Private Student Loan Requirements 2025 College is more expensive than ever. According to the College Board’s Trends in College Pricing and Student Aid 2024 report, the average cost of tuition and fees for a full-time undergraduate student at a four-year public college was $11,610 for the 2024–25 academic year — up 2.7% from the year before. For private nonprofit colleges, that number skyrockets to $43,350, a nearly 4% jump.
Even if you’ve secured federal student loans, they often don’t cover the full cost of attendance. That’s where private student loans come in — helping you bridge the gap. But private loans have stricter eligibility rules, and understanding what’s required before you apply is key.
Private Student Loan Requirements 2025 / What Do You Need to Qualify for a Private Student Loan?
Each lender has its own criteria, but here are five common eligibility requirements to keep in mind. If you don’t qualify on your own, you may still be eligible by applying with a cosigner who does.
1. You Must Be Enrolled in an Eligible School
To get a private student loan, you must be enrolled at an accredited college, university, community college, or trade school. Most lenders require at least half-time enrollment, though some offer loans for part-time or career-training students.
The loan funds can only be used for approved education-related expenses, including:
- Tuition and fees
- Room and board
- Transportation
- Books and supplies
- Meal plans
Tip: Not sure if your school qualifies? Ask the lender directly or speak with your school’s financial aid office.
2. You’ll Likely Need Good Credit (Or a Cosigner Who Has It)
Private lenders check your credit history to determine your reliability as a borrower. If you have a limited or poor credit history, qualifying on your own might be difficult.
Most students apply with a cosigner — usually a parent or guardian — who has a strong credit profile. While some lenders won’t disclose their minimum score, a credit score in the mid-600s or higher is often a baseline.
Good to Know: Some lenders, like Ascent, consider things like your GPA and future income potential instead of just your credit score.
3. Income Verification Is Often Required
In addition to credit, lenders typically want to see proof of income. Some lenders require a minimum annual income (e.g., $24,000 to $35,000), and they may ask for pay stubs or tax documents to verify your or your cosigner’s employment status.
They’ll also look at your debt-to-income ratio (DTI) — how much of your income already goes toward other debt payments.
What You Can Do: If you don’t meet the income requirements, consider:
- Working part-time while in school
- Applying with a creditworthy cosigner
4. You Must Meet Age and Citizenship Criteria
To qualify, you usually need to be:
- At least 18 years old (some states require 19)
- A U.S. citizen or permanent resident with a valid Social Security number
If you’re an international student, many lenders allow you to apply with a U.S.-based cosigner who meets the credit and citizenship requirements.
5. Your Loan Must Be for Educational Use
Private loans aren’t for just anything — they must go toward education-related costs. That includes tuition, books, housing, food, transportation, and school supplies.
What If You Have Bad Credit?
If your credit isn’t great — or you haven’t built any yet — here are a few ways to still get approved:
✅ Apply with a Cosigner
A cosigner is someone who agrees to repay the loan if you can’t. Their strong credit can improve your approval chances and potentially help you get a better interest rate. Just remember: If you miss payments, it affects both of your credit scores.
✅ Look for Lenders with Low Credit Requirements
Some lenders are more flexible. For example:
- Earnest requires a minimum credit score of 650 and an income of at least $35,000.
- FundingU bases approval more on your academic performance and career path.
✅ Focus on Improving Your Credit First
If you’re not in a rush, take time to build your credit by:
- Making on-time payments
- Keeping your credit utilization low
- Avoiding new debt before applying
Private vs. Federal Student Loans: What’s the Difference?
While both help you pay for college, they differ significantly in terms of eligibility, flexibility, and protections.
| Feature | Federal Student Loans | Private Student Loans |
|---|---|---|
| Eligibility | Based on financial need | Based on credit and income |
| Interest Rates (2025) | 6.53% – 9.08% (fixed) | 3.47% – 17.99% (varies by credit) |
| Loan Limits | $57,500 (undergrad) / $128,500 (grad) | Up to 100% of cost of attendance |
| Repayment Term | 10–25 years | 5–20 years |
| Repayment Options | Income-driven, forgiveness plans | Standard plans, no forgiveness |
Bottom Line: Always explore federal loans first — they offer more protections and flexibility. Turn to private loans only if you still have a gap to fill after exhausting federal options.
📌 Disclaimer:
This content is for informational purposes only and should not be taken as financial advice. Speak to a licensed financial advisor or your school’s financial aid office before applying for any student loan.