MPOWER STUDENT LOANS REVIEW
MPOWER Student Loans is offered by MPOWER Financing, a marketplace lending platform founded in 2014 and based in Washington, DC. MPOWER Student Loans is available in 50 states (and Washington, DC).
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MPOWER STUDENT LOANS FAQ
What rates does MPOWER Student Loans offer for in-school private student loan?
It offers a fixed APR that ranges from 7.52% up to 13.63%.
How much can you borrow from MPOWER Student Loans?
Available loan amounts may vary by applicant but MPOWER Student Loans has a minimum loan amount of 2.001K and offers loans up to 50K.
Does MPOWER Student Loans charge an origination fee?
Yes, MPOWER Student Loans charges a loan origination fee of 5% of the loan amount. MPOWER Student Loans deducts the fee directly from your loan amount before depositing your money, so make sure you take this fee into account when deciding how much you need to borrow.
Does MPOWER Student Loans charge prepayment fees?
No, MPOWER Student Loans does not charge prepayment fees. This means you will not have to pay additional fees if you decide to pay the loan off early.
What terms does MPOWER Student Loans offer?
MPOWER Student Loans provides repayment terms ranging from 3 to 10 years.
What type of borrowers will MPOWER Student Loans consider?
MPOWER Student Loans considers loans applications from:
- undergraduate students
- graduate students
What do you need to qualify for MPOWER Student Loans?
MPOWER Student Loans does not require or does not disclose a credit score minimum.
MPOWER Student Loans does not have or does not disclose a minimum annual income eligibility requirement. MPOWER Student Loans only considers borrowers who are employed.
U.S. citizens are, of course, eligible for the services offered by MPOWER Student Loans. Permanent resident / green card holders are also eligible to apply. An uncommon feature is for lenders to offer their services to non-residents. MPOWER Financing is one of the few that does.
To qualify, applicants may need to provide the following documentation:
- Proof of income
- Driver’s license
- Proof of citizenship or residence permit
- Proof of residence
Is MPOWER Financing a legit company?
MPOWER Student Loans was founded in 2014. It is an established company that has been in business for 8 years.
Unfortunately, we don’t have sufficient community reviews to provide a reliable rating of their user experience and customer service.
SuperMoney Disclosure: SuperMoney.com is an independent, advertising-supported service. The owner of this website may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. Read more…
Editorial Disclaimer: Editorial and user-generated content on this page is not provided or commissioned by the issuer. Opinions expressed here are the author’s alone and have not been approved or otherwise endorsed by any financial institution, including those that are advertising partners.
Pros and cons of MPower Financing student loans
|No prepayment penaltiesLends to international studentsNo cosigner, collateral, or credit history requiredInterest rate discount if you meet certain requirements||One repayment termOne repayment option while in schoolOnly offers fixed-rate loansOrigination and late feesNo mobile appIf your school isn’t one of the 350+ MPower supports, you won’t be able to take out a loanCan only get a loan if you’re in a 1-year or 2-year program, or if you will graduate in the next 2 yearsHigh APR range|
MPower Financing undergraduate student loans
MPower offers undergraduate loans at set rates, with no variable-rate option available.
You can get up to a 1.5% reduction on your interest rate by signing up for automatic payments, making six on-time payments, and reporting proof of graduation and employment. Each of these three requirements will qualify you for 0.5% off, or up to 1.5% total.
MPower Financing graduate student loans
MPower has better rates on its graduate student loans than on its undergraduate student loans, but its APR range is still much higher than what similar competitors charge.
How MPower Financing student loans compare
MPower is the lone lender to only offer fixed-rate loans; both Custom Choice and Sallie Mae also offer variable-rate loans. MPower’s APR range is significantly higher than Custom Choice’s and Sallie Mae’s range.
Sallie Mae sets your repayment term length, while MPower only offers one term length. You can choose your term length with Custom Choice.
None of the lenders charge prepayment fees. Neither Custom Choice nor Sallie Mae charge origination fees, though MPower does. MPower and Sallie Mae both charge late fees, while Custom Choice does not.
How MPower Financing student loans work
MPower Financing offers undergraduate and graduate student loans to international students, US citizens, permanent residents, and DACA students. These loans are fixed-rate loans, meaning the interest rate is locked for the life of the loan. You don’t need a cosigner, collateral, or a credit history to apply for a loan.
Go after federal student loan options before you think about taking out private student loans, including an MPower Financing loan, as you usually get better terms and protections through the government.
You’ll pay a 5% origination fee on your student loan, which will be deducted from your loan proceeds. Additionally, if you’re late on your payments, you’ll pay an undisclosed fee.
