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Funding U student loan review: Is it the right student loan for you? Funding U; Rachel Mendelson/Insider Business Insider's personal finance team compared Funding U Undergraduate Student Loans to the best private student loans and found them to have some significant drawbacks when it comes to loan types, repayment terms, and availability throughout the U.S. However, it could be a good option if your credit score is too low to qualify with other lenders.Funding U only offers undergraduate student loans for amounts of $3,001 to $20,000 per school year without a cosigner a lower maximum than some other lenders.Before taking out private student loans, be sure to explore your federal student loan, scholarship, and grant options first. Federal student loans come with protections that private student loans don't offer, such as lower fixed interest rates and student loan forgiveness.Funding U Student Loans Pros & ConsFunding U Student Loan ProsNo fees. Funding U doesn't charge application fees, origination fees, prepayment penalties, or late fees.Merit-based student loans. Loans aren't based solely on creditworthiness and don't require you to find a cosigner.Generous referral program. Existing Funding U borrowers can earn a $200 Amazon gift card when a new student successfully receives a Funding U loan using the existing borrower's referral link.Graduation Reward Program. Funding U will send you a $100 Amazon gift card if you previously received a Funding U and have since graduated with your Bachelor's degree.Funding U Student Loan ConsLow maximum loan amount. You can only borrow up to $20,000 per academic year.Relatively high interest rates. Fixed interest rates for Funding U student loans are slightly higher than average.Limited repayment terms. Funding U only has five or 10-year repayment terms available.Not available in every state. Loans aren't available for residents of Alaska, Idaho, Kentucky, Maine, Mississippi, Montana, New Hampshire, Nevada, New York, or Wyoming.Only available to undergraduates. Funding U does not currently offer graduate student loans or student loan refinancing.No variable-rate loans. This lender only offers fixed interest rates.Apply for a Student LoanFunding U Undergraduate Student Loans Learn more On Funding U's website Insiders Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 2.5/5 Regular Annual Percentage Rate (APR) 7.99% - 13.99% fixed (with AutoPay) Fees No fees Recommended Credit Undisclosed Loan Amount Range $3,001 $20,000 ProsCheck mark iconA check mark. It indicates a confirmation of your intended interaction. No prepayment, origination, or late feesCheck mark iconA check mark. It indicates a confirmation of your intended interaction. No cosigner neededCons con iconTwo crossed lines that form an 'X'. Low maximum loan amount con iconTwo crossed lines that form an 'X'. Relatively high APRs con iconTwo crossed lines that form an 'X'. One repayment term option con iconTwo crossed lines that form an 'X'. Loans unavailable for residents of 19 states con iconTwo crossed lines that form an 'X'. Only fixed-rate loans con iconTwo crossed lines that form an 'X'. Limited customer support options Product Details Apply through your computer or mobile deviceCustomer service available via email10-year repayment termLoan minimum of $3,001, maximum up to $15,000Residents of AL, AK, DE, ID, KY, LA, MA, MN, MS, MO, NV, NH, ND, OK, RI, SD, UT, WA, and WY ineligible for loansNo cosigner allowedLoans made through Funding University Compare Funding UCollege Ave Undergraduate Student Loans Apply now lock iconAn icon in the shape of lock. On College Ave's website Insiders Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.5/5 Icon of check mark inside a promo stampIt indicates a confirmed selection. Perks 0.25% discount on regular rates with AutoPay Regular Annual Percentage Rate (APR) 4.54% - 17.99% variable and 3.47% - 17.99% fixed (with AutoPay discount) Fees late payment of 5% of the amount due, capped at $25 Recommended Credit mid-600s Loan Amount Range Minimum of $1,000 ProsCheck mark iconA check mark. It indicates a confirmation of your intended interaction. No prepayment or origination feesCheck mark iconA check mark. It indicates a confirmation of your intended interaction. International students eligible with an eligible cosignerCheck mark iconA check mark. It indicates a confirmation of your intended interaction. Low APRCheck mark iconA check mark. It indicates a confirmation of your intended interaction. Multiple options for repayment term lengthCheck mark iconA check mark. It indicates a confirmation of your intended interaction. Many ways to contact customer supportCons con iconTwo crossed lines that form an 'X'. Credit check required con iconTwo crossed lines that form an 'X'. Late payment fee Insiders Take College Ave is a great lender for borrowers who want multiple options for repayment term lengths and are after a low APR. College Ave also offers many options for contacting customer support. Product Details Apply through your computer or mobile deviceCustomer service available via phone, text, email, and live chatFive, eight, 10, or 15 year repayment terms availableLoan minimum of $1,000, maximum up to 100% cost of attendanceRepayment options available:Deferred: No payments for up to six months after leaving schoolInterest only: Only make payments on the loan's interest while in schoolPartial payments: Pay $25 per month while in schoolFull repayment immediately: Start making full payments while still in schoolLoans made through Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC SoFi Undergraduate Student Loans Apply now lock iconAn icon in the shape of lock. On SoFi's website Insiders Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4/5 Icon of check mark inside a promo stampIt indicates a confirmed selection. Perks Earn up to $250 if you have a GPA of 3.0 or higher Regular Annual Percentage Rate (APR) 4.64% - 15.99% variable and 3.54% - 15.99% fixed (with AutoPay discount) Fees N/A Recommended Credit Undisclosed Loan Amount Range Minimum of $1,000 ProsCheck mark iconA check mark. It indicates a confirmation of your intended interaction. No origination fees, prepayment penalties, or late feesCheck mark iconA check mark. It indicates a confirmation of your intended interaction. Solid APRCheck mark iconA check mark. It indicates a confirmation of your intended interaction. Several options for repayment term lengthCheck mark iconA check mark. It indicates a confirmation of your intended interaction. Quick application processCons con iconTwo crossed lines that form an 'X'. Credit check required Insiders Take SoFi is an excellent lender for borrowers who want a competitive APRs. It's also a great lender for those who don't want to worry about fees. Product Details Apply through your computer or mobile deviceCustomer service available via phone, mail, and social mediaFive, seven, 10, or 15 year repayment terms availableLoan minimum of $1,000, maximum up to 100% cost of attendanceLoans are originated by SoFi Lending Corp. or an affiliate Ascent Undergraduate Cosigned Credit-Based Loan Apply now lock iconAn icon in the shape of lock. On Ascent's website Insiders Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 3.5/5 Regular Annual Percentage Rate (APR) 5.09% - 14.10% variable and 3.39% - 14.21% fixed (with AutoPay discount) Fees None Recommended Credit Undisclosed ProsCheck mark iconA check mark. It indicates a confirmation of your intended interaction. No prepayment or origination feesCheck mark iconA check mark. It indicates a confirmation of your intended interaction. Low minimum fixed rate APRCheck mark iconA check mark. It indicates a confirmation of your intended interaction. Many options for repayment term lengthCheck mark iconA check mark. It indicates a confirmation of your intended interaction. Multiple ways to contact customer supportCheck mark iconA check mark. It indicates a confirmation of your intended interaction. May be eligible without a cosignerCheck mark iconA check mark. It indicates a confirmation of your intended interaction. Cashback reward after graduationCons con iconTwo crossed lines that form an 'X'. Higher rates for non-cosigned loans Insiders Take Ascent provides a variety of repayment term lengths on its student loans and low minimum interest rates on fixed-rate loans. You may also qualify for a 1% cash-back reward that will be paid to you after graduation. Product Details Apply through your computerCustomer service available via phone, email, and physical mailProvided you are eligible, you'll receive 1% of your initial loan balance as a cashback bonus after graduationFive, seven, 10, 12, 15, or 20-year repayment terms available (20-year term only available for variable loans)Loan minimum of $2,001*, maximum up to 100% cost of attendance per term*The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.Overall maximum loan amount of $200,000Loans made through Bank of Lake Mills, Member FDIC Funding U Student Loan Application ProcessEligibility RequirementsTo be eligible for a Funding U student loan, you must meet the following requirements:You're a U.S. citizen, permanent resident, or DACA recipientYou're at least 18 years old at the time of applicationYou're a