Applying for a loan can be a stressful experience, especially for students. University is an expensive investment and it can be difficult to determine how to fund your time there. Even if you have received a government-funded loan or have been granted a scholarship from your institution, you may find that you still need to apply for a private student loan to help finance your studies.

So you’ve done all of your research on various lending companies. You’ve determined the amount of funds you’ll need to supplement your life at uni. And you’ve made sure to collect all of the documents requested on the loan application. Great, right? Well, not necessarily. What happens if you submit everything only to find out that your loan application has been rejected?

We’ve created this guide to help you navigate this experience should you ever find yourself in this situation.

Why was my application rejected?

This first thing you may be asking yourself is ‘why was my loan application rejected?’ This is a very valid question but can be a challenging one to answer. Each lender will have their own internal criteria for determining if they can offer you funds or not. Many factors are taken into consideration but it can be a combination of your residency status, enrolment status and credit history. With this in mind, it’s important to understand that you should only apply once you’ve been enrolled on your university course and after you’ve moved to the UK (if you’re an international student).

Poor or insufficient credit history is not always the deciding factor but it can cause a lender to assess an alternative interest rate or potentially decline an application altogether. As a student, you most likely haven’t built up credit over a long period of time so lenders may also require a cosigner or guarantor before approving your application. In any case, it’s always best to make sure that you regularly review your credit report to see if it holds any negative marks that can lead to a rejection.

Will this affect my credit score?

After having your loan application rejected, you may also be asking yourself how this will affect your credit score. And while you should not take any applications for credit lightly, it’s good to know that when getting a quote for a student loan with a company such as Future Finance, they only perform a ‘soft’ credit check. This type of check helps the lender gain a better understanding of your credit history but doesn’t leave a visible mark on your credit report – so a rejection won’t affect your credit score or any future credit applications you may make.

What steps should I take next?

It can be disheartening to receive a loan rejection but you should know that you do have options. First, your lender should, upon request, give you a general reasoning behind their decision. While they may not be able to go into specific details, it can be helpful to understand which factors may have led to this outcome to avoid rejections with future applications.

Second, if you do seek out another lender, be sure to review all of the application requirements first. If any additional documents are required, such as an enrolment letter or proof of residency, make sure to gather them prior to applying and ensure all personal information is correct.

And last, while private student loans can be a great way for you to finance your studies, you should always seek government-funded loans as a first course of action. However when these are do not cover the needed funds, or you do not qualify, companies like Future Finance exist to bridge the gap and help make your uni experience a reality!


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