MPower Financing only offers loans if you’re beginning a one- or two-year program, or if you will graduate from school in the next two years. You may qualify to get a loan if you attend one of MPower’s 350 approved schools; if you go to a school outside of this list, you won’t be eligible to get a loan.
To contact MPower’s customer support, you can fill out a form on the website or give the lender a call.
What options do I have to repay my MPower Financing student loans?
Interest-only payments are the only option you have to repay your loans with MPower Financing. You’ll pay a loan’s interest monthly while in school and during the six-month grace period. After that grace period, you’ll begin paying off the loan’s principal and interest in full.
Other lenders have additional options for repayment, like a fixed payment per month while in school or full payments on the loan’s principal and interest right away.
Is MPower Financing trustworthy?
MPower Financing is rated an A+ by the Better Business Bureau. The BBB, a non-profit organization focused on consumer protection and trust, determines its ratings by evaluating a business’ responses to consumer complaints, honesty in advertising, and clarity about business practices.
Keep in mind that a great BBB score doesn’t guarantee that you’ll have a good relationship with the business. The score is simply a baseline to start your search for a lender.
MPower Financing doesn’t have a history of any scandals or controversies, so you may feel comfortable borrowing from the lender.
MPOWER Financing has processed student loan applications for more than $2 billion in funding, accepting students from more than 190 countries attending one of 380-plus colleges and universities in the U.S. and Canada. It added a student loan refinancing product in 2021 but is best known for in-school loans for international students and DACA recipients. As MPOWER loan reviews show, the lender doesn’t require cosigners or credit history, eliminating the “barriers to financing that international students typically face.”
MPOWER loan reviews: Refinancing
Based in Washington, D.C., MPOWER Financing launched its student loan refinancing product in November 2021 for international college graduates who now work in the U.S. The company allows eligible borrowers to refinance up to $100,000 in loans borrowed internationally, helping them to build stateside credit history.
MPOWER student loan refinancing is a good fit for consumers who hail — or previously borrowed education debt — from one of 17 countries and are aiming to secure a single-digit interest rate and release a cosigner. Its refinancing limit is $100,000.
MPOWER student loan refinance review: The basics
Given that MPOWER has only offered refinancing for a period of months — and that it aims to serve international borrowers — details on the product are specific and, at times, sparse.
|Rates||● Fixed APR: 8.45%|
|Basics||● Prequalify and check rates without affecting your credit|
● Refinance as little as $2,001 and as much as $100,000
● Reduce your interest rate by 0.50 percentage points if you enroll in autopay
● Shave another 0.50 percentage points off your APR after six on-time payments
|Eligibility||● University graduate from any country|
● At least three months of career experience in any American state
● Visa (that allows you to work in the U.S. for at least two years), DACA recipient, citizen, refugee or asylum seeker
|Applying||● Not possible to apply with a cosigner or co-borrower|
● No application fee
● Origination fee: 2% of your loan amount
● Late payment fee amount is undisclosed
● Exchange rate, currency conversion fees for refinancing loans lent by foreign banks
|Repayment||● No prepayment penalties|
● Repayment term of 10 years
|Support||● No back-to-school deferments offered|
● Forbearance may be available in cases of hardship
● Not clear if forgiveness is offered in case of borrower’s death, disability
If you’re an international graduate working in the U.S., MPOWER refinancing might already seem like a great fit. Here are a few more potential pros of refinancing with this company.
The vast majority of student loan refinancing companies put your credit report under the microscope before determining whether you qualify and for what terms. MPOWER, on the other hand, doesn’t require you to have a U.S. credit history or a cosigner to make up for lacking one.
With that said, if you have a negative credit history, due to delinquencies or unpaid taxes, for example, then it could impact your eligibility. In other words, no credit is better than bad credit when it comes to getting qualified.
One of the main benefits of student loan refinancing is the ability to release any cosigners you might have had on your original loans.
Though this is universal among other lenders, it’s worth highlighting that MPOWER allows you to release cosigners on loans borrowed from other countries. That could be particularly valuable if you have a parent or other benefactor in another country whose financials are affected by loans borrowed back home.
MPOWER also prides itself on its social impact, using its resources to help borrowers with all manner of issues. The company’s Path2Success program, specifically, offers a de facto career coach by connecting you with a human resources professional.
Because it serves a niche audience, MPOWER Financing isn’t the right option for every borrower who’s considering refinancing student loans.
