Here’s the Credit Score You’ll Need to Get a Private Student Loan

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Do you need a good credit score to get student loans? The answer depends on what type of student loan you’re borrowing with. Federal student loans don’t have credit requirements for students.

But if you’re turning to private lenders to finance your education, you’ll need to have your own good credit — or to find a student loan cosigner who does have good credit and is willing to apply with you.

Let’s explore what lenders look for in an application, including the kind of credit score they want to see before approving a private student loan.

What is a good credit score for student loans with a private lender?

When deciding whether your or your cosigner’s credit is good enough, you need to know how lenders will view different credit scores:

  • Mid-600s or lower: Most private lenders won’t approve you for a student loan without a cosigner. You’ll need to rely on student loans options for bad credit, such as federal student loans or applying with a cosigner.
  • Mid-600s to 690: You’ll find few lenders willing to work with you and your chances of qualifying on your own will be iffy. If you are approved, expect to pay expensive private student loan rates.
  • 690 to 720: It will be faster and easier to find lenders willing to work with you. Your private student loan rates will typically be closer to the middle range of rates a lender offers, too.
  • 720 and up: You’ll have your pick of the best private student loans out there, and you credit score will work in your favor. You’ll also get the lowest student loan rates.

Can you qualify for a private student loan?

Your credit score is a central factor that determines whether a lender will approve or deny your request for a private student loan. But these three digits aren’t the only thing that matter to lenders.

You’ll need more than a good credit score to qualify for a private student loan. Here’s what you need to do to see if you have a good credit score for student loans, and to understand how your credit impacts your private student loan applications.

Check your credit score

First off, you need to know exactly what your credit score is. College students might not know what their credit score is or whether it’s good enough to get a private student loan on their own.

Fortunately, there are a few options to check your credit score for free. Credit Karma and Credit Sesame are among the most popular.

Make sure you meet legal borrowing requirements

Lenders have to comply with many U.S. federal and state laws about how they can do business. On the legal end of things, most lenders set the following criteria for private student loans:

  • Be a U.S. citizen or legal resident
  • Be 18 years old or older
  • Use student loans only for educational expenses
  • Show that you’re enrolled at least half time in an educational program that qualifies

Some lenders will only extend private student loans to residents of certain U.S. states, or to enrollees at specific colleges. Before applying, check the lender’s requirements to be sure you meet them.

Consider your income and debt history

On top of a credit score, lenders also way some financial and employment criteria for private student loan borrowers. Private student loan lenders look at the following factors to try to gauge if you can afford to repay this debt:

  • Credit history: Besides your credit score itself, lenders will look at your credit report for derogatory remarks, such as late payments, bankruptcy, and delinquent accounts. They’ll want to see a mix of credit accounts with histories of on-time payments.
  • Employment and income: Not all students have a job. But if you’re a student who has one, it can improve your chances of approval. Most lenders will ask for proof of employment and income, such as a recent pay stub.
  • Debt-to-income (DTI) ratio: Lenders also will compare your income to your monthly debt costs to make sure you can afford additional payments. They usually want to see a DTI of 28 percent or lower — use our calculator to estimate your own DTI. Many lenders will consider your housing costs (rent or mortgage) as well.

Request private student loan rate quotes

Each lender has its own credit score requirements for private student loans, which aren’t always advertised. The best way to know if you’ll qualify for a private student loan with a specific lender is to apply for a loan rate check.

Lenders usually can perform a soft credit check to generate a rate estimate, but some might not. So double-check whether it’s a soft or hard credit inquiry before you allow the lender to perform it. If it’s a soft inquiry, it won’t affect your credit score.

Once the lender figures out whether you qualify, it will list out all the rates it can offer you. Or, if you don’t qualify for a private student loan, you can find that out without a hard credit check that could lower your score.

Should you apply for a private student loan with a cosigner?

The reality is most college students can’t meet the credit score, income, or other borrowing criteria lenders set. But if you don’t have a good credit score for private student loans, that doesn’t mean they aren’t an option.

One solution is to apply for private student loans with a cosigner. By doing so, you can:

  • Get the good credit of a parent or other cosigner
  • More easily qualify for the loan
  • Get better interest rates

About 90 percent of private student loans are borrowed with the help of a cosigner, according to a Consumer Financial Protection Bureau (CFPB) report.

Not only are cosigners common, but some lenders such as Ascent and CommonBond won’t accept private student loan applications without them. Other lenders allow borrowers to apply with a cosigner if they don’t meet credit and income qualifications on their own.

