Best no-cosigner student loans

Best no-cosigner student loans: quick comparison

For students who cannot secure a creditworthy cosigner, the best no-cosigner student loans available in 2025 are offered by Ascent, Funding U, MPOWER Financing, and Edly. These lenders specialize in funding gaps that federal aid leaves behind, using alternative data like academic performance and future earning potential rather than relying solely on credit history.

Finding the right funding is a critical step in the college journey. For families, these options can help protect parental credit and retirement savings by shifting the loan responsibility to the student. For students, these loans offer financial independence and a way to stay enrolled when federal limits are reached. While federal student loans should always be your first choice due to their protections and lower rates, no-cosigner private loans serve as a vital safety net for filling the remaining cost of attendance.

In this guide, you will learn exactly how each lender evaluates applicants without a cosigner, compare current interest rates and terms side-by-side, and identify which option fits your specific academic and financial profile. By the end, you will be able to:

• Identify the specific lender that aligns with your GPA, major, and citizenship status.
• Compare APRs, loan limits, and repayment terms to ensure affordability.
• Understand the eligibility criteria that go beyond credit scores.
• Submit an application with the necessary documentation to speed up funding.

What makes no-cosigner student loans different

A no-cosigner student loan is a private education loan that a student borrows independently, without requiring a parent or another adult to guarantee the debt. In the traditional private lending market, approval relies heavily on credit history and income-to-debt ratios. Since most college students have thin credit files and limited income, they typically cannot qualify on their own.

No-cosigner lenders bridge this gap by using outcomes-based underwriting. Instead of looking backward at credit history, these lenders look forward. They assess factors such as your Grade Point Average (GPA), your major, your expected graduation date, and the historical earning power of graduates from your program. This allows them to lend to students based on their potential rather than their past.

It is important to understand the trade-offs. Because the lender is taking on more risk by lending to a student without a guarantor, interest rates on no-cosigner loans are generally higher than rates for cosigned loans or federal Direct Loans. According to Mark Kantrowitz, financial aid expert, “Most students will need a cosigner to qualify for a private student loan.” However, for those who cannot find one, these specialized lenders provide essential access to education that might otherwise be out of reach.

If you have not yet exhausted your federal options, review our guide to federal student loans first, as they offer the most favorable terms.

No-cosigner student loan comparison table

To help you make an informed decision, we have compiled the key details for the top no-cosigner lenders. Use this table to compare eligibility requirements, interest rates, and loan limits to find the best fit for your financial situation.

Sources: Ascent, Funding U, MPOWER, and Edly official rate pages (rates and terms as of March 2025).

Key Takeaways: According to Ascent Funding, their no-cosigner loans offer loan limits up to $200,000 with the broadest eligibility for domestic students who are close to graduating. Funding U provides competitive rates for undergraduates at specific 4-year institutions without requiring a high credit score. MPOWER is the clear leader for international students who lack a U.S. credit history entirely, while Edly offers a unique model where repayment is tied solely to your post-graduation income.

Now that you have seen the high-level comparison, let’s dive into the specific requirements and features of each lender.

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Lender profiles: eligibility, rates, and features

Each no-cosigner lender operates differently. Understanding the nuances of their eligibility requirements and borrower benefits will help you apply to the one most likely to approve your application.

Ascent is unique because it offers two distinct no-cosigner options: the Non-Cosigned Outcomes-Based Loan and the Non-Cosigned Credit-Based Loan. According to Ascent Funding, the Outcomes-Based loan is designed for college juniors and seniors who may not have a credit score but have a GPA of 2.9 or higher. The Credit-Based option is for students who have established more than two years of credit history and meet income requirements ($24,000+ annually) but do not want a cosigner.

As of March 2025, Ascent offers fixed rates of 2.89% - 15.31%, depending on your credit profile and the specific loan product. They offer a 1% cash-back reward upon graduation and access to the AscentUP career coaching program, which adds significant value beyond the funding itself.

