No-Cosigner Private Loans For Undergraduates

When students apply to take out private student loans, they’ll typically be required to pass a credit check. Since most college students have a limited credit history, that usually means they can’t qualify for a student loan on their own.

Some student loan companies market no-cosigner student loans to graduate students in certain professions. But Funding University is one of the few lenders who lends to undergraduate students who don’t have a co-signer.

Private loans have fewer benefits and protections than the more common federal student loans. Most students who qualify for federal student loans should only turn to private loans after they’ve hit their annual or aggregate loan limits.

But if you’re not eligible for federal student loans or you need to bridge a funding gap, Funding U could help you take out a student loan to pay for school without a cosigner. Learn who would benefit from their student loans and who should look at other funding options.

  • No-cosigner private student loans for undergraduates
  • Loans come with fixed-rates and no origination fees
  • Proprietary SMaRT™ scoring system relies on non-credit loan eligibility factors

Funding U Student Loans Details

Who Is Funding U?

Funding University, or Funding U, specializes in private student loans for undergraduate students. Their loans never require a co-signer. 

Instead, the company lends based on your likelihood of graduation from college. The borrowing requirements are based on your GPA, and year in school. Upperclassmen can expect better rates and are more likely to qualify for a private loan from Funding U.

What Are The Academic Requirements?

Funding U uses a proprietary scoring system, called SMaRT™, to determine a student’s loan eligibility. SMaRT™ relies on a variety of non-credit variables to evaluate student borrowers during the loan approval process.

One of those variables is a student’s GPA. The actual GPA requirements vary by academic year. Underclassmen need higher cumulative GPAs to take out a loan compared with upperclassmen. 

In addition to GPA requirements, Funding U has school graduation rate requirements. A certain percentage of students that enroll in your school must graduate within 6 years in order for it to be an eligible academic institution. Below you’ll see the educational requirements by year. 

Institution 6-Year Graduation Rate

What Are The Employment Requirements?

You don’t need a job or any source of income to take out a loan from Funding U. However, you will need to immediately begin making payments of at least $20 per month on the loan while you’re still in school. Ideally, you’ll want to have part time work or another source of income to cover these payments.

What Are Funding U’s Student Loan Terms?

Students can borrow $3,000-$10,000 per year with Funding U. Regardless of how much you borrow, you will not pay any origination fees. They also have no prepayment penalties.

Rates on Funding U loans range from 7.49%-13.49% when you are set up on autopay. All loans have a loan term of 10 years and normal repayment begins 6 months after you graduate (or otherwise leave your school). During school, you must make minimum payments of $20 per month.

You can also choose to make interest-only payments on the loan. Since interest will accrue during school, making interest only payments could help to keep your loan balance down and avoid interest capitalization after you graduate. 

What Are The Alternatives To Funding U Student Loans?

Funding U is one of very few companies that lends student loans to underclassmen without a co-signer. However, there are other options. First, students should look into Federal Student Aid. You can apply for Federal Student Aid by filling out the FAFSA on

If you cannot get enough funding through Federal Student Aid, you’ll want to compare loan offers from private lenders. Since most lenders require a cosigner or a source of income, finding a loan alternative to Funding U may be difficult. However, a private loan marketplace like Credible could help you find a loan.

Final Thoughts

Undergraduate students should be careful about taking out private loans. These loans don’t have the same protections as federal loans, and they often carry high interest rates. In some cases, private loans can be avoided by working during the school year or summer or by living very frugally.

Of course, you may face extenuating circumstances where taking on private student loans is the best way to get your degree. For example, not everyone qualifies for federal loans (such as DACA students or permanent residents. And if you do need a private loan as an undergrad, Funding U is a strong option for those who would can’t or don’t want to add a co-signer.

Funding U Features

  • Fixed payments of $20
  • Interest-only payments

4-year, accredited, non for-profit colleges in the United States (Will currently lend to students at 1000+ schools)

Customer Service Phone Number

Monday-Thursday, 9 am – 8 pm​

Friday, 9 am- 5 pm

P.O. BOX 411285

San Francisco, CA 94141-1285

Address For Sending Payments

Scratch Services, LLC
PO Box 398654
San Francisco, CA 94139-8654


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