Do You Need Income for Student Loans?

Students often go directly from high school to higher education, and those who are just starting school haven’t had time to build work history. For those starting college later in life, you may be considering quitting your job to attend school. Students without a steady income will be glad to know that you can get a student loan without a job—but it depends on the type of loan you apply for. 

Federal student loans don’t require you to have a job or income. Private student loans generally require you to have income and a credit history, but there are ways to improve your chances of qualifying, like by applying with a cosigner. 

Understanding how income can affect your options can help you plan for school and avoid stress later, so let’s walk through what to know and how to get the funding you need.

Key Takeaways

• You don’t need a job or income to qualify for federal student loans.
• Private student loans often require proof of income, but applying with a cosigner can help you qualify and, in some cases, secure a better rate.
• The Free Application for Federal Student Aid (FAFSA) is the key to getting federal aid and should be filled out every year.
• Before borrowing, be sure to look into free forms of financial aid like grants, scholarships, and work-study programs to help minimize your out-of-pocket expenses.

Can You Get a Student Loan Without a Job or Income?

Yes, you can get student loans without a job or steady income. In fact, many students borrow money for college before they ever get their first paycheck. While your income may matter in some cases, it’s not always a dealbreaker:

• Federal student loans do not require income or a credit check. These loans are based on your financial need, which is determined by the FAFSA.
• Private student loans often require income or a cosigner with income. Some lenders may look at your future earning potential or other criteria if you don’t have a job or a cosigner.

Federal Student Loans: No Income Required

Federal student loans provided by the U.S. government are a good option for students who may not have a job or steady income yet because they are based on financial need, not employment status or income. 

You can determine how much you can borrow by completing the FAFSA. While there are no income requirements, you’ll still need to meet the following criteria: 

• Students must be U.S. citizens or eligible noncitizens.
• Students must be enrolled in an eligible certificate or degree program at an eligible college or trade school.

The results of your FAFSA application will determine which types of loans you are eligible for and how much aid you can receive. Part-time and online students can still qualify for federal loans, but the amount may be lower than what full-time students can qualify for. 

You’ll typically need to be enrolled at least half-time to be eligible, which means completing at least 6 credit hours in a semester. Federal student loans can also be applied to many online programs as long as the school is accredited and able to accept federal funds for tuition. 

Federal loans for students with no income include Direct Subsidized Loans, Direct Unsubsidized Loans, or even Federal Pell Grants. Direct Subsidized Loans are helpful if you have financial need because the government pays the interest while you’re in school. 

Private Student Loans and Income Requirements

Private lenders usually want to see proof of income before they approve your loan, but you can still get private loans for students with no income if you have a cosigner. 

A cosigner is someone who agrees to take on the loan with you, like a parent, a grandparent, or a trusted adult. For students who are unemployed, have poor credit, or have little to no credit history, applying with a cosigner can improve the likelihood of qualifying for a loan. In some cases, applying with a cosigner can even result in a lower rate or more favorable loan terms.

Some private loan options may consider a student’s earning potential based on their field of study and expected future income. For example, Ascent offers outcomes-based student loans for juniors and seniors applying without a cosigner who would not otherwise qualify based on income requirements. Eligibility for this loan type is based on several factors including your major, GPA, cost of attendance, and graduation date. 

Besides income requirements, some private lenders might require full-time enrollment, while others may accept part-time students. Some may also require your school to be accredited. 

Take Advantage of Free Funding First

There’s no shortage of loan options to help you pay for school if you’re unemployed or working with a limited income. Remember to start with the types of financial aid that you don’t have to pay back to minimize your out-of-pocket expenses:

• Grants are free money from the government, and eligibility for federal grants is determined by the same FAFSA application that determines federal student loan eligibility.
• Work-Study is a federal program that allows students to work part-time to help pay for tuition. Eligibility is determined by the FAFSA, and students who submit the FAFSA early have a higher chance of being awarded Federal Work-Study funds, since funding and job placements are limited. 
• Scholarships are free money based on things like academic achievements, extracurricular activities, or additional criteria like community involvement and interests. Scholarships can be awarded by private organizations like schools and nonprofits, and each scholarship will have its own unique award criteria.

Ascent Is Here to Help

Pursuing a college degree is an exciting endeavor, but figuring out the best way to pay for school can be confusing for all types of students. Start by completing the FAFSA each year and take advantage of financial aid that you don’t need to pay back like grants and scholarships. 

If you’re still short of funds and concerned about meeting student loan eligibility requirements, don’t worry. Federal loans are available for students with no income, and Ascent offers both cosigned student loans and non-cosigned loans for unemployed students. 

Win a no-essay scholarship giveaway and check out our student loan tips and resources for more information on paying for school.

FAQs

Can I get student loans with no income?

Yes, you can still get student loans even if you don’t have any income. Federal student loans do not require a job, credit score, or income to qualify. You may need a cosigner with income to apply for private loans. 

Ascent offers outcomes-based loans that don’t require a cosigner to eligible students.

What counts as income for student loan applications?

For federal loans, your income can include your parents’ or legal guardians’ income if you’re considered a dependent. If you’re independent, only your income and assets are reported. 

Private lenders may look at wages from a job, freelance work, or other steady income. If you have a cosigner, the lender will count their income instead of yours.

How does income verification work for student loans and financial aid?

For federal student loans, income is verified through your FAFSA using tax returns from previous years. If you or your parents didn’t file taxes, there are other ways to report your income. 

Private lenders usually ask for recent pay stubs, tax documents, or bank statements to confirm how much money you or your cosigner earn. 

Will lenders consider my future income potential when evaluating my application?

Some private student loan lenders will look at your future earning potential when deciding if you qualify. They might consider your major, school, GPA, or projected salary after graduation. While this isn’t a guarantee, it may help you qualify even if you don’t have income now.

Would working part-time help improve my student loan eligibility?

For federal loans, working part-time won’t affect your eligibility much. For private loans, having income increases your chances of getting approved without a cosigner. Even a small, steady income can make a difference in your application.