U-fi Student Loans Review

U-fi is a private student loan provider which accepts those borrowers with credit scores as low a 640. Learn more about the student loans provided by U-fi to know whether they are right for you. Explore the repayment options available, refinancing options available and much more.

Updated by Kirtika Acharya on 18th December 2019

U-Fi is a registered trademark of Nelnet for all the products and services offered by Nelnet. In this article, we will discuss what a borrower can expect from U-fi student loans.

U-fi is a good option for borrowers who need to apply with a co-signer and need good flexibility on payments in the future. U-Fi is an organization that offers private student loans and student loan refinancing options to graduate & undergraduate students. U-fi offers private student and refinancing student loans in 49 states. The lender specializes in offering flexible repayment options. 

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U-fi Student Loan Reviews

The student loans are offered with the intention to ease the borrowers from the burden of debt. The refinancing options offered by U-fi  is also done in a simple way. With more options like a release from co-signer, good grade discounts and cash backs make it more friendly from the point of borrowers. 

U-fi accepts applicants with credit scores as low as 640 if they apply with a co-signer who has a score of at least 680. It also offers longer-than-average forbearance periods, allowing borrowers to postpone payments for up to 24 months throughout their loan term.

U-fi has a partnership between veteran student loan servicer Nelnet and Union Bank and trust company.


Pros and Cons of U-Fi Student Loans

Since Ufi provides multiple facilities for the users, you can carefully weigh your options and decide if it is good for you. With the pros and cons listed below a borrower can get an overall idea of what is in store when you choose U-fi as your lender - 

Pros

These are the pros a borrower can expect with a student loan from U-Fi  - 

  • To pay back the loan, up to 25 years of time is being offered to them

  • For automatic payments, the lenders provide a discounted rate to the borrowers

  • It depends upon the borrower to pay out the full loan or only interest while in school or they may go for deferred payment options.

  • You can see if you’ll qualify and what rate you’ll get without a hard credit check.

Cons

There are some points in which other options are better than U-Fi, they are as follows-

  • U-Fi does not offer Parents loans

  • U-Fi does not disclose their minimum credit score requirement 

  • Below-average customer support compared with other lenders

  • Loans aren’t available in Vermont

  • No options to temporary pause payments through forbearance

U-fi at a glance

  • Generous forbearance policy

  • Co-signer release option

  • No option to get personalized rate estimates without affecting credit

Drawbacks of U-fi 

U-fi has room for improvement, here are some key areas they could focus on to help the borrowers associated with them - 

  • Parent loans are not available

  • The lender does not provide the minimum credit score publicly.


Requirements for U-fi student loans

In order to avail the U-fi services following are the conditions:

  • Minimum credit score 680

  • Minimum income $36,000

  • Typical credit score of approved borrowers or co-signer - Not disclose

  • Typical income of approved borrowers - Not disclose

  • Maximum debt-to-income ratio is 45%

  • Can qualify if you’ve filed for bankruptcy - Yes, after 7 years

  •  Must be a U.S. citizen or permanent resident, or apply with a co-signer who is a U.S. citizen or permanent resident

  • Must have graduated - No

  • Must have attended a school authorized to receive federal aid - No

  • Percentage of borrowers who have a cosigner - Not disclosed

Features of U-fi Student Loans

U-Fi student loans work on a few parameters to attract the borrowers and their simple & accessible way of working makes the borrower satisfied with their services.

Following are the features offered by U-Fi-

  • Offering different repayment options is one of the major traits which makes them stand out

  • No origination fee

  • Shorter cosigner release

U-fi Student Loan Options

U-Fi offers the following loan options - 

  • Undergraduate loans

  • Graduate loans

  • Refinancing of student loans

These loans aim to provide students in getting stability with their career and even in work life. U-Fi loans have simple application procedure, only the basic information of the borrower is required- name, address, government-issued ID proof, date of birth, social security number, employer’s name, contact details and annual income (gross).


Worried about your college tuition? Learn more about student loans


Loan terms, fees & discount

The loan rates for both graduate or undergraduate students are fixed with a predefined set range. For undergraduates, the loan lies from $1,000 to $125,000 and graduate loans lie from $1,000 to $225,000 depending on the type of degree.

