Funding U Snapshot
Funding U is an online lender that focuses exclusively on undergraduate students with no cosigner. Rather than looking at your credit score or income, Funding U looks at non-traditional metrics such as your GPA and estimated future earnings to assess your creditworthiness. Funding U’s student loan is best if you are a high-achieving undergraduate student with limited credit history and no access to a creditworthy cosigner.
Pros
You do not need a cosigner or credit history- You can get a loan based on your academic performance
- Variety of repayment options
- 0.5% interest rate discount if you make interest-only payments while in school
- You get a dedicated Loan Officer that helps you simplify the borrowing process
- DACA students with a work-eligible Social Security card are eligible
Cons
You might be able to find a lower interest rate elsewhere- Loans aren’t available in 13 states
- You have to make loan payments while you’re in school
- Maximum funding amount is less than most lenders
- Not accessible to students enrolled less than half-time
Best Features of Funding U Student Loans
You do not need a cosigner or credit history
The majority of private lenders look at your income and credit score to assess your creditworthiness. Since most undergraduates have minimal income and limited credit, they are forced to find a cosigner who qualifies. But for many students, finding a cosigner is not an option. This is where Funding U comes in.
Funding U’s goal is to provide a loan that you can get on your own, based on hard work, tenacity, and focus – not based on the income level or credit score of a loan cosigner. By offering loans based on your academic history, employment activities, and other non-credit-based factors, Funding U allows you to take out a student loan without needing a cosigner with strong credit history. This prevents you from having to find someone to go into debt on your behalf and offers opportunities for you to take out a loan without credit history.
>> MORE: What is a student loan cosigner?
You can get a loan based on your academic performance
Funding U determines eligibility using their proprietary SMaRT™ scoring system. SMaRT™ (Student Merit and Risk Test) relies on non-credit variables incorporating 40 years of research. All such data points conform to the Federal Equal Credit Opportunities Act. The SMaRT™ scoring system is designed to predict the probability of an undergraduate college student defaulting on their student loan.
Funding U takes into account a number of factors largely based on the attributes of successful federal student loan borrowers. The lender considers:
- Your academic success in college – especially in your major
- Your likelihood to graduate on schedule by taking and passing about 15 credits per semester
- Your projected total student debt
- Your projected earnings based on your major
By basing its lending decisions on forward-looking factors, Funding U aligns itself with borrowers and encourages students to think long term.
Variety of repayment options
Funding U offers you two repayment options for your student loans, both of which require you to make in-school loan payments. While in-school payments can be difficult for some borrowers, it is the best way to reduce the amount of interest you pay over time.
Repayment Option
Terms
Pros
Cons
Interest-Only Repayment
Pay only interest while you’re in school.
Your monthly payments will be more manageable, and your loan balance won’t grow while you’re in school.
You won’t make any progress paying down your loan balance while you’re a student. But at least you won’t owe more than you borrowed when it’s time to start making full payments.
Fixed Repayment
Pay $20 every month while enrolled in school and during the grace period.
You can keep your loan balance in check, and reduce the total amount repaid.
You’ll still owe more than you borrowed when you graduate, but your loan balance won’t grow as quickly.
Note: While there is no immediate repayment option, Funding U allows you to make extra payments, with no prepayment penalties, if you wish before the repayment period starts post-graduation. Those payments will reduce your loan balance.
>> MORE: The best repayment plan for private student loans
0.5% interest rate discount if you make interest-only payments while in school
If you elect to make interest-only payments while in school, you will receive a 0.5% interest rate discount. While making payments while you’re in school might be difficult, it will limit the amount of interest that accrues and lead to significant savings over the lifetime of the loan.
DACA students with a work-eligible Social Security number can qualify
If you are a DACA recipient with a Social Security number, you are eligible for a Funding U student loan. This separates Funding U from many other lenders, which require you to be a U.S. citizen.
