What Credit Score Do You Need for a Student Loan?

If you’ve ever Googled, “Do I need good credit to get a student loan?” you’re not the only one sweating over it. Maybe you’ve got no credit yet, or your score’s a little shaky after a missed cell phone payment. Here’s the deal: your credit score isn’t always the dealbreaker when it comes to student loans—especially if you’re looking at federal aid.

For federal student loans like Direct Subsidized or Unsubsidized Loans, the government doesn’t use your credit score. Literally, you could have zero credit history and still get money for college, as long as you fill out the FAFSA. Plenty of college freshmen start out that way.

But things flip if you go after private student loans. Here, lenders do care about your credit score, and most want to see that you’re responsible with credit. They usually look for scores in the mid-600s or above, but you can sometimes get through with less—if you’ve got a cosigner with better credit on your team.

The path you take really depends on the type of loan you’re after and how much trust banks or the government need to have in you. It doesn’t have to be mysterious or scary. Stick with me, and I’ll break down what numbers you should shoot for, what moves you can make before you apply, and how to play it smart if you’ve got less-than-ideal credit.

• Federal vs. Private Student Loans: How Credit Score Matters
• What Credit Score Do Private Lenders Look For?
• Can You Get a Student Loan With Bad Credit?
• How to Improve Your Chances of Getting Approved
• Why Some Students Need a Cosigner
• Key Tips Before You Apply

Federal vs. Private Student Loans: How Credit Score Matters

Figuring out the role of your credit score starts with one big split: federal student loans versus private student loans. They play by totally different rules.

Federal student loans are what most students use first. Here’s the wild part—almost all federal student loans (think Direct Subsidized and Unsubsidized) don’t check your credit score at all. Your payment history, how many credit cards you’ve got, or even if you’ve never borrowed before, none of that matters. You just fill out the FAFSA, check your school’s financial aid box, and you’re in the running. The only exception is federal PLUS loans (for grad students or parents), which do a light credit check to see if you have major red flags like a recent bankruptcy or default. Even then, they’re not really choosing based on your actual score.

Private student loans are a whole different beast. When you fill out a private loan application, the first thing lenders want to see is your credit score. These banks or online lenders are betting their money on your ability to pay them back, so they check if you currently use credit responsibly. Usually, they’re hunting for scores in the mid-600s or higher. If yours isn’t quite there, you’ll notice higher interest rates or you might not qualify at all without a cosigner.

• Federal loans = credit score not required, except for PLUS loans’ red flag check
• Private loans = credit score matters, score affects approval and your interest rate
• Private lenders often need you or a cosigner to have established credit (mid-600s+)
• Federal loans are usually the better deal for beginners or students with no credit yet

If you’re comparing both options, federal loans win on flexibility and don’t stress about your credit score. With private loans, that score becomes a gatekeeper—they’ll use it to set your interest rate, loan limit, and whether you get approved at all.

So if you’re light on credit history, federal loans should be your first stop. If you bump up against borrowing limits or you need more for school expenses, that’s when private student loans—with their credit score rules—come into play.

What Credit Score Do Private Lenders Look For?

When you go for a private student loan, your credit score is a big deal. It tells lenders if you’re good at paying back money you borrow. Most private lenders set the bar at about a 650 score or higher. If you don’t know your number, pull a free credit report and check—no guesswork here.

Here’s what’s cool: not every lender uses the same cutoff. Some start checking out applications at 600 or even lower, but if your score lands above 700, you’ll usually score better interest rates and have more choices. That can save you serious cash over a four-year degree.

If you’re sitting below 650, don’t panic. Some lenders are willing to work with you if you bring a creditworthy cosigner—think a parent, older sibling, or family friend with a solid score. Lenders look at the higher score, so that could boost your odds a lot.

Let’s see how some popular lenders stack up with their cutoffs:

Lenders might look at more than just your credit score. They also check things like your income, how much other debt you have, and whether you’re in school full-time. But your score is usually the first thing they see.

If your number isn’t where you want, don’t stress. You could focus on small wins like paying bills on time or paying down credit card debt to give yourself a quick boost before you apply. Even 20 points can sometimes move you into a better bracket for getting approved or getting a lower interest rate.

Can You Get a Student Loan With Bad Credit?

First thing to know: if you’ve got bad credit, or even no credit, you can still get a student loan. Most 18-year-olds haven’t had time to build a credit report, so you’re definitely not alone here. Federal student loans almost never pull your credit score when you apply. Direct Subsidized and Direct Unsubsidized Loans are based on your financial need and FAFSA, not your FICO score. Doesn’t matter if your score is 800 or 510—the playing field is level for everyone.

Want proof? As of last year, over 90% of all undergraduate student loan dollars came from federal loan programs, which don’t use credit score checks. Even if you missed a couple payments or don’t have a credit card yet, the door is still wide open for you.

