MPOWER student loans: 2024 review

MPOWER: in the details

Loan Amount

Private loans: $2,001 to $50,000 ($100,000 lifetime limit) | Refinancing loans: $2,001 to $100,000

APR from

13.98% to 17.08% Fixed APR

Term lengths

Private loans: 10 years | Refinancing loans: 10 years

Grace period

Interest payments 21 to 60 days after loan disbursement, but you do not have to make principal payments until 6 months after graduation

Repayment terms

Private loans: 10 years | Refinancing loans: 10 years

Loan types

Undergraduate, graduate, refinancing

Cosigner required?

No

Pros and cons of MPOWER student loans

MPOWER student loans emerge as a compelling solution for international students seeking to bridge the financial gap when conventional forms of financial aid prove insufficient for covering their college expenses. However, it is crucial to conduct a thorough assessment of the advantages and disadvantages before proceeding with the application process, ensuring that this financial avenue aligns seamlessly with your individual needs and circumstances.

Pros

Cons

Accessible to individuals without citizenship or permanent residency, MPOWER stands out by providing loans to international students and DACA recipients, eliminating the need for a co-signer, collateral, or a credit history for loan approval. This inclusive approach sets MPOWER apart from most lenders who typically limit their services to U.S. citizens or permanent residents. MPOWER further accommodates the diverse backgrounds of its borrowers by supporting multiple currencies. While there may be a fee associated with currency exchange, borrowers have the flexibility to repay their loans in their local currency, particularly beneficial for those residing abroad. Planning ahead is encouraged with MPOWER, as the platform enables applicants to submit loan requests up to 12 months prior to their intended start date. This feature allows prospective borrowers to secure financial assistance well in advance, contributing to a smoother and more organized transition into their academic pursuits.

Limited availability is a key characteristic of MPOWER’s loan offerings. Prospective borrowers must meet specific criteria to be eligible for either an undergraduate or graduate loan, including being within two years of their anticipated graduation date and enrolled in one of the institutions partnered with MPOWER. Furthermore, MPOWER distinguishes itself with a unique repayment structure. While many lenders provide a range of repayment terms extending from five to 20 years, MPOWER exclusively offers a 10-year repayment term. This focused approach may appeal to those seeking a more streamlined and time-bound repayment commitment. One distinctive feature of MPOWER’s loan terms is the absence of in-school deferral. Typically, lenders allow borrowers to defer payments until six months after graduation. However, MPOWER requires borrowers to commence interest payments within a shorter timeframe—specifically, 21 to 60 days after the loan is disbursed. This peculiarity could influence the financial planning of prospective borrowers, as they need to account for earlier commencement of repayment obligations compared to the standard deferment period offered by other lenders.

MPOWER student loan requirements

To be eligible for MPOWER’s private student loans, applicants must fulfill the following criteria:

1. School Affiliation:

• You must be admitted to or currently enrolled in an educational institution within the United States that is supported by MPOWER.

2. Graduation Timeline:

• Your expected graduation date should be within the next two years.

3. Degree-Seeking Program:

• You must be enrolled in a degree-seeking program at the educational institution mentioned in the first criterion.

4. Citizenship Requirement:

• Applicants must be citizens of one of the countries approved by MPOWER.

5. Residency During Program:

• You are required to reside in the United States while completing your academic program.

For those seeking to apply for student loan refinancing through MPOWER, the following conditions must be met:

1. Educational Attainment:

• Applicants must be college graduates.

2. Work Experience:

• A minimum of three months of work experience in the United States after graduation is a prerequisite for loan refinancing.

3. Legal Status:

• To be eligible, applicants should possess a valid visa or be categorized as DACA recipients, U.S. citizens, refugees, or asylum-seekers.

By adhering to these eligibility criteria, applicants can ensure that they meet the necessary requirements to apply for either MPOWER’s private student loans or student loan refinancing. These guidelines are designed to facilitate the application process and ensure that individuals align with the specific criteria set forth by MPOWER.

Who is this loan good for?

MPOWER’s student loans serve as a viable solution for international and DACA students currently pursuing a degree in the United States and requiring financial support for their education. For these individuals, MPOWER provides a beneficial avenue to address their specific needs.

