MPower Financing offers private student loans to undergraduate and graduate students within two years of earning a degree or starting a one- or two-year program at an eligible U.S. or Canadian school. The lender specializes in working with international students and Deferred Action for Childhood Arrivals recipients.
- Offers loans to international students and DACA recipients.
- Requires no credit history or co-signer to apply.
- Provides rate discounts.
- Works with only about 400 schools in the U.S. and Canada, although that list is growing.
- Lends only to students about to begin a one- or two-year program or who are in their last two years before graduation.
- Requires interest-only payments during school and for six months after graduation.
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What Types of Student Loans Does MPower Financing Offer?
MPower Financing has student loan options for undergraduate and graduate degree programs. You may be eligible to refinance your loan if you have graduated and worked in the U.S. or Canada for at least three months.
How Does MPower Financing Work?
Applying for an MPower loan starts with checking whether your school and your program are eligible. Then you will complete and submit an initial application and a valid photo ID online. You could receive a conditional offer either immediately or within three business days.
If you get a conditional offer, the lender will ask you to watch a video, complete an assessment and upload documents. MPower Financing verifies these documents for loan approval, which can take up to three business days, and provides a visa support letter if necessary. Lastly, the lender certifies costs and then disburses funds to your school, a timeline that can stretch up to 10 weeks.
Loans can be used for all education-related expenses, according to MPower Financing. But the lender also says to ask your school’s financial aid office if you plan to spend loan money on anything other than tuition. MPower Financing sends funds directly to your school.
MPower loans cannot be used to pay school application fees because you must be admitted to or enrolled at an eligible school before your application can be approved.
What Are MPower Financing’s Terms, Fees and Conditions?
MPower Financing offers fixed-rate student loans from $2,001 to $50,000 over two academic periods – semesters, quarters, trimesters or school years – with a $100,000 lifetime borrowing limit. Annual percentage rates are between 6.49% and 12.49% if you qualify for MPower Financing’s discounts. Your loan repayment terms depend on whether you’re an international student, whether you’re an undergraduate or graduate student, and what country your school is located in.
Loans have a repayment term of 10 years. The lender adds a 5% origination fee to your loan balance that you will pay over the loan term rather than upfront. MPower Financing also charges a late payment fee of either $5 or 4% of the past due amount, whichever is less, plus a $5 returned payment fee.
You must be admitted to or enrolled at one of more than 400 eligible schools before you can apply for an MPower loan. If you are ineligible to borrow from MPower Financing, the company recommends looking into its partner, Sallie Mae.
If you qualify to refinance a loan, your APR with all discounts will be fixed at 7.99%. You can borrow the same $2,001 minimum and $100,000 lifetime amount and then repay it over 10 years. A 2% origination fee will be added to the loan amount, plus international borrowers pay a foreign currency exchange rate fee and a premium conversion charge.
What Discounts Does MPower Financing Offer?
Borrowers can qualify for three interest rate discounts of a half percentage point each by:
- Signing up for autopay. You will receive the rate discount as long as you remain enrolled.
- Making consistent payments. Your rate will drop another half percentage point after you make six consecutive full payments with autopay.
- Keeping a full-time job. After you graduate and start working a full-time, salaried job, you can get one more half percentage point discount.
Note: Your discount may be removed if you make an invalid payment for any reason – a returned payment, for example – request forbearance or enter a modified payment plan.
How Can You Qualify?
MPower Financing doesn’t require a credit history, co-signer or collateral. Instead, the lender considers your academic success and career path to determine your creditworthiness.
International students, DACA recipients, refugees or asylum-seekers are eligible to apply. Undergraduate or graduate students must be starting a one- or two-year program or within two years of earning a degree at one of more than 400 schools in the U.S. or Canada. Graduates who have worked in the U.S. or Canada for at least three months may be eligible for refinancing.
What Credit Score Do You Need?
If you have a credit history in the U.S. or your home country, the lender will verify your record and look for delinquencies, collections or tax liens. These are important factors considered during MPower Financing’s credit review.
