Best Personal Loans for Students in 2024

You could qualify for a loan, even if you’re still building a credit history

Checking rates won’t hurt your credit score

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Written by Carol Pope | Edited by Amanda Push | Reviewed October 3, 2024

Personal loans for students at a glance

Achieve: Best for getting a loan with another person

(5,357)
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Ratings and reviews are from real consumers who have used the lending partner’s services.

(5,357)
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Ratings and reviews are from real consumers who have used the lending partner’s services.

8.99% to 35.99%

24 to 60 months

$5,000 - $50,000

620

1.99% - 6.99%

Pros
  • Discount for putting a second person on your loan
  • A loan concierge can help walk you through the process (and you’ll get the same concierge if you need to call back)
  • Offers a free debt payoff and budgeting app
Cons
  • Will keep 1.99% - 6.99% of your loan funds for itself as an origination fee
  • Probably won’t qualify for all discounts (one requires proof of a well-funded retirement account)
  • Have to borrow at least $5,000

What to know

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When you don’t have much credit history, it can be hard to qualify for a loan. Adding someone with good credit to your application can help get you approved. In Achieve’s case, you can also get an interest rate discount.

A loan with two people on it is called a joint loan. One thing to consider is that the other person has the same rights to the loan money as you do. Also, both of your credit scores will tank if you make late payments.

How to qualify

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Other than a credit score of at least 620, Achieve will typically ask for your:

  • Proof of income
  • Social Security number
  • Government-issued ID
  • Employment status

First Tech Federal Credit Union: Best for small loans

8.14% - 18.00%

6 to 84 months

$500 - $50,000

660

None

Pros
  • Can borrow as little as $500
  • Works with less-than-perfect credit
  • Low maximum APR means cheap rates even if you just barely qualify
Cons
  • Have to join the credit union
  • Must join a partnering organization if you don’t qualify for credit union membership through traditional means
  • May need to wait up to three business days for your money

What to know

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First Tech Federal Credit Union loans start at $500, making them ideal if you need to borrow for something small, like dorm room furnishings. Also, credit union loans typically have ultra-low rates. Federal credit unions (like First Tech) legally can’t charge rates above 18.00%.

However, you have to become a member to get a credit union loan. In First Tech’s case, you’ll have to join the Computer History Museum or the Financial Fitness Association if you don’t meet its traditional requirements, like working for a partner employer. Luckily, First Tech may pay for your first year’s dues.

How to qualify

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To join First Tech (a requirement to get a loan), you must:

  • Work for a partnering employer
  • Be related to a current First Tech member
  • Live in Lane County, Ore.
  • Become a member of the Computer History Museum or Financial Fitness Association

LendingPoint: Best for school-related expenses

(1,952)
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(1,952)
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7.99% - 35.99%

months

$1,000 -

660

Up to 10.00%

Pros
  • Can use your loan for tuition, room and board and other college expenses
  • Mobile app has a nearly perfect score from Apple users
  • Competitive rates for excellent credit, but can still qualify if your credit isn’t perfect
Cons
  • Requires a minimum annual income of $35,000
  • Can’t add a second person to your loan
  • Does not review loan applications on weekends, only business days

What to know

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Some lenders won’t let you use your personal loan on tuition or things you need for school. LendingPoint is an exception. As long as it’s legal, you can probably use a LendingPoint loan to pay for it.

Still, you might have a hard time qualifying for a LendingPoint loan unless you’re making decent money while in school. You must make at least $35,000 a year to qualify.

How to qualify

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To get a loan from LendingPoint, you must meet its minimum criteria:

  • Age: Be 18 years old or older
  • Administrative: Provide identification issued by the U.S. government, have a Social Security number and have a bank account
  • Income: Have a minimum income of $35,000
  • Residency: Not live in Nevada or West Virginia
  • Credit score: 660

Rocket Loans: Best for an easy loan experience

(47)
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(47)
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8.99% - 29.99% (with autopay)

36 or 60 months

$2,000 - $45,000

640

Up to 9.00%

Pros
  • Don’t need to upload documents since it verifies your information electronically
  • Might get your money the same day that you apply
  • Can still qualify with fair credit
Cons
  • Can’t use it to pay for student loans
  • Can’t add a second person to your loan
  • Has a mobile app for mortgages but not personal loans

What to know

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You usually have to upload, email or fax certain documents when you apply for a personal loan. Rocket Loans makes it easy by verifying your identity, income and bank account electronically. Once you’ve been approved and verified, you could have your funds by the end of the business day. Just be sure to apply early, as the cutoff time for same-day loans is 1 p.m. EST.

Unfortunately, you can’t add a co-borrower to boost your loan approval odds. You also can’t make payments or manage your loan through a mobile app.