Drawbacks of Funding U Student Loans
You might be able to find a lower interest rate elsewhere
The interest rates on Funding U’s fixed-rate loan range from 7.49% to 12.99% without autopay. While this may seem higher than most other lenders, it is an incredible option for students who have limited credit history and no access to a cosigner. Otherwise, these students most likely wouldn’t qualify for a traditional credit-based loan.
However, if you do have a strong credit history or qualified cosigner, you might be better off going with a credit-based lender that can offer you a lower rate.
Loans aren’t available in 13 states
Funding U loans are only offered to students who are residents in the following states:
Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin
If you don’t live in one of these states, complete our 2-minute form to see if you qualify and at what rate with over 17 different lenders. It’s quick, easy, and does not impact your credit score.
You have to make loan payments while you’re in school
While many lenders offer a deferred payment option that allows you to postpone repayment until after you’ve graduated, Funding U requires in-school payments.
Funding U’s in-school repayment options include:
- Fixed repayment: Pay $20 every month while enrolled in school and during the grace period.
- Interest-only repayment: Pay interest every month you’re in school and during the grace period.
In-school repayment allows you to minimize the interest that accrues, but it is a negative for those who do not want to make payments while in school. If you’re looking for a lender who offers a deferred repayment plan (payment doesn’t begin until after graduation), you may want to look at other lender
Maximum funding amount is lower than most lenders
Funding U offers student loans as large as $20,000 per school year. This is a great option if the gap between your federal student loans and your total cost of attendance is less than $20,000 per year.
If you need to borrow more than $20,000 per year, you might need to look elsewhere to cover the cost of your education. Several of the other private student lenders we partner with offer loans up to the total cost of attendance.
Not accessible to students enrolled less than half-time
Given that Funding U has such a strong emphasis on academic achievement, it makes sense that the lender requires you to enroll at least half-time.
If you are not enrolled in school at least half-time, you are ineligible for Funding U student loans. If you’re studying less than half-time, you may want to consider College Ave.
>> MORE: College Ave student loans review
The latest rates from Sparrow’s partners
If you want to skip pre-qualification and apply directly with a lender, you can do so by clicking Apply below.
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Funding U Eligibility Criteria, Repayment Options & More
Fees and Terms
Loan Terms
10 years.
Loan Amounts
$3,001 up to $20,000 per school year.
Ability to transfer a parent loan to the student
Did not disclose.
Application or Origination Fee
No.
Prepayment Penalty
No.
Late Fees
No.
Eligibility Requirements (Financial)
Minimum Credit Score
No credit required, but borrowers can’t have a history of delinquency.
Minimum Income
No minimum, but borrowers must demonstrate they can make monthly in-school payments.
Typical Credit Score of Approved Borrowers
640
Typical Income of Approved Borrower
Did not disclose
Maximum Debt-to-Income Ratio
Funding U uses salary and student loan data to estimate your post-graduation debt-to-income ratio. The maximum ratio is 20%.
Ability to qualify if you’ve filed for bankruptcy
No.
Eligibility Requirements (Personal)
Citizenship
Must be a U.S. citizen, permanent resident or DACA recipient with a work-eligible Social Security number.
Location
Available only to residents of Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin.
Must be enrolled half-time or more
Full-time only.
Types of schools served
Borrowers must attend nonprofit colleges that meet the following 6-year graduation rate requirements and have the following minimum GPA:
• 90% graduation rate for freshmen with a 3.5 high school GPA.
• 70% graduation rate for sophomores with a 3.0 GPA.
• 50% graduation rate for juniors with a 2.75 GPA.
• 50% graduation rate for seniors with a 2.5 GPA.
Percentage of borrowers who have a cosigner
N/A – No cosigner allowed.
Repayment Options
In-school repayment options
Interest-only repayment: Pay interest each month you’re in school and during the 6-month grace period.
Fixed repayment: Pay $20 each month while enrolled in school and during the 6-month grace period.
Note: Funding U does not offer a full principal and interest repayment option, but borrowers can opt to pay more than what’s required.