Don’t forget to find out if your lender offers a cosigner release and under what terms. Citizens Bank, for example, allows a primary borrower to release a cosigner after making 36 on-time monthly payments.

Do lenders view graduate students differently?

If you’re pursuing an advanced dedgree, you might have an easier time securing private student loans for grad school. That’s because, per the CFPB, “as a graduate or professional student, you might be more certain of your job prospects and earning potential.”

Graduate students also are more likely to have an employment history of high salaries, especially if they spent a few years working after completing their undergraduate degree. They tend to have longer credit histories as well, allowing lenders to get accurate insights into the applicant’s financial management.

Additionally, several lenders offer private student loans specifically to graduate students that carry different requirements. CommonBond, for instance, requires cosigners for both its general undergraduate and graduate student loans. However, it has no such requirement for its MBA student loans.

Many lenders offer student loans specifically for students in MBA, medical, dental, law, or other graduate programs that can lead to high-paying careers.

Bottom line: Good credit is required for private student loans

It’s a smart idea to utilize federal student loans first, as they don’t have a credit requirement. But private student loans can be an important tool to fill in gaps in college costs. You or a cosigner must have a good credit score to get student loans from a private lender.

If you need student loans now, enlisting a cosigner is the way to go. But it’s never too early to start building credit and improve your chances of qualifying for student loans in the future.

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LenderVariable APREligibility 
2 Important Disclosures for College Ave.

CollegeAve Disclosures

College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.

(1)All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.

(2)This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7% variable Annual Percentage Rate (“APR”): 96 monthly payments of $179.28 while in the repayment period, for a total amount of payments of $17,211.20. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.

(3)As certified by your school and less any other financial aid you might receive. Minimum $1,000.

Information advertised valid as of 5/22/2019. Variable interest rates may increase after consummation.


* The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.
3 = Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.

4 Important Disclosures for Discover.

Discover Disclosures

  1. At least a 3.0 GPA (or equivalent) qualifies for a one-time cash reward of 1% of the loan amount of each new Discover undergraduate and graduate student loan. Reward redemption period is limited. Please visit DiscoverStudentLoans.com/Reward for any applicable reward terms and conditions.
  2. View Terms and Conditions at DiscoverStudentLoans.com/AutoDebitReward.

5 Important Disclosures for SunTrust.

SunTrust Disclosures

Before applying for a private student loan, SunTrust recommends comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans. To view and compare the available features of SunTrust private student loans, visit https://www.suntrust.com/loans/student-loans/private.

Certain restrictions and limitations may apply. SunTrust Bank reserves the right to change or discontinue this loan program without notice. Availability of all loan programs is subject to approval under the SunTrust credit policy and other criteria and may not be available in certain jurisdictions.

©2019 SunTrust Banks, Inc. SUNTRUST, the SunTrust logo and Custom Choice Loan are trademarks of SunTrust Banks, Inc. All rights reserved.

