Funding U launches undergraduate student loans for 2024-2025 school year

Funding U has launched its undergraduate student loans for the 2024-2025 school year, offering fixed interest rates between 7.99% and 13.99%. Unlike many lenders, it does not require a cosigner, making it accessible for students with lower credit scores. However, Funding U has a lower maximum loan amount of $20,000 per year and limited repayment terms of five or ten years. It is not available in 19 states, which restricts its reach compared to other lenders that offer more flexible options. The lender does not charge any fees, such as origination or late fees, and reports in-school payments to credit bureaus. This could help borrowers build their credit over time, but students are encouraged to explore federal loan options first for better terms and protections.