customers or not.
Does paying off student loans improve credit?
Repaying your loan has a good effect on your credit history. However, chances are that your credit may decrease slightly. In cases where your student loan is your oldest credit, repaying it may condense your average credit record.