  1. Interest rates and APRs (Annual Percentage Rates) depend upon (a) the student’s and cosigner’s (if applicable) credit histories, (b) the repayment option and repayment term selected, (c) the requested loan amount and (d) other information provided on the online loan application. If approved, applicants will be notified of the rate applicable to your loan. Rates and terms effective for applications received on or after 5/1/2019. The current variable APRs for the program range from 4.251% APR to 11.300% APR and the current fixed APRs for the program range from 5.251% APR to 12.00% APR (the low APRs within these ranges assume a 7-year $10,000 loan, with two disbursements and no deferment; the high APRs within these ranges assume a 15-year $10,000 loan with two disbursements). The variable interest rate for each calendar month is calculated by adding the current One-month LIBOR index to your margin. LIBOR stands for London Interbank Offered Rate. The One-month LIBOR is published in the Money Rates section of The Wall Street Journal (Eastern Edition). The One-month LIBOR index is captured on the 25th day of the immediately preceding calendar month (or if the 25th is not a business day, the next business day thereafter), and is rounded up to the nearest 1/8th of one percent. The current One-month LIBOR index is 2.500% on 5/1/2019. The variable interest rate will increase or decrease if the One-month LIBOR index changes. The fixed rate assigned to a loan will never change except as required by law or if you request and qualify for the auto pay discount.
  2. Any applicant who applies for a loan the month of, the month prior to, or the month after the student’s graduation date, as stated on the application or certified by the school, will only be offered the Immediate Repayment option. The student must be enrolled at least half-time to be eligible for the partial interest, fully deferred and interest only repayment options unless the loan is being used for a past due balance and the student is out of school. With the Full Deferment option, payments may be deferred while the student is enrolled at least half-time at an approved school and during the six month grace period after graduation or dropping below half-time status, but the total initial deferment period, including the grace period, may not exceed 66 months from the first disbursement date. The Partial Interest Repayment option (paying $25 per month during in-school deferment) is only available on loans of $5,000 or more. For payment examples, see footnote 7. With the Immediate Repayment option, the first payment of principal and interest will be due approximately 30-60 calendar days after the final disbursement date and the minimum monthly payment is $50.00. There are no prepayment penalties.
  3. The 15-year term and Partial Interest Repayment option (paying $25 per month during in-school deferment) are only available for loan amounts of $5,000 or more. Making interest only or partial interest payments while in school deferment (including the grace period) will not reduce the principal balance of the loan. Payment examples within this footnote assume a 45-month deferment period, a six-month grace period before entering repayment and the Partial Interest Repayment option. 7-year term: $10,000 loan disbursed over two transactions with a 7-year repayment term (84 months) and 8.382% APR would result in a monthly principal and interest payment of $198.61. 10-year term: $10,000 loan disbursed over two transactions with a 10-year repayment term (120 months) and an 8.851% APR would result in a monthly principal and interest payment of $161.70. 15-year term: $10,000 loan disbursed over two transactions with a 15-year repayment term (180 months) and a 9.335% APR would result in a monthly principal and interest payment of $135.68.
  4. The 2% principal reduction is based on the total dollar amount of all disbursements made, excluding any amounts that are reduced, cancelled, or returned. To receive this principal reduction, it must be requested from the servicer, the student borrower must have earned a bachelor’s degree or higher and proof of such graduation (e.g. copy of diploma, final transcript or letter on school letterhead) must be provided to the servicer. This reward is available once during the life of the loan, regardless of whether the student receives more than one degree.
  5. Earn an interest rate reduction for making automatic payments of principal and interest from a bank account (“auto pay discount”). Earn a 0.25% interest rate reduction when you auto pay from any bank account and an extra 0.25% interest rate reduction when you auto pay from a SunTrust Bank checking, savings, or money market account. The auto pay discount will continue until (1) automatic deduction of payments is stopped (including during any deferment or forbearance) or (2) three automatic deductions are returned for insufficient funds during the life of the loan. The extra 0.25% interest rate reduction when you auto pay from a SunTrust Bank account will be applied after the first automatic payment is successfully deducted and will be removed for the reasons stated above. In the event the auto pay discount is removed, the loan will accrue interest at the rate stated in your Credit Agreement. The auto pay discount is not available when payments are deferred or when the loan is in forbearance, even if payments are being made.
  6. A cosigner may be released from the loan upon request to the servicer provided that the student borrower is a U.S. citizen or permanent resident alien, has met credit criteria and met either one of the following payment conditions: (a) the first 36 consecutive monthly principal and interest payments have been made on-time (received by the servicer within 10 calendar days after their due date) or (b) the loan has not had any late payments and has been prepaid prior to the end of the first 36 months of scheduled principal and interest payments in an amount equal to the first 36 months of scheduled principal and interest payments (based on the monthly payment amount in effect when you make the most recent payment). As an example, if you have made 30 months of consecutive on-time payments, and then, based on the monthly payment amount in effect on the due date of your 31st consecutive monthly payment, you pay a lump sum equal to 6 months of payments, you will have satisfied the payment condition. Cosigner release may not be available if a loan is in forbearance.
  7. If the student dies after any part of the loan has been disbursed, and the loan has not been charged off due to non-payment or bankruptcy, then the outstanding balance will be forgiven if the servicer is informed of the student’s death and receives acceptable proof of death. If the student becomes totally and permanently disabled after any part of the loan has been disbursed and the loan has not been charged off due to non-payment or bankruptcy, the loan will be forgiven upon the servicer’s receipt and approval of a completed discharge application. If the student borrower dies or becomes totally and permanently disabled prior to the full disbursement of the loan, and the loan is forgiven, all future disbursements will be cancelled. Loan forgiveness for student death or disability is available at any point throughout the life of the loan.

6 Important Disclosures for LendKey.

LendKey Disclosures

Additional terms and conditions apply. For more details see 


7 Important Disclosures for CommonBond.

CommonBond Disclosures

A government loan is made according to rules set by the U.S. Department of Education. Government loans have fixed interest rates, meaning that the interest rate on a government loan will never go up or down.

Government loans also permit borrowers in financial trouble to use certain options, such as income-based repayment, which may help some borrowers. Depending on the type of loan that you have, the government may discharge your loan if you die or become permanently disabled.