How to qualify

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To qualify for Rocket Loans, you’ll need to meet the following requirements:

  • Citizenship: Must be a U.S. citizen
  • Income: Minimum annual income of $24,000
  • Residency: Can’t live in Iowa, Nevada or West Virginia
  • Credit score: 640

Upgrade: Best for banking and borrowing

(2,248)
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(2,248)
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Ratings and reviews are from real consumers who have used the lending partner’s services.

9.99% - 35.99% (with discounts)

24 to 84 months

$1,000 - $50,000

580

1.85% - 9.99%

Pros
  • Up to 2.00% cash back on debit card purchases on eligible Rewards Checking accounts
  • Can get a discount on future Upgrade loans and cards after opening a Rewards Checking account
  • Relatively low credit score requirement
Cons
  • Must get at least $1,000 a month in direct deposits to get full benefits
  • Can’t use for school-related expenses (not just tuition but also room and board and books)
  • No same-day loans

What to know

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Upgrade is a fintech company that provides loans through partner banks. You can also use it to get an Upgrade-branded checking or savings account through Cross River Bank. Its Rewards Checking account comes with some awesome perks, including up to 2.00% cash back when you use your debit card.

However, you’ll have to make at least $1,000 a month in direct deposits to get all of the perks available. Still, if you’re looking for a new bank and a personal loan, Upgrade could be a solid choice.

How to qualify

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To qualify for a loan through Upgrade, you must meet the requirements below:

  • Age: Be at least 18 years old (19 in some states)
  • Citizenship: Be a U.S. citizen or permanent resident or live in the U.S. with a valid visa
  • Administrative: Have a valid bank account and email address
  • Credit score: 580

Upstart: Best for bad or no credit

(16,799)
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(16,799)
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7.80% to 35.99%

36 or 60 months

$1,000 - $50,000

300

0.00% - 12.00%

Pros
  • Approves credit scores as low as 300
  • Some students don’t need credit to qualify
  • Able to use loan for school expenses unless you live in California, Connecticut, District of Columbia, Illinois or Washington
Cons
  • Could pay a double-digit origination fee
  • Only have two repayment terms to choose from (36 or 60 months)
  • Can’t add a second person to your loan

What to know

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With a 300 minimum credit score requirement, lending platform Upstart could be the solution if you need a bad-credit loan. And, if like many students, you haven’t built up any credit history, Upstart might still work with you. It waives its credit score requirements for students enrolled at an accredited school and working toward at least an associate’s degree.

But don’t think that bad credit loans come cheap. You could end up with a rate as high as 35.99%. And the worse your credit, the more likely the lender will charge an origination fee (0.00% - 12.00%).

How to qualify

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Upstart has transparent eligibility requirements, including:

  • Age: Be 18 or older
  • Administrative: Have a U.S. address, personal banking account, email address and Social Security number
  • Employment: Have a job or job offer that starts within six months, or have regular income
  • Credit-related factors: Debt-to-income (DTI) ratio no higher than 50% (45% in Connecticut, Maryland, New York and Vermont), no bankruptcies within the last year, fewer than six inquiries on your credit report in the last six months and no current delinquencies
  • Credit score: 300

What is a personal loan for students?

A personal loan gives you a lump sum of money that you will pay back in equal monthly payments, plus interest. Banks, credit unions and online lenders offer these and other types of loans.

You can use a personal loan for almost anything, but some lenders won’t let you use one to pay for your college tuition. That said, tuition isn’t the only expense you’ll face when going to college. You’ll also have to pay for food, rent, books, gas and car insurance, for instance.

It’s not a great idea to take on debt for everyday living expenses, but if you were planning on using a credit card anyway, a personal loan might be a better option.

Loans for college students tend to have lower rates than cards if you have excellent credit (or a co-borrower with excellent credit). Plus, a credit card takes discipline. If you aren’t careful, you could rack up a ton of debt, since they’re easy to use. Personal loans give you one-time access to money, which you can then budget as you see fit.

 LendingTree helped nearly 23,000 people aged 18 to 25 get personal loans in 2023.

Student loans vs. personal loan

Student and personal loans are alike in some ways. With both, you receive a lump sum up front and pay back what you borrowed in installments. Student loans and personal loans are typically unsecured, meaning you don’t need to provide collateral.

The biggest difference between personal loans and student loans is how lenders will let you use your money:

Student loans  can only be used for school-related expenses, like tuition, room and board, books, food and transportation

Personal loans  can be used for nearly anything, but some lenders won’t let you use your loan on tuition or to pay an existing student loan

Federal student loans make the most sense if you need help paying for college. Then, consider private student loans to bridge the gap if you still need funding.