Funding U focuses exclusively on undergraduate students at approved 4-year non-profit colleges. They do not require a credit score or a cosigner. Instead, they utilize a proprietary “SMART” underwriting system that evaluates your academic progress and projected earnings.

According to Funding U, to be eligible, you typically need a GPA of roughly 2.5 or higher (depending on the year in school) and must be enrolled full-time. As of March 2025, their fixed interest rates are 7.99% - 13.49%. Funding U is an excellent option for students with no credit history who are performing reasonably well academically but attend schools on their approved list. However, their annual loan limit is capped at $20,000, which may require you to combine this loan with other funding sources.

MPOWER Financing is built specifically for international students, DACA recipients, refugees, and asylum seekers who often cannot access federal aid or traditional private loans. They do not require a U.S. credit history or a cosigner. According to MPOWER Financing, they approve loans based on your future earning potential and whether you attend one of the 400+ supported schools across the U.S. and Canada.

As of March 2025, MPOWER offers a standard fixed APR of 12.98% (which can be lowered through interest rate discounts for autopay and graduation). While the rate is higher than some domestic options, it provides critical access for students who are often shut out of the U.S. banking system. They also provide visa support letters and career services specialized for international talent.

Edly is not a traditional lender; they offer income-based repayment loans and Income Share Agreements (ISAs). Under this model, your payments are not fixed. Instead, you agree to pay a percentage of your post-graduation income for a set period. According to Edly, if you earn below a certain threshold (often $30,000), you make no payments.

This model aligns the lender’s success with yours—if you don’t get a job, you don’t pay. However, for high earners, the total amount repaid can be higher than a traditional loan with a low interest rate. Edly is generally available to juniors and seniors in specific majors at approved schools. Eligibility relies heavily on the “ROI” of your specific degree program.

How no-cosigner lenders evaluate applications

Understanding how lenders make decisions can help you improve your chances of approval. Since these lenders cannot rely on a parent’s high credit score, they look for evidence that you will be successful enough in your career to repay the debt.

Academic Performance (Outcomes-Based): Lenders like Ascent and Funding U weigh your GPA heavily. According to Ascent Funding, a GPA of 2.9 or 3.0 is often the baseline for approval. They also look at your progress toward a degree; students who are within two years of graduation are viewed as lower risk because they are statistically more likely to finish and enter the workforce.

Future Income Potential: MPOWER and Edly focus intensely on your major and your university. A student studying computer science at a top-tier university may have an easier time qualifying than a student in a low-demand major at a lesser-known school, simply because the data suggests a higher starting salary. According to Jason Delisle, higher education policy expert, “The private market can and does innovate — offering options federal loans don’t, such as variable rates or targeted underwriting.” This innovation is exactly what allows students without assets to access capital based on their human potential.

Credit History (When Applicable): While these are “no-cosigner” loans, some (like Ascent’s Credit-Based option) still check your credit. In these cases, they aren’t looking for a perfect 800 score, but they do require a lack of “adverse” history—meaning no bankruptcies, delinquencies, or collections accounts on your record.

Which no-cosigner loan is best for your situation

With several distinct options available, the “best” loan depends entirely on your specific borrower profile. Use this decision framework to match your situation to the right lender.

• Are you an international student, DACA recipient, or visa holder?

  Best Fit: MPOWER Financing. They are specialized for this demographic and require no U.S. credit history.

• Are you a college junior or senior with a GPA of 2.9+?

  Best Fit: Ascent (Outcomes-Based). Their graduation reward and non-credit-based underwriting are ideal for students close to the finish line.

• Are you an undergraduate at an approved 4-year school with no credit?

  Best Fit: Funding U. If your school is on their list, their rates are competitive, and they don’t require you to be an upperclassman.

• Are you worried about job security after graduation?

  Best Fit: Edly. Their income-based repayment model offers a safety net; if you don’t earn enough, your payments pause.

• Do you have 2+ years of credit history and a decent income ($24k+)?

  Best Fit: Ascent (Credit-Based). You may qualify for better rates by leveraging your own financial track record.