The lender recommends checking with TransUnion in the U.S. or Canada at 800-888-4213 or Nova Credit at 844-423-1345 for international accounts if you are concerned that your credit history could affect loan approval.
Where Does MPower Financing Operate?
MPower Financing lends to students from more than 190 countries at one of about 400 schools in the U.S. or Canada.
Is MPower Financing Reputable?
MPower Financing received an A+ rating from the Better Business Bureau but is not accredited by the BBB. Trustpilot scores the lender 4.5 out of 5 stars, an excellent rating, based on more than 300 reviews.
How Is MPower Financing’s Customer Service?
Borrowers can contact customer service by chat, email or phone.
You can also ask the chatbot questions by clicking on the chat icon – a blue circle containing a question mark – at the bottom right corner of any webpage. If you can’t find the information you need, you can complete this form to receive an email response within 10 business days.
The lender recommends reaching out by email before calling because of high volume. You can reach MPower Financing at 202-417-3800 in the U.S. or 647-503-4607 in Canada, and borrowers from India and Nigeria should contact the U.S. number or request a callback online.
What Are Some of MPower Financing’s Online Features?
Borrowers can access digital tools for tasks such as setting up autopay, uploading documents and checking basic loan eligibility. You can apply for a loan, search and apply for scholarships, and use loan calculators to estimate payments on the lender’s website.
The MPower dashboard allows you to arrange loan payments and to view your monthly payments and due dates, as well as your loan servicer’s information.
MPower Financing provides a Support Center with answers to FAQs on topics such as applying for a loan, refinancing and repaying a loan. The lender also offers immigration, career, financial empowerment and other resources for students.
What Are the Deferment and Repayment Options?
MPower Financing does not offer in-school or extended training deferments. You must make interest-only payments in school and for six months after graduation and then pay off principal and interest over 10 years. Borrowers struggling to make payments should contact MPower Financing to discuss options and find the best solution.
What Are the Discharge Options?
MPower Financing doesn’t provide any details about discharge options.
MPower Financing Student Loans Are Best For:
- International students, DACA recipients, refugees and asylum-seekers.
- Students who need to borrow without a credit check or co-signer.
- Students starting a one- or two-year program or who are within two years of graduating.
For international students who want to study in North America, finding student loan lenders willing to work with them can be challenging, especially if they don’t have a relative who is a permanent resident or citizen to act as a cosigner. MPOWER Financing aims to be a funding solution for students all over the globe. It offers loans to borrowers studying in the U.S. or Canada, and it doesn’t require students to have a cosigner.
However, not all students are eligible for a loan from MPOWER Financing, and it has strict loan limits. Before applying for a loan, make sure you understand how these loans work and what fees are involved.
- Available to international students without a cosigner – While there are multiple private lenders that will lend to international students, most require them to have a cosigner who is a U.S. citizen or permanent resident. With MPOWER Financing, you don’t need a cosigner; you can qualify for a loan entirely on your own.
- Interest rate discounts available – MPOWER Financing has multiple interest rate discounts, including automatic payment discount, on-time payment discount, and graduation and employment discounts. In total, you can reduce your interest rate by 1.5%.
- High interest rates – MPOWER Financing has higher interest rates than you typically see with private student loans. The APR on international undergraduate loans was 13.99%, and the rate on international graduate loans was 11.99%.1 Both rates include 1.50% in rate discounts. Considering that some lenders offer rates as low as 3 to 5% for international students, MPOWER Financing’s rates are significantly higher.
- Origination fees apply – If MPOWER Financing approves your loan application and you proceed with the loan, the lender will charge you a 5% origination fee and add it to your loan balance. You will pay the fee over the loan’s repayment term.
- Only one repayment option – While other lenders have multiple repayment plans and loan terms, MPOWER Financing has just one.
Student Loans Offered by MPOWER Financing
MPOWER Financing has student loans for international students, U.S. citizens, and Deferred Action for Childhood Arrivals (DACA) students. They require interest-only payments while you’re in school and for 6 months after graduation, after which you’ll have a 10-year loan term with full interest plus principal payments. Interest rates vary by loan type.
