What To Do If Your Student Loan Application Has Been Denied

By Sasha Bulatskaya | Published on March 9, 2026

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Learning that your private student loan application has been denied can be disheartening, but it doesn’t mean you’re out of options¹. In this guide, we’ll break down how you could still get approved for a student loan, and other ways to pay for college if FAFSA isn’t enough. Whether you’re dealing with bad credit, or simply looking for additional options, we’ve got you covered.

1. Find A Student Loan Cosigner: Your Financial Ally

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Perhaps your student loan application was denied because you don’t have a long enough credit history, or you’re wondering how to pay for college with bad credit. Finding a cosigner could be the key to unlocking the financial support you need.

A cosigner is someone who has a good credit score and wants to support your future goals. Legally, both you and the cosigner are responsible for paying off the loan. You can learn more about Earnest’s Cosigned Student Loans here and check your eligibility without credit impact.

Who can be a cosigner and how to find one

Traditionally, a cosigner is a parent, grandparent, or legal guardian, but it doesn’t have to be. At Earnest, anyone can be a cosigner on a student loan as long as they meet our eligibility requirements.

When looking for a potential cosigner, choose someone financially responsible. A cosigner needs to have a stable source of income and a history of paying their bills on time.

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Check out our guide to finding a cosigner for more information.

2. Scholarships: Apply Smarter, Not Harder If FAFSA Aid Is Not Enough

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You might be wondering, “How do I pay for college if FAFSA isn’t enough?” Scholarships are a fantastic way to get the funds you need without going into debt.

3. Hack Your Credit Score: How To Pay For College With Bad Credit

The way most people build credit is by borrowing money and paying it back, but you don’t need to go into debt to raise your credit score. You could use a credit-building service like UltraFICO or Experian Boost to track your bills, (including rent, electric, or other bills) and put those payments toward your credit history.

Another way you can improve your credit is by becoming an authorized user on someone else’s credit card. You may want to ask a parent, sibling, or guardian, but anyone who is willing to help you can help. Much like working with a cosigner, becoming an authorized user on someone’s credit card has benefits and risks. If they run late on payments, your credit score could go down as a result.

Visit our 14 Ways To Improve Your Private Student Loan Application for more credit-building tips.

4. State Financial Aid: Tapping Into Local Resources

If federal student aid isn’t enough, financial aid programs in your state could be the answer. Many states offer grants, scholarships, or low-interest loans to residents. Don’t forget to visit your state’s financial aid website to make sure you’re not missing anything.

While a denied student loan application might seem like a setback, it’s an opportunity to rethink how you approach college finances. If you choose a cosigned student loan from Earnest, we can walk you through the application and explain it in clear, simple English. They can even help you apply over the phone if you need extra help.

Learn more about our Cosigned Student Loans and check your eligibility today.

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About the Author

Sasha Bulatskaya

Sasha is the Senior Manager of Brand and Content at Earnest. She has been writing for ten years and has been focused on educational finance and financial aid for over three. Her passion for mission-driven companies brought her to Earnest in 2020, and she's been helping make student finance more accessible ever since. She strives to demystify personal finance and student loans to help borrowers make the best decisions for their financial situation.

Disclaimer

This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

1 Before applying for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grant, and work-study opportunities. 2) Next, fill out a FAFSA(R) form to apply for federal student loans. Federal Direct subsidized and unsubsidized loans, excluding PLUS Loan for Parents and PLUS Loan for Graduate and Professional Students which require a credit check and a credit-worthy endorser if the parent or graduate or professional student has adverse credit, do not require a credit check or cosigner, and offer various protections if you're struggling with your payments. 3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2. For more information, visit the Department of Education website at https://studentaid.ed.gov.