Can I Cosign a Student Loan if I have Bad Credit? Tips and Alternatives

By Kassondra Cloos | Published on February 24, 2026

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If a student borrower hasn’t had time to build a good credit score or payment history, they may not be able to refinance secure a student loan without a cosigner. That’s where you come in.

By leveraging your credit and legally promising to step in if the student can’t pay their loans, you could help them get approved for a student loan, save money on interest, and build a more financially secure future. But what happens if your credit isn’t great right now either? Here’s what you need to know.

Key takeaways

• Even if your credit score isn’t perfect, you may still be able to cosign a loan to help a student you trust
• There are many ways for you to improve your credit score before agreeing to cosign a loan
• You should think very carefully about agreeing to cosign a loan before you say yes and sign the paperwork — it may not be easy to get released from the loan

Can I cosign a student loan if I have bad credit?

Experian classifies credit scores below 499 as very poor. Scores between 500 and 600 are poor credit and scores between 601 and 660 are fair. If your credit score is below 650, you’re not likely to find a private lender who will approve an application to let you cosign student loan refinancing.

However, this varies by lender (here are Earnest’s* eligibility requirements), and credit is only one aspect of eligibility. Some lenders may be willing to accept cosigners with lower credit scores. It’s important to shop around before you apply.

What credit score do I need to cosign a student loan?

Generally, you need a credit score in the “fair” to “good” range to be approved as a cosigner on a student loan. The higher your credit score is, the better interest rates you’ll likely be offered. Lower interest rates translate to a significant amount of money saved over the life of the loan.

Remember that the credit score isn’t the only factor that lenders consider when determining eligibility to cosign a student loan. Lenders may also assess income, employment history, and debt-to-income ratio, among others.

It’s always a good idea to check with potential lenders directly to understand their specific requirements for cosigners.

Why would a student borrower be rejected even with a cosigner?

When the student borrower applies with a cosigner, the lender decides whether or not to lend to them based on the financial history of the cosigner. Here are just a few common reasons a cosigner may not be able to help a borrower get approved:

1. Credit history and score: If the cosigner has a poor credit history or score, they may have a difficult time getting approved. Some lenders have minimum credit score requirements for cosigners, which lenders use to assess risk.
2. Income: Lenders will evaluate the cosigner’s income to determine whether they can support the loan if the student borrower is unable to repay it.
3. Employment History: Lenders may also consider the cosigner’s employment history to ensure that they have a steady source of income.
4. Existing Debt: If the cosigner already has a significant amount of debt, their application may be denied because the lender is concerned they won’t have enough monthly income to support additional debt.
5. Citizenship/Residency: Some lenders require cosigners to be U.S. citizens or legal residents, so cosigners who are not may be denied.

Each lender may have unique approval criteria and specific reasons for denial, so it’s important to check with the lender directly.

Do DACA students require a cosigner?

Most private student lenders require a U.S.-based creditworthy cosigner before they approve a student loan for students with DACA status. At Earnest, we understand that DACA students may find themselves in circumstances that make it difficult to secure an eligible cosigner. That’s why we make it possible for students with DACA status to apply for Earnest student loans with or without a cosigner.

Alternatives to cosigning a student loan with bad credit

If your credit score isn’t currently high enough to qualify as a creditworthy cosigner, don’t panic—there are many student loan options available to you and the borrower you’re supporting.

Appeal your financial aid package

A financial aid appeal is a formal request submitted to a college or university’s financial aid office to review and potentially adjust the student’s financial aid package. Typically, it’s initiated by the student or their family when there are significant changes in the family’s financial situation, like a job loss, medical expenses, or other unforeseen circumstances that may impact their ability to afford the cost of attendance.

A financial aid appeal allows students to present additional information or documentation that wasn’t originally considered when the financial aid package was determined. This could include details about changes in income, family status, or exceptional expenses that can affect the family’s ability to contribute to the student’s education.

To initiate an appeal, the student typically needs to submit a formal letter explaining the reasons for the appeal and providing supporting documentation, such as tax returns, medical bills, or other relevant financial records. The college’s financial aid office will then review the appeal and may adjust the student’s financial aid package based on the new information provided.

If you’re considering a financial aid appeal, reach out to your college’s financial aid office to understand their specific requirements and deadlines for submitting an appeal. Their guidance can provide valuable insight into the process and increase the likelihood of a successful appeal.

