Before taking out student loans, it’s important to exhaust all of your free money options for college. Free money—especially scholarships—reduces the amount you’ll need to borrow and never has to be repaid. Many students skip applying for scholarships because they assume they won’t qualify or believe the award is too small to matter. This can be an expensive mistake.
There are scholarships available for all kinds of students, not just those with high GPAs, and every free dollar you earn is money you don’t have to repay later.
CollegeWhale Tip: Small scholarships add up quickly. A handful of $250–$500 awards can easily cover books, supplies, and other essentials.
Realistically, no. If you have bad credit, you will almost always need a cosigner to qualify for a private student loan. Private lenders rely heavily on credit history, so students with poor or limited credit typically cannot secure a loan without a creditworthy cosigner.
No legitimate bank is going to issue no-cosigner private student loans to someone with bad credit—it’s simply too risky. After completing the FAFSA, your best next step is to speak with your school’s financial aid office. Many colleges offer scholarships, emergency grants, or payment-plan options designed specifically to help students with financial or credit challenges.
CollegeWhale Tip: Before looking at private loans, ask your financial aid office about any last-minute grants or institutional aid you may qualify for. Schools often have funds students never know about.
Yes—your best option is federal student loans. Every student needing financial aid for college should start by visiting FAFSA.gov and submitting a FAFSA application.If you’re worried about approval because of your credit history, we can help with our full section on Bad Credit Student Loans.
Federal student loans:
Offer some of the lowest interest rates available
Provide flexible repayment plans
Do not require a credit check for most borrowers
Because eligibility is based on financial need—not credit history—federal loans are the top choice for students with bad credit or no cosigner.
Applying for FAFSA is free, and financial aid experts consistently recommend using all available federal aid before turning to private lenders.
Your FAFSA award amount depends on two major factors:
1. Financial Need: Determined by your Expected Family Contribution (EFC) or Student Aid Index (SAI).
2. Cost of Attendance (COA): The price of tuition, fees, room and board, and other expenses at your school.
Here are the main forms of aid FAFSA may award:
To get a more accurate estimate of what you may receive, you can use the FAFSA calculator on the Federal Student Aid website or contact your college’s financial aid office.
CollegeWhale Tip: Complete the FAFSA as early as possible—some aid (like FSEOG and Work-Study) is awarded on a first-come, first-served basis.
If federal aid, scholarships, grants, and work income still aren’t enough to cover your costs, private student loans may fill the gap. However, unlike federal loans, private loans are credit-based. If you have bad credit, most lenders will only approve you if a cosigner with strong credit agrees to back the loan. Without a cosigner, qualifying for a private student loan is extremely difficult, since lenders view it as a high-risk situation.
CollegeWhale Tip: If you need a private loan but don’t have a cosigner, look for lenders that offer “credit-alternative” underwriting (based on income or school progress). Options are limited, but they exist for certain borrowers.
CollegeWhale.com has been a trusted source for college financial aid information for nearly 2 decades! We have been on a mission to connect students (and parents) with free money for college and we haven't stopped yet! Take a look at our Editor Picks for Credit