Before getting ahead of yourself, confirm that your native country or the country where you borrowed student loans is eligible for MPOWER Financing.
|If you’re a citizen from one these countries (or you borrowed student loans there), you’re likely to be eligible for MPOWER Financing|
● The Dominican Republic
● South Korea
MPOWER Financing might only be a worthwhile option if your residency status makes you ineligible with most other lenders. That’s primarily because its fixed interest rates are higher than competitors who cater to citizen or permanent resident borrowers.
Also, all MPOWER Financing customers receive the same rate, so it’s not possible to secure a lower APR because of the strength of your application. Finally, MPOWER doesn’t feature the option of variable interest rates that start out lower and fluctuate according to market conditions.
On the brightside, you can shave a full percentage point off your APR after opting for automatic payments and submitting six on-time payments consecutively.
If you borrowed more than six figures, perhaps for a costly graduate or professional degree, you’ll be subject to MPOWER Financing’s $100,000 refinancing limit. You could choose to refinance up to that amount with MPOWER or shop around for another lender that will consolidate the whole lot.
MPOWER loan reviews should note the company’s lack of repayment protections. The company doesn’t allow you to defer (or put off) your loan payments if you decide to go back to school for another degree. It also doesn’t outline a clear forbearance program that would allow you to postpone payments for months at a time.
For its part, MPOWER Financing sports a multilingual customer service team and asks its customers to reach out directly if they have experienced hardship that might affect their loan repayment.
With MPOWER refinancing, you could consolidate loans from your home country or from another U.S. financial institution. As of Jan. 26, 2022, however, you could not refinance a loan that you originally borrowed as an undergraduate or graduate student from MPOWER directly.
If you’re an international graduate hoping to refinance education debt, you may not have as many options as your U.S.-citizen or permanent-resident peers. Still, it’s wise to shop around for the best possible loan for your situation.
|SLH rating||3.1/5||Not yet rated||Not yet rated|
|Products||● Student loan refinancing||● Student loan refinancing|
● Parent PLUS loan refinancing
● Medical resident refinancing
|● Student loan refinancing|
|Eligibility requirements||● No credit required|
● Minimum income not disclosed
● Visa (that allows you to work in the U.S. for at least two years), DACA recipient, U.S. citizen, refugee or asylum seeker
● At least three months of U.S. job experience
● College diploma
|● Good or excellent credit score|
● No minimum income
● Nonpermanent residents with eligible visas can apply with a permanent resident cosigner
|● 660 credit score|
● No minimum income requirement
● Citizenship, permanent residency or eligible visa-holder
● College degree from lender network university
|APRs||Fixed starting at 8.45%||Variable starting at 2.49% and fixed starting at 3.99%||Variable starting at 4.44% and fixed starting at 4.49%|
|Minimum loan amount||$2,001||$5,000||$5,000|
|Repayment terms available||10 years||Up to 20 years||Up to 20 years|
|Apply with a cosigner||n/a||Yes||Yes|
If you graduate college or university in another country, perhaps borrowing student loans there, too, MPOWER Financing could be a real boon to your situation. It could allow you to consolidate your education debt in the U.S. and start building credit history stateside while also potentially netting you a lower APR.
If you have other lending options out there — whether because you’re a U.S. citizen or permanent resident, or because you borrowed your loans domestically — it’s worth shopping around beyond MPOWER. That’s because its one-size-fits-all fixed APR isn’t highly competitive with other lenders. Plus, you could find secondary features, like borrowing amounts and repayment protections, more appealing elsewhere.
A good place to continue your search for the right lender is our student loan refinancing marketplace.
|Best student loan refinancing options for…|
|Parent PLUS loan consolidation||Refinancing with a credit union|
|Job loss protection||Refinancing without a college degree|
|Consolidating six figures of student loan debt|
If you’re ready to apply with MPOWER Financing, here’s what to expect about the process:
- Visit the MPOWER website.
- Confirm your eligibility.
- Complete an online application, which requests personal and financial information.
- Receive conditional approval (or disapproval) “within a few business days.”
- Upload documents to verify the information you provided previously.
- Sign your final loan documents.
- Wait for MPOWER to pay off your original loans and issue your new refinanced loan.
|What you need to begin the refinancing process with MPOWER Financing|
|● Photo identification depending on your residency status|
● Payoff statements for any loans you wish to refinance
● Diploma or final transcript
● Job offer letter and three months of pay stubs
● Documents confirming your address and living expenses
MPOWER loans review: For undergraduate and graduate students
MPOWER stands out from the crowd of student loan companies by working with students of 190-plus nationalities who are attending degree or certificate programs in the U.S. and Canada. These no-cosigner private loans could help students (who are within two years of graduating) bridge remaining gaps in their cost of higher education.
