MPOWER provides loans to students from other countries without needing someone to sign with them. MPOWER Financing lets international students borrow money for studying in the U.S. or Canada without a co-signer. However, if you are a U.S. citizen or have someone to sign with you, you might find better loan conditions elsewhere.
- 1 COMPANY OVERVIEW
- 2 Interest Rates
- 3 Eligibility
- 4 Customer Experience
- 5 PROS AND CONS
- 6 KEY TAKEAWAYS
- 7 Student Loans Offered by MPOWER Financing
- 8 Loan Eligibility and Approval
- 9 Loan Fees and Repayment Options
- 10 Is Student Loan Refinancing Available?
- 11 Customer Service
- 12 Applying for an MPOWER Financing Student Loan
- 13 Alternative Choices
- 14 Conclusion
MPOWER Financing focuses on providing private student loans to college students who might struggle to get approved by other lenders. But, this lender has certain limitations that can make it challenging for eligible borrowers to get approved. Nevertheless, MPOWER has a positive reputation for satisfying their customers.
- Year Founded: 2014
- Official Website: www.mpowerfinancing.com
- Loans Offered: Undergraduate, Graduate, International, Refinance
- Customer ServiceOnline; Phone: (202) 417-3800
When reviewing student loans, one important thing to consider is the interest rate. MPower Financing provides fixed interest rates that range from 7.99% to 13.99%, depending on the loan term and the borrower’s creditworthiness. Although these rates are higher than what federal student loans offer, they are similar to the rates provided by other private lenders.
Apart from the fixed interest rates, MPower Financing also offers different repayment choices. These options include delaying payments, paying only the interest, or making immediate payments towards the principal and interest. Borrowers can select the repayment plan that suits their financial situation and goals the best.
MPower Financing offers loans specifically designed for international students studying in the United States. To be eligible for a loan, you need to fulfil the following criteria:
- You must be enrolled or accepted to study at a U.S. college or university that qualifies.
- You should be an international student and not have a U.S. cosigner.
- You should be within two years of graduating or have graduated in the past two years.
- You need to have a minimum credit score of 600 (or have a cosigner with a minimum credit score of 660).
If you meet these requirements, you can apply for a loan online. The application process is quite simple and can be completed within a few minutes. After submitting your application, you will receive a decision within a few business days.
MPower Financing stands out from other student loan lenders due to their strong commitment to ensuring a positive customer experience. They provide various resources to assist borrowers in navigating the loan process, such as an extensive FAQ section, a loan calculator, and a dedicated customer support team.
Moreover, MPower Financing has earned praise from customers for their transparency and communication during the loan process. Borrowers are consistently updated on the status of their loan, and any inquiries or concerns are promptly addressed by the customer support team.
In summary, MPower Financing is a reliable choice for international students seeking financial support for their education expenses. Although their interest rates are higher compared to federal student loans, they are similar to the rates offered by other private lenders. With a range of repayment options and a strong emphasis on customer service, MPower Financing is a lender worth considering for international students in need of financial assistance.
PROS AND CONS
- Provides loans to international students without requiring a co-signer: International students usually have limited options when applying for student loans in the U.S., and many lenders ask for a co-signer who is a U.S. citizen or permanent resident. However, MPOWER allows international students to get approved independently.
- Offers significant interest rate discounts: While many lenders only provide a 0.25% discount for automatic payments, MPOWER offers up to a 0.25% discount for setting up automatic payments, making timely payments, and providing proof of graduation and employment.
- Does not require a credit score or history for approval: MPOWER reviews your credit history for payment records if you have one in the U.S. or your home country, but they do not check your credit score. Even if you lack a credit history, it does not harm your chances of approval.
- Provides international student loan refinancing: Graduates can refinance both U.S.-based and international student loans.
- Offers only one repayment term: While some private student loan companies have repayment terms ranging from 5 to 15 years, MPOWER only offers a single 10-year repayment term.
- Relatively high-interest rates: While MPOWER may be more lenient in approving loans without credit history or a co-signer, other lenders may provide better terms if you have a good credit history or a creditworthy co-signer.
