The Best Student Loan Providers

Tuesday, October 8th

2024 Student Loan Provider Reviews

Earnest

• Very low interest rates
• Rate match guarantee with a $100 gift card if you find a lower rate
• Loans for undergraduate and graduate programs
• Options for loans with or without a cosigner
• No application fees or origination fees
• Loan repayment terms from 10-25 years
• Interest rate discounts with automatic payments
• Deferment and forbearance options available
• 4.7-star average rating
• "A+" rated by the BBB

With over 10 years in the business, Earnest has become an extremely popular and award-winning private student loan company. Earnest has assisted over 125,000 individuals in obtaining funds for education or personal purposes, working to improve accessibility and affordability in higher education through lower-than-average interest rates and a dedicated customer service team dubbed "Client Happiness." Offering a process with zero fees, Earnest stands out from the pack in a variety of impressive ways.

Tons of details in prequalification

Prospective borrowers must meet specific criteria to qualify for Earnest student loans. College freshmen, sophomores, and juniors must be enrolled full-time at a Title-IV-qualified, not-for-profit four-year institution, with the requirement reducing to at least half-time for seniors. Borrowers must borrow a minimum of $1,000. During our prequalification process, we noted that if you're a freshman student who doesn't already have a job lined up, you will be required to proceed with a cosigner. If you don't want a cosigner, you'll have to have an eligible job waiting for you after college (or a current position) to show that you will be able to make payments.

How much can you borrow?

With a basic job earning around $40,000 per year, we were qualified for an estimated $71,255 in loans. There's only one drawback to the qualification process: Earnest's application stage requires a hard credit inquiry, a disadvantage compared to rivals that offer pre-qualification with soft credit pulls. But, you can see estimated numbers, loans, APRs, and more before you reach the credit score pull.

Two types of loans

There are two main types of loans offered by Earnest: Cosigned and Independent. A Cosigned Loan could very well secure you lower rates compared to an Independent Loan, with either variable APRs or fixed APRs. The amounts and options apply to both undergraduate and graduate degrees.

Pay options open to all private loans

When your private loans from Earnest transition to repayment, they will automatically enroll in a Standard Repayment Plan, which sets a fixed Monthly Payment Amount comprising both principal and interest for the repayment term. Alternatively, you can choose from a few other repayment plans to lower your immediate costs. The Interest-Only Repayment Program reduces your Monthly Payment Amount to match the accruing interest, possibly extending up to 30 years. You can also enroll in the Rate Reduction Program for reduced interest rates for six months, You may also explore options like deferment or full forbearance to manage repayment. The typical repayment period from Earnest ranges from 10-25 years with the opportunity for forgiveness after that 25-year mark.

Plenty of perks and a rate match guarantee

When considering undergrad and graduate repayment options, choosing Earnest comes with its advantages. It offers the best rates with a 100% Rate Match Guarantee so that you get the most competitive rate available, plus a $100 Amazon gift card once your rate match is confirmed. Earnest also provides a 50% longer grace period, extending it to 9 months instead of the standard 6, for graduating students who need extra time before starting payments. You can also save on your interest with a 0.25% AutoPay discount, reducing the risk of inadvertently missing a payment and accruing more charges.

Impressive reputation

Customer feedback, with nearly 4,000 clients awarding a perfect five-star rating, reflects satisfaction with Earnest's low-interest rates and smooth customer experiences. The company shows an average rating of 4.7 stars out of 5 across various finance blogs and review sites. Earnest also holds an "A" rating and accreditation from the BBB, indicating overall positive sentiment. In general, borrowers love the affordability, the stellar customer service, and the rate-matching program, and leave high praise for the company overall.

Lowest APRs in the industry

Earnest is one of the top competitors in the student loan industry, with commendations for client satisfaction and potential cost savings. The company also has impressive transparency before you get to the credit check portion (at which time you'll have everything you need to decide if you want to proceed). With impressive perks and rave reviews across the board, Earnest scores a 5-star rating and the first-place spot on our list.