U.S. Citizen, Permanent Resident, and DACA Undergraduate Student Loans
U.S. citizens, permanent residents, and DACA students pursuing a bachelor’s degree can qualify for undergraduate student loans. These loans are eligible for multiple loan discounts, and there is no prepayment penalty.
|Loan Terms for Domestic Undergraduate Loans|
|Fixed Rates||9.99% (10.91% APR)|
|Loan Amounts||$2,001 to $100,000|
|Loan Terms||10 years|
U.S. Citizen, Permanent Resident, and DACA Graduate Student Loans
If you’re a U.S. citizen, permanent resident, or DACA student and are going to graduate school, you may be eligible for MPOWER Financing’s graduate school loans, which have the lowest interest rates of all of its loans.
|Loan Terms for Domestic Graduate Loans|
|Fixed Rates||7.99% (8.89% APR)|
|Loan Amounts||$2,001 to $100,000|
|Loan Terms||10 years|
International Student Undergraduate Loans
If you’re an international student within two years of graduating, you may be eligible for an undergraduate student loan. To qualify, you must be admitted to or already attending one of MPOWER Financing’s partner schools in the United States or Canada. It has more than 350 of them.
|Loan Terms for International Undergraduate Students|
|Fixed Rates||13.99% (14.98% APR)|
|Loan Amounts||$2,001 to $100,000|
|Loan Terms||10 years|
International Graduate School Loans
As a graduate student enrolled in a one or two year program or within two years of graduation, you can qualify for MPOWER international graduate school loans. Like its other loans, the international graduate school loans are eligible for multiple interest rate discounts, and there is no prepayment penalty if you choose to pay off the loan early.
|Loan Terms for International Graduate Students|
|Fixed Rates||11.99% (12.94% APR)|
|Loan Amounts||$2,001 to $100,000|
|Loan Terms||10 years|
To qualify for a loan from MPOWER Financing, you must meet the following criteria:
- You are currently admitted to or enrolled in a school in the U.S. or Canada that MPOWER Financing supports.
- You are within two years of graduating from your program.
- You must reside in the U.S. or Canada while you are in school.
- You are not a citizen of a restricted country or subject to individual sanctions.
Is Loan Prequalification Available?
While MPOWER Financing doesn’t offer loan prequalification, it does have an eligibility check tool. By entering basic information about yourself and your program, you can see if you meet MPOWER Financing’s basic eligibility requirements. If so, you can move forward with the loan application process. If you are ineligible for a loan from MPOWER Financing, you may be able to take out a loan from one of its partners, such as Sallie Mae.
Student Loan Fees
MPOWER Financing charges origination fees and late fees.
Unlike many other private student loan lenders, MPOWER Financing does charge an origination fee to cover the cost of processing and disbursing the loan. If you’re approved for the loan and decide to move forward with it, the lender will charge you a 5% origination fee and add it to your loan balance. You do not pay the fee upfront; instead, you’ll repay it over the length of your loan term.
For example, if you took out a $10,000 loan, your origination fee would be $500. That fee would be added to your loan balance, so you would have to repay—with interest—$10,500.
If you miss a payment, MPOWER Financing will charge you 4% of the unpaid amount or $5, whichever is less.
Student Loan Discounts
MPOWER Financing borrowers can qualify for loan discounts:
- Automatic Payment – Reduces your interest rate by 0.50% when you sign up for automatic payments
- On-Time Payment – Reduces your interest rate by 0.50% when you make six monthly payments on time with automatic payments
- Graduation and Employment: Reduces your interest rate by 0.50% when you report proof of graduation and employment
If you take advantage of all 3 discounts, you could reduce your interest rate by 1.5%.
MPOWER also offers scholarships for international students.
MPOWER Financing only has one repayment option for its student loans. While you’re in school and during the first 6 months after graduation—your grace period—you’re required to make interest-only payments on your loan. Once the grace period expires, your 10-year repayment term begins, and you will start repaying the interest and principal.