full-time undergraduate student at a participating partner schoolsYou are a resident of an eligible state (not a resident of Alaska, Idaho, Kentucky, Maine, Mississippi, Montana, New Hampshire, Nevada, New York, or Wyoming)Step-by-Step Application Process for Funding U Student Loans1. Get preapproved. Fill out the form on Funding U's website to determine if you are eligible and get preapproved for a loan.2. Upload any additional documentation as needed. Funding U may request additional information before preapproving your loan application.3. Talk to a Funding U loan advisor. The lender will assign a loan officer who will assist you with details like your loan offer, repayment options, interest rate and terms.4. Review and sign your loan offer. Carefully review all the details in the final loan offer Funding U sends you. Then sign your loan offer documents. The loan details will be sent to your school for final approval.Required DocumentationTo apply for a student loan with Funding U, you must have specific documents including your driver's license or other identification, school transcripts, financial aid award letter, and tuition bill.Funding U Student Loan Interest Rates and FeesCurrent Interest RatesFunding U's interest rates for undergraduate student loans in the 2024 to 2025 school year range from 7.99% - 13.99% fixed (with AutoPay). Rates are slightly higher without Autopay.Currently, the average private student loan interest rates range are around 10%, so Funding U's rates are in line with or slightly higher than average, depending on where your exact rate falls within the range.Fee Structure and Loan TermsBorrowers won't need to worry about prepayment fees, origination fees, disbursement fees, or late payment fees. However, Funding U requires monthly payments from borrowers while they are still in school. Repayment terms range from five to 10 years.Available Repayment PlansFunding U offers fixed and interest-only repayment options. Traditional repayment begins six months after graduation, but borrowers can start earlier if they leave school or drop to part-time status. Extra payments are encouraged and can lower your balance without prepayment penalties.Deferment and Forbearance OptionsFunding U offers various forbearance options for students facing financial hardship and for those hoping to continue their education post-graduation. It offers forbearance options for both students in school and graduates who are in repayment.Borrowers still in school will have the opportunity to apply for a forbearance applied in 90-day increments, based on the following reasons:Medical residencyEconomic hardshipMilitary deploymentTotal permanent disabilityTemporary hardshipNational disasterBorrowers in repayment will have the opportunity to apply for a forbearance in 90-day increments based on the following reasons:UnemploymentPursuing further studies for a graduate degree at an eligible schoolAny medical residencyEconomic hardshipMilitary deploymentTotal permanent disabilityLate School NotificationTemporary hardshipNational disasterFunding U Student Loans OverviewFunding U Undergraduate Student Loans are a worthwhile option if your credit score is too low to qualify with another student loan lender because it takes academic factors into account when making loan approval decisions. But you can't apply with a cosigner and are likely to pay a higher rate than you would with a lender that offers that option.This lender may be helpful if you're trying to build your credit because Funding U will report your in-school payments to credit bureaus, which could help increase your credit score over time.Funding U Student Loan Key Features and BenefitsFunding U don't have the best rates, with higher minimum APRs than other private student loan lenders. The company also doesn't offer variable-rate loans, so you'll have to take a fixed-rate loan.Funding U doesn't make lending decisions solely based on creditworthiness. It will also consider factors like your academic performance and potential career success when deciding whether to offer you a loan.Funding U won't charge any origination, prepayment, late, or application fees. You must take out a loan with a five or 10-year repayment term.You should go after federal student loan options before considering private student loan, including one with Funding U, as you can usually get better terms and protections through the government.If you want to contact Funding U's customer support, you must reach out during business hours, which are Monday through Friday, 8:30 a.m. to 8:30 p.m. ET. You can schedule a phone call with a loan advisor or use the chatbot on the Funding