Funding U Student Loan Review
This article is about Funding University Student Loans and gives you the complete review of Funding U, the states it operates in, the application process, its advantages and disadvantages and more.
Updated by Rakshitha N on 21st August 2020
Earlier, students found it hard to find private loans due to the traditional policies, loans were granted with a cosigner. With the advent of Funding U student loans in 2015, students were widely benefited over traditional loan policies. It offered loans to students without cosigners up to $10,000 with an affordable rate of interest. Find out whether the services provided by Funding U are legitimate, through our review.
What is Funding U?
Funding University offers private student loans for undergraduate students without a cosigner which is the best option for students. In order to avail the loan, the organization reviews your academic record, employment experience, and other academic and non-academic activities rather than your income or credibility. Students can opt for Funding U for getting additional funds after obtaining the federal loans. They're mainly focused on junior and senior-level students.
IT FUNDS YOU, NOT YOUR COSIGNER!
Know more about cosigner release from your student loans.
Here is a quick guide for you about Funding U -
|Loan Type||Funding University Student Loans|
|Loan Term||10 yrs|
|Fixed APR||Max 13.49%|
|Origination and Prepayment Fee||None|
|Autopay Rate Reduction||0.50%|
|Requirements||A U.S citizen or permanent resident being 18 years old attending an IV-eligible four-year college program|
Funding U reviews
Funding U doesn’t charge any organization or prepayment fees, but you must be aware of the interest charges.
If you sign up for autopay, APR may come down to 11.49%.
The College Monk ratings
|Ease to Use||4.5|
These points will make you choose funding loan over other options:
Simple loan terms - Students who qualify get the same rates and there’s no penalty to pay the loan off early
No co-signer required - The loan is approved without needing a creditworthy co-signer
No credit check - Credit history to qualify for this loan is not required
Forbearance - Borrowers can qualify for up to two years of reduced repayments
Here are some limitations about Funding U Student Loans:
More competitive loans offered you could get federal loans approved for lower rates lower with the lender.
The loan amount is provided only up to $10,000
Limited to students of certain eligible states.
Loans not offered for Graduate students.
Funding U gives loans for an academic year and not for a summer school.
What should the borrower know
Before you start, these are some information you must know while applying for the loan:
Make sure you meet Funding U’s basic eligibility criteria. Be sure of completing at least 15 credits per semester to get this loan.
Funding U interacts with you by email with an online application that takes 20 minutes to complete. You can expect the response within five business days after receiving your application.
Contact Funding U by calling (855) 537-5457, 844-722-2684.
You can also mail your queries at the official website [email protected]
You can get in touch with a customer service representative via live chat with Funding U
These are certain eligibility criteria for Funding U student loans -
Full-time undergraduate student
Enrolled in a four-year Title IV program
A resident of an eligible state
18 or older
US citizen or permanent resident
Eligible states for Funding U
You can find some states which are eligible for Funding U. It has launched its student-friendly loans to cover the ‘last gap’ college cost in 2016, which is now expanded across the nation offering loans in 30 states. The list is given below.
· New Jersey
· New Mexico
· New York
· North Carolina
· South Carolina
· West Virginia
Here are certain steps you should follow through the application process of Funding U.
Fill the application - To apply for a loan from Funding University, you will have to fill out an online application with GPA, SAT/ACT scores, and other academic records to ensure your academic progress plan. You can apply to these three months prior to the fall semester start.
The online application takes about 20 minutes to complete, including the prequalification form.
Your application will be reviewed - Your academic achievements, course, the probability to graduate on time, your job experience, and projected future income is reviewed to approve the loan.
Interact - Every student who prequalifies is assigned a loan officer to make the borrower understand the terms of the loan, interest rate, and further steps.
Get the loan - You finalize the loan offer by submitting the following -
Financial Aid Award Letter
Money is disbursed when school starts - 0.5% discounts for signing up for autopay.
Funding U requires the borrower to pay $20 each month while in school and wants the student to have good monthly payment habits with lowering their loan balance while building their credit history. They also require you to update them about your academic, employment, and career prospects.
Full repayment starts six months after graduation where Funding U interacts directly with students to help them repay both Funding U with Federal as well as private student loans. Know more about different repayment plans.
Funding University offers forbearance for up to 24 months, which costs you $30 each month. Learn more about forbearance.
Funding U has both pros and cons. The borrower should always aim at increasing his eligibility for a federal loan over choosing a private loan. A federal loan is approved without the cosigner at a lower rate of interest with a flexible repayment plan.
Federal loan approves a lower amount which rises to a need for a private student loan. Funding U Is a good option for students as they can borrow up to $10000 without a cosigner. Moreover, the student must compare multiple loan options before borrowing. We advise you to double-check on how strong your application looks to ease the process.
Funding U is only one such servicer. Check out the other federal student loan servicers.