Ascent

• Very low interest rates
• Loans for undergraduate and graduate programs
• Options for loans with or without a cosigner
• No application fees, origination fees, or prepayment penalties
• Loan repayment terms of 5, 7, 10, 12, 15 and 17 years
• Interest rate discounts with automatic payments
• Deferment and forbearance options available
• Cosigner release available after 12 months of on-time payments
• 1% cash back graduation reward for eligible borrowers
• 4.5-star average rating
• "B+" rated by the BBB

Ascent, despite being relatively new to the student loan scene with its inception in 2018, has swiftly risen towards the top of our rankings. Ascent has been praised by sites like Forbes and Money as a preferred choice for Private Student Loans, commending its competitive interest rates, manageable fees, different loan terms, options for financial hardship, eligibility criteria, and streamlined application procedures. In general, Ascent's mission statement is to expand student horizons through funding.

Earning requirements provided but credit requirements are hidden

Determining eligibility specifics on the Ascent website can be challenging, but after some exploration, here's what we discovered. Ascent doesn't offer any details on a minimum credit score. The only details we could find are that you or your co-signer must earn at least $24,000 per year and have two years of a proven credit history. If you want more details about the impacts of credit scores, you'll have to start an application which will require all personal details including your degree, your school, your email and phone, and your social security number (for students who are US Citizens). If you want to apply as an international student, your guardian will need to cosign and that guardian must also be a US citizen.

Loans for all situations

In comparison to other student loan providers, Ascent stands out with its extensive array of choices. It offers loans for undergraduate and graduate students. For undergrads, you can choose between:

• Cosigned (credit-based): With a creditworthy cosigner, students can secure loans at either variable or fixed rates. These loans support both undergraduate and graduate programs and are accessible to US citizens, DACA recipients, and international students.
• Parent (credit-based): If you're a parent who wants to handle the finances for your student, you can select a parent loan.
• Non-cosigned (credit-based): This option is for those who prefer loans without cosigners and possess a 2-year credit history. Eligibility is confined to US citizens, permanent residents, and DACA students.
• Non-cosigned (outcomes-based): Exclusively offered to undergraduate juniors and seniors, this loan carries higher interest rates. However, it extends funding opportunities to individuals with a minimum GPA of 2.9 and no cosigner, income, or credit history.

On top of undergrad loans, you can also find a range of options for graduate students at Ascent. These are dependent on the type of graduate program you're going into. The specific types include MBA, Medical, Dental, Law, General Graduate, and a plan for parents too.

Repay within 5-15 years with deferment options

Ascent offers flexible repayment with options like deferment, interest-only repayment, and a minimum payment of $25. The loan terms are flexible, ranging from 5 to 15 years for undergrad and 7-15 years for graduate students with no penalty for early repayment. If you choose a graduate student loan, you'll get the added benefit of postponing full payments until 9 months after graduation or leaving the program, with an extended maximum in-school period of 36 months.

Earn money back when you graduate

There are some solid benefits to working with Ascent. You can earn up to $525 for every friend you refer, and upon graduation, receive 1% of your original principal balance back in cash. By signing up for Autopay, you can enjoy a discount and never worry about missing a payment. With Autopay, eligible borrowers get a 0.25% discount on their credit-based student loan and a 1.00% discount on their non-cosigned outcomes-based student loan when payments are made automatically from their checking account. Another perk is that Ascent will allow you to release your cosigner after making 12 consecutive on-time payments.

Strong reputation for open eligibility

As noted previously, Ascent is highly popular with financial experts and bloggers. With an impressive 4.5-star rating from Forbes, as well as a 4.5-star average across different review sites, Ascent is a favorite for student loans. The only slightly lower rating is a "B+” grade from the Better Business Bureau, though the company is still accredited and has fewer than 10 total complaints in the last 3 years. In general, borrowers praise the low cost of Ascent, the customer service, and how easy it is to be eligible for the loans, making it a great option both for students with proven credit history and those who are just getting started.

Top option serves students across the board

Ascent garners widespread acclaim from experts and borrowers alike for its student loan offerings. Whether for undergraduate studies, dental school, law school, MBA programs, or beyond, Ascent consistently emerges as a top-rated option. With its stellar performance across the board, Ascent earns one of our highest recommendations among all student loan providers.

