When you’re just out of high school or are in college, there’s a good chance you haven’t had time to build up much credit yet. College is a great time to do it! If you’re concerned about your ability to get a student loan with no credit, don’t worry. We’ve outlined your options below.
How to Get a Student Loan With No Credit
Not all borrowers have had the chance to build up their credit history. No credit loans, or loans that don’t require a credit check, take this into account and allow you to grow your credit history one day at a time. No credit loans are just what they sound like: loans that are given to borrowers who have no previous credit. Here are some options for borrowers who may find themselves in this situation.
Student Loans With No Credit Check
- Explore Federal Student Loan Options
Federal student loans are one of the best options for students with no credit history, as these types of loans don’t require a credit check. To apply for a federal student loan, you’ll need to file the FAFSA, the Free Application for Federal Student Aid, every year.
From there, the government will access your eligibility for need-based aid such as grants, scholarships, work-study, and federal student loans. Learn more about the FAFSA and the types of financial aid it offers here.
- Check With a Private Student Loan Lender
Most private student loan lenders shy away from funding loans to students with no credit, but all lenders work differently. Do your research and check around to see if any lenders work with borrowers with little to no credit history. But if not, you still have another option…
- Find a Cosigner
While many lenders won’t allow borrowers with no credit to take out loans on their own, they have processes in place for students who still need money for college. If you have no credit history, lenders will typically require a cosigner to do just that – cosign the loan with you. A cosigner is essentially someone who uses their good credit and strong credit history to back you up so you can get the loan. However, cosigning on a loan also makes the cosigner equally as responsible to pay if the primary borrower is unable to, so it’s important to work out a plan together to reassure your cosigner that they won’t find themselves in a bad position.