It’s become hip for startup companies to cite “disruption” as their aim. Uber wanted to shake up the taxi business. Airbnb wanted to change the hotel industry. And now Funding U intends to do the same with student loans.
The company’s founders say traditional banks and lenders ask too much of students. Who has a long credit history or a deep bank account when they’re studying? Funding U created an algorithm that looks at different data points when students need loans. The result is a quick, efficient approval process for students who might get skipped over by the big guys.
Funding U is a relatively new company, which means we have few student reviews to lean on for information. But if you’re hoping for a small loan you can get without pestering your parents, Funding U might be a good option.
In a perfect world, every student who needed money could get it. In reality, it’s hard for some people to obtain loans. Most students need a co-signer with good credit. Without that, banks can’t determine risk, and they won’t offer any benefits. Funding U’s technology eliminates the need for a co-signer.
Two main factors play a part:
Officials also dig into other attributes, including:
It might seem unfair that things you can’t control (like your school’s graduation rate) can keep you from the money you need. But the founders say this is the best way to help investors feel comfortable handing out loans, even without co-signers.
It’s not always easy to find the student loan that’s right for you. Options abound, and every company provides checklists of compelling data that entice you to choose them instead of all the others. There are definite benefits associated with Funding U loans, and those could be enough to force your decision. But there are drawbacks to be aware of.
Funding U pros include:
Funding U cons include:
Reviews provided by the company are glowing. Students say they appreciate the quick customer service and the loan transparency, and they’re happy with the whole process.
But since the company is so new, we can’t find reviews from third-party websites we trust. It’s hard to know how people really feel about this startup. It’s possible that a clear picture will only emerge years from now.
When Funding U was created, the founders had a very specific student in mind. If you’re similar, this could be the solution you’ve been looking for. If not, this could be a loan you should skip.
Funding U supporters say the company is exclusively focused on students who:
Let’s focus on that last aspect for a moment.
These loans are meant for students dealing with a speed bump on the road to graduation caused by:
You may have loans that help you tackle almost everything, including your tuition, your books, and your fees. But something unexpected happened, and it could derail you from getting a degree. You’d need to drop out to earn enough to re-enroll.
Does this sound familiar?
A loan from Funding U could be the helping hand you need to deal with this small expense. It might even help to augment other loans you already have. With it, you can move on toward graduation without feeling encumbered.
If you’re looking for a loan that covers the entire cost of your schooling, however, this company might not be right for you.
If you need to borrow a great deal of money and you don’t have a co-signer to help you, consider loans from the U.S. Department of Education. These loans never require a credit check or a co-signer, and they come with perks private loans can’t touch.
For example, you could enroll in programs that tie your payment amount to your salary. That could ensure you don’t spend so much on a loan payment that you have nothing left to feed your family. Loans from Funding U don’t work like this. Neither do most other private loans.
Federal loans also come with employment-based perks. If you work in a favored industry in a needy part of the country, your entire loan balance could be forgiven after you’ve held your job for a specific time period. Private loans don’t offer this option.
It’s best to consider federal options first before diving into the private loan market. If you’ve already done that and there’s a small gap between what you have and what you need, Funding U could be the solution to make your dream of graduation a reality.