SoFi^®

• Very low interest rates
• Loans for undergraduate and graduate programs
• Options for loans with or without a cosigner
• No application fees, origination fees, or prepayment penalties
• Loan repayment terms of 5, 7, 10, 12, and 15 years
• Interest rate discounts with automatic payments
• Deferment options available
• Cosigner release available after 24 months of on-time payments
• 4.5-star average rating
• "A+" rated by the BBB

SoFi originated in 2011 as a lending model funded by alumni of Stanford Business School, pioneering student loan refinancing in 2012. The company expanded to offer its student loans in 2019. With over two million members and more than $50 billion in funded loans across various financial products, including personal loans and mortgages, SoFi has established itself as a prominent lending institution. SoFi's student loans serve residents of all 50 states and Washington DC, covering a wide range of educational pursuits from undergraduate to graduate degrees and professional programs.

Half-time students and four-year universities included

Unlike some lenders, SoFi requires only half-time enrollment for students to be eligible, making it accessible to a broader demographic. However, students pursuing associate's degrees are ineligible for loans through SoFi. You need to be in a full four-year or graduate program to qualify. On the bright side, checking loan rates with SoFi does not affect one's credit score. On the other hand, creating an account is necessary to view rates, requiring basic personal information and details about enrollment status and educational institution. Students can borrow up to 100% of their school-certified attendance costs, with a minimum loan amount of $5,000 for all types of student loans.

6 types of loans

SoFi offers 6 different types of student loans. Here's what you can expect as you browse SoFi's selection:

• Undergraduate Loans
• Parent Loans
• Graduate Loans
• MBA Loans
• Law School Loans
• Health Profession Loans

For undergraduate loans, SoFi offers both fixed rate and variable rate loans. After making 24 consecutive on-time payments, students have the opportunity to apply to remove cosigners from their loans as well, making it easy to start with a lower rate and change how you repay later.

Customizable repayment

SoFi stands out for its fee-free approach, eliminating application, origination, or insufficient funds fees. It offers student loan terms spanning from 5 to 15 years, with four repayment options: immediate full repayment, interest-only payments during school, fixed $25 monthly payments during school, or deferred payments until six months after graduation. This range of choices enables borrowers to customize their repayment plans according to their specific requirements.

Multi-level financial support

SoFi's student loans come with several enticing perks, including a 0.25% autopay discount and further rate reductions for members with other SoFi products. SoFi also partners with companies like Grammarly, Coursera, and Evernote to provide borrowers with complimentary access to valuable services, reflecting SoFi's commitment to supporting student success. On the site, there is also a section where you can apply for grants and scholarships, so you can gain financial aid without the need to repay the money later.

Borrowers are impressed with repayment

SoFi maintains a respectable "A+" rating with the Better Business Bureau, and feedback is generally extremely positive. Most review sites rate SoFi between 4.5 and 5 stars with one financial blog giving a full 5-star rating to SoFi. But, many of these reviews were for SoFi as a whole, and only a few reviews focused specifically on the student loan side of the SoFi offerings. One site which focused only on student loans rated SoFi 4.7 stars out of 5. Borrowers love the fee-free experience with flexible repayment options that are highly competitive in the industry.

Competitive third-place pick

SoFi offers a range of loan types and repayment terms, accommodating student needs and enrollment statuses. It offers competitive interest rates and impressive borrower feedback. For this reason, it comes out as one of the top providers of student loans on the market today, earning a solid rating in our review. It is only outperformed by our higher-ranking options due to lower interest rates and extra benefits like rewards for graduating found in our top two choices for student loans.

LendKey

• .25% interest rate reduction with autopay
• Loans for undergraduate and graduate programs
• Options for loans with or without a cosigner
• No application fees
• Loan repayment term of 10 years
• Forbearance options up to 18 months available
• "A+” rated by the BBB

LendKey helps borrowers who prefer working with community banks or credit unions over large financial institutions. The platform is best for those with a steady income rather than a student with a very low or no current income, but if you fall into the second category, LendKey does offer cosigning. At the time of this review, LendKey loans were not available in several states, including Maine, Nevada, North Dakota, Rhode Island, and West Virginia. However, LendKey does stand out for offering up to 100% of tuition covered by their loans if you're accepted.

