When it comes to student loans, most people expect the usual hurdles: credit checks, cosigner requirements and confusing fees. But Funding U flips the script, offering loans that focus on academic performance rather than financial backing. While the lender only serves full-time undergraduate students, there’s still a lot to like.
Funding U
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Eligible borrowers
Qualifying undergraduate borrowers
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Loan amounts
Up to $20,000 per school year
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Loan terms
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Loan types
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Borrower protections
Forbearance options available
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Co-signer required?
Pros
- Considers borrowers’ earning potential
- Borrowers have hardship protections
- No co-signer required
- No fee for paying off loan early
- 0.5% interest rate discount for making interest-only payments in school
- Loan officer assigned to each borrower for hands-on help
Cons
- Only fixed-rate loans
- Not available in every U.S. state
- Non-cosigned loans tend to charge higher interest rates
What does Funding U offer student loans for?
Funding U student loans are meant to help cover your school’s estimated cost of attendance for the current academic year. That includes common college expenses like:
- Tuition and fees
- Housing and meal plans
- Books and supplies (including laptops)
- Transportation
- Everyday personal expenses
Your loan is sent straight to your school and split across the remaining terms. So if you’re approved in the fall, half the funds go toward fall tuition, and the other half goes toward spring.
However, loans can’t be used for past school years, summer classes or fully online programs. Fall-only loans are also available only for seniors graduating that semester. And if you’re hoping to use the funds for off-campus rent or moving costs, be sure to check with your financial aid office to make sure they’re included in your cost of attendance.
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Undergraduate and graduate students, parents, health professionals
$5,000 minimum (or up to state); maximum up to cost of attendance
5, 7, 10, 15, years; up to 20 years for refinancing loans
How to qualify for a Funding U student loan
To be eligible for a Funding U student loan, you must:
- Be a U.S. citizen, permanent resident or DACA recipient
- Be 18 or older
- Attend one of Funding U’s 1,450+ partner schools as a full-time undergrad
- Stay in good academic standing according to your school’s policies
- Be a resident of any of the listed states
Since Funding U loans are merit-focused, your grades and career goals play a big role in the approval process. Students further along in their career journey may have a better shot, given their more established academic history.
Enrollment status
You must be enrolled as a full-time undergraduate student.
Credit requirements
Credit scores aren’t required but your credit report is checked for red flags like missed payments. All loans are offered without a cosigner and family income or credit doesn’t factor into the decision.
Funding U Student rates, terms and fees
The exact rates and terms of your Funding U loan may vary based on your academic performance, year in school, credit history and state of residence.
Rates
For the 2025-2026 school year, Funding U offers fixed interest rates ranging from:
- 7.99% to 13.49% with autopay
- 8.99% to 13.99% without autopay
These are fixed rates, meaning your monthly payments won’t change over the life of the loan. Interest starts accruing as soon as the loan is disbursed.
It’s also important to note that the lowest advertised rate is typically reserved for upperclassmen with strong academic performance. Your actual rate will depend on factors like your GPA, credit history, school year and state of residence.
Terms
Borrowers can choose between 5-year or 10-year repayment plans.
Fees
There are no application fees, origination fees or prepayment penalties with Funding U loans.
Loan amounts
Undergraduate students may borrow one Funding U loan per academic year. Loan amounts range from $3,001 to $20,000, with minimums varying by state of residence. The amount you’re eligible for depends on merit-based factors like your GPA, school year and overall academic progress.
Repayment options
While you’re still in school, you’ll be required to make small monthly payments — either a flat $20 minimum or interest-only payments, depending on your loan structure.
Repayment in full begins six months after graduation or sooner if you leave school or switch to part-time. You’re free to make additional payments at any time without penalties, which can help lower your total loan cost.
Funding U benefits and features
Unlike many lenders, Funding U doesn’t require a cosigner and focuses on your academic progress, not just your credit score.
