Private student loans, including refinance loans, usually require a credit score of at least 670. However, knowing the precise requirements is tricky because private lenders are not always forthcoming with this information. Often, the only way to find out if you qualify is to apply.
If you don't meet baseline eligibility requirements, or if you've previously defaulted on a loan, you may not be approved for a federal student loan. You must maintain "satisfactory progress" in school to be approved for student loans. You can take steps to regain or improve your eligibility for student loans.
Yes, it's possible to be denied a student loan.
While you do need more than a minimum credit score for private student loans, there is no credit check when you apply for federal student loans. If you are applying for federal student loans, you do not need to worry about having a minimum credit score.
Yes, you can get student loans with bad credit. Federal student loans don't have a minimum credit score and most don't require a credit check at all. Some private student loans are available with bad credit but can be costly without a creditworthy cosigner.
The average credit score for approved Sallie Mae borrowers is around 748 for undergraduate student loans. That's pretty high – but don't panic if your credit score is much lower than that. You'll need a minimum credit score (or have a cosigner with a minimum credit score) that is somewhere in the mid-600s.
For example, if your citizenship status changed because your visa expired or it was revoked, then you would be ineligible. Other reasons for financial aid disqualification include: Not maintaining satisfactory progress at your college or degree program. Not filling out the FAFSA each year you are enrolled in school.
Loan requests are cancelled when students: Do not meet Satisfactory Academic Progress (SAP) standards or were not meeting when the loan application was processed. Was not enrolled in at least six eligible credit hours when the loan application was processed.
You could be denied a student loan if you lack sufficient income. Employment history: Your employment history may also be scrutinized. If you have a short work history or don't have a job, that could jeopardize your private student loan approval.
What income is too high for FAFSA? There is no income that is too high to file a FAFSA. No matter how much you make, you can always submit a FAFSA. Eligibility for need-based financial aid increases as the cost of attendance increases, so even a wealthy student might qualify for financial aid at a higher-cost college.
Approval or denial of a loan has no impact to your credit score. The check, itself, does.
Consider a creditworthy cosigner
A cosigner with good credit may be able to help overcome your limited or negative credit history so that together you qualify for the loan. Many students ask their parents, but if that's not an option, you can also ask a guardian or relative to be your cosigner.
For students—or anyone—a score of 700 or above is generally considered a good score. Your credit scores will depend on your credit history and how you've managed past debt.
Federal student loans usually don't require a credit check, making them easier to get for most students. However, private loans often require a good credit score, a minimum income and at least half-time enrollment in an eligible institution. If you don't meet these criteria, a cosigner may be necessary.
Students take it for granted that they will be awarded student loans to help pay for their college tuition. With the familiar banter about paying off loans after college, it sometimes seems like student loans are a guarantee. Although it may not be talked about, it is possible to be denied student loans.
You don't need to get a credit check to qualify for federal student loans (except for PLUS loans). For PLUS loans, we will check your credit before determining whether you are eligible.
There is no income cut-off to qualify for federal student aid. Many factors—such as the size of your family and your year in school—are considered.
There are a few common reasons why the Federal Processor will reject an application: Missing signatures, inconsistent marital status with income, taxes paid are equal to or higher than adjusted gross income, citizenship questions are blank, marital status and family members blank, etc.
Since private student loans are credit-based and many students don't have a credit history yet, it may be difficult to get approved for a loan. When a creditworthy adult cosigns a student loan with you, their good credit can make it easier for the loan to be approved.
There is no specific income limit to qualify for the Free Application for Federal Student Aid (FAFSA). Both students and their parents often think their household income makes them ineligible for financial aid. However, the U.S. Department of Education does not have an income cap for federal financial aid.
If you have poor credit, you'll likely need a co-signer to qualify for a private student loan. A few lenders offer loans without credit or co-signer requirements, but their interest rates may be higher. Most private lenders require borrowers to have a credit score in the mid-600s or higher.
Federal student loan limits are determined by the type of loan, the student's dependency status, and the student's grade level, and past borrowing history. Dependent undergraduates may borrow up to $31,000 in federal student loans. Independent undergraduates may borrow up to $57,500 in federal student loans.
Sallie Mae does not require a cosigner if you meet certain criteria to qualify on your own: Student loan borrowers must be 18 years old at the time of application and a U.S. citizen or permanent resident of the country. Student loan borrowers must be enrolled at least part time in a college or university.