U-fi is a new player in the student loans market that was was launched in 2015. It was formed by a partnership between Nelnet and the Union Bank and Trust Company. Nelnet is a large student loan servicer with headquarters in Lincoln, Nebraska, that was founded in 1978, has offices around the United States and Canada, and employs over 2,250 associates. U-fi provides new student loans and refinances existing student loans.
U-fi provides three main products: refinance loans, undergraduate loans and graduate loans. Each product has its own rates and terms. Loan refinances help students consolidate their student loans and reduce the cost of interest payments. Undergraduate loans are aimed at helping new students pay their education-related expenses. Graduate loans are aimed at people who need money to pay for a professional or graduate degree.
U-fi loans do not charge application, origination, disbursement or prepayment fees. Term are flexible and borrowers who enroll in automatic debit payments receive a 0.25% interest rate reduction. Borrowers who receive good grades: that is a GPA of 3.0 or higher, get cash back rewards of up to 1.5% of the loan amount. Borrowers who make 12 on-time monthly payments also receive cash back rewards of 1.5% of the current balance. Cash back rewards have a yearly maximum of $500 per borrower. After 24 consecutive on-time payments borrowers can request the release of their cosigners.
Interest rates vary depending on a variety of factors, such as the type of loan, whether it's a variable or fixed interest rate and the borrower's credit profile. This is the interest rate breakdown by loan type
- Refinance loans have variable interest rates starting at 2.60% APR and fixed rates starting at 3.74% APR.
- Undergraduate loans has variable interest rates ranging from 2.99% to 10.99% APR and fixed interest rates ranging from 5.25% to 11.49% APR.
- Graduate loans have variable interest rates ranging from 2.99% to 7.41% APR and fixed interest rates of 3.74% to 11.99% APR.
All these rates include the 0.25% discount for enrolling in automatic debit payments.
Loan limits also vary depending on the type of loan.
- Refinance loans have a minimum loan amount of $5,000 and a maximum of $300,000 for borrowers with a graduate health profession degree. Borrowers with a basic undergraduate degree or below have a maximum of $125,000.
- New undergraduate student loans have a minimum of $1,000 and a maximum of $125,000.
- New graduate student loans range from $1,000 to $150,000 for graduate or doctorate degrees, $175,000 for MBA or graduate law degrees, and $225,000 for graduate health profession degrees.
Repayment terms range from 5 to 15 years for new loans and up to 25 years for refinance loans. The 20-year terms are only for borrowers who have loan amounts of $25,000 or more, while the 25-year terms are for those with loan amounts of $75,000 or more.
U-fi student loans are available in all 50 states.
Borrowers can apply for a student loan with U-fi online with no risk, because U-fi will give you a firm rate based on a soft credit pull that won't hurt your credit score. The approval waiting periods are short but it can take 5 to 6 weeks for the funds to reach your college or university. The application process is transparent and easy to navigate. Costs and interest rates are clearly explained and there are no origination, application or prepayment fees.
Borrowers of new student loans must be at least 18 years old (17 with a cosigner), attend an eligible school full- or part-time and have an income of at least $12,000. Students who have a cosigner are not required to have a source of income. Borrowers of refinance loans must have an annual income of at least $24,000 and no longer attend school on a half-time or more basis.
U-fi maybe a new player in the student loans market but it is backed by an experienced leader in the student loans sector that services up to a third of all federal loans. This is a well-financed company with a solid management team and a clear and transparent application process. Interest rates are extremely low and terms are flexible. We particularly like the cash back rewards for good students and borrowers who make 12 on-time monthly payments.
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