No-Credit-Check Student Loans: What You Need To Know

With most loans, you'll need to undergo a credit check to find out if you qualify. But that's not the case with student loans — at least some types of them.

For the roughly 45 million Americans who have no credit score, this can be a huge help in financing the cost of an education.

Here are your options for no-credit-check student loans.

What are no-credit-check student loans?

A no-credit-check student loan is a type of student loan that doesn't involve the lender pulling your credit report as part of the application process.

Generally speaking, federal loans are what you'd consider no-credit-check loans. These are loans the Department of Education offers that have set interest rates and are open to most American students (and their parents or legal guardians).

There are some private student loans that don't require a credit check, too. These loans may be offered by banks, credit unions, or online lenders. While private lenders typically base your loan approval and interest rate on your financial qualifications (like income and credit score), a few don't have these same eligibility requirements.

Federal student loans that don't require credit checks

The majority of federal student loans don't require a credit check. “The federal government understands that students, particularly traditional, dependent undergraduate students, would not otherwise qualify for anything on their own,” says Jack Wang, a college aid advisor at Innovative Advisory Group.

Specifically, Direct Subsidized and Direct Unsubsidized loans don't require a credit check. To be eligible for subsidized loans, you need to be an undergraduate student enrolled at least half-time in a school that participates in the program, and you must have demonstrated financial need. Undergraduate, graduate, and professional degree students are eligible for unsubsidized loans, regardless of financial need.

To apply for any federal loan, you'll need to fill out the Free Application for Federal Student Aid (FAFSA). This takes about an hour and requires personal and financial information to complete.

“It's a minor credit check, but credit score nor income matter,” Wang says. “That credit check looks for past foreclosure or bankruptcy filings, wage garnishments, or if there is more than roughly $2,000 in outstanding credit balances that is more than 90 days late.”

Private loans for students with no credit

Some private lenders offer no-credit-check student loans, but they're much less common. Ascent, for example, offers an “outcomes-based loan,” which takes into account your academic progress in school, GPA, and other factors besides your credit score. A.M. Money also has a no-credit-check option, which is based on your future earnings. MPOWER Financing has a similar option specifically for international students.

Beyond options like these, you can also bring in a cosigner if you have poor or no credit and need help getting a private student loan. A cosigner agrees to share in the responsibility of the loan with you, and if you don't make payments, they'll need to step in and make them for you. The upside is the lender will consider their credit and income when evaluating your loan application and setting your interest rate.

Keep in mind that you may pay more for a no-credit-check loan than you would otherwise. With Ascent, for instance, its non-cosigned outcomes-based loans have rates that go well above the rates offered on credit-based and cosigned loans. A non-cosigned outcomes-based loan has a fixed APR of 13.16% to 15.13% as of January 2025. A cosigned, credit-based loan, on the other hand, has fixed rates as low as 3.39%.

Current private student loan rates

Alternatives to no-credit-check loans

If you've exhausted your federal student loan options and have no credit, poor credit, or lack access to a cosigner who can help you get a loan, there are alternative options you can explore to cover your education costs. These include:

Scholarships and grants

Scholarships and grants are financial aid awards that don't need to be repaid. They're often need-based or merit-based and can come from a variety of sources — private companies, professional organizations, state and federal agencies, employers, and even colleges themselves. You can find scholarship and grant options online or look into options at the schools you're applying to or within your community.

In fact, that last option may be your best bet, according to Shannon Vasconcelos, senior director of education finance for Bright Horizons College Coach. “Local scholarships narrow down the applicant pool significantly — to just your town or your high school,” says Vasconcelos.

“While you'll still likely have some competition within your community, your chances of winning any given local scholarship will be much higher,” she continues. “Most high school counseling offices will maintain a list of local scholarships that graduating seniors can apply for, and I would recommend putting much more of your energy into these local scholarship applications to maximize your chances of success.”

Federal work-study

If you demonstrate financial need, you may be able to participate in the federal work-study program. You can apply for part-time jobs through work-study, and positions may be on or off campus. These jobs are typically in civic education or related to your course of study when possible.

Institutional loans from colleges

Just like some colleges offer scholarships and grants, others also have institutional loan programs you can apply for if you need additional funding. For example, Georgia Tech offers a variety of institutional loans, as does Depauw University. Ask your school's financial aid office for information on what loans may be available.

Income share agreements

Income share agreements, or ISAs, provide money based on your future earning potential and are offered at select schools and universities.

“A student receives education funding and contractually agrees to repay based on a percentage of their future salary for a defined period of time,” says Stacey MacPhetres, senior director of education finance at Bright Horizons.

Just keep in mind: This percentage-based payment has a drawback. “As your salary increases, so, too, would the payment,” MacPhetres says.

Tips for getting student loans without credit

Building your credit can make getting a student loan easier — and potentially more affordable. You can do this by paying all your bills on time, opening a secured credit card, or becoming an authorized user on another person's existing card.

Bringing in a “creditworthy cosigner” is one of the best strategies, Wang says, as they can help you qualify and potentially improve the loan terms you're offered.

Finally, max out your federal student aid before turning to private loans. Most federal loans don't require a credit check, and they have low, fixed interest rates. Federal loans also come with unique borrower benefits that private loans don't, like access to loan forgiveness and income-driven repayment plans.