Make more than $24,000 to apply

At LendKey, if your annual income falls below $24,000 and you lack a credit history, you'll need a cosigner with good credit to apply for student loans. There are no specific credit score requirements; instead, the focus is on meeting this financial criterion to qualify for loans from this provider. However, borrowers cannot defer payments if they return to school or serve in the military, which may be a drawback for some. In terms of finances, the minimum loan amount is $2,000, and the maximum loan amount is the cost of attendance minus any aid you've already received, provided you're enrolled at least half-time in a degree-granting program from an eligible school for an undergrad or graduate program.

Loan terms from 5-15 years

LendKey offers three main services: Pay for College, Refinance Student Loans, and Make Home Improvements. However, we were unable to get details directly from the prequalification process as LendKey, like a few other institutions that provide student loans, is closed for applications until after the 1st of June of the current calendar year. From the rest of the website, our research showed that there is one primary option for student loans with one repayment term of 10 years. Frustratingly, details about interest rates are unavailable unless you can complete the application, which raises some questions about transparency.

Start repaying right away

When using LendKey private student loans, you'll be required to make either a $25 monthly Proactive Payment or pay the full interest monthly while you're still attending school. Unlike many other providers, there isn't an option to postpone payments while you're still studying. However, there are no penalties for prepayment, and these payments will be applied according to your loan agreement. You can also enjoy a 0.25% interest rate reduction by enrolling in automated payments from your checking or savings account each month.

Impressive forbearance terms

LendKey stands out for its extended forbearance period of 18 months, which surpasses the offerings of many other lenders. You do need to call to get forbearance set up if that's something you want to take advantage of, but the terms are very flexible at LendKey. Prospective borrowers also have the opportunity to check their eligibility and estimated rates without undergoing a hard credit inquiry, which can be advantageous for those concerned about the impact on their credit score.

Solid reputation for customer service

Despite some transparency issues, LendKey stands out as a favorite with borrowers. The company currently holds an "A+” rating from the Better Business Bureau and an average rating of 4.5 stars across multiple review sites and financial blogs. Customers are happy with how easy the application process was and the helpfulness of the LendKey customer service team. Borrowers loved the .25% off for autopay and other perks as well.

Solid option for 100% coverage

While we would love to see more transparency even outside of the window of application, it's clear that LendKey is a positive experience for many student loan borrowers. With impressive forbearance options and lower interest rates if you commit to autopay, you can find what you need to cover 100% of your school costs. For these reasons, LendKey earns a respectable rating in our review with the possibility of moving up in the future if the company focuses more on transparency year-round.

LendingTree

• Very low interest rates
• Compare different providers side by side
• Loans for undergraduate and graduate programs
• Options for loans with or without a cosigner
• Options for other personal loans outside of student borrowers
• "A+” rated by the BBB

For over 25 years, LendingTree has operated as an online marketplace that provides various loans, including credit cards and personal loans, with over 100 million customers and more than $50 billion in funds. Concerning student loans, LendingTree aids in identifying potential lenders based on which school you attend. However, there is one major difference. LendingTree is more like a broker than an actual lender when it comes to student loans. After putting in your school, you'll be shown a list of providers for student loans, and each of these requires a different prequalification process on its own site rather than being processed directly through LendingTree.

LendingTree facilitates lending for other companies

In terms of finding lenders, there is some variance in options depending on where you go to school. For example, a prominent Florida university may yield eight lender matches, whereas a smaller technical university might not offer any loans. If the school qualifies, LendingTree provides a list of potential lender matches. For instance, a Florida university yielded providers like Sallie Mae, College Ave, Earnest, and more. However, LendingTree does not offer borrower feedback or expert reviews of these lenders, providing only basic highlights like fee information and interest rate discounts.