You can build credit as you make full on-time payments on your MPOWER loan and potentially refinance those student loans for a better rate.
MPOWER Financing has a referral program. If you refer friends, and they apply for a loan and are approved—and mention your name on their loan application—you can qualify for cash bonuses, airline tickets, cruises, and merchandise.
Are Cosigners Required?
MPOWER Financing does not require cosigners, nor are they even considered on your loan application. Instead, the lender looks at your future potential and any existing credit history you may have in your home country.
Forbearance and Loan Discharge Options
While MPOWER Financing doesn’t include details about its forbearance program on its website, it does say that borrowers experiencing financial hardships should call customer service to discuss their options.
Length of Time for Loan Approval and Disbursement
The application process doesn’t take long to complete. However, MPOWER Financing must submit your information to your college for certification, which can take a long time. According to the lender, certification can take between two to six weeks, so it’s a good idea to apply for a loan well in advance.
Is Student Loan Refinancing Available?
MPOWER Financing offer student loan refinancing up to $100,000 with no cosigner.
Depending on your credit approval, loans are issued by either MPOWER Financing or Bank of Lake Mills. MPOWER Financing is a newer company, founded in 2014. As such, it isn’t included in the Consumer Financial Protection Bureau’s annual student loan ombudsman report. Although it has fewer than 100 customer reviews on Trustpilot, its overall rating is 4.6 out of 5.
Customer service is available via message through the lender’s website or by calling the following numbers:
- United States: 202-417-3800
- Canada: 647-503-4607
- India: 91-812-345-6789
Students from China can ask questions via the app WeChat.
Apply for an MPOWER Financing Student Loan
If you are a U.S. citizen or permanent resident, you should fill out the Free Application for Federal Student Aid (FAFSA) and exhaust all federal, state, and institutional aid before turning to private student loans. If you’re an international student or DACA student and ineligible for federal aid, then you can move forward with your loan application.
According to MPOWER Financing, the application takes about 30 minutes to complete. To do so, you’ll need the following information:
- List of school expenses (such as tuition, housing, and textbooks)
- Résumé 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)
Once all of your information is submitted, MPOWER Financing will review your application. If approved, the lender will work with your school to certify the loan. It can take up to six weeks before the loan is disbursed.
Mpower Financing, Public Benefit Corporation (PBC), is among the few refinance options for international students. In addition to student loan refinancing, Mpower (stylized as MPOWER) advertises financial education, credit-building, and job placement services.
|Loan Limits||$2,001 – $100,000|
|Fixed Rates||7.44%* – 8.45%|
|Min. Credit Score||None|
*Lowest rates always include the 0.50% interest reduction for enrolling in auto-pay and an additional 0.50% interest rate reduction for six (6) on-time payments for a total reduction of 1.00%.
|Private student loans||✓|
|Private parent loans|
|Federal student loans||✓|
|Federal Parent PLUS loans|
Mpower Refinance Rates & Fees
Mpower’s fixed rates are between 7.44% and 8.45%. Lowest rates always include the total 1.00% interest reduction for enrolling in auto-pay (a 0.50% rate reduction) and for making 6 consecutive on-time payments via auto-pay (an additional 0.50% rate reduction).
|10 Year||7.44% – 8.45%|
Additional information about Mpower refinance rates:
- Checking your rate with Mpower will not affect your credit score. They will conduct a soft, not hard, credit inquiry (learn the difference).
- Mpower does offer a discount for setting up auto-pay: 0.50% interest rate reduction.
- Mpower offers an interest rate reduction of 0.50% for six (6) consecutive months of qualifying automatic payments; this is in addition to the 0.50% reduction for setting up autopay (for a total reduction of 1.00%).
- Some borrowers may also be eligible for a further 0.50% rate reduction for providing proof of graduation and employment (for a total reduction of 1.50%).
