Funding University Student Loans Review

This article describes about Funding University Student Loans and gives you the complete overview of Funding U, the states it operates in, the application process, its advantages and disadvantages.

Updated by Rakshitha N on 17th July 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  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 legit through our review.

Table of contents

WHAT IS FUNDING U?

Funding University offers private student loans for undergraduate students without a cosigner which is the best option for students as it 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 to additional funds after obtaining the federal loans. They're mainly focusing on junior and senior level students. 

IT FUNDS YOU, NOT YOUR COSIGNER!

 Know more about cosigner release from your student loans.


ALL ABOUT FUNDING U!

Here is a quick guide for you about Funding U,

LOAN TYPE

FUNDING UNIVERSITY STUDENT LOANS

LOAN PROVIDED

$3001- $10000

LOAN TERM

10 yrs

FIXED APR

MAX 13.49%

ORIGINATION AND PREPAYMENT FEES

NONE

AUTOPAY RATE REDUCTION

0.50%

REQUIREMENT

A U.S citizen or permanent resident  being 18years old attending a IV-eligible four year college program


DO YOU MEET THESE ELIGIBILITY CRITERIA? 

These are certain eligibility criteria for Funding U 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. Funding U launched its student-friendly loans to cover ‘last gap’ college cost in 2016,  which is now expanded across the nation offering loans in 30 states

·         Arizona

·         Arkansas

·         California

·         Colorado

·         Connecticut

·         Florida

·         Georgia

·         Hawaii

·         Kansas

·         Maryland

·         Massachusetts

·         Michigan

·         Missouri

·         Nebraska

·         New Jersey

·         New Mexico

·         New York

·         North Carolina

·         Oregon

·         Pennsylvania

·         South Carolina

·         Tennessee

·         Vermont

·         Virginia

·         West Virginia

·         Wisconsin.


HOW DOES THE APPLICATION PROCESS WORK?  

Here are certain steps you should follow through the application process:

APPLY: 

To apply for a loan from Funding University, you will have to fill out an online application with GPA, SAT/ACT score and other academic records to ensure your academic progress plan. You can apply to this three months prior to the fall semester start.

REVIEW: 

Your academic achievements, course, 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 about the terms of loan,interest rate and the further steps.

GET THE LOAN: 

You finalise the loan offer by submitting,

  • Academic Transcript

  • Financial Aid Award Letter

  • Resume

 Money is disbursed when school starts- 0.5% discounts for signing up for autopay.

The online application takes about 20 minutes to complete, including the prequalification form. 


LET’S SEE HOW THE REPAYMENT WORKS!

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.


HOW MUCH DOES A FUNDING U COST YOU?

Funding U doesn’t charge any organization or prepayment fees, but you must be aware about the interest charges.

If you sign up to autopay, APR may come down to 11.49%.


WHY YOU SHOULD CHOOSE FUNDING U?

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. 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.


DRAWBACKS YOU SHOULD KNOW!

Here are some limitations about Funding U Student Loans:

  • More competitive loans offered you could get federal loans approved for a lower rates lower with the lender.

  • Loan amount provided only upto $10,000

  • Limited to students of certain eligible states.

  • Loans not offered for Graduate students .

  • Funding U gives loan for an academic year and not for a summer school.


WHAT THE BORROWER MUST KNOW!

Before you start, these are some information you must know while applying 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 which takes 20 minutes to complete . You can expect the response within five business days after receiving your application.

How The College Monk Rates Funding U

Overall Rating 4.1
Loan Options 3.7
Customer Experience 4.2
Affordability 4
Ease to Use 4.5
Perks 4.2

CONTACT INFORMATION: 

  • Contact Funding U by calling (855) 537-5457, 844-722-2684 .

  • You can also mail your queries at the official website INFO@FUNDING-UNIVERSITY.COM

  • You can get in touch with a customer service representative via live chat with Funding U


CONCLUSION

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 of private student loan. Funding U Is a good option for students as they can borrow upto $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.