Some other perks include:
Fixed interest rates: Your interest rate stays the same for the life of the loan, so your monthly payments remain steady and predictable.
No fees: There are no application, origination or prepayment fees, which lets you save money and pay off your loan early without penalties.
Merit-based approval: Approval is based on your academic performance and career goals — not just credit — which makes it easier for hardworking students to qualify.
Funding U pros and cons
Funding U offers several advantages but there are some limitations to consider.
Pros
- No cosigners required
- Fixed interest rates
- No fees
- Small in-school payments
- Merit-based approval
Cons
- Interest accrues from the first disbursement
- Limited to partner schools and full-time undergraduates
- Loans may not cover summer terms, previous years or fully online programs
- Lower approval odds for freshmen or students with limited academic history
Funding U customer service
Funding U holds an A+ rating from the Better Business Bureau (BBB), reflecting its strong track record of handling and resolving customer complaints.
You can reach out via email at info@funding-university.com, use the automated chat feature or chat with a live agent on the Funding U website.
How to apply for a Funding U student loan
To apply for a Funding U loan, you’ll first complete a quick eligibility check to see if you qualify.
From there, you’ll:
- Confirm how much you want to borrow
- Upload required documents (like academic records or proof of enrollment)
- Submit your application for review
After that, keep an eye on your portal and email in case Funding U requests additional information during underwriting. If approved, you’ll receive a loan offer and can move forward by signing the loan documents. Freshmen — and some other students — will be required to meet with a loan advisor before final approval.
Once your loan is certified by your school, Funding U will schedule your disbursements and share the dates with you.
How Funding U compares to other student loans
If you’re looking for a larger loan amount or more flexible repayment terms, Ascent offers loans ranging from $2,001 up to $200,000 for undergraduates and up to $400,000 for graduate students. Repayment terms are also more varied with options of 5, 7, 10, 12, 15 or 20 years. A cosigner is only required for DACA recipients and non-U.S. citizens or permanent residents.
Ascent® Funding
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APR
3.09% to 15.61% APR with autopay discount (undergraduate new loan). Other rates and loan types are available. Visit Ascent’s website for full details.
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Loan types
Undergraduate and graduate loans, MBA, medical school, dental school, law school, doctorate and Master’s, health professional loans.
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Loan amounts
$2,001 up to $200,000 for undergraduate loans and $400,000 for graduate loans
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Loan terms
5, 7, 10, 12, 15, 20 years
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Borrower protections
Deferment and forbearance options available
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Co-signer required?
For DACA recipients and non-U.S. citizens or permanent residents
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Offer student loan refinancing?
Pros
- Considers borrowers with no credit
- High loan limit
- Co-signer release available after just 12 payments
- Up to 1% interest rate discount for autopay
- 1% cash back rewards
Cons
- Maximum fixed APR is on the high side
- Doesn’t offer student loan refinancing
MPower Financing is another non-cosigned student loan designed for both domestic and international students. It offers fixed-rate loans with 10-year repayment terms and loan amounts of up to $100,000, which can also be used for living expenses at qualifying U.S. schools. MPower also offers support for international students, including visa assistance and career development resources.
MPower Financing®
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Eligible borrowers
U.S. citizens, international students, DACA recipients, refugees and asylum-seekers who are undergraduate or graduate students
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Loan amounts
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Loan terms
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Loan types
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Fees
6.5% origination fee and fee for late or invalid payments
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Borrower protections
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Co-signer required?
Pros
- Don’t have to be U.S. citizen or U.S. permanent resident to qualify
- International students establish credit in the U.S.
- Considers borrowers’ future earnings
- High loan amount
- No co-signer required
- Visa support and career development
- Automatically prequalify for Zolve Credit Card and bank account
Cons
- Only 10-year loan terms
- 5% origination fee
- No hardship protections
- Non-cosigned loans tend to charge higher interest rates
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every student loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of student loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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