U website. Another option is to email Funding U at info@funding-university.com. The lender claims to respond to emails within two business days.Types of Funding U Student LoansFunding U Undergraduate Student LoansFunding U offers undergraduate student loans but no graduate loans. You can't apply with a cosigner, and your loan eligibility is based on a proprietary system developed by Funding U that takes into account your collegiate academic success, likelihood to graduate on time, and credit history, among other factors.Funding U Student Loan RefinancingFunding U doesn't currently offer student loan refinancing. However, you can join the waitlist on the Funding U website to be notified of when Funding U Refinance becomes available.Funding U Student Loan AlternativesFunding U vs. Earnest Student LoansFunding U student loan APRs range from7.99% - 13.99% fixed (with AutoPay), compared with a range of 4.99% - 16.85% variable and 3.47% - 16.49% fixed (with AutoPay discount) for Earnest student loans. You can only get fixed-rate loans with Funding U, while Earnest also offers loans with a variable rate.Funding U offers student loans ranging from $3,001 $20,000, while Earnest's loan amount range is from $1,000 to the total cost of attendance. Neither lender charges any additional fees. Earnest allows cosigners while Funding U does not.Earnest Student Loans ReviewFunding U vs. MPower Student LoansMPower student loan APRs range from 13.74% to 14.75% fixed (with AutoPay discount), compared with 7.99% - 13.99% fixed (with AutoPay) at Funding U. Both lenders offer only fixed-rate student loans.MPower charges a 5% origination fee and undisclosed late fee. You won't pay any additional fees with Funding U. You can borrow from $2,001 $100,000 lifetime from MPower, compared with $3,001 $20,000 at Funding U.MPower Student Loans ReviewFunding U Student Loan Customer ExperienceWhile there aren't many online reviews of Funding U, the customer reviews we did find generally have negative things to say about the lender. A few customers on Reddit claim it took several weeks for their loans to be disbursed to their school, and they often struggle to get in touch with Funding U.However, this does not mean that you will also have a bad experience with this lender. It's important to do your own research and get firsthand reviews from family and friends when possible.Is Funding U Trustworthy?Funding U received an A+ from the Better Business Bureau, which suggests it is a trustworthy company. This means the company frequently responds to customer complaints and concerns. There are no notable lawsuits pending against Funding U at this time.Why You Should Trust Us: How We Rated Funding U Student LoansWe rate all student loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:Interest rate (20% of rating)Fees (20% of rating)Term lengths (15% of rating)Repayment options while in school (15% of rating)Borrower accessibility (15% of rating)Customer support (7.5% of rating)Ethics (7.5% of rating)Each category's weighting is determined based on its importance to your borrowing experience. As you can see, Funding U fell short in certain categories, such as term lengths and interest rate, while it scored higher when it came to fees and borrower accessibility, since it's an option for those whose credit scores may be too low for other lenders.Read more about how we rate student loans FAQs What are the interest rates for Funding U student loans? Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options. The interest rates for Funding U student loans vary based on the type of loan and the borrower's credit profile, but they tend to be higher than average. Check its website for the latest rates. How do I apply for a Funding U student loan? Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options. To apply for a Funding U student loan, you can complete an application online through the Funding U website. Follow the step-by-step process and submit the necessary documents. Can I refinance my existing student loans with Funding U? Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options. No, Funding U does not currently provide student loan refinancing options. What repayment options are available with Funding U student loans? Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options. Funding U offers various repayment options, including fixed and interest-only, with terms of five or 10 years. Are there any fees associated with Funding U student loans? Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options. Funding U does not charge origination fees or prepayment penalties. Review the loan terms for any additional charges.