Beyond interest rates, there are a number of fees a refinance lender may charge up-front or during the loan servicing period. Below is a list of these fees that Mpower does or does not charge.
|Fee Type||Amount Charged|
|Loan Origination Fee||2.0% of the loan amount|
|Late Payment Fee||“A small fee”|
|Returned Payment Fee||“A small fee”|
- Application fee – fee to apply for rates & approval.
- Loan origination fee – fee to create the new loan.
- Disbursement fee – fee for distributing funds to lenders to pay off loans that have been refinanced.
- Prepayment penalty – fee for making extra payments to reduce a refinance loan balance or pay it off early.
- Late payment fee – fee for making a late payment.
- Returned payment fee – fee for failed payments due to insufficient funds, also known as a “bounced check”.
- Collection fee – fee for collection activity on a defaulted debt.
Current Promotions & Offers
Mpower offers multiple opportunities for interest rate reductions, including a 0.50% interest rate reduction for enrollment in automatic payments as well as an additional 0.50% interest rate reduction for six (6) months of consecutive, qualifying payments via autopay. Between these two offers, the total available interest rate reduction is 1.00%.
Mpower also advertises a possible 0.50% interest rate reduction for proof of graduation and employment. This additional reduction would bring the total possible interest rate reduction to 1.50%.
Borrowing is not required to be eligible for Mpower scholarships, including its monthly scholarship series.
Mpower Refinance Eligibility Requirements
To qualify for refinancing with Mpower, all borrowers must meet the criteria below.
- Citizenship Requirement: none.
- Income Requirement: undisclosed.
- Credit Score Requirement: none.
- Graduation Requirement: bachelor’s degree.
- Location Requirement: current U.S. residence.
Additional restrictions apply for specific individuals and loans.
- Refinance borrowers must have three (3) months’ work experience in the United States in order to qualify.
- To qualify with Mpower, a borrower must have a valid visa (including OPT, H-1B, PGWP and more) or be a DACA recipient, U.S. citizen, permanent resident, refugee, or asylum seeker.
Mpower Student Loan Repayment Options
Lenders vary greatly on the benefits and options provided to borrowers during the loan servicing period. Additionally, benefits may only be available on a case-by-case basis. Mpower offers some relief options.
Deferment & Forbearance
Mpower does not specify any conditions for deferment or forbearance. Mpower’s online Support Center, however, does reference forbearance. Mpower also offers free financial counseling to its borrowers.
See typical conditions for deferment and forbearance below.
|Returning to grad school||Undisclosed|
|Active military duty||Undisclosed|
Mpower may offer other opportunities for relief or contract modification.
- Co-signer release does not appear to be available after refinancing (though borrowers may reapply without a co-signer).
- Death / disability discharge may be available in the unfortunate circumstance that a borrower passes away or suffers total permanent disability.
Mpower Reviews, Complaints & Lawsuits
Beyond our own findings, our team also collected the most genuinely insightful customer experiences we could find, including any instances of legal action against the company in which the details became public.
Mpower Online Reviews
Few examples of Mpower customer reviews are available on English-language public forums. This is understandable considering Mpower is one of few lenders that refinances education loans for international students.
Below are 3 samples of MPower customer feedback from social media platforms, included here for their value as unedited, uncensored, and unsolicited user experiences. Note that these reviews are unverified, may include inaccuracies, and may provide outdated information (about rates, bonus offers, etc.).
“Anyone who intends to study in the US and needs private loans funding I highly recommend use @MPOWERfinancing . Check them out.” – @khanyelwazi on Twitter, 11/13/2021
“@MPOWERfinancing why is it so hard to get in contact with your team? Why do I have to keep sending 3-4 emails with no response? This issue has been going on for years. You need to do better it’s frustrating.” – @ikvinjeleuk on Twitter, 11/7/2021
“@MPOWERfinancing Can someone at mpower PLEASE get back to me about the status of my loan? I have gone without a response for nearly two weeks and my program start date is THURSDAY. I can’t move to the US without your response. Very frustrated with this poor service!!!” – @soft_aspects on Twiter, 8/31/2021
More (unfiltered) customer reviews of Mpower are available on TrustPilot.com (4.7 