Funding U Review: Private Student Loans

Funding U offers student loans to undergraduate students without credit or a co-signer at eligible four-year colleges.
Cecilia ClarkAug 6, 2021

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Our Take

5.0

NerdWallet rating 

The bottom line: Funding U student loans are best for high-achieving undergraduates with small funding gaps who don’t have a cosigner. But only students who attend a qualifying school are eligible.

Funding U Private Student Loan
Check Rate

on Funding U's website

Fixed APR

7.49 - 12.99%

Min. Credit Score

None

Pros & Cons

Pros

  • 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.
  • Among the best for payment flexibility.

Cons

  • Loans aren't available in 19 states.
  • Payment required while in school and during the grace period.
  • Maximum funding amount is less than most lenders.

Compare to Other Lenders

Funding U Private Student Loan
Stride Funding Income Share Agreement
NerdWallet rating 
NerdWallet rating 
Check RateCheck Rate
Fixed APR

7.49 - 12.99%

Fixed APR

N/A

Variable APR

N/A

Variable APR

N/A

Min. Credit Score

None

Min. Credit Score

None

Full Review

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 could improve by:

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 , to apply.

 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 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  or specialize in .

NerdWallet believes the best student loan is one you can repay at the lowest interest rate you can get. That’s why NerdWallet’s student loan ratings reward lenders that offer a variety of loan terms, limit their fees and penalties, and extend borrowers multiple options to avoid default. Points are also awarded for soft credit checks, underwriting transparency and other consumer-friendly features. Use these ratings as a guide, but we encourage you to shop around for the lowest interest rate you can qualify for. NerdWallet does not receive compensation for its reviews. Read our .