Borrow federal student loans

Most federal student loans do not require a cosigner. That’s why the first thing the student borrower should do, if they’re a U.S. citizen or permanent resident, is to fill out the Free Application for Federal Student Aid (FAFSA). This application assesses financial need for current and prospective college students.

Types of federal student loans

There are lots of federal student loans. Which type of loan you borrow depends on your qualifications and needs.

• PLUS Loans: These are loans for graduate students and the parents of undergraduate students. They don’t require the student to loans for graduate students or professional students without demonstrated financial need and can be used to cover up to the full cost of attendance.
• Direct Subsidized Loans: These are loans for undergraduate students with financial need that do not accrue interest while the student is enrolled in school, during the grace period, or in periods of deferment. Students do not need a cosigner for these loans, but they come with borrowing limits.
• Direct Unsubsidized Loans: These are loans for undergraduate students that do accrue interest while the student is enrolled in school. These do not require a cosigner and don’t require the borrower to demonstrate financial need, but they also come with limits like Direct Subsidized Loans.
• Direct Consolidation Loans: These are loans that enable the student to bundle all of their loans together. They’re generally taken out after graduation.

Improve your credit score

If you have time to improve your credit score before you and your child or dependent apply for a loan, you may be able to qualify for lower rates. You can start by checking your FICO credit score for free at sites like Experian, and by requesting your full credit report to see what may be impacting it. You can get a full credit report from each of the three main credit bureaus once per year at AnnualCreditReport.com.

Here are a few ways you can improve your score:

1. Apply for a credit card. Having more than one credit card can decrease your credit utilization — the percentage of money available to you that you’re using as credit at any given time — which can help improve your score.
2. Pay off existing credit cards. Decreasing your credit utilization ratio (the amount of debt you have compared to your income credit limit) can increase your score.
3. Continue making on-time payments. Keeping your accounts in good standing will allow you to improve your credit history.
4. “Boost” your score, using tools like Experian Boost, by manually adding accounts you pay regularly ( like rent, utility bills and streaming services).

Supplement with private student loans and plan to refinance

After your student has maxed out the federal loans available to them, they can supplement the rest with private loans. Usually this requires a cosigner, since most aspiring college students don’t meet the eligibility requirements for a private student loan.

However, there are some private lenders with more lenient eligibility requirements. It’s important they shop around before they apply.

If they can’t find an eligible cosigner, and they’ve tried other ways to make college more affordable, they may be forced to accept a high-interest loan to afford their number one school. If this happens, they should make a plan to refinance as soon as they can.

Refinancing is when the student takes out a new loan to pay off their old student loans. If their financial situation has improved since they took out their original loans, they may be able to secure a lower rate, which could save them thousands of dollars over time. It will also release the cosigner of their responsibility to repay the loan if the primary borrower cannot pay.

Refinancing can be done as soon as the student is eligible. Usually, this is after graduation when they’ve had time to build their credit score and secure a steady job.

Bad-credit cosigner FAQ:

Will cosigning a student loan affect my credit?

If the borrower does make regular on-time payments, being a cosigner can boost your credit score by improving your payment history and your “credit mix%20used.)” Keep in mind that, as a cosigner, the student debt is also considered your debt until it’s fully repaid. That means if you’re applying for other types of loans, like a mortgage, for example, it will be calculated as part of your debt-to-income ratio and may make it harder to get approved.

Can I be released as a cosigner on a student loan?

Generally, getting released as a cosigner on a student loan happens one of two ways:

1. The cosigner release: A cosigner release is a legal provision built into a student loan that allows the cosigner to be released from the loan after certain conditions are met.
2. Student loan refinancing: Student loan refinancing is when the borrower takes out a new private student loan to pay off their old loans.

Who can be a cosigner?

Virtually anyone who is a permanent resident or U.S. citizen, has a good credit score, and meets other eligibility requirements, can apply to be a cosigner.

What are my responsibilities as a cosigner?

Your main responsibility as a cosigner is to make sure the loan is repaid in full, on time. While the lender probably isn’t going to set up a phone call with you to discuss repayment terms or have a regular check-in, in practice you’re promising them that the cosigned loan will be paid.

How do I know if I should cosign a student loan?

If you can’t afford to take on the payments of the loan you’re cosigning in an emergency, it may be a big risk for you to cosign. Even if you really trust the student who’s asking you, life happens and people make mistakes.