MEETING THE NEEDS OF AN UNDERSERVED MARKET
Funding U is able to provide its school partners with a solution that supports and meets the needs of the estimated 5 million families or students that the traditional alternative loan lender marketplace is unable to serve—students who do not have access to a creditworthy cosigner or who may have a desire to simply borrow on their own signature.
NO CO-SIGNER, NOT FICO FOCUSED
Unlike traditional gap financing lenders who require a stellar credit history or a creditworthy cosigner, Funding U’s model evaluates its student applicants based on their proven academic merits and predicted outcomes, not their family’s financial condition.
ONE-ON-ONE CUSTOMER SERVICE
Every student who is preapproved is assigned a designated loan officer . The student and their Funding U loan advocate schedule a date and time to review their application one-on-one to discuss their individual situation, ensure that all loan terms are clear, answer any questions the student may have, etc. Following loan disbursement, Funding U loan officers remain in communication with their assigned student borrowers through- out the year.
FUNDING FOR SUBSEQUENT YEARS
While each Loan is singularly underwritten and approved, Funding U uses forward looking algorithms that provide insight into the likelihood of graduation and of obtaining employment income sources to retire the entire projected student loan debt.
This improves the likelihood that subsequent loan requests by our borrowers will be approved.
TYPE OF STUDENTMust be:
An Undergraduate student.
Funding U is currently lending in the following states. A student must be a resident in one of these states to be eligible for a Funding U loan. Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Maryland, Massachusetts, Michigan, Missouri, Nebraska, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Vermont, Virginia, West Virginia, and Wisconsin
GPA & GRADUATION RATE THRESHOLDS
Funding U has minimum GPA and graduation rate thresholds for borrowers and institutions depending on the student's class year. The chart below reflects the minimum GPA and school graduation rate eligibility requirements..
2.5 Minimum GPA
2.75 Minimum GPA
3.0 Minimum GPA
3.5 Minimum (High School) GPA
Funding U is Commonline compliant and committed to supporting your preferred certification and disbursement methods.
Funding U is available for listing on ELMSelect and the FastChoice lender comparison tools.
Do you have questions about Funding U or its No Cosigner Student Loan? Would you like to determine if your institution is eligible to participate? Alan Ishida, our school partner representative, is available to assist. Please contact him at the email below.
Funding U’s model is meant to measure students on the things they are in control of at the ages they are seeking student lending (academic success, likelihood of graduating on time, projected student debt, projected future income) rather than those they are not (their parents’ credit ratings, their current debt to income ratio, their FICO).
Our underwriting algorithm utilizes historical information about federal loans and attributes of borrowers and their likelihood of repaying those loans. Considerations include academic success, a student’s likelihood of graduating on time, projected student debt, projected earnings, institution retention and graduation rates, and other key indicator criteria.
Lender ID - 858585
Guarantor ID - U93
Product ID - U94
Minimum Loan Amount - $3,001
Maximum Annual Loan Amount - $10,000
Aggregate Limit of Loans - $50,000
Fixed Rate – 7.99% - 13.49% APR*
10-year repayment term
No loan origination fee
No Late Payment Fees
No prepayment penalties
$20 minimum monthly payments while in school
6-month grace period following graduation or attendance dropping below half-time
24-months of post-graduate forbearance is available (requires a $30.00 per month payment)
Returned Payment Fee: $25.00
Program not currently available to cover past due balances owed the institution
Disbursement Policy: Funds are disbursed equally across all terms
*Rates displayed above include a 0.5% discount when a borrower in repayment elects automated ACH payments via their personal checking account. Terms and conditions vary by state. Not all loans are available in all states.