Because of generally higher rates and tougher eligibility requirements, personal loans usually make more sense if you need to pay for something unrelated to school.

How to find loans for college students with LendingTree

  1. Check your credit. Knowing your credit score before shopping can help you see what lenders and rates you might qualify for. Get your credit score for free with LendingTree Spring. We’ll also give you regular score updates so you can keep track of your financial health.
  2. Tell us what you need. Think of LendingTree as your personal shopper. Fill out one quick form and you could have up to five lenders competing for your business. Checking rates is free and doesn’t hurt your credit score.
  3. Compare your offers. Review your offers and the lenders who want to work with you. When you’re ready, we’ll help you formally apply.
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How to compare personal loans for students

If this is your first time borrowing money, the jargon can be confusing. Use the definitions below as a cheat sheet when comparing your offers.

  • Prequalification: When you prequalify for a personal loan, you’re checking how likely it is the lender will approve you based on your basic financial information and a soft credit pull.
  • APR: Your APR is the total cost of your loan, including interest and fees. The higher the percentage, the more expensive your loan. Most financial experts agree that an APR above 36% falls into predatory lending.
  • Origination fee: An origination fee is a percentage of your loan that the lender keeps for itself. It takes it out of your loan before sending it to you. Some lenders only charge an origination fee if you have bad credit. Others charge them on every loan or not at all.
  • Loan term: Your loan term is the length of time you have to pay back your loan. Since your loan payments are stretched over more time, a longer loan term means lower monthly payments. It also means that you’ll pay more interest over the life of your loan.
  • Funding timeline: The funding timeline measures how long it takes a lender to review a loan application, make an approval decision and release the loan funds.
  • Disbursement: Disbursement is just a fancy word for “send.” When a lender disburses a loan, it sends it to the borrower (usually as a direct deposit or a check).

How to build credit as a student

There’s no sugarcoating it — it can be hard to get a personal loan as a student. You might have a low credit score simply because you’ve never taken out a loan or card. Here are some ways you can build your credit from scratch.

  • Become an authorized signer: See if a family member will put you on their credit card as an authorized signer. Even if you don’t use the card, the cardholder’s on-time payments will help you build a positive credit history. But be aware that your credit will take a hit if the cardholder makes late payments.
  • Get a secured credit card: A secured credit card requires a deposit. However much you put down is how much you can charge on your card. After using the card responsibly, the credit card company might offer you a traditional card (and you’ll get your deposit back).
  • Consider a credit-builder loan: A credit-builder loan also requires a deposit. To get your deposit back, you’ll make monthly payments to your lender. Usually, the lender will charge interest, but some give it back to you once you’ve successfully paid off your loan.

Alternatives to personal loans for students

  • Emergency school funds: Many colleges have emergency funds set aside for students in need. Some schools might offer emergency grants, while others provide emergency loans. Reach out to your school to learn about what’s available.
  • Student loans: Contact your financial aid office to make sure you’ve gotten all the federal student aid you qualify for. You can also ask your parents about applying for a parent PLUS loan.
  • Work-study job: You might be able to get a part-time job through the federal government’s work-study program. You might even earn experience in your field of study. Check with your financial aid office, as not all colleges participate.

How we chose the best personal loans for students

We reviewed more than 30 lenders to determine the overall best five personal loans. To make our list, lenders must offer personal loans with competitive APRs and easier eligibility requirements. From there, we prioritize lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, the ability to add a co-borrower, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

According to our standardized rating system, the best personal loans for students come from Achieve, First Tech Federal Credit Union, Rocket Loans, Upgrade and Upstart.

Frequently asked questions

It’s possible, but it might be tough to do on your own.
 
If you have bad or no credit, consider adding a second person to your loan. The second person (called a co-borrower) acts as a guarantee. Both of you are equally responsible for paying back the loan. Usually, your co-borrower needs to have strong credit for this to work.
 
You could also consider the lending platform Upstart. It waives its minimum credit requirements if you are working toward at least an associate’s degree at an accredited school.

You usually need a reliable source of income to get a personal loan. However, adding a second person to your loan could help you get approved if you don’t meet this requirement. Keep in mind, though, that your co-borrower’s credit score will be negatively affected along with yours if you make late payments. Never borrow money that you aren’t sure you can pay back.

If your lender lets you use your loan for school-related purposes, you might be able to use a personal loan to pay off student debt. But even if you can, it might not be a good idea. Federal student loans typically have lower rates than personal loans.
 
If you want a lower rate on your student loan, consider refinancing it instead. However, refinancing a federal student loan with a private student loan is not usually a good idea, either. Federal student loans have more hardship options, like loan forgiveness.