- Charges origination fees and interest-only payments during school: Most private lenders do not impose upfront origination fees, but MPOWER adds a 5% fee to your balance upon disbursement (only 2% for refinance loans). Additionally, you are required to make interest-only payments while in school and during the six-month grace period after graduation.
- Not all schools are eligible: MPOWER supports over 400 schools in the U.S. and Canada, but your chosen school may not be included, necessitating the exploration of alternative solutions.
- MPOWER Financing provides student loans to U.S. citizens, DACA recipients, refugees, asylum seekers, and international students without needing a co-signer or credit score.
- The lender offers loans to eligible students attending more than 400 selected colleges in the U.S. and Canada while they are still in school.
- Borrowers must be within two years of graduating or about to start a program lasting one or two years. MPOWER Financing helps you achieve your study abroad aspirations.
- The lender applies an upfront origination fee and requires interest-only payments during the school period. However, borrowers can receive up to a 1.5% interest rate reduction.
- MPOWER only provides a repayment term of 10 years.
Student Loans Offered by MPOWER Financing
Undergraduate Student Loans
If you are a U.S. citizen, DACA recipient, refugee, asylum seeker, or international student, you have the possibility of being approved for an undergraduate loan with MPOWER. However, it is important to be aware that all loans include an initial origination fee that gets added to your total balance. Additionally, international students will have to pay higher interest rates. The maximum loan amount per academic term is $50,000, but you can apply for multiple terms simultaneously and be eligible for a total of up to $100,000 in loans.
|Terms for Undergraduate Loans
Graduate Student Loans
Graduate students, which includes U.S. citizens, DACA recipients, refugees, asylum seekers, and international students, have the opportunity to benefit from lower interest rates compared to MPOWER’s undergraduate loans. However, it’s important to note that there is still an origination fee, and international students will face higher interest rates. Similar to undergraduate loans, the maximum borrowing limit per academic term is $50,000. Nevertheless, you can apply for multiple terms simultaneously and be eligible for a total loan amount of up to $100,000.
|Terms for Graduate Loans
Refinance Student Loans
If you have completed your studies and already graduated, you have the option to refinance your current student loans using an MPOWER refinance loan, even if those loans were obtained in other countries. The origination fee for refinance loans is lower compared to in-school loans, and the interest rate remains the same for international borrowers.
|Terms for Refinance Loans
Loan Eligibility and Approval
Unlike many private student loan companies, MPOWER Financing does not require a credit score or credit history to approve your application. If you have a credit record in the U.S., Canada, or your home country, the lender will examine it solely to assess your payment history. Your credit score will not be taken into account when making MPOWER’s decision.
However, it’s important to note that MPOWER Financing loans are only available to students enrolled at specific schools in the U.S. (all 50 states and D.C.) and Canada. If you are not attending an eligible school, you will need to seek out another lender. You can verify your eligibility by checking MPOWER’s list of supported schools.
Other eligibility requirements and limitations include:
- You can get approved if you’re a U.S. citizen, permanent resident, DACA recipient, asylum seeker, refugee, or visa holder.
- You must be a student—parent loans aren’t available.
- You’ll need to maintain half-time enrollment at an eligible school.
- You must be the age of majority in your state of residence.
- You need to be in your last two years of school or just starting a one- or two-year program.1
- MPOWER’s in-school loans are not available for Canadian residents studying in Canada. Additionally, Canadian citizens and permanent residents are not eligible for the lender’s refinance loans.
Is Loan Pre-Qualification Available?
MPOWER does provide loan pre-qualification, but their process differs from other private lenders. Instead of a brief pre-qualification application, MPOWER asks you to complete a full application. If the information you provide qualifies you, the lender will conduct a credit check in the U.S. or Canada, and if applicable, in your home country.
Length of Time for Loan Approval and Disbursement
For loans while you are still in school, it usually takes around 30 minutes to complete the application. The timeline following that can vary depending on the student. Once approved, the lender directly sends the funds to your school.
Regarding refinance loans, it typically takes less than 30 minutes to finish the application. Within two or three business days of reviewing your application, MPOWER will email you with the next steps. At this point, you will undergo a credit check, provide the necessary documents, watch an introductory video, and complete a short assessment.