Grace period
6 months, but only for the deferred repayment option
In-school Deferment
Yes, up to 24 months.
Military Deferment
Yes, up to 24 months.
Forbearance
Borrowers are eligible for 24 months of forbearance, in 90-day increments, if they have an economic hardship, are completing a medical residency or are affected by a natural disaster.
Cosigner Release
N/A — No cosigner allowed.
Death or Disability Discharge
Funding U will discharge loans in the event of the death of the borrower. Should the borrower become disabled, Funding U offers up to 24 months of deferment for temporary disability and up to 60 months deferment for permanent or complete disability.
Loan discharge if cosigner dies or becomes disabled
N/A – No cosigner allowed.
Autopay
Allows for surplus payments via autopay: No.
Allows for biweekly payments via autopay: No.
Customer Service
Loan Servicer
Scratch.
In-house Customer Service Team
Yes.
Process for Escalating Concerns
Yes.
Borrowers get assigned a personal customer service representative
Yes.
Average time from application to approval
Pre-approval happens immediately. Official approval typically takes 3 days.
Student loan rates from our partners
Ascent
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 4/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require interest-only payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 4/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require interest-only payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
LendKey
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
Earnest
Auto Pay Discount Disclosure
You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.
Student Loan Origination (Private Student Loan) Interest Rate Disclosure
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.36% APR to 16.15% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.87% APR to 16.45% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
Earnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107
Earnest loans are serviced by Earnest Operations LLC, 535 Mission St., Suite 1663 San Francisco, CA 94105, NMLS #1204917, with support From Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
© 2024 Earnest LLC. All rights reserved.
Auto Pay Discount Disclosure
You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.
Student Loan Origination (Private Student Loan) Interest Rate Disclosure
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.36% APR to 16.15% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.87% APR to 16.45% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
Earnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107
Earnest loans are serviced by Earnest Operations LLC, 535 Mission St., Suite 1663 San Francisco, CA 94105, NMLS #1204917, with support From Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
© 2024 Earnest LLC. All rights reserved.
College Ave
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
*The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation. $5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees. Information advertised valid as of 08/25/2022. Variable interest rates may increase after consummation.
This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 3/07/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
*The 0.25% auto-pay interest rate reduction applies as long as the borrower or cosigner, if applicable, enrolls in auto-pay and authorizes our loan servicer to automatically deduct your monthly payments from a valid bank account via Automated Clearing House (“ACH”). The rate reduction applies for as long as the monthly payment amount is successfully deducted from the designated bank account and is suspended during periods of forbearance and certain deferments. Variable rates may increase after consummation. $5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees. Information advertised valid as of 08/25/2022. Variable interest rates may increase after consummation.
This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 3/07/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
Funding U FAQs
Is Funding U a legitimate lender?
Yes, Funding U is a legitimate lender. The company was founded in 2016 to support students who have strong projected income but do not have the credit history or access to cosigners to take out credit-based private student loans.
How long does it take to get a Funding U student loan?
Submitting an application through Funding U takes a few minutes. Once you’ve submitted your loan application, Funding U will instantaneously return a decision about your eligibility. If you qualify, you will receive the rate and terms of your loan.
Your school must approve the loan which may take between four to six weeks.
What happens if I don’t qualify for a Funding U student loan?
If you don’t qualify for a Funding U student loan, the company will inform you why. Depending on the reason, you may consider applying with a different lender. To check your rates across multiple lenders at once, try using Sparrow’s free student loan search engine. In just two minutes, you can receive real, personalized offers from over 15 different lenders all bidding for your business.
Are Funding U student loans federal or private?
Funding U’s loans are private loans. Before you take out a private student loan, we recommend that you exhaust your federal funding options, including grants and scholarships.
Does applying for a loan through Funding U hurt my credit score?
In order to estimate what rate you qualify for, Funding U may conduct a “soft credit check” — this does not affect your credit score. If you choose to accept the Funding U loan, the company will conduct a hard credit check to verify your information. A hard credit check may temporarily impact your credit score.