Funding U is a partner lender from which we receive compensation. Edvisors® evaluates each lender we partner with and only recommend loan programs which we believe are a best fit for our audience.
What is Funding U?
Funding U (Funding University) is a lender that offers no-cosigner student loans for undergraduate students. Instead of traditional credit scores, they consider your potential , including your academic track record and career path. To apply for a Funding U loan, students must attend an eligible school in an eligible state. This lender currently partners with about 1450 schools throughout the country.
Funding U No-Cosigner Student Loan
Edvisors (Edvisors Network, Inc.
) provides independent advertising-supported platforms for consumers to search compare and apply for private student loans.You can read full Advertiser Disclosure here.
- Approval based on academic achievement rather than a cosigner or income
- Quick prequalification and rate check that won’t impact your credit
- Up to $20,000 per academic year to help cover the cost of college
- Rates (APR) from 8.49% to 13.99% (not including 0.5% discount for ACH auto-payments)*
New student loans of $3,001 up to $20,000 per school year will be granted to residents of eligible states enrolled as undergraduates in bachelor’s degree or equivalent- granting programs at eligible schools.
Funding U offers fixed-interest-rate loans, without a cosigner, to students who are serious about their academic success and post-grad career. Eligibility is determined by several factors, including: school graduation rate, class hours completed, estimated graduation date, academic performance, major; responsible borrowing, and other academic and non-academic activities that demonstrate the borrower is working hard towards academic and professional goals.
Eligibility is also limited by state of permanent residence. Terms and conditions vary by state. Not all loans are available in all states. Loan amounts available may vary by state.
DISBURSEMENT All Loan proceeds will be sent to the student borrower’s school around the time classes begin, on the date your school prefers. Funding U will require documentation to verify your registration and certify your loan need prior to disbursement. Your school must also certify your loan need. Your loan may be adjusted based upon the amount of need certified by your school.
REPAYMENT TERMS New Undergraduate loans for the 2025-2026 school year will have an Annual Percentage Rate (APR) of 8.49% to 13.99%. All loans have a fixed interest rate range of 7.99%* to 13.49% with Autopay or 8.99% to 13.99% without Autopay. The interest rate is fixed, which means that even if market rates change, your monthly payment will remain the same. There is no origination fee. Interest accrues while you are in school.
In-school partial payments: Students may choose either $20 monthly as a “Fixed Payment” while enrolled in school or “Interest Only” payments. These payments will be reported to credit agencies like other student loans. All loans have either a 5-year or 10-year repayment term (paid monthly over 60/120 months starting 6 months after graduation). The 5-year term is not available on all loans. Both In-School payment options may not be available in all states. Students electing to make Interest-Only payments will receive a 0.5% interest rate discount. Minimum loan amount may vary by state of residence.
PREPAYMENT PENALTIES There is no prepayment penalty on your loan.
Additional details, terms & conditions will be included in each loan offer.
*The lowest rate shown is available only to upperclassmen with outstanding academic performance and is not typical of the rates offered to most borrowers. Your actual rate will depend on creditworthiness and other factors, such as your class year and GPA.
Funding U Customer Service
With Funding U, every borrower is assigned a loan officer to help guide you through the process and answer any questions you may have. You may also contact their loan servicer, Launch Servicing, directly via phone or online chat.
Funding U Student Loans
Funding U offers no-cosigner, fixed-rate student loans to undergraduate students attending eligible four-year, accredited, not-for-profit colleges within select states of the United States (excluding online-only schools). Funding U does not charge any fees or penalties, including the following:
- No application fee
- No origination fee
- No cancellation fees
- No pre-payment penalties
You will be required to make payments while in school--either $20 per month, or interest only payments. Standard loan repayment is either a 5-year or 10-year term with a six-month grace period after graduation.
Pros and Cons
| Pros | Cons |
|---|---|
| No cosigner needed. Having limited or no credit history is not an issue | Negative credit issues that show up on your credit report may affect your ability to be approved. |
| Loans designed for undergraduate students | There are currently no options for graduate/professional students or students attending online-only schools |
| $20 minimum or interest-only payments while in school | $20,000 loan limit per academic year, minimum amounts may vary based on state of residence |
| Forbearance options available for students facing hardship | Postponements are for 90-day periods and cannot exceed 24 months during the repayment term |
Apply for a Funding U Student Loan
You can start your Funding U application online. You will be asked to provide the following documentation:
- State issued ID
- Most recent full transcript
- Financial aid award letter
- Tuition bill
You will also be connected with your dedicated loan officer.
The last step in the application process is receiving and signing your final loan documents. Your funds will then be disbursed directly to your school.
How Funding U Gives Back
Funding U’s mission is to ensure high-achieving students from low or moderate-income households are not prevented from attending college. Their goal is to help borrowers achieve their academic and professional dreams without penalizing individuals who may not have a developed credit history or come from a high income family.
Funding U Headquarters
Finding U has their headquarters in Atlanta, GA. They have 22 employees and partners that help carry out their loan operations.