Loans depend on provider

The types of loans offered are dependent on which lender you ultimately choose. For example, the lowest visible rates were for College Ave, while the highest rates were from Education Loan Finance. However, to get full details, you'll have to visit the site for each provider and sift through the options yourself, making LendingTree's process more time-consuming than some student loan providers.

Minimal details for repayment until you leave LendingTree

The details of the repayment processes will also depend on the particular lender. LendingTree does offer some basic details like "Multiple repayment options from in-school payments to deferred” or " No origination fee or prepayment penalty” listed on the loans, but to get details about the number of years, interest-only options, or forbearance terms, you'll have to jump over to the website for your chosen provider.

Listings show basic perks

The individual perks of the loan providers are unique, and LendingTree does offer some details on those to give you a "big picture” concept of which lender you might want to dig into more deeply. For example, the top suggested lender offered the ability to borrow up to 100% of school expenses for on-campus or online students. On a different provider, LendingTree noted that it offers multi-year approval for coverage throughout the course of the college degree. However, the full details require visiting individual lending sites, and LendingTree only offers the basics.

LendingTree is paid by the lenders

If LendingTree doesn't loan you the money, how do they get paid? According to the website, the company is paid by the loan providers to list them during student loan searches. As such, LendingTree does disclose that the order of the suggested lenders may be related to how much LendingTree gets paid by that lender rather than how helpful that loan would be for you as an individual. So make sure you check the numbers before you just click the top link.

Solid reviews for a general loan company

LendingTree has an "A+" rating and accreditation from the Better Business Bureau, with over 8,200 customers rating it five stars across all products. However, it's hard to find reviews for the company's student loans, which makes sense since LendingTree just brokers for others. While LendingTree's website offers valuable resources such as payment calculators and informative blog articles on student loans, LendingTree isn't an actual loan provider, so it doesn't have any reviews for that area of lending.

A good point to start research

LendingTree is a good jumping-off point to compare student loan providers side by side. On the bright side, the service is free for you, but you'll still have to do much of the research yourself when you get to the page for your chosen provider. To make itself more competitive, LendingTree could expand its offerings by providing lender ratings and analyses, along with a streamlined prequalification process for preferred lending partners. But for now, LendingTree primarily stands out as a research tool, with loan applications ultimately processed directly through lenders themselves.

College Ave

• Very low interest rates
• Loans for undergraduate and graduate programs
• Options for loans with or without a cosigner
• Loan repayment terms of 5, 7, 10, 12, and 15 years
• Deferment and forbearance options available
• 4-star average rating
• "A+" rated by the BBB

Launched in 2014, College Ave was designed by former students, many of them being parents now, who promise to understand the stress associated with preparing for, paying for, and attending college. However, during our review, we encountered challenges with the disparity between College Ave's promises and its actual offerings. For instance, one of its stated goals is clarity and transparency. Nonetheless, we found it difficult to prequalify, hindering our ability to access transparent information regarding qualification and enrollment criteria, whether income- or credit score-based.

Couldn't get prequalified with good or excellent credit

We began our journey with College Ave by using their pre-qualification tool. The required information includes loan type, amount, and personal details like name, address, and date of birth. However, no matter what we selected we could not get prequalified. Surprisingly, even with a credit score above 750+ and a stellar credit history, we did not qualify for a loan independently. The suggestion to apply with a cosigner with good credit also yielded no prequalification. Despite repeated attempts with cosigners who have excellent credit profiles, we encountered rejection. Unlike other lenders who easily prequalified us, College Ave's process left us with uncertainties about whether we would be accepted if we started the full application process.

3 undergrad and 5 graduate loan programs

Despite the prequalification challenges, College Ave offers a wide variety of loan types. These include both undergraduate and graduate programs, with flexible terms ranging from 5 to 15 years, and either fixed-rate or variable-rate terms. Their loan types include:

• Undergraduate
• Parent
• Career
• Dental
• MBA
• Health Professionals
• Law
• Medical

Repayment within 5-15 years

For both undergraduate and graduate repayment plans, you can start repaying your full principal and interest right away during your schooling period, for maximum savings over time. Alternatively, you have the choice to pay only the interest charges monthly while in school or make flat $25 payments each month to reduce accrued interest. If you prefer not to make any payments during your school term, College Ave offers a deferred payment option. Repayment terms are flexible, spanning from 5 to 15 years.

