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Funding University private student loans review

No-cosigner loans for high-achieving undergrads.’s rating: 3.4 / 5.0


  • Best for undergraduate students who don't have a cosigner or credit history.
  • Pick something else if you need to borrow more than $10,000.

7.99% to 13.99%



Max. Loan Amount

Not required

Min. Credit Score


Product NameFundingU student loans
Minimum Loan Amount$3,001
Max. Loan Amount$10,000
APR7.99% to 13.99%
Interest Rate TypeFixed
Maximum Loan Term10 years
RequirementsStrong academics, full-time undergraduate student enrolled in a 4-year Title IV school, resident of eligible state, ages 18+, US citizen or permanent resident.

Review by

Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 1,000 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.

Expert review

Funding U is ideal for undergraduate students who need additional funding after federal aid and don’t have a cosigner. Instead of looking at your credit score, this lender considers other factors like your grades and projected earnings for your major to determine if you’re eligible.

But you can only borrow up to $10,000, and it offers the same 10-year term to all borrowers. If you can qualify for federal loans or have a cosigner, you might be able to find lower rates and more flexible repayments elsewhere. This also isn’t an option for international or graduate students.

Not sold on Funding U? Take a look at our list of other student loan providers that might be a better fit.

First, am I eligible?

To qualify, you need to meet the following criteria:

General requirements

  • Full-time undergraduate student
  • Enrolled in a four-year Title IV program
  • Resident of an eligible state
  • 18 or older
  • US citizen or permanent resident

Academic requirements

  • Grades — especially those in courses for your major
  • Strong likelihood you’ll graduate on time
  • Projected total student debt
  • Projected earnings for your major

If you’re a new student, Funding U looks at historical data from your school, including the graduation rate and percentage of graduates who find a job.

What states are Funding U student loans available in?

  • Alaska
  • Colorado
  • Connecticut
  • Florida
  • Georgia
  • Hawaii
  • Kansas
  • Massachusetts
  • Nebraska
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • Oregon
  • South Carolina
  • Vermont
  • Virginia
  • West Virginia
  • Wisconsin

How do Funding U student loans work?

Funding U offers academic-based student loans from to to undergraduate students with no cosigner. This means your loan amount and eligibility are based on your current academic performance, as well as your potential earnings.

The online application takes about 20 minutes to complete, including the prequalification form. All qualified students get the same rates and term, plus there’s no penalty to pay the loan off early.

Does Funding U offer parent loans?

No, Funding U only offers loans to undergraduate students, not their parents.

How much do Funding U student loans cost?

Funding U student loans don’t come with any fees, so the main cost to consider is interest. All students who qualify for a loan get the same fixed APR.

Does Funding U offer discounts?

Yes, you can knock your APR down to 11.49% if you sign up for autopay.

What are my repayment options?

Funding U only offers one repayment option to all borrowers: a 10-year term with fixed repayments.

Repayments begin six months after you graduate or drop below half time. While there’s no prepayment penalty, you’re required to make a minimum monthly payment of $30.

Does Funding U offer deferment or forbearance?

While there’s no deferment option, borrowers can apply for up to 24 months of forbearance. However, you’re still required to make a minimum monthly payment of $30 during this period.

Top reasons to consider Funding U

From its generous forbearance option to the fact that there’s no credit requirement, here are a few perks of taking out a Funding U student loan:

  • Simple rates and terms. Everyone who qualifies gets the same rates and terms, which may be more competitive than other options if you don’t have a cosigner.
  • No cosigner required. You can qualify for this loan on your own without needing a creditworthy cosigner.
  • No credit check. You don’t need to have a credit history to qualify for this loan.
  • Forbearance. Borrowers can qualify for up to two years of reduced repayments.

Drawbacks to borrowing from Funding U

Low borrowing limits and limited availability are just two drawbacks to consider before taking out a Funding U student loan:

  • More competitive deals elsewhere. If you can qualify for federal loans or have a cosigner, you could qualify for lower rates with another provider.
  • Low maximum amount. You can only borrow up to $10,000 with this lender.
  • No international students. This option is only available to US citizens and permanent residents. Check out our page on student loans for international students for other options to consider.
  • Limited availability. Funding U is only available to residents of 19 states.
  • Undergraduates only. Graduate students and parents looking to take out a loan for their children need to look elsewhere.

Compare other private student loan providers

Name Product APR Min. Credit Score Loan amount Loan Term
Stride Funding Income Share Agreement
As low as 2%
Up to $25,000
2 to 10 years
A student loan alternative for graduate students based on your future salary.
EDvestinU Private Student Loans
4.092% to 8.609% with autopay
$1,000 - $200,000
7 to 20 years
Straightforward student loans for undergraduate and graduate students.
CommonBond Private Student Loans
3.74% to 10.74%
$5,000 - $500,000
5 to 15 years
Finance your college education through this lender with a strong social mission and terms that fit your budget.
Edvisors Private Student Loan Marketplace
Varies by lender
Varies by lender
Varies by lender
Varies by lender
Quickly compare private lenders for your school and apply for the right student loan.
Credible Labs Inc. (Student Loan Platform)
Starting at 0.99% with autopay
Good to excellent credit
Starting at $1,000
5 to 20 years
Get prequalified rates from private lenders offering student loans with no origination or prepayment fees.

Compare up to 4 providers

Funding U reviews and complaints

BBB accredited No
BBB rating A+
BBB customer reviews
Customer reviews verified as of 16 October 2020
Almost nothing — Funding University doesn’t have much of a web presence. It has no reviews on its BBB page and doesn’t show up on Trustpilot or popular online forums.

What to expect when signing up

Before you get started, make sure you meet Funding U’s basic eligibility requirements. If you’re not a strong student or aren’t completing at least 15 credits a semester, you might have difficulty getting a loan.

Once you’re ready, you can start the application online by following these steps:

  1. Go to the Funding U website.
  2. Click Get Started.
  3. Enter your email address and select the semester you want to fund.
  4. Enter information about yourself, your school, your work experience and debts.
  5. Read the disclosures and check the box agreeing to the terms and conditions of the application.
  6. Click Check Eligibility and Pre-Qualify.

If you prequalify, Funding U directs you to an online application and sends you an email with a link if you’d like to complete it later. Typically, it takes about 15 minutes to complete. Funding U should respond within five business days after receiving your application.

What information do I need to apply?

Have the following info and documents on hand to speed up the application process:

  • Basic information about your school and program
  • Graduation date
  • Credits needed to graduate
  • Total current debts
  • Years of work experience
  • Academic honors
  • Number of credits completed last semester
  • Hours failed or dropped last semester
  • Current GPA
  • SAT or ACT score
  • School-certified cost of attendance
  • Amounts and types of other financial aid
  • Monthly in-school income
  • Driver’s license
  • Social Security number
  • Resume
  • Transcript

    Who services Funding U student loans?

    Funding U uses Scratch Loan Servicing to handle repayments. You can get in touch with a customer service representative via live chat on its website or by calling 844-727-2684.

    More about Funding U

    This small Atlanta-based company opened its doors in 2015. It aims to fill the gap between federal aid and the cost of attendance for high-achieving students — especially those who don’t have parents, relatives or anyone else to cosign a private student loan.

    You can find out how Funding U stacks up to the competition by reading our guide to student loans.

    Frequently asked questions

    Student loan ratings

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    We rate student loan providers on a scale of 1 to 5 stars based on factors like transparency, costs and customer experience. We don’t take into account elements like eligibility criteria, state availability or payment frequency — we save that for our reviews.

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