Best Private Student Loans October 2022 – Forbes Advisor

Although Funding U’s rates are higher than those of other private lenders, the company is unique in that it does not make loans based on credit history or require students to borrowers use a co-signer. Borrowers are eligible for a loan based on their educational and work history, current courses, graduation prospects, and likely future income.

Additionally, although Funding U’s loan limits are relatively low, private loans should be used sparingly, so ideally borrowers won’t need them to fund larger funding gaps.

Additional details

Term of the loan: 10 years

Loan amounts available: $3,000 to $10,000 per year ($50,000 per student)

Eligibility: Students must meet GPA requirements and attend colleges that meet certain six-year graduation rate thresholds, depending on the student’s academic year. To be eligible, freshmen must have a minimum GPA of 3.5 in high school, sophomores must have a minimum GPA of 3.0 in college, juniors must have a minimum GPA of 2.75 and seniors must have a minimum GPA of 2.5.

Note that only borrowers from these states can apply: Arizona, Arkansas, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Maryland, Massachusetts, Michigan, Missouri, Nebraska, New Jersey, New Mexico, New York , North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Vermont, Virginia, West Virginia and Wisconsin.

Opt-out options: Up to 24 months of abstention allowed in 90-day increments. Borrowers must pay $30 per month during forbearance, which is less generous than no-payment forbearance offered by other lenders. But this policy helps borrowers to avoid big interest.

Release policy for co-signers: No co-signer required