Lacks transparency on flexibility

There aren't a lot of details regarding things like forbearance. While you do have in-school deferment, any extra flexibility is determined via a phone call with one of College Ave's representatives at the time. So, you'll need to already have a loan with this provider if you want the details.

Minimal perks

There also aren't a lot of perks beyond the lower-than-average interest rates. While undergraduate students benefit from the option of half-time enrollment, and you can get a College Ave credit card, there aren't as many bonuses for signing or repayment as with other providers.

Concerns about actually scoring those low rates

College Ave currently holds an "A+" rating and accreditation from the Better Business Bureau. While College Ave garners praise for its swift and hassle-free process, with funds disbursed promptly, some borrowers express dissatisfaction with higher-than-expected interest rates or difficulty being accepted. Despite competitive advertised rates, the fine print suggests higher typical rates for freshman borrowers, raising doubts about the attainability of lower rates. According to review sites, College Ave holds just 3.5 stars out of 5 from Forbes with an industry average of about 4 stars across multiple review sites.

Mid-tier with some transparency problems

College Ave maintains a solid reputation, evidenced by a positive BBB rating and minimal complaints. However, the frustrating application process raises concerns. While the lender may suit some borrowers, the prequalification challenges may create problems even for borrowers with impressive credit scores. For this reason and our concerns about transparency, College Ave earns a mid-tier rating.

Sallie Mae

• Low interest rates
• Loans for undergraduate and graduate programs
• Options for loans with or without a cosigner
• Interest rate discounts with automatic payments
• Deferment and forbearance options available
• Cosigner release available after 12 months of on-time payments
• "A+" rated by the BBB

Sallie Mae is a dedicated provider of student loans, originally established as a governmental institution managing federal education loans before transitioning into a private entity specializing in private loans. With over $19 billion in current student loans, Sallie Mae offers borrowers the opportunity to secure funds covering up to 100% of their school-certified expenses, which can include various educational costs such as tuition, books, housing, meals, travel, and even technology.

Questions about qualification

Sallie Mae is known for its high approval rate for returning students. According to the lender, an impressive 96% of undergraduate applicants successfully obtain funding for subsequent academic years if they have borrowed from Sallie Mae before. However, Sallie Mae is also known for having a below 50% acceptance rating even with a cosigner, meaning less than half of all applicants actually get loans from Sallie Mae. So, if you're new to Sallie Mae, you may find it difficult to secure a loan or earn approval. To apply, you have to go through a single credit check (the threshold for acceptance isn't listed on the website), and the funds are sent directly to your school for each term. If necessary, you can cancel future disbursements without any penalty.

One main loan for undergrads

For undergraduate students, Sallie Mae offers loans for general undergraduate programs and nursing school. For graduate students, the company provides loans for different programs such as bar studies, health professions, dental residency, and relocation. There are also loan opportunities for graduate school, dental school, MBA programs, law school, and medical school, as well as medical residency and relocation. The main undergraduate student loan plan offered is the Smart Option Student Loan for undergraduate students. This loan allows you to select between fixed or variable interest rates.

You don't have to start paying until you graduate

Sallie Mae extends a 0.25% discount for borrowers who sign up for automated repayments. In terms of repayment flexibility, Sallie Mae offers repayment options during and after school. During the schooling period, borrowers can choose between deferred repayments, fixed payments, or interest-only payments. Following graduation, borrowers gain access to a Graduated Repayment Period and various financial hardship plans, providing a degree of financial flexibility during the transition to post-graduation life.

Options for waiving and releasing cosigners

For borrowers seeking loans with cosigners, Sallie Mae offers the benefit of cosigner release after 12 consecutive, on-time payments, making it easier for borrowers to achieve financial independence. This process is notably quicker compared to other lenders, which often require a total of 24 payments before granting cosigner release. However, borrowers must meet specific criteria for approval, including a credit review of their own financial history, proof of income, and evidence of graduation. In addition to its borrower-centric approach, Sallie Mae exhibits compassion in cases of borrower disability or death. In such unfortunate circumstances, Sallie Mae demonstrates leniency by waiving the loan balance (minus any tuition refunded by the school), providing some relief to affected borrowers and their families during challenging times.

