Federal student loans, which most undergraduates rely on, have no minimum credit score requirement at all. You can qualify for Direct Subsidized and Unsubsidized Loans regardless of your credit history or even if you have no credit history whatsoever. Private student loans are a different story, typically requiring a FICO score in the mid-600s or higher.
Federal Loans Skip the Credit Score
The U.S. Department of Education does not pull your credit score when you apply for Direct Subsidized or Direct Unsubsidized Loans. These are the standard federal loans available to undergraduate and graduate students through the FAFSA. Approval is based on enrollment status and financial need (for subsidized loans), not creditworthiness. This makes federal loans the most accessible option for students who are just starting to build credit or who have no credit history at all.
The one federal exception is the Direct PLUS Loan, which is available to graduate students and to parents of undergraduates. PLUS Loans do not have a minimum credit score either, but the government runs what it calls an “adverse credit history” check. If your record includes a bankruptcy discharge, foreclosure, tax lien, wage garnishment, or accounts more than 90 days delinquent, you may be denied. You can still get approved by adding an endorser, which functions like a cosigner, or by documenting extenuating circumstances to the Department of Education.
Private Loan Minimums Vary by Lender
Private student loans are credit-based, and most lenders look for a FICO score in the mid-600s or above. The exact threshold depends on the lender, the loan amount, and your overall financial profile. A score of 670 or higher will open the door at most major lenders, while scores below 650 will significantly narrow your options or result in higher interest rates.
Your credit score also affects the rate you’re offered. Borrowers with scores in the mid-700s and above generally receive the lowest advertised rates, while those closer to the minimum cutoff can expect rates several percentage points higher. Over a 10-year repayment term on a $30,000 loan, even a two-percentage-point difference in rate can add thousands of dollars in total interest.
How a Cosigner Changes the Equation
Most students applying for private loans don’t have years of credit history, which is exactly why cosigners are so common. A cosigner is a creditworthy adult, usually a parent or other family member, who agrees to share legal responsibility for repaying the loan. When the lender evaluates your application, it considers the cosigner’s credit score and income alongside yours.
A cosigner with good to excellent credit (generally 670 and above, though higher scores yield better results) can help you qualify for a loan you wouldn’t get on your own and secure a lower interest rate than your credit profile alone would warrant. Keep in mind that the cosigner is fully on the hook if you miss payments, and the loan will appear on their credit report. Some lenders offer cosigner release after a set number of on-time payments, typically 24 to 48 consecutive months.
Options When Your Credit Is Limited or Poor
If you have a low score or no credit history and don’t have a cosigner available, start by maxing out federal loan eligibility. Federal loans should always come first because they carry fixed interest rates, income-driven repayment options, and forgiveness programs that private loans do not offer.
If you still have a funding gap after federal aid, a small number of private lenders evaluate applicants using criteria beyond a traditional credit score. Ascent Funding, for example, considers your school, program of study, GPA, expected graduation date, and cost of attendance when making approval decisions. Funding U similarly weighs GPA, estimated graduation rate, and employment experience, though it may still review your credit history for red flags like missed payments or accounts in collections. MPOWER Financing is another lender that does not require a minimum credit score and focuses on future earning potential, particularly for international and DACA students.
These alternative-credit lenders tend to have smaller loan limits and may charge higher rates than what a borrower with strong credit would receive elsewhere. But for students who genuinely cannot access other funding, they fill a real gap.
Building Credit Before You Borrow
If you have a year or more before you need a private loan, even modest steps can put you in a better position. Opening a secured credit card, which requires a small refundable deposit, and making small purchases you pay off in full each month is one of the fastest ways to establish a credit file. Becoming an authorized user on a parent’s credit card can also help, since the account’s payment history may appear on your credit report.
A score that moves from the low 600s to the high 600s before you apply could mean qualifying without a cosigner, getting a lower rate, or both. Since private loan rates are locked in at the time of disbursement, the credit score you carry when you sign the promissory note is the one that matters for the life of that loan.