MPOWER Financing student loans are a good fit for international students and DACA recipients who don’t qualify for federal financial aid or have the cosigner or credit history necessary for private loans with lower APRs and more robust repayment flexibility. MPOWER’s relatively high interest rates are partly helped by the fact that it offers attainable discounts of up to 1.50 percentage points off your original APR.
MPOWER loan reviews: The basics
MPOWER Financing styles itself as a fintech with innovative student loan solutions, but it’s still important to weigh the nuts-and-bolts details of its products.
|Rates||● International graduate students: Fixed APR of 12.94%|
● International undergraduate juniors, seniors: Fixed APR of
● Citizen, permanent resident and DACA grad students: Fixed APR of 8.89%
● Citizen, permanent resident and DACA undergrad juniors, seniors: Fixed APR of 10.91%
|Basics||● Prequalify and check rates without affecting your credit|
● Borrow $2,001 to $50,000 per academic term, with a lifetime limit of $100,000
● Reduce your interest rate by 1.50 percentage points if you sign up for automatic payments, make six on-time payments in a row and show proof of graduation or employment
|Eligibility||● Attend one of about 380 eligible colleges or universities in the U.S. or Canada (parents are not eligible to borrow)|
● Be within two years of graduating
● International student, DACA recipient, U.S. citizen, refugee or asylum seeker
|Applying||● No application fees|
● Loan origination fee: 5% of your loan amount
● Unspecified fee for late or invalid payments
|Repayment||● No prepayment penalties|
● Interest-only payments while enrolled and for six months after (grace period)
● Repayment term of 10 years
|Support||● No deferment available if you return to school|
● Pausing payments via forbearance might be possible in cases of hardship
● Not clear if forgiveness is offered in case of borrower’s death, disability
Every lender has its pros and cons. Here are some potential pros in our MPOWER loans review.
MPOWER is transparent about its eligibility criteria and offers you the ability to prequalify, or confirm that eligibility.
The fact that MPOWER offers one fixed APR option to each type of prospective borrower also makes it easy for you to shop around and compare quotes with other companies that offer prequalification.
MPOWER Financing doesn’t look at your credit score or require you to have a cosigner. Instead, it looks at a number of factors, such as your future earning potential, to determine whether to approve you for a loan. No collateral is needed, either.
Some fine print, however: If you do have a credit history, it can impact your application. Bad credit, due to late payments on past accounts or other reasons, would harm your chances of loan approval.
MPOWER Financing attempts to make itself a full-service operation by helping customers with:
- Financial aid: Besides dispensing loans, MPOWER awards a variety of scholarships.
- Career support: Through its Path2Success program, MPOWER matches you with a job recruiter to make you more marketable for postgraduate employment.
- Visa support letters: The company could issue a support letter to support your application for a U.S. immigration visa.
MPOWER loan reviews on customer sites like Trustpilot are generally positive, but there are some lender characteristics to be aware of.
MPOWER Financing sets a fixed APR for each type of loan it offers, but that APR is on the high end as compared to competitors. If you’re creditworthy (or you have a cosigner who is) and you meet residency requirements with other lenders, you could nab a lower interest rate elsewhere.
To be fair, MPOWER offers up to discount your APR by up to 1.50 percentage points for making automatic payments, submitting dues on time and graduating or finding employment. But most borrowers won’t qualify for these discounts until after leaving school.
MPOWER Financing offers just one repayment option to borrowers. You’re required to make interest-only payments while you’re in school and for six months after graduation. Once that period ends, your repayment term is 10 years. You’ll make fixed payments until the loan is paid off.
However, you can make extra payments and pay off your student loan early. MPOWER Financing doesn’t charge prepayment penalties, so paying off your debt ahead of schedule can help you save money.
MPOWER Financing notes that many private lenders charge origination fees, or a tacked-on cost to process your loan disbursement, but the majority of lenders that Student Loan Hero reviews do not charge such a fee. And 5% is a high amount compared to the few lenders that do require this fee.
If you’re willing to stomach MPOWER’s 5% loan fee, make sure to account for it in the amount you request to borrow, as it will come directly from your balance.
Many private student loan companies allow borrowers to take out funding for as much as 100% of their remaining cost of attendance, minus other financial aid. MPOWER’s threshold, however, is $50,000 per academic term, and $100,000 overall. If you plan on attending graduate or professional school (perhaps to become a health care professional, for example), you might hit your limit and have to find additional funding elsewhere.
Deferment and forbearance programs allow borrowers to postpone their loan payments for a variety of reasons, such as to return to school, take on an internship or residency or recover from an unforeseen hardship. MPOWER Financing only states that it will award forbearances in undescribed situations, leaving you to wonder whether relief will be there should you need it.