Depending on what type of government loan that you have, you may be eligible for loan forgiveness in exchange for performing certain types of public service. If you are an active-duty service member and you obtained your government loan before you were called to active duty, you are entitled to interest rate and repayment benefits for your loan.
If you are unable to pay your government loan, the government can refer your loan to a collection agency or sue you for the unpaid amount. In addition, the government has special powers to collect the loan, such as taking your tax refund and applying it to your loan balance.

A private student loan is not a government loan and is not regulated by the Department of Education. A private student loan is instead regulated like other consumer loans under both state and federal law and by the terms of the promissory note with your lender.
If you refinance your government loan, your new lender will use the proceeds of your new loan to pay off your government loan. Private student loan lenders do not have to honor any of the benefits that apply to government loans. Because your government loan will be gone after refinancing, you will lose any benefits that apply to that loan. If you are an active-duty service member, your new loan will not be eligible for service member benefits. Most importantly, once you refinance your government loan, you will not able to reinstate your government loan if you become dissatisfied with the terms of your private student loan.

If your private student loan has a fixed interest rate, then that rate will never go up or down. If your private student loan has a variable interest rate, then that rate will vary depending on an index rate disclosed in your application. If the interest rate on the new private student loan is less than the interest rate on your government loans, your payments will be less if you refinance.
If you are a borrower with a secure job, emergency savings, strong credit and are unlikely to need any of the options available to distressed borrowers of government loans, a refinance of your government loans into a private student loan may be attractive to you. You should consider the costs and benefits of refinancing carefully before you refinance.

If you don’t pay a private student loan as agreed, the lender can refer your loan to a collection agency or sue you for the unpaid amount.

Remember also that like government loans, most private loans cannot be discharged if you file bankruptcy unless you can demonstrate that repayment of the loan would cause you an undue hardship. In most bankruptcy courts, proving undue hardship is very difficult for most borrowers.


8 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Student Loan Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of May 1, 2019, the one-month LIBOR rate is 2.48%. Variable interest rates range from 4.45%-12.42% (4.45% – 12.32% APR) and will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. Fixed interest rates range from 5.25%-12.19% (5.25% – 12.09% APR) based on applicable terms, level of degree earned and presence of a co-signer. Lowest rates shown requires application with a co-signer, are for eligible applicants, require a 5-year repayment term, borrower making scheduled payments while in school and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of the loan. 
  2. Citizens Bank Student Loan Eligibility: Borrowers must be enrolled at least half-time in a degree-granting program at an eligible institution. Borrowers must be a U.S. citizen or permanent resident or an international borrower/eligible non-citizen with a creditworthy U.S. citizen or permanent resident co-signer. For borrowers who have not attained the age of majority in their state of residence, a co-signer is required. Citizens Bank reserves the right to modify eligibility criteria at anytime. Interest rate ranges subject to change. Citizens Bank private student loans are subject to credit qualification, completion of a loan application/consumer credit agreement, verification of application information, and if applicable, self-certification form, school certification of the loan amount, and student’s enrollment at a Citizens Bank- participating school.  
  3. Co-signer Release: Borrowers may apply for co-signer release after making 36 consecutive on-time payments of principal and interest. For the purpose of the application for co-signer release, on-time payments are defined as payments received within 15 days of the due date. Interest only payments do not qualify. The borrower must meet certain credit and eligibility guidelines when applying for the co-signer release. Borrowers must complete an application for release and provide income verification documents as part of the review. Borrowers who use deferment or forbearance will need to make 36 consecutive on-time payments after reentering repayment to qualify for release. The borrower applying for co-signer release must be a U.S. citizen or permanent resident. If an application for co-signer release is denied, the borrower may not reapply for co-signer release until at least one year from the date the application for co-signer release was received. Terms and conditions apply. Borrowers whose loans were funded prior to reaching the age of majority may not be eligible for co-signer release. Note: co-signer release is not available on the Student Loan for Parents or Education Refinance Loan for Parents.
3.99%
11.32%
2
Undergraduate, Graduate, and Parents

Visit College Ave

4.50% – 11.35%*,3Undergraduate and Graduate

Visit SallieMae

4.84%
13.49%
4
Undergraduate and Graduate

Visit Discover

4.25% – 11.30%5Undergraduate and Graduate

Visit SunTrust

4.50% – 9.47%6Undergraduate and Graduate

Visit LendKey

3.74%
9.72%
7
Undergraduate, Graduate, and Parents

Visit CommonBond

4.45%
12.32%
8
Undergraduate, Graduate, and Parents

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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

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