By selecting the lender that caters to your specific strengths—whether that’s your grades, your major, or your residency status—you significantly increase your odds of approval.

Compare your personalized rates from multiple no-cosigner lenders

Application process and timeline differences

Applying for a no-cosigner loan differs slightly from applying for federal aid or traditional private loans. Being prepared can speed up the process and ensure your tuition is paid on time.

Most no-cosigner lenders, including Ascent and Funding U, allow you to check your estimated rate without impacting your credit score. This is called a “soft credit check.” You should always take this step first to compare offers. You will need to provide your school information, major, expected graduation date, and requested loan amount.

Once you select a lender and submit a full application, the timeline varies:

• Ascent and Funding U: Decisions can be quick (1–3 business days), but they will require official transcripts to verify your GPA and enrollment status. Have digital copies of your latest transcript ready.
• MPOWER: The process may take longer (3–5+ business days) as they verify visa documents and passport information. Start this process at least a month before tuition is due.
• Edly: Since they assess income potential, you may undergo a more interactive review process regarding your career path.

After you are approved, the lender sends the loan details to your school’s financial aid office for “certification.” The school confirms you are enrolled and that the loan amount doesn’t exceed your Cost of Attendance. This step can take 2–4 weeks depending on the time of year, so apply early. Funds are then sent directly to the school, not to your personal bank account.

Frequently asked questions about no-cosigner student loans

Can I get a student loan without a cosigner if I have no credit?
Yes. Lenders like Ascent (Outcomes-Based option) and Funding U do not require a credit score. They evaluate your application based on your GPA, major, and graduation date. MPOWER also does not require a U.S. credit history.

Are no-cosigner student loan rates higher than cosigned loans?
Generally, yes. Because the lender is taking on more risk by lending to a student without a guarantor, interest rates are typically higher. However, for many students, the cost is worth the ability to finish their degree independently.

What is the difference between a no-cosigner loan and an income share agreement?
A traditional no-cosigner loan has a principal balance and an interest rate, and you pay it back over a set term (e.g., 10 years). An Income Share Agreement (like Edly) takes a percentage of your pre-tax income for a set number of payments. If your income is low, your payments are low or zero.

Can international students get student loans without a cosigner?
Yes. MPOWER Financing is specifically designed for international students, DACA recipients, and asylum seekers. They do not require a U.S. cosigner or U.S. credit history.

Should I use a no-cosigner loan or ask someone to cosign?
If you have a parent or guardian with excellent credit who is willing to cosign, you will likely receive a lower interest rate. However, a no-cosigner loan is a better choice if you want to protect your family’s credit or if a cosigner is simply not available.

Securing funding for college without a cosigner is a challenge, but it is entirely possible with the right strategy. The landscape of student lending has evolved, and students today have legitimate, safe options that reward academic success and future potential.

Key takeaways:

• You have options: Lenders like Ascent, Funding U, and MPOWER exist specifically for students who cannot find a cosigner.
• Play to your strengths: Choose a lender that values what you have—whether that is a high GPA, a high-demand major, or international status.
• Check rates risk-free: Use prequalification tools to see your rates without hurting your credit score.
• Borrow responsibly: Only borrow what you absolutely need to cover tuition and essential living expenses.

Remember to always maximize your federal student loans first by filing the FAFSA. If a funding gap remains, these no-cosigner lenders can provide the bridge you need to reach graduation day. You are investing in your future, and taking ownership of that investment is a powerful step toward financial independence.

Ready to find your best rate? Compare personalized offers from no-cosigner lenders in minutes. (Trusted by 50,000+ students and families. Soft credit check where available.)

References and resources

• StudentAid.gov – Official guide to Federal Direct Loans and limits.
• Ascent Funding – Rates and terms for Outcomes-Based and Credit-Based loans.
• Funding U – Eligibility criteria and state availability.
• MPOWER Financing – Information for international and DACA students.
• Edly – Details on Income Share Agreements and tuition funding.
• College Finance: Federal Student Loans Guide
• College Finance: Private Student Loans Comparison