When they talk about refinancing, it ranges from $5,000 and goes up to $225,000 again depending on the type of degree

The term for repayment plans is like 5, 10, 15, 20 and 25 years which are offered by the lenders. Also, they don’t charge any origination fees and prepayment penalties. A  0.25% discount is offered when the borrower opts for Autopay.

Forbearance and Discharge

 If the borrower is dead and the lender confirms the information then the entire loan is discharged. In the case of a cosigner, if the same situation occurs then the borrower will solely be liable for the debt against the loan.

Releasing a loan is also offered by U-Fi only after making 24 consecutive on-time payments and other requirements of the lender.


Interests rates, fees, and other terms

A borrower can expect the following terms with U-fi - 

  • Soft credit check to qualify and see what rate you’ll get: No

  • Loan terms: 5, 10, 15 or 20 years & 25-year terms available for variable-rate loans

  • Loan amounts: $5,000 – $225,000

  • Can transfer a parent loan to the child: No

  • Application or origination fee: No

  • Prepayment penalty: No

  • Late fees: Yes; a fee equal to 5% of the late payment or $10, whichever is less, applies after a payment is 15 days late


Student Loan Repayment Options with U-fi

Student loan repayment is one of the most important phases for a borrower, if this phase is handled properly one can expect to increase their credit score and improve their credibility as a borrower.

During the repayment of your student loans, a borrower can expect the following

  • Academic deferment - Yes, borrowers can postpone payments if they return to school

  • Military deferment - Yes, borrowers can postpone payments while serving in the military

  • Forbearance : Yes, borrowers experiencing an economic hardship can postpone payments for up to 24 months throughout the life of the loan

  • Natural disaster forbearance - Borrowers can postpone payments if they’re involved in a natural disaster

  • Co-signer release available -Yes

  • Death or disability discharge available -Yes

If the borrowers are looking for refinancing with U-Fi, they can directly apply on the website. But it is always said to have a complete check with various other options available.

U-Fi Repayment Terms

 In order to start making payments while still  in-school, U-Fi offers three kinds of repayment options-

  • Full payment (interest and principal) while in school 

  • Interest can be paid in school and in 6 months grace period after graduation or falling below half time status

  • Up to 78 months deferred repayments can be made while in school at least half time plus a six months grace period


U-fi Refinancing Review

At a glance, these are the basic terms of refinancing with U-fi.

Interest Rates
Fixed - 3.49% to 5.32%, Variable - 2.43% to 6.1%, autopay discount of 0.25%
Term of loan
5,10,15 or 20 years
Amount of loan
$5,000 to $225,000
Cosigner release Yes

When refinancing it is common to get a co-signer on board to strengthen your application to help qualify for a lower interest rate. Once you do get a co-signer on board it is important to have a release option so that during the repayment journey the co-signers credit score is not affected based on the payments to be made.For those looking to refinance with U-fi you have the liberty of availing the cosigner release option.


U-fi Customer Service

One of the most overlooked features during the selection of a lender is customer service. It is this feature that helps a borrower maintain a peace of mind, Here is what a  borrower can expect with U-fi -

  • Availability of in-house customer service team 

  • Complaints are handled by U-fi’s customer service team

  • Borrowers get assigned a dedicated banker, advisor or representative - No

  • Average time from approval to payoff is 48 hours after initiation date the funds get disbursed for payoffs

Though it is not rated by the Better Business Bureau, it has a  rating of A+ by its parent company as a sign of its remarkable work. Also there are no complaints registered under the Consumer Financial Protection Bureau in 2018 which is a positive sign towards it.

Contact Details

You can get in touch with U-Fi using the following ways mentioned below - 

Phone - 844-307-3451

Email - support@U-fi.com

Address

121 S 13th St. Lincoln

NE - 68508

Website - https://www.ufi.org/

Looking for ways to help cover your tuition can feel overwhelming at times because of the abundance of options out there. It is crucial to be well aware of all the options available to you before making a decision.