MPOWER also doesn’t publicly state whether it offers loan forgiveness in the case of the primary borrower’s death or permanent disability.
If you compare rates and terms with multiple lenders, you give yourself a chance to secure the best possible loan for your needs.
|MPOWER Financing||Prodigy Finance||Funding University|
|SLH rating||3.1/5||Not yet rated||3.8/5|
|Loans for…||● Undergraduate and graduate students without cosigners||● Undergraduates and graduate students without cosigners||● Undergraduate students without cosigners|
|APRs||Fixed starting at 14.98%||Variable starting at 5.91%||Fixed starting at 7.99%|
|Ability to prequalify without affecting credit||Yes||Yes||Yes|
|Borrowing amount||$2,001 to $50,000 per term ($100,000 overall)||100%||Check with lender|
|In-school repayment options||1||2||2|
|Repayment terms||10 years||7 to 20 years||10 years|
|Cosigner release available||n/a||n/a||n/a|
You’ll very likely be better off if you shop around beyond a few lenders. Make sure you learn all about the best options for your specific needs.
Are MPOWER student loans right for you?
MPOWER Financing offers student loans to borrowers that are often excluded by U.S. banks, credit unions and other financial institutions. If you’re an international student or a DACA recipient, this company could be one of few options for higher education funding.
Still, it’s worth noting that this company’s loans carry relatively high APRs and fees, with limited repayment flexibility. You’d have to make in-school payments immediately and may have a hard time postponing payments after you leave school.
Even if you like MPOWER Financing’s offerings, it’s worth comparing competitors like Prodigy Finance and Funding University that also don’t require good credit, cosigners or citizenship. You might continue your search for the right lender in our private student loans marketplace.
The entire application process for MPOWER loans is completed online. You can confirm your eligibility and review rates without affecting your credit.
If you decide to proceed with a formal application, you will have to upload a variety of documents that verify your identity, cash flow and enrollment status. MPOWER estimates that applying takes about 30 minutes.
If you have questions or issues, you can contact MPOWER through secure messaging. Or, you can call:
- U.S.: 202-417-3800
- Canada: 1-647-503-4607
Applicants from India and Nigeria are asked to use the U.S. phone number or to request a callback using MPOWER’s contact form.
If you didn’t find your question answered in our MPOWER loan reviews, see the following FAQs:
What is MPOWER Financing?
MPOWER Financing is a fintech company offering private student loans and, since 2021, student loan refinancing for borrowers who are typically excluded by traditional financial institutions: international students, DACA recipients and those without domestic credit history or a stateside cosigner.
What is the interest rate for an MPOWER loan?
Interest rates for MPOWER loans vary by the borrower’s residency status and education level.
|Product||Borrower||APR (before discounts)|
|Private student loan||International graduate students||12.94%|
|International undergraduate juniors, seniors||14.98%|
|Citizen, permanent resident and DACA grad students||8.89%|
|Citizen, permanent resident and DACA undergrad juniors, seniors||10.91%|
|Student loan refinancing||8.45%|
|As of Jan. 26, 2022|
What is the maximum loan term for MPOWER?
MPOWER offers only a 10-year repayment term for its private student loans and refinanced loan product.
Can MPOWER Financing help with the visa process?
Once you’re approved for a loan, MPOWER can issue you a support letter to help you with the visa process.
Methodology for ratings
To come up with our shield rating for student loan refinancing lenders and companies/private student loan lenders and companies, Student Loan Hero asks hard questions — 20 of them, in fact — spanning three categories: accessibility, rates & terms and repayment experience. That’s because we want to judge financial institutions on their products and services from start to finish: when our users are shopping around, filing applications and paying down their debt.
A top-rated lender, for instance, has inclusive eligibility criteria, allows you to prequalify and check rates without harming your credit score and is supportive as you face monthly payments.
The answers that we get to our 20 questions — either from the lenders themselves or by combing through their fine print — determine each lender’s overall rating. We score answers consistently, sometimes awarding partial points, to ensure that you can make equal comparisons between all lenders that we put under the microscope.
Student Loan Hero isn’t paid for conducting these reviews, and lenders don’t have a say in their content. The goal with our reviews and ratings, along with everything else we do, is to give our users the most comprehensive and up-to-date information available to make the best decisions according to their borrowing needs.
Student Loan Hero has independently collected the above information related to MPOWER Financing student loans, which is current as of Jan. 26, 2022, unless otherwise noted. None of the financial institutions named has either provided or reviewed the information shared in this article.