Sixup student loans are a great gap-loan option for academic achievers. A gap student loan is a loan meant to cover the difference between your tuition and expenses and other financial aid, including federal student loans.
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Sixup prides itself on helping first-generation and immigrant students pay for college.
The company was founded by individuals who encountered such scenarios — they were accepted to top-tier colleges but did not have financial resources from their families that could help. To fund the difference between what financial aid offered and what tuition and expenses were owed, they had to come up with their own gap funding. Now, as graduates of prestigious institutions, they set up Sixup to help students like themselves with such funding needs.
Founded in 2015, the company is based in San Francisco. Not only does Sixup aim to offer gap funding for students in need, but the company also offers assistance to students in the form of tutoring, help with resume writing and internships, and other coaching for students from disadvantaged backgrounds with great potential.
Sixup’s nonprofit partner, the Sixup Foundation, is geared toward building educational tools designed to help high-achieving, low-income students along the pathway toward college.
Sixup has excellent intentions, for sure — who wouldn’t be interested in a student loan from a company whose mission is to help those most deserving? However, to get a better idea of whether a Sixup student loan is right for you, it’s important to look at reviews and ratings.
The Better Business Bureau (BBB), a private nonprofit founded in 1912, is considered one of the best sources for judging how good a particular business is in terms of its operations, customer complaints, and so on. Not only does the BBB compile data about a business, including complaints, but it also investigates these complaints and determines if they are justified and what methods the business has taken to address them.
Sixup comes just shy of the BBB’s top rating of A+. The BBB offers ratings from A+ to F, just like your college grades, which indicate a business’s quality. Sixup’s rating of an A is certainly nothing to scoff at. In fact, the only reason given as to why the rating isn’t higher is that it hasn’t been in business very long compared to other similar companies.
If you’re an academically motivated student in need of a gap loan to cover the costs at a top-tier school, Sixup might be ideal for you. This is also a great loan for students who are unable to obtain other student loans without a co-signer.
Sixup recognizes that low-income and first-generation students may lack credit histories and may not have the family resources to help them gain access to other student loans.
While Sixup can be the difference between being able to achieve a dream and having to give up on college for those with extreme need, no loan scheme is perfect, and it’s worth considering some potential drawbacks before deciding if a Sixup student loan is right for you.
Minimum loan amount: $2,500 ($3,000 for Georgia residents and $5,000 for California residents)
Loan term options: 10-year only (up to 54 months of deferment plus six months of grace period)
Multi-year approval available: Not disclosed
Fixed and variable rates available: Yes
Fixed low APR: 6.890%
Fixed high APR: 9.890%
Variable low APR: 6.650%
Variable high APR: 9.933%
In-school payment options: Two repayment options are available:
Grace period: 6 months
Co-signer release available: No co-signer required
Loan servicer: Launch Servicing
Interest rate discounts: Better grades can lead to better interest rates on new loans.
Other rewards or services: Financial, academic, personal, and career services are offered for free to borrowers.
Income requirements: None
Credit score requirements: No credit history is required; however, if you have a credit score, it should be above 600.
Eligibility for international borrowers: Must be a U.S. citizen or permanent resident
Additional requirements include:
Application or origination fees: None
Soft pull rate check availability: Not disclosed, but credit history is not required for a loan.
There are two main types of student loans: federal student loans and private student loans. Loans from Sixup are considered private student loans. For students in most situations, it is best to exhaust your federal student loan options first before seeking a private student loan. However, the purpose of Sixup student loans is to fund the difference between what you can get for federal financial aid — including student loans — and what your tuition and expenses are.
The benefits of federal student loans over private student loans are many and include:
Again, where private student loans come into play is usually when the maximum amount of federal financial aid available fails to cover all associated costs. Private student loans are rarely a good first choice due to their higher rates and stricter repayment options, but they can be an excellent resource for those in need of gap funding.
As you apply to college, you always want to consider as many options for paying before taking out any student loans. Our guide to financial aid can help you determine what you might qualify for and what to expect.
When determining if Sixup is right for you, there are several factors to consider. First, it’s always best to exhaust all other financial aid — including scholarships, grants, and federal student loans — before taking out private student loans. But if you have a funding gap, you need to look at other options.
CollegeFinance.com can help students assess all of their loan options with reviews. We also offer advice about scholarships, planning, and refinancing for those who are already repaying their student loans. Our goal is to help you make informed choices about financing your education. Check out our articles and guides for more information.