If you’re thinking about PLUS loans (the ones where parents or grad students borrow), it’s a little different. The government still doesn’t expect perfect credit, but they do check for what they call “adverse credit history.” This doesn’t mean you need good credit, just that you can’t have serious red flags like a recent bankruptcy or unpaid collections over a certain amount. If you’ve got one of these, you can still sometimes qualify with a cosigner or by providing extra info.

Private student loans are another story. Lenders will check your credit score because they want to know if you’ll pay them back. If your score is low (think below 650), you’ll almost always need a cosigner—usually a parent or relative with stronger credit. Some lenders set the bar around 620, but rates are way higher if your score’s not great, so read the fine print. The truth is, almost all college students use cosigners when dealing with private loans.

Just so you can see the difference, here’s how federal and private loans stack up when it comes to credit requirements:

So, short answer: yes—you can get a student loan with bad credit, especially if you stick to federal options. If you really need private loans, just be ready to tag in someone with a stronger credit history, or hunt for lenders who work with students starting from scratch.

How to Improve Your Chances of Getting Approved

If you’re worried your credit score isn’t where lenders want it, don’t just cross your fingers and hope. You can take real steps to look better on a private student loan application. Even a little bit of effort here can go a long way with banks or credit unions.

• Check your credit report: Before anything else, pull your free credit report (you can get one a year from each major bureau at AnnualCreditReport.com). Spot mistakes, like wrong balances or accounts that aren’t yours. Disputing errors can boost your score a few points pretty fast.
• Pay down your credit cards: Lenders want to see you’re not maxed out. If you can, pay off as much as you can before you apply. Keeping your balance under 30% of your limit usually helps your score jump.
• Always pay on time: Payment history is the biggest part of your score. Even if you’re just paying the minimum, never skip a bill. It takes just one late payment to ding your score—sometimes for months.
• Don’t open new accounts last-minute: Every time you apply for credit, it can mean a small hit. Multiple hard pulls in a short time can make lenders nervous. Try not to open a bunch of new cards right before you apply for a loan.
• Get a cosigner: If your own score isn’t great, adding a cosigner with solid credit can make all the difference. Most private student loan lenders will consider your cosigner’s history even more than yours. In fact, according to Sallie Mae’s 2024 report, 92% of undergraduates who got approved for private loans had a cosigner.

Want a quick look at how much these moves can help? Here’s what usually makes up your credit score:

It’s not impossible to look good to lenders even if you don’t have years of great credit. If you’re proactive and tidy up your financial picture, you stand a way better shot at getting that approval for a private student loan.

Why Some Students Need a Cosigner

If you’re applying for a student loan from a private lender, you’ll probably see the term “cosigner” pop up. Here’s why: most college students don’t have a long credit history or a strong enough credit score to wow banks. Lenders see you as a risk if they can’t check your track record with debt. That’s where a cosigner—usually a parent or close relative—steps in.

Having a cosigner means someone with a stronger credit score is willing to back you up. If you miss payments, the lender can go straight to your cosigner for the money. This makes lenders a lot more comfortable approving your loan and often gets you a way better interest rate too.

Check out these reasons you might need a cosigner for a private student loan:

• Your credit score is below 670 (most private lenders want scores in the mid-600s or higher).
• You have no credit history yet (very common for 18-year-olds straight out of high school).
• Your income is too low to show you can pay the loan back.
• The lender requires all student applicants under a certain age to have a cosigner, regardless of score.

The cosigner’s credit matters a lot. According to data from Sallie Mae in 2024, around 92% of undergraduate private loan borrowers had a cosigner. It’s basically the norm, not the exception.

If you can find someone to cosign, make sure they know what’s at stake. Missing payments hits your cosigner’s credit too. But if you stay on track, many lenders let you “release” the cosigner after a couple of years of steady payments—which takes them off the hook and helps you stand on your own.

Key Tips Before You Apply

Before you start filling out any applications for student loans, getting your ducks in a row can save you time, money, and stress. Lenders and schools won’t wait around if you miss the details. Here’s what you should do before you fire off those forms.

• Know your credit score: You can check your score for free at sites like AnnualCreditReport.com or through most banks. Look for errors—sometimes a wrong old address or bill can mess up your score, and fixing it might help you get a better rate on a private student loan.
• Fill out the FAFSA first: Even if you think your family income is too high for aid, most federal student loans don’t care about your credit score. The FAFSA is your golden ticket for grants and the best loan rates.
• Compare loan offers: Not all private lenders use the same standards. Some care more about your future earnings or major. Shop around, get quotes, and check interest rates, repayment terms, and fees.
• Think about a cosigner: If your credit score is under 650 and you want a private loan, you’ll probably need a cosigner who has solid credit, like a parent. About 92% of private student loans have cosigners, so it’s super common.
• Borrow only what you need: Don’t let lenders talk you into more cash “just in case.” The less you borrow, the easier it’ll be to make payments after graduation.

If you’re curious about what’s average, take a look at this quick snapshot for private student loan approvals:

Take the time now to prep your info, boost your credit score if possible, and don’t be afraid to ask questions. Loan decisions can stick with you for years—so it pays to be picky before you sign on the dotted line.