8 Student Loans for Bad Credit or No Credit

Current student loan interest rates for borrowers with bad credit and no credit

NerdWallet’s team of student loan experts analyzed the rates reported by five lenders who offer student loans to borrowers with bad or no credit. The analysis covers a period of 39 months. We have not considered lenders whose interest rate is tied to a percentage of revenue sharing agreement.

Our analysis included four variables – average maximum fixed rates, average minimum fixed rates, average maximum variable rates and average minimum variable rates – for each lender on a monthly basis.

The average rates as of October 5, 2022 are:

  • Minimum fixed interest rate – 6.20%.

  • Maximum fixed interest rate – 14.75%.

  • Variable minimum interest rate – 4.89%.

  • Maximum variable interest rate – 13.30%.

Rates from niche lenders – such as those specializing in bad and no credit borrowers – tend to follow the trend line of private student loan interest rates in general. Since June 2022, average rates have been on a sharp upward trend. The rates reported represent the ranges announced by the lenders.

In some cases, it may be preferable to have a revenue sharing agreement-type student loan. Instead of paying a pre-determined interest rate on your borrowed balance, you’ll repay your loan based on an agreed-upon percentage of your post-graduation income.

Be sure to weigh the risks before deciding on this type of loan.

Loan rates for independent students, who may not have established credit, are generally higher than credit-based loan rates.

Consider multiple lenders, the rates you offer, and repayment terms before committing.

Use this table to assess how your student loan offers compare to typical interest rate ranges.

Student loan options for parents with bad credit

Parents with bad credit have fewer options for parent loans. You will likely need a guarantor or co-signer to qualify.

Federal PLUS loans require borrowing parents not to have unfavorable credit history — a negative mark on your credit history, such as canceled payments, default or bankruptcy.

If you MORE ready the request is denied you can try to get an endorser (similar to a co-signer) who can qualify for a parent PLUS loan. Or you can appeal the decision to the Ministry of Education by providing documentation of extenuating circumstances.


Our survey of over 29 banks, credit unions and online lenders offering student loans and student loan refinances includes the top 10 lenders by market share and the top 10 lenders by online search volume, as well as lenders who serve specialized or non-traditional markets.

We consider 40 characteristics and data points for each financial institution. Depending on the category, these include the availability of bi-weekly payments via autopay, minimum credit score and disclosure of income requirements, availability for borrowers in all states, extended grace periods and customer service. internal.

Stars represent ratings ranging from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half star.

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