Funding U student loans can be a good choice if your credit score is too low to qualify with another lender. Funding U also takes academic factors into account.
The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.
Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate student loans to write unbiased product reviews.
Funding U is a worthwhile option if your credit score is too low to qualify with another lender, because it takes academic factors into account when making loan approval decisions. But you can't apply with a co-signer and are likely to pay a higher rate than you would with a lender that offers that option.
Funding U doesn't have the best rates on its undergraduate student loans, with higher maximum 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 future potential career success when choosing 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 10-year repayment term.
Funding 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 total loan debt, among other factors.
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.
Loans aren't available for residents of Alabama, Alaska, Delaware, Idaho, Kentucky, Louisiana, Maine, Minnesota, Mississippi, Montana, Nevada, New Hampshire, North Dakota, Oklahoma, Rhode Island, South Dakota, Utah, Washington, or Wyoming.
If you want to contact Funding U's customer support, you must reach out to them via email.
You only have two options to repay your student loans with Funding U: fixed and interest-only payments. The better repayment plan depends on your situation.
Fixed payments will be more expensive than interest-only payments because interest will accrue during school and your grace period. You'll also get a rate discount with interest-only loans.
1. Get preapproved. Fill out the form on Funding U's website to determine if your eligible and get preapproved for a loan. This will require documents including your driver's license or other identification, school transcripts, financial aid award letter, and tuition bill.
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.
Learn more about how Funding U compares to popular student loan options.
Funding U student loan APRs range from 7.99% - 13.99% fixed (with AutoPay), compared with a range of 5.62% - 16.85% variable and 4.29% - 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 co-signers, while Funding U does not.
MPower 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.
We 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:
Each category's weighting is determined based on its importance to your borrowing experience. Rates and fees have the most significant impact on the total cost of your loan, so we weigh those the most heavily. Customer support and ethics are still crucial parts of the borrowing experience, but they do not directly tie to a student loan's terms, so they have less of an impact on the overall rating.
Read more about how we rate student loans >>
Funding U has an A- rating from the Better Business Bureau but is not accredited by the organization. The lender doesn't have a history of scandals.
Funding U does not say what minimum credit score it will consider to approve a student loan. The lender also considers factors like your academic performance and future potential career success when evaluating your student loan application.
Funding U says it has minimum GPA and graduation rate thresholds for all borrowers that vary depending on your college and class year. The lowest is 2.5.
Funding U offers student loans of as much as $20,000.
