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Student Loans

Funding University Review

Updated May 24, 2023   |   6 mins read

Key points:

  • Funding University offers private student loans to undergraduate students without a cosigner.
  • Borrowers get their own dedicated loan officer.

Funding University
at Funding University’s secure website
Editorial Rating

Editorial Rating

What we like:

Personal customer service

Fixed APR7.99%14.49% APR
w/ AutoPay
Variable APRN/A
Loan Terms10 years
Loan Amounts$3,001 – $20,000
See how Funding University’s private student loan product stacks up

Funding University is a private student loan company focused on offering student loans without a cosigner to career-driven undergrads.

Unlike most private student loan lenders, Funding U doesn’t allow for cosigners, and because of that, it has unique eligibility criteria. Funding U is a good option for students without cosigners who wouldn’t qualify for a traditional private student loan on their own.

This Funding University review will tell you everything you need to know to decide if Funding U is right for you.

In this review:

What loans does Funding U offer?

Funding University
Loan amount$3,001$10,000
Max. term length10 years
Fixed APRs7.99%13.49%
Autopay rate reduction0.50%
Origination & prepayment feesNone
ApplyCheck Rates

Funding U offers only one loan—a private student loan for undergraduate students. The biggest selling point of Funding University’s student loan is that it doesn’t require a cosigner like many other lenders.

Since most undergraduate students do not have a credit history or the income required to qualify for traditional private student loans on their own, this is a unique and attractive benefit.

Not only does this help students but it also could benefit parents too. By cosigning on their children’s student loans, parents often put their own credit scores and financial well-being at risk.

With Funding U, parents are off the hook if their child defaults on a loan, and their debt-to-income ratios stay intact while the student repays the loan.

How does loan repayment work?

Funding U requires $20 monthly payments while students are in school. It wants students to establish good monthly payment habits, keep their loan balance down, and build up their credit history.

Full repayment starts six months after graduation (November for most students). Funding U works with students after graduation to help them transition into repayment on their Funding U and other federal and private student loans.

One difference with Funding University loans is that it requires borrowers to provide an update each semester on their academic, employment, and career prospects.

Pros & cons of a Funding U Student Loan


  • No cosigner required: Funding U looks for ways to qualify student borrowers without a parent or guardian cosigner, such as their GPA or how much progress they’ve made toward graduating. This is a major benefit to students who don’t have anyone to cosign on their loan.
  • Financial hardship options: If you’re having trouble making payments on your loans, whether you’re in school or have already graduated, forbearance options may help. If you are in school, you can make no payments for up to 51 months. Note that interest will accumulate in these situations and increase the total cost of your loan.
  • High autopay reduction: Most lenders only reduce your interest rate by 0.25% if you enable automatic payments, but Funding U’s rate reduction is 0.50%.


  • State availability: Funding U isn’t available in all 50 states (more on this below). However, it is available for the majority of the U.S. population.
  • GPA requirements: One of the ways Funding U determines eligibility is by how likely the borrower is to graduate and have a strong career. Requirements vary by school year, but students with a GPA of less than 2.5 are often ineligible.
  • Graduation rate requirements: Even if your GPA is high enough, you may not be eligible if your school’s graduation rates don’t meet the requirements outlined below.
  • Not the best option for those with cosigners: If you have a cosigner, we recommend checking out our best private student loans guide to see our top picks or check out our review of our top-rated lender College Ave.

Funding U eligibility & application requirements

Rather than just credit score or income, Funding University determines your eligibility and how much you can borrow by looking at whether you are on track toward your professional and academic goals.

This may include:

  • Class hours completed
  • Graduation date
  • Academic record
  • Major
  • Employment
  • Internship experience,
  • Other academic or extracurricular activities that show you’re making progress

Funding U also has minimum GPA and graduation rate thresholds determined by various factors. Generally, the lender won’t approve students with a GPA lower than 2.5.

You must be a U.S. citizen or permanent resident at least 18 years old attending a Title IV-eligible four-year college. For-profit schools are not eligible.

Eligible states:

  • Alabama
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Louisiana
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Missouri
  • Nebraska
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • South Carolina
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin

Terms and conditions vary by state.

How does the application process work?

To apply for a loan from Funding University, you must fill out preliminary information online, such as your GPA, SAT or ACT score, monthly income, and major to see whether you prequalify.

This is different from most student loan applications which often require you to submit a significant amount of financial information, including your credit score.

Prequalified students move on next to the loan application, which takes five to 10 minutes. You need two items to complete your loan application:

  1. Academic transcript
  2. Financial aid award letter

Most preapproved students will have a 10-minute phone consultation with one of Funding University’s loan advisers before loan closing.

Because Funding U focuses on ensuring its terms are transparent and borrowers understand their loans, your representative will talk you through the prospected loan terms and interest rate and explain the next steps.

Where to find Funding U alternatives

A student loan without a cosigner can offer several benefits, but with a traditional private student loan cosigned by your parents, you’ll likely qualify for a lower interest rate. This will make repayment more manageable and save you money long term.

It’s wise to compare quotes from several lenders before choosing one. This ensures you find the best rates and repayment terms for your situation.

To find other lenders, including those that accept cosigners, check out our list of the best private student loans. If you don’t have a cosigner, check out our student loans without cosigners page or our bad credit student loans page. Also, view our list of student loan companies in the industry.

Ready to apply for a Funding U Student Loan?

  • Fixed rates: 7.49% – 12.99%
  • Loan amounts: $3,000 – $20,000
  • Repayment term: 10 years