Applying for a private student loan can feel overwhelming, especially if it’s your first time dealing with things like credit, interest rates, and loan paperwork. You might be wondering how approval works, what lenders look for, or how you can improve your chances of getting approved. 

The good news is that there are simple, practical steps you can take to make your application stronger from the start!  Whether you’re applying on your own or with a cosigner, preparing ahead of time can help you find better options and feel more confident in the process. 

Here are seven essential tips to help you improve your private student loan application and set yourself up for success. 

1. Check Your Credit Before You Apply 

Your credit history plays an important role in many private student loan applications. Before you apply, take time to review your credit report and FICO® Score so you know where you stand. 

Many banks and credit card companies offer free access to your score, and you can also request your credit report through Experian, Equifax, or TransUnion.  

Reviewing your credit early helps you understand what’s affecting your score and where you can improve. If you’re just starting out, focus on making every payment on time, keeping credit card balances low, and avoiding maxing out your limit. Small habits like setting up autopay or paying more than the minimum when you can, can build strong credit over time and make the process feel more manageable. 

2. Dispute Errors on Your Credit Report 

Checking your credit is important, but accuracy matters just as much. Your credit report shows the full picture of your borrowing history, including every loan, credit card, and payment in your name. Lenders review this entire report, not just your score, when evaluating your application. 

 As you review it, look for anything that does not seem right, such as accounts you do not recognize, incorrect balances, or payments marked late when you paid on time. 

If you find an error, take action. You can dispute inaccurate information directly with the credit bureau and the lender that reported it. Fixing mistakes early can help protect your credit and prevent small issues from affecting your approval. 

3. Apply With a Cosigner When It Makes Sense 

If you’re new to credit or have a limited credit history, applying with a cosigner can strengthen your application. A cosigner is someone—often a parent or trusted family member—who agrees to share responsibility for the loan. 

Because many cosigners have longer credit histories, their involvement can help: 

• Increase approval chances 

• Improve interest rate options 

• Unlock higher borrowing limits 

At Ascent, we saw 4x higher approvals offs when students apply for an Ascent loan with a cosigner*. For many students, having a cosigner is a practical way to access better loan terms while building their own credit at the same time.  Also, keep in mind that some lenders, like Ascent, offer a cosigner release which helps set students up for financial success and removes cosigner’s responsibility. 

4. Borrow Only What You Need 

Private student loans are usually limited to your school’s certified cost of attendance, which includes tuition, housing, meals, books, and basic living expenses. Before applying, take a few minutes to review these costs and think honestly about what you really need to cover. 

A helpful approach is to start with your total school costs, then subtract any money you already have from savings, scholarships, grants, or family support. The remaining amount is often a better estimate of what you actually need to borrow. 

• Applying for scholarships 

• Completing the FAFSA (Free Application for Federal Student Aid) each year to access federal student loans and other university-based financial aid 

• Contacting your school’s financial aid office to negotiate your financial aid offer. 

• Taking advantage of on-campus work-study programs to make some money during school 

Borrowing only what you need now can make a big difference later. Smaller loan balances often mean lower monthly payments after graduation and more flexibility as you start your career. 

5. Show Strong Financial Habits 

Lenders look for signs that borrowers can manage money responsibly. Simple habits can make a meaningful difference in how your application is reviewed. 

Focus on: 

• Paying all bills on time 

• Keeping credit card balances low 

• Avoiding unnecessary debt 

• Maintaining existing accounts in good standing 

These habits strengthen your credit profile over time and signal reliability to lenders. 

6. Do Your Research on Loan Types 

When you apply for a private student loan, you usually have the choice between fixed-rate and variable-rate loans. Understanding the difference can help you pick the option that fits your circumstances. 

• Variable-rate loans can go up or down over time with the market. This can save you money if you plan to pay off your loan quickly, but it also comes with more uncertainty. 

• Fixed-rate loans stay the same for the life of your loan, so your payments won’t change. They can give you peace of mind, but your rate won’t drop if market rates go down. 

Doing a little research now can help you choose a loan type that works for you today and keeps your options open for the future. 

7. Apply When You’re Financially Ready

Timing matters. Applying when your credit is in good shape, your cosigner is also prepared, your documents are organized, and your school information is confirmed can make the process smoother and less stressful. 

Before you apply, make sure you have: 

• Your school and program details 

• Cost of attendance information 

• Any income documentation, if required 

• A cosigner lined up, if needed 

Having everything ready can help prevent delays, reduce mistakes, and make it easier to get approved quickly. It also gives you a clear picture of how much you actually need to borrow so you can plan with confidence. 

What If You’re Not Approved Right Away? 

If your application isn’t approved on the first try, it doesn’t mean you’ve failed, and it doesn’t mean you’re out of options. Many students strengthen their applications by adding a cosigner, improving their credit, or adjusting their borrowing amount. 

About Ascent  

Ascent is a mission-driven fintech company committed to redefining student lending through a focus on access, affordability, and lasting economic impact. Backed by institutional capital, we offer innovative loan options for college and career training programs—helping more students qualify, with or without a cosigner.   

But funding is just the start. From career readiness tools to financial wellness resources to over $330,000 in no-essay scholarships, everything we build is designed to turn education into real opportunity.