Low income? You can still borrow for college. Here’s where to start

A low income doesn't have to put college out of reach.

In addition to financial aid, students have access to federal programs, grants and student loans to help bridge the gap between what college costs and what their families can afford.

First things first: Before taking on debt, complete the Free Application for Federal Student Aid (FAFSA) to see what free aid you qualify for. For additional funding, federal student loans generally offer the safest borrowing option, especially for those with low income, and private loans are best reserved for filling any remaining gaps.

Here's how to navigate the process as a low-income borrower.

A commonly used federal poverty guideline defines low income in 2026 as an annual income of $15,960 for a single person and $33,000 for a family of four.

No matter your income level, your first step in affording college is to apply for the FAFSA. There is no minimum income requirement (nor is there an income limit) to apply, and eligibility is based on several factors, including family size, household income and overall financial circumstances. The FAFSA demonstrates your financial need and can help you access grants, work-study programs, scholarships, merit aid and subsidized or unsubsidized federal student loans. With subsidized loans, the government covers the interest while you're in school, while unsubsidized loans are available to more students regardless of financial need but interest starts accruing right away.

Federal student loans are your best borrowing option for school, especially if you have low income. Federal student loans don't consider your credit score and interest rates are fixed, meaning they stay the same over the life of your loan, making repayment more predictable. Federal student loans also have more borrower protections than private student loans, such as income-driven repayment plans and forgiveness programs, which can make a real difference to low-income borrowers.

Private student loans help cover college costs once you've exhausted federal loan options. They offer higher borrowing limits and having good credit can help you score a low interest rate.

It's worth doing your homework before applying. Some private lenders offer more flexibility than others. Earnest, for example, offers multiple repayment options including standard, interest-only and extended-term plans, plus a nine-month grace period after graduation — three months longer than the industry average. Borrowers can also take out up to the full cost of attendance.

Ascent offers repayment terms of up to 20 years, which is longer than most lenders and can help keep monthly payments manageable, though you'll pay more in interest over time. Borrowers can take out up to $200,000 for undergraduate loans and up to $400,000 for graduate loans.

Consider a co-signer

If you have low income or a limited credit history, applying with a co-signer is one of the most effective ways to get approved for a private loan and secure a better rate. A co-signer is typically a parent, guardian or another creditworthy adult who agrees to share responsibility for the loan.

Ninety-three percent of undergraduate loans funded through Credible between June and September 2025 included a co-signer, and undergraduates with co-signed loans received APRs that were more than two percentage points lower on average than those who applied alone.

College Ave approves co-signers with credit scores in the mid-600s, which is lower than most competitors require, making it a good fit if your co-signer's credit isn't perfect. Undergraduate borrowers can also apply once and get approved for multiple years, so you won't have to reapply each semester. A co-signer release, which releases the co-signer of any financial responsibility, is available for qualified borrowers once half of the repayment term has passed with principal and interest payments made.

SoFi also approves co-signers with credit scores in the mid-600s and offers repayment terms from five to 20 years, which gives you more flexibility to find a monthly payment that works for your budget. Fixed rates are on the low end for those with good credit, along with the offer of a 0.25% discount for autopay. A co-signer release is available after 12 consecutive on-time monthly payments.

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 student loan article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of student 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.

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*Interest Rates: Eligibility and Important Details. Fixed rates range from 2.45% APR to 15.99% APR with 0.25% autopay discount. Variable rates range from 4.39% APR to 15.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates are capped at 17.95%. SoFi rate ranges are current as of 7/6/2026 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term and type of repayment option you select, evaluation of your creditworthiness, income, presence of a co-signer (if applicable) and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. Check out our eligibility criteria at https://www.sofi.com/eligibility-criteria/. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases.