Funding U student loans: 2025 review

New student loans with Funding U

Funding U only offers new loans for undergraduate students on a yearly basis. The lender only offers two options for student loan rates. No refinance or graduate student options are currently available. 

New private student loans

Funding U’s program is designed to provide funding options for students with clear academic focus and excellent grades. Seniors with flawless academic standing are usually eligible for the lowest student loan rates, and the loan terms are capped at 10 years. The lender only offers fixed rates. 

Funding U reports payments to the credit bureaus, giving you the opportunity to build a credit score and history. Borrowers can choose from making a $20 minimum payment or making interest-only payments while in school. If you pick the latter, you'll receive a 0.50 percent rate discount.

There's a six-month grace period once you leave school, and after it ends, you must make full principal and interest payments for the remainder of the loan term. 

Where Funding U stands out

• Focus on no-cosigner options: Funding U’s lending product caters to borrowers who lack a cosigner or want to take sole responsibility for their loans.
• Academic qualifying standards instead of credit requirements: Students who excel academically are rewarded for their focus and hard work with financing that doesn’t rely on traditional credit and income standards. 
• Transparent forbearance information: Funding U clearly lays out the options for students having difficulty making payments due to a soft job market or other unforeseen circumstances. 

Where Funding U falls short

• Higher minimum APRs: Funding U’s minimum rates are almost two percentage points higher than federal undergraduate loans – more than double the minimum rates of some private student loan lenders. 
• No deferment options: You will have to make a minimum payment on the amount you’ve borrowed while you’re in school. No full deferment option is offered.
• Not available in all states: Funding U loans aren't available in Alaska, Idaho, Kentucky, Maine, Mississippi, Montana, Nevada, New Hampshire and Wyoming.
• Only for new undergraduate loans: Lending U’s program is exclusively designed to finance undergraduate education. 

Funding U customer service

Business hours are 8:30 a.m. to 8:30 p.m., Monday through Friday. Borrowers can use the online chatbot or email the address listed on the site. Funding U also offers the option to schedule a call with a representative.

How this lender compares

Do you qualify for a loan with Funding U?

Finding out if you qualify for a Funding U loan may require extra effort since it involves documenting your grades, course load and future income potential. The good news is that you won’t need to bother a cosigner to apply since Funding U’s products are designed to help you qualify for a student loan on your own. 

That said, some known requirements incliude:

• You must be at least 18 years old
• You must be a U.S. citizen or permanent resident
• You must attend one of Funding U's partner schools

How to apply for a loan with Funding U

1. Apply online using the “Apply Now” link on the lender’s website. 
2. Once you’re preapproved, you’ll get a list of documents need to finalize your application. 
3. Funding U will review the documents and let you know if it needs additional information or documentation.
4. Once you’re approved, you’ll be scheduled for a loan advisor call. 
5. You’ll get your final offer and sign the paperwork if it meets your needs. 
6. Your loan will be funded and disbursed once school starts.

How Bankrate rates Funding U

Methodology

The Bankrate team uses a 16-point system to evaluate student loan lenders. This scoring criteria measures how lenders perform across three main categories.