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Funding U Student Loan Lender Review
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 student loan lender offering no-cosigner student loans for undergraduate students. Funding U does not use traditional credit scores in their lending decisions. They base their decisions on other types of criteria. Students must attend an eligible school in an eligible state in order to apply for a Funding U loan. Some non-credit factors reviewed include your academic success and GPA, major and projected earnings after graduation, have a high likelihood of graduating on time, etc.
Funding U Merit-Based, No-Cosigner Student Loan
Recommendation
Best for Private Funding
Interest Rates
Fixed: 7.49% APR - 12.99% APR (not including 0.5% ACH discount)*
Repayment Terms
10 years
$20 minimum/month OR interest-only payments while in school
- Up to $15,000 per academic year with no cosigner required
- Fixed Rates (APR) from 7.99% to 12.49% (plus an additional 0.5% discount for ACH auto-payments)*
- No origination fee. No late payment fees. No prepayment penalties.
- Quick prequalification and rate check that won’t impact your credit
- Multiple repayment options
- Dedicated loan officer for every borrower
New student loans of $3,001 up to $15,000 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 record, major; employment or internship experience; and, other academic and non-academic activities that demonstrate the borrower is working hard towards academic and professional goals and is on track to be able to repay debt accrued.
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 2021-2022 school year will have an Annual Percentage Rate (APR) of 7.49% to 12.99%. All loans have a fixed interest rate range of 7.49%* to 12.99% (before consideration of ACH discount). There is no origination fee. Interest accrues while students 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 a 10-year repayment term (paid monthly over 120 months starting 6 months after graduation). Both In-School payment options may not be available in all states. Student’s electing to make Interest-Only payments will receive a 0.5% interest rate discount.
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 juniors & seniors 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 school 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, Scratch Loan 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 a 10-year term with a six-month grace period after graduation. You may make extra payments or pay your loan off at any time with no pre-payment penalties.
Pros and Cons
| Pros | Cons |
|---|---|
| Having limited or no credit history is not an issue | Documented credit issues that show up on your credit report may affect your ability to be approved. |
| No cosigner needed | Student loans for undergraduate students only |
| $20 minimum or interest-only payments while in school up to 51 months. | $15,000 loan limit per academic year |
| Forbearance options available for students facing hardship | Does not lend for online-only schools, for-profit schools, or graduate school. Only lends in certain states and at eligible colleges or universities. |
Apply for a Funding U Student Loan
You can start your Funding U application online, and you will hear back from them in a few days. 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 due to the low federal student loan caps and cosigner restrictions of many student loan providers. Their goal is to help their borrowers achieve their academic and professional dreams.
Funding U Headquarters
Finding U has their headquarters in Atlanta, GA.
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