Conversely, if you happen to be a U.S. citizen or a permanent resident, exploring alternative options might be a more prudent approach. There is a possibility of discovering more favorable terms and interest rates elsewhere compared to what MPOWER offers. Therefore, it is advisable for domestic students to thoroughly research and consider alternative financial assistance avenues that align better with their specific circumstances and requirements.

Interest rates and terms

MPOWER extends a beneficial 0.25 percent discount to its users who opt for the convenience of automatic payments. The minimum rates showcased in its advertisements already incorporate this automatic payment discount. While the platform previously provided extra incentives, such as discounts for consistently making multiple on-time payments, as well as additional perks for furnishing proof of graduation and employment, it is noteworthy that the current information available on MPOWER’s website no longer references these particular discounts.

MPOWER stands out in the student loan market with a fixed annual percentage rate (APR) that is higher than the industry average. Unlike most lenders that provide better rates for higher credit scores and offer a choice between fixed and variable rates, MPOWER maintains a single fixed APR, with the option of an autopay discount. This approach results in above-average rates even for individuals with excellent credit. It’s important to note, however, that while MPOWER’s rates may be higher, the company accommodates international students, a feature not offered by many other lenders.

Fees and penalties

MPOWER imposes a 5 percent origination fee on both graduate and undergraduate student loans, whereas a reduced 2 percent origination fee is applicable when refinancing existing student loans. It’s worth noting that several other student lenders have eliminated such fees from their offerings.

In addition to the origination fees, MPOWER does charge late payment and returned check fees. However, specific details regarding the costs of these fees are not provided. It is advisable for borrowers to thoroughly review the terms and conditions to understand the implications of any potential late payments or returned checks.

Repayment terms and grace period

MPOWER’s loan offerings are characterized by a fixed 10-year repayment term, a feature that may pose certain limitations, particularly for individuals seeking to refinance their loans among current or former students.

An unconventional aspect of MPOWER’s loan structure is its grace period. Borrowers are not obligated to initiate payments towards the principal balance until six months post-graduation. However, it’s important to note that MPOWER does mandate the commencement of interest payments within a window of 21 to 60 days after the loan is disbursed.

In contrast, alternative lenders provide more flexibility in repayment options. For instance, Prodigy Finance, a competitor, permits full-time students to defer the entirety of their loan payments while in school and for an additional six months following graduation. Additionally, other lenders offer choices such as making small flat payments or opting for interest-only payments during the academic period. The divergent options available in the market highlight the need for borrowers to carefully assess and select a loan product that aligns with their financial circumstances and preferences.

How to apply for a loan with MPOWER

The entire application process is conducted exclusively online and typically requires approximately 30 minutes to complete. Prior to initiating the application, it is essential to ascertain your eligibility for a loan with MPOWER. To determine your eligibility, please refer to the relevant criteria outlined on our website.

Once you’ve confirmed your eligibility, follow these straightforward steps to complete the application process:

MPOWER frequently asked question

How Bankrate rates MPOWER

Methodology

The Bankrate team evaluated over a dozen lenders to select our top picks for the best student loans. To do this, Bankrate considers 14 factors, including loan amounts, fees, repayment terms and options, as well as fixed and variable APR ranges. Then, lenders are rated using our vetting system known as the Bankrate Score, which focuses on three main categories.

• Availability: We looked at minimum and maximum loan amounts, as well as the lender’s eligibility requirements, co-signer option, degrees covered and state availability. Lenders that offered the most flexibility as well as nationwide servicing and that offered financing for a variety of programs ranked higher in this section.
• Affordability: Fixed and variable interest rates, fees, penalties and discounts were measured in this category. Lenders with the lowest rates, fewer fees and multiple discounts got the higher scores.
• Customer experience: Our team looked at the ease of the application process, as well as online account management tools, customer support hours, app availability, repayment options and grace periods offered by the lenders. This allowed us to determine the lenders’ ability to satisfactorily serve customers.

A comprehensive examination was undertaken by Bankrate, a leading financial services company, to assess and analyze various aspects related to the subject at hand. This meticulous review delved into intricate details, scrutinizing relevant factors with precision and diligence.