- 1 About MPOWER Financing
- 2 Who is MPower Financing Best For?
- 3 Types of Student Loans Offered by MPower Financing
- 4 MPower Financing Student Loans Details
- 5 MPower Financing Undergraduate Student Loans
- 6 MPower Financing Graduate Student Loans
- 7 MPower Financing Student Loans Pros and Cons
- 8 How to Apply for an MPower Financing Student Loan
- 9 MPower Financing Competitors
- 10 MPower Financing Trustworthiness
- 11 What options do I have to repay my MPower Financing student loans?
- 12 MPower Financing Frequently Asked Questions
About MPOWER Financing
MPOWER Financing, based in Washington, D.C., and with employees around the world, is a fintech company with a mission to provide global education loans. It is the leading company in this field. What sets MPOWER apart is that it is the only student lender in the world that uses its own special algorithm to analyze credit data from both international and domestic sources, as well as the potential future earnings of students. This approach allows MPOWER to cater to promising international and DACA students. They work with more than 400 prestigious universities, providing financing to students from over 200 countries.
The MPOWER team is largely composed of former international students who understand the unique challenges faced by students studying abroad. They not only offer financial assistance but also provide personal financial education and career support to help students prepare for life after graduation.
MPOWER has received recognition for its exceptional work environment, being named one of the best places to work and one of the best tech workplaces for diversity. Additionally, it has been included in American Banker’s list of top fintech firms to work for four years in a row. Tilden Park Capital Management, King Street Capital Management, ETS Strategic Capital, and several other notable investment firms back MPOWER.
Who is MPower Financing Best For?
MPower Financing is best for international students who want to take out a loan and don’t have a cosigner who is a US citizen to add to their loan.
Types of Student Loans Offered by MPower Financing
MPower Financing has student loans for only a couple of degree types, including:
MPower Financing Student Loans Details
MPower Financing provides fixed-rate loans, which means that the interest rate remains the same throughout the entire loan duration. When applying for a loan, you are not required to have a cosigner, collateral, or a credit history.
Before considering private student loans, such as the one offered by MPower Financing, it is advisable to explore federal student loan options. Typically, government loans offer better terms and protections.
A 5% origination fee is applicable to your student loan, and this amount will be deducted from the funds you receive. In case of late payments, there is an undisclosed fee that you will be required to pay.
MPower Financing exclusively offers loans to individuals who are starting a one- or two-year program or are expected to graduate from school within the next two years. Eligibility for a loan is determined based on attending one of MPower’s 350 approved schools. If your school is not on this list, you will not be eligible for a loan.
If you need to contact MPower’s customer support, you can either fill out a form on their website or give them a call.
MPower Financing Undergraduate Student Loans
MPower provides fixed-rate undergraduate loans and does not offer any variable-rate options.
By enrolling in automatic payments, making six timely payments, and providing proof of graduation and employment, you can receive a reduction of up to 1.5% on your interest rate. Each of these three criteria individually qualifies you for a 0.5% reduction, for a total potential reduction of up to 1.5%.
MPower Financing Graduate Student Loans
MPower offers graduate student loans at more favourable rates compared to its undergraduate student loans. However, the range of Annual Percentage Rates (APRs) is still considerably higher than what similar competitors charge.
MPower Financing Student Loans Pros and Cons
How to Apply for an MPower Financing Student Loan
- Gather the necessary documents and information, including your passport (which is unique compared to other lenders), the name of your enrolled school, your chosen field of study, the desired loan amount, your address, and specific financial documents. If your school is not among the 350+ supported by MPower, you will not be eligible for a loan.
- Complete MPower Financing’s online application, which should take around 20 minutes to finish. By doing so, you will receive prequalified interest rates without impacting your credit score or requiring a cosigner.
- Evaluate the loan offers provided and select the one that fits your financial capabilities. Once you have submitted your information, MPower will present you with various term options. Opting for a shorter term will result in larger monthly payments, but it will save you more in interest payments.
- Agree to the loan terms and prepare for repayment. Once you have signed the document accepting the loan terms, your loan will be approved and funded. It is crucial to ensure that you have factored in your loan payments into your budget, as late payments can result in significant additional costs.
MPower Financing Competitors
MPower Financing Compared to Custom Choice Undergraduate Student Loans:
MPower Financing is the only lender that exclusively provides fixed-rate loans, whereas Custom Choice offers both fixed-rate and variable-rate loans. Additionally, MPower’s APR range is considerably higher than the range offered by Custom Choice. With Custom Choice, you have the flexibility to choose your preferred term length.
MPower Financing Compared to Sallie Mae Undergraduate Student Loans:
Sallie Mae determines the repayment term length for their loans, while MPower Financing only offers loans with a single term length. Neither Sallie Mae nor MPower Financing impose prepayment fees. However, Sallie Mae does not charge origination fees, whereas MPower does. Both MPower Financing and Sallie Mae have late fees as part of their terms.
MPower Financing Trustworthiness
MPower Financing has received an A+ rating from the Better Business Bureau, a non-profit organization dedicated to consumer protection and building trust. The BBB determines ratings by assessing how businesses handle consumer complaints, their honesty in advertising, and the clarity of their business practices.
However, it’s important to note that a high BBB score does not guarantee a positive experience with the lender. The score serves as a starting point for your search for a lender.
MPower Financing has a clean track record without any known scandals or controversies, which may provide a sense of confidence when considering borrowing from them.
What options do I have to repay my MPower Financing student loans?
With MPower Financing, the sole repayment option available for your loans is to make interest-only payments. This means that while you are in school and during the six-month grace period, you will be required to pay only the interest amount on the loan each month. Once the grace period ends, you will start repaying both the principal and interest in full.
In contrast, other lenders provide additional repayment options, such as making fixed monthly payments while in school or immediately beginning full payments on both the loan’s principal and interest.
How We Rated MPower Financing Student Loans
In our reviews and guides, we utilize a scale of 1 to 5 to rate all student loan products. The overall rating is calculated as a weighted average, considering seven different categories, each with its own level of importance. These categories include:
- Interest rate (20% of the rating)
- Fees (20% of the rating)
- Term lengths (15% of the rating)
- Repayment options while in school (15% of the rating)
- Borrower accessibility (15% of the rating)
- Customer support (7.5% of the rating)
- Ethics (7.5% of the rating)
The weighting assigned to each category is based on its significance in shaping your borrowing experience. Rates and fees have the most substantial impact on the overall cost of the loan, so they are given the highest weight. Customer support and ethics are also important aspects of the borrowing process, but they do not directly influence the terms of the student loan, hence they have a relatively smaller impact on the overall rating.
MPower Financing Frequently Asked Questions
Is MPower Financing legit?
MPower Financing is a trustworthy company that provides student loans to various borrowers. It is possible to obtain an MPower Financing loan even if you have a limited credit history.
How long does it take to get a student loan from MPower?
MPower Financing typically takes one to three days to process your student loan. However, it’s worth noting that there are other lenders who may offer a faster loan application and approval process.
Can I repay my MPower loan early?
Certainly, you have the option to pay off your loan early without incurring any additional fees or penalties. Many lenders provide this benefit to borrowers.
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