Funding U Review: Private Student Loans

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 $10,000 is less than most 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.

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 loans ratings methodology