After completing these steps, MPOWER will take an additional five to seven business days to conduct a final review. Once you are approved and agree to the loan terms, there is a four-day rescission period. Afterward, it usually takes three to five business days to pay off your existing loans.
Loan Fees and Repayment Options
MPOWER Financing applies a 5% origination fee for in-school loans and a 2% fee for refinance loans. Rather than deducting the fee from your loan amount upfront, the lender adds it to your total balance.
Additionally, there is a late fee of either 4% of the unpaid amount or $5, whichever is lower. In the case of a returned payment, the fee amounts to $5.
MPOWER Financing offers three interest rate discounts, which can add up to 1.5% in total discounts:
- Autopay: You’ll get a 0.50% discount if you set up automatic payments from a U.S. bank account.
- On-time payments: You can get a 0.50% discount once you’ve made six consecutive on-time payments through automatic withdrawals.
- Graduation: You’ll get a 0.50% discount once you provide proof of graduation and full-time employment.
Refinance loans do not qualify for the graduation discount.
MPOWER Financing provides only one repayment option, apart from making full interest and principal payments. For in-school loans, students are required to make interest-only payments while they are in school and during the six-month grace period after graduation. Once you transition into full repayment, the loan term will be 10 years.
Regarding refinance loans, full repayment starts right away, and the only available option is a 10-year term.
Loan Forbearance and Discharge Options
MPOWER Financing does not publicly disclose the specific forbearance options available, but they express their willingness to assist borrowers facing difficulties with their payments. To explore your options, it is recommended to contact the lender directly.
Additionally, the lender does not provide detailed information about discharge policies in the event of the borrower’s death or permanent disability.
Is Student Loan Refinancing Available?
As mentioned above, MPOWER Financing offers refinance loans for U.S.-based and international student loans, up to $100,00.
MPOWER or its partner, Bank of Lake Mills, are responsible for originating the loans. If you have inquiries about MPOWER Financing, you can provide your information online and request an email response or a phone call. Alternatively, you can contact them at (202) 417-3800. The operating hours of the lender are not disclosed.
According to the Consumer Financial Protection Bureau, there were no complaints received about MPOWER Financing in 2021. On Trustpilot, it has received an average rating of 4.6 out of 5 stars based on over 1,000 customer reviews.
Applying for an MPOWER Financing Student Loan
If you are a U.S. citizen or permanent resident, the first step is to complete the Free Application for Federal Student Aid (FAFSA) to utilize all available federal and other types of financial aid before considering a private student loan.
For international students or DACA students who are not eligible for federal aid, it is advisable to explore and compare various loan options before proceeding with an application. Take the time to shop around and evaluate different lenders.
To apply at MPOWER, you’ll provide the following details:
- List of school expenses
- Resume or CV (for graduate students)
- Standardized test scores (for graduate students)
- English proficiency exam scores
- College admissions letter
- Past transcripts or diploma
- Secondary photo ID (from your home country)
- Supporting evidence of funds (such as bank statements or pay stubs)
- References (such as family or friends)
After you have submitted all your information, MPOWER Financing will assess and evaluate your application. If your application is approved, the lender might conduct a credit check either in the U.S. or your home country. Following that, a final review will be conducted, and the lender will collaborate with your school to certify the loan.
|Loan Types Offered
|Undergraduate; graduate; parent; medical
|Undergraduate; graduate; parent; professional
|Undergraduate Fixed APR
|13.98% or 15.01% (before discounts)
|Undergraduate Variable APR
|5% for school loans; 2% for refinances
|Interest-only; full payment
|Deferment; fixed; interest-only; full payment
|Deferment; fixed; interest-only; full payment
MPOWER Financing provides an easy financing solution for both international students and U.S. citizens, without requiring a co-signer. However, it is important to be aware that the lender’s interest rates are relatively high compared to other private lenders. If you have a co-signer who has good credit or if you are eligible for federal student loans, it is advisable to explore those options first.
For international students seeking financial support for their education, MPower Financing is a beneficial choice. They offer competitive interest rates, flexible repayment options, and prioritize customer service. Considering these factors, they are a lender worth considering. Nevertheless, it is important to note that their loans are specifically available for international students without U.S. co-signers, and they do have higher interest rates compared to federal student loans.