Funding U Review: Private Student Loans
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The bottom line:
Funding U student loans are best for high-achieving students who don’t have a cosigner. But only students who attend a qualifying school are eligible.
Pros & Cons
You don't need a co-signer or credit history to get a loan.
You can see if you’ll qualify and what rate you’ll get without a hard credit check.
Loans aren't available in 14 states.
Payment required while in school and during the grace period.
Compare to Other Lenders
Min. credit score
Min. credit score
Min. credit score
Funding U, also known as Funding University, was founded in 2016. It offers loans to students without a cosigner in a limited number of states.
Funding U doesn’t rely on credit scores in their lending decisions. Instead, they assess borrowers based on academic success, likelihood to graduate on time, projected total student debt and projected earnings after graduation. They lend only to borrowers who attend colleges that meet their graduation rate requirements.
While freshmen and sophomores can qualify for a Funding U loan, they have stricter approval requirements. Juniors and seniors are more likely to be approved.
Only full-time students who are U.S. citizens, permanent residents or DACA recipients with a work-eligible Social Security number can apply. You must also attend an eligible school, be in a qualifying year for your school, be a resident of an applicable state and meet the GPA minimum.
FUNDING U STUDENT LOANS AT A GLANCE
No credit required or co-signer allowed.
In-school payments are required, but multiple options are available for borrowers who run into trouble with repayment.
Maximum loan amount of $20,000 is less than many lenders.
HOW FUNDING U COULD IMPROVE
Funding U could improve by:
Offering more than one repayment term.
Allowing borrowers to fully defer payment until after graduation.
Providing loans to students from all 50 states.
Funding U private student loan details
Before applying for a Funding U student loan
Before taking out a Funding U student loan or any other private student loan, exhaust your federal loan options first. Submit the Free Application for Federal Student Aid, known as the FAFSA, to apply.
Compare your private student loan options to make sure you’re getting the best rate you qualify for. In addition to interest rates, look at lenders’ repayment alternatives and the flexibility they offer to borrowers who struggle to make payments.
If you aren’t eligible for a Funding U student loan
If Funding U denies your student loan application, the lender will let you know why. Depending on the reason, you may want to consider other lenders or, if you haven’t already, try applying with a co-signer.
If you don’t have access to a co-signer — or still aren’t eligible with one — consider other lenders that don’t require co-signers or specialize in bad or no credit student loans.
STUDENT LOAN RATINGS METHODOLOGY
Our survey of more than 29 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.
We consider 40 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.
The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
Read more about our ratings methodologies for student loans and our editorial guidelines.