Poor reputation for customer service

Despite its merits, Sallie Mae receives substantial negative feedback regarding its customer service. Despite holding an "A+” rating from the Better Business Bureau, Sallie Mae has an average rating of 2.4 stars out of 5 across multiple review sites. Complaints often highlight issues with loan servicing, credit reporting errors, and unprofessional conduct. There are tons of recent reviews claiming that the credit check from Sallie Mae ruined borrower's credit scores and others complain that the interest charges are unfair and don't match the prequalification numbers.

Poor customer service knocks Sallie Mae below-average

Due to frequent complaints about Sallie Mae's customer service, we're wary to rate it highly compared to other more helpful student loan companies. There are plenty of other loan providers that specifically are praised for customer service and that offer better interest rates overall.

ZuntaFi

• Loans for undergraduate and graduate programs
• Options for loans with or without a cosigner
• Interest rate discounts with automatic payments
• Deferment options available
• Cosigner release available after 24 months of on-time payments
• "A+" rated by the BBB

ZuntaFi is a financial services company headquartered in the Midwest, specializing in private student loans for undergraduate, graduate, and medical school programs, along with loan refinancing and consumer loans. However, it's essential to recognize that ZuntaFi functions as an originator and servicer rather than a direct lender for student loans.

Restricted geographic availability

One disadvantage of ZuntaFi's services is its narrow geographic coverage. At the time of evaluation, the company's loan origination was restricted to just 12 states, with a limited number of eligible schools within those states. This restricted coverage presents a significant hurdle for prospective borrowers outside of the serviced areas, limiting their access to ZuntaFi's loan products.

Severely limited opportunities to qualify

During application, ZuntaFi matches borrowers with a suitable lender for loan origination, after which ZuntaFi manages the servicing of the loan once it's funded. There aren't many listed details about how you go about qualifying, and the baseline for many students (which is the limited 12-state service area) will keep many students from even attempting qualification.

High APRs and limited schools

Even for students attending schools covered by ZuntaFi, the loan options may not be extensive. For instance, borrowers may find a limited range of loan products available, often with rates slightly higher than those offered by competitors. For example, during our research, Georgia only had service for one university. Other states like Virginia had more offerings, but many schools only qualified for one or two loan types with fairly high starting APRs. For example, the loans for Virginia State University included two 20-year term loans with APR's that were higher than other programs we reviewed.

6-months post-grad before you have to repay

The details for things like repayment are a little scarce as it depends on which loan company ZuntaFi connects you with. The most we could find on the ZuntaFi website was a statement saying that most companies don't make you repay your loans while you're in school, but it "depends” on who you end up with in the end. From outside research, we discovered that ZuntaFi loans offer deferment while enrolled in an eligible school, and you get a six-month grace period before you need to begin repayment.

Competitive perks for borrowing here

In terms of loan benefits, ZuntaFi offers several features that are comparable to those provided by other lenders in the industry. Notably, borrowers benefit from no loan origination or prepayment fees, and they can get a 0.25% rate discount by enrolling in automated repayment plans. Borrowers who apply with a cosigner have the opportunity to have the cosigner released after 24 consecutive months of on-time payments, subject to meeting certain loan requirements.

Mixed reputation, but not many reviews

Feedback regarding ZuntaFi's services is relatively sparse, reflecting the company's limited service area. While ZuntaFi maintains a respectable "A+" rating and accreditation from the Better Business Bureau, there have been some complaints regarding payment processing errors, late fees, and challenges in reaching customer service representatives. On the other hand, on Trustpilot, ZuntaFi has an impressive 4.4-star rating on average with praise for easy navigation and quick responses regarding loan acceptance.

Too limited and too expensive

Given ZuntaFi's restricted coverage and limited loan options, most students may find it more advantageous to explore alternative student loan providers offering broader coverage and loan products. While ZuntaFi offers some competitive features, its much higher APRs compared to other sites in our review set it behind the pack.

