Sixup Student Loans Review

Who Is Sixup Student Loans?

Sixup (Sixup Lending LLC), is a private student loan lending company. They provide gap loans for high-potential low-income students. The founder & CEO is Sunwoo Hwang. Sixup is headquartered in San Francisco, CA.

“Low and moderate income populations are underserved by banks. And why only focus on the Ivy League? What about kids going to Main Street schools?” Hwang said in an interview with Financial Solutions Lab.

What Do They Offer?

Sixup offers private student loans that are academically-based rather than credit-based. This means you need at least a 3.0 GPA, among other qualifications. Unlike other private loan programs, a credit score isn't required. Although, if you have one, you’ll need at least a 600 credit score.

You also need to have completed your FAFSA and accepted all grants, scholarships, awards, and loans that were available to you. In other words, you exhausted all available financial resources. Additionally, you’ll need to be at least 18 years of age and a US citizen or permanent resident.

Sixup loans are capped at $15,000 per year and $60,000 in aggregate. If you have other funding in addition to Sixup, your total funding from all sources cannot exceed $100,000. The minimum is $2,500 for most states. It is above $3,000 for Georgia residents and at least $5,000 for California residents.

Sixup lends to residents of the following states:

• Arkansas
• California
• Colorado
• Connecticut
• District of Columbia
• Florida
• Georgia
• Massachusetts
• Nebraska
• New Hampshire
• New Jersey
• New Mexico
• North Carolina
• Oregon
• Texas
• Virginia
• West Virginia
• Wisconsin

About Private Student Loans

Federal government student loans and private student loans do have some important differences. In summary, federal student loans generally have more advantages than private loans. Federal student loan advantages over private loans include:

If federal student loans offer so many advantages over private student loans, then why go through the trouble of trying to get a private loan? If you are in need of additional funds for school, sometimes a private loan is your only option.

Loan Terms

Sixup offers both fixed and variable-rate loans. Their fixed-rate loans range from 6.890% to 9.890% (6.455% to 9.029% APR). Variable-rate loans range from 6.650% to 9.933% (6.243% to 9.065% APR). 

With a fixed-rate loan, you pay the same amount every month. But with variable-rate loans, your payment will typically change from year to year as the Prime rate moves up or down. A variable-rate loan can be appealing if the starting rate is lower than a fixed. Just know that as rates rise, so will your monthly payment.

Repayment Options

There are two repayment options available.

• Early nominal fixed payments: Once you take a Sixup loan, payments begin. With this option, you’ll pay only $20/mo while you are enrolled in school. This payment plan will remain in place for your first six months after graduation or if you’re enrolled less than half-time (up to 60 months).
• Full deferment: This option is the same as above, except there are no payments required. Once the time frames mentioned above are exhausted, regular payments will begin.

For both repayment options, loans are for 10 years, including the 6-month period after graduation.

Are There Any Fees?

Yes, in addition to the loan rates mentioned above, there is a late fee that is 4% of the past due amount and is capped at $30. There are no application fees or early payment fees.

How Do I Open An Account?

You can open an account online at Sixup.com.

Note: It should be once again pointed out that Sixup is no longer accepting applications for the 2020-2021 school year.

Is My Money Safe?

Since this is a loan, you don't need to worry about FDIC or SIPC insurance like you would if you were considering a bank or broker that would be holding onto your money. You only need to consider the loan interest rate and terms.

Is It Worth It?

If you're in need of funds for school and have gone through all available sources, Sixup can be a good option. It is focused on academics rather than credit history, which can be another plus for students who perform well in school.

But you'll want to make sure that you've exhausted your federal student loan options before moving to private loans. And you'll want to see how Sixup compares with some of the other top private student loan lenders available today.