More than a million college students are turned down for federal loans annually, usually because their schools don't meet standards set by the U.S. Department of Education, according to the Institute for College Access & Success.
And up to 40% of private student loan applicants are rejected because of credit problems, lack of a co-signer, or other issues.
If a student loan rejection is standing between you and your future, you have options at your disposal.
Shop for student loans
Why was my student loan application denied?
Why an application was turned down depends on whether it was a federal or private student loan.
Federal student loans
Federal loans don't require a credit check, so they're considered easier to get. But you can be turned down.
Missing or inaccurate information. One wrong digit on a Social Security number or forgetting to add your parents' details when you're a dependent student can take you out of the running.
Not enrolled in an eligible program. To receive federal student loans, you must be enrolled in a degree or certificate program at a participating Title IV-eligible school. (You can still pursue private loans, scholarships and school-based tuition payment plans.) If you're taking preparatory coursework for entry into a graduate or professional program, you may borrow for up to 12 consecutive months.
Auditing or enrolling in non-credit certificate programs does not qualify you for federal student loans, and you cannot receive aid for a high school equivalency/GED program.
Not a U.S. citizen. Only U.S. citizens and eligible non-residents (permanent residents, U.S. nationals, refugees, asylum seekers, conditional entrants) can access federal dollars.
Not meeting income requirements. Subsidized federal loans and other need-based programs have income limits.
Default status on a prior federal loan. Defaulting on a federal student loan (meaning at least 270 days overdue) prevents you from receiving more federal aid until you clear the outstanding balance.
Failing to meet academic standards. To maintain eligibility for federal student loans, students must meet satisfactory academic progress (SAP) standards set by their institution, generally a 2.0 GPA (C average) for undergraduates. They must also have completed at least two-thirds of their coursework and graduated within 150% of the program's normal timeframe.
Reaching your loan limits. Starting July 1, 2026, Parent PLUS loans are capped at $20,000 annually ($ 65,000 lifetime) and graduate/professional studies are limited to $20,500- $50,000 annually ($100k–$200k aggregate). There is also a $257,500 lifetime cap on federal loans.
Incarcerated or convicted of certain crimes. People who are incarcerated are usually ineligible for federal student loans. But if they're enrolled in an approved prison education program, they may qualify for Federal Pell Grants. Previous convictions usually don't impact eligibility, but the sale or possession of illegal narcotics (especially while receiving federal aid) can trigger a suspension of up to two years, or indefinitely, for multiple offenses.
Private student loans
Private student loans have stricter requirements, so you can be rejected for more reasons .
Credit and income requirements. Lenders use your credit score to determine your creditworthiness. Some private lenders also have minimum income requirements.
Enrollment requirements. As with federal loans, being under-enrolled or attending a non-certified institution can cost you approval.
Missing information. An incomplete application is also a recipe for being rejected for private loans.
Debt-to-income ratio (DTI). Especially if you're an older student or trying to pay for graduate school, owing a lot of money relative to your salary can paint you as a high-risk borrower.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Undergraduate and graduate students, parents, students in MBA, law, health professional and dental programs
$5,000 (or state-mandated minimum) up to the cost of attendance
5, 7, 10, 15, years; up to 20 years for refinancing loans
Terms apply.
Undergraduate, graduate, Master's, PhD, MBA, law school, medical school, health professions, dental school, medical and dental residency loans, bar study loans.
$1,000 up to 100% of the cost of attendance
10 to 15 years
What to do if you're denied student loans
Whether you got denied for a federal or private loan, you can contact the lender to find out why your application was rejected. This gives you a starting point for appealing the decision or exploring other options.
If the reason was missing or inaccurate information, you can make any necessary changes and ask about next steps.
If you were denied for another reason, you may be able to appeal. Lean on your school's financial aid office to help you through this process, which may involve writing a letter explaining your circumstances and need for financial aid.
If you were denied a private student loan because of a poor credit or high DTI, you may have to rehabilitate your credit before reapplying. Look for lenders that make it easier for students with low or no credit to be approved.
You might also consider getting a co-signer with good credit and a steady income. Ascent considers applicants with no credit history and lets co-signers be released after just 12 payments. Earnest offers a nine-month grace period before you'll have to begin making full payments.
- Considers borrowers with no credit
- High loan limit
- Co-signer release available after just 12 payments
- Up to 1% interest rate discount for autopay*
- 1% cash back rewards*
- Considers alternative requirements like the borrower’s school, program, graduation date, major, GPA, cost of attendance and Satisfactory Academic Progress (SAP) to grant approval
- Maximum fixed APR is on the high side
- Doesn't offer student loan refinancing
Disclosure: *Ascent Funding, LLC products are made available through Bank of Lake Mills or DR Bank, each Member FDIC. Subject to credit approval. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations, terms and conditions may apply for Ascent's Terms and Conditions please visit AscentFunding.com/Ts&Cs. Annual Percentage Rates (APRs) displayed above are effective as of 7/15/2026 and reflect an Automatic Payment Discount (ACH). The ACH discount consists of 0.25% on credit-based college student loans submitted prior to 6/1/2025, a 0.5% discount for on credit-based college student loans submitted on or after 6/1/2025 and a 1.00% discount on outcomes-based loans when you enroll in automatic payments. Loans subject to individual approval, restrictions and conditions apply. Loan features and information advertised are intended for college student loans and are subject to change at any time. For more information, see repayment examples or review the Ascent Student Loans Terms and Conditions. The final amount approved depends on the borrower's credit history, verifiable cost of attendance as certified by an eligible school and is subject to credit approval and verification of application information. Lowest interest rates require full principal and interest (Immediate) payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the examples above, based on the amount of time you spend in school and any grace period you have before repayment begins. Variable rates may increase after consummation.1% Cash Back Graduation Reward subject to terms and conditions. For details on Ascent borrower benefits, visit AscentFunding.com/BorrowerBenefits. Ascent applicants and borrowers that agree to the AscentUP Terms of Service and Privacy Policy, as well as students associated with an Ascent parent loan application, have access to the AscentUP platform.
- Student loan refinancing available
- Offers the option to apply with a co-signer
- Nine-month grace period
- Borrowers can skip one payment per year without penalty
- No physical branches
- Student loan refinancing not available in Mississippi
Actual rate and available repayment terms will vary based on your financial profile. Our lowest rates are only available for the most credit qualified existing cosigned loan borrowers who receive the 0.25% Loyalty discount and requires selection of our shortest term offered, full principal and interest payment while in school, and enrollment in our 0.25% Auto Pay discount. Enrolling in Auto Pay is not required as a condition for approval. Interest rates are subject to change.
Residents of Hawaii must request a loan of at least $1,501.
You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. It is important to note that the 0.25% Auto Pay discount is not available when loan payments are deferred during the interim period as a result of selecting the deferred repayment option.
To be eligible for the Loyalty Discount, applicants must have previously obtained an Earnest Private Student Loan and apply using the same email address associated with that loan. Only one Loyalty Discount may be applied per eligible Earnest Private Student Loan. Not all applicants may qualify. This offer cannot be combined with Earnest's Rate Match program. Earnest may modify or discontinue this offer at any time and without notice, however, once a Loyalty Discount is earned, it will not be taken away.
Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.
Earnest clients may skip a payment through a single, one-month forbearance during a 12 month period. Your first request to skip a pay can be made once you've made at least 6 months of consecutive on-time full principal and interest payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Any unpaid accrued interest may capitalize (added to the principal balance) at the end of the forbearance period by adding unpaid accrued interest to the outstanding principal as permitted by law and the terms of the loan agreement. Please note that skipping a payment is not guaranteed and is at Earnest's discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.
You can improve your credit score by making on-time payments on your existing debts and avoiding new credit accounts, since applying can temporarily lower your score.
Alternatives to student loans
- Ask about scholarships and institutional aid at your school. You may also want to look into a home equity loan, HELOC or a 401(k) loan. If you're working, your employer may offer tuition reimbursement.
- Work-study programs or even a part-time job can help with expenses, and crowdfunding platforms like GoFundMe can help you raise money for college.
- Income-Share Agreements (ISAs) let you borrow money during school and repay a percentage of your income after you graduate.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Home equity loans
680
90%
HELOC, DSCR, cash-out refinance, crypto-backed loan
640
95%
FAQs
Can I appeal a student loan denial?
You can usually appeal a federal student loan rejection. Reach out to your financial aid office and the federal student aid office.
What credit score do I need to get a student loan?
If you're applying for federal student loans, your credit score isn't taken into account. For private student loans, lenders typically require a credit score of at least 640, though some may accept lower
How long should I wait before reapplying for a student loan?
Wait at least six months before reapplying for a student loan to give your credit score time to rebound after the initial hard inquiry.
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