Funding U

• $200 gift card for referrals
• Loans for undergraduate programs
• Options for loans with or without a cosigner
• No application fees or origination fees
• Loan repayment term of 10 years
• Interest rate discounts with automatic payments
• Forbearance options available
• "A” rated by the BBB

Funding University, also known as Funding U, specializes in providing student loans to high-achieving college students, particularly those who lack the typical cosigners or income required by most lenders. While their mission is commendable, Funding U has a number of restrictions that make them less attractive as a student loan lender.

Restrictions abound

Firstly, they do not operate in all states; only 39 out of 50 states are eligible. If you're in Alaska, Idaho, Kentucky, Maine, Mississippi, Montana, Nevada, New Hampshire, North Dakota, Rhode Island, South Dakota, or Wyoming, you won't be eligible for a loan here. Because of the restrictive nature of the school year lending window, it may be hard to find concrete information at Funding U. Unlike many of its competitors who offer loans year-round (or at least allow you to apply any time), Funding U only allows applications or even prequalification during certain periods of the school year. To apply, you need to do so between June and the end of the enrollment period. If you miss the window, you'll have to wait a few months before you're allowed to apply for the following school year.

Your academic record is the primary qualifier

When it comes to qualifications, your credit score isn't the sole factor considered when applying for a loan at Funding U. Recognizing that many undergraduates haven't built a robust credit history, the company evaluates applicants primarily based on academic accomplishments and career aspirations. Typically, upperclassmen stand a better chance due to their transcripts and better picture of their academic standing, whereas freshmen and sophomores may face more challenges due to their limited academic track record. While credit scores aren't utilized as a primary decision maker, credit history is reviewed, and documented credit issues like missed payments or collections may affect loan pre-approval.

One loan available

Funding U offers a single type of student loan: a 10-year fixed-rate loan, with discounted rates for automatic repayments. The lowest rate displayed on Funding U's website is reserved for exceptional seniors and does not represent the typical rates for most borrowers. Your actual rate will be determined by factors like creditworthiness, school year, location, and GPA. Allowed student loan amounts range from $3,000 - $20,000.

Choose between fixed or interest-only payments until you graduate

There are only two repayment options with Funding U: $20 monthly fixed payments or interest-only payments while in school and for up to 51 months afterward. Regular repayments commence six months after graduation, marking the beginning of the 10-year loan term. However, borrowers have the flexibility to make payments before the required repayment schedule without any penalties.

Up to 24 months of forbearance

While you're in school, forbearance options are limited, and usually not available during payments. If you've chosen the Interest Only repayment, you might switch to the Fixed Payment ($20) plan if desired. After graduation, you can get forbearance for up to 24 months. There appears to be no in-school deferment offered by Funding U.

No help for online students or international students

There aren't a lot of perks at Funding U. The only one we could find was that you can earn a $200 Amazon gift card if you refer a friend to Funding U. However, the lack of benefits are obvious with this company. Currently, Funding U doesn't provide loans to students attending online-only universities or offer assistance to international students. This makes Funding U much more limited than many student loan options on the market.

Borrowers aren't impressed with numbers or provisions

Finding borrower reviews for Funding U is challenging. Despite operating for at least six years, the company is primarily reviewed by business and finance bloggers. The news here isn't great. In general, Funding U has an average rating of 3.3 stars out of 5 across multiple review sites. While the company does have an "A” rating from the Better Business Bureau, borrowers don't seem particularly impressed. Complaints include a low maximum loan amount, high interest rates, no graduate student loans, and loans missing for students in many states. There's a longer list of things Funding U doesn't provide than the ones that it does. Yikes!

Doesn't serve enough students

Funding U comes across as pretty bare bones. Their offerings best serve undergraduate students who may struggle to secure affordable student loans elsewhere, but even then "affordable” is a relative term and the APRs at Funding U aren't particularly low. On top of that, Funding U needs expansion to include more states and a broader range of students beyond bachelor's degree seekers. There are tons of sites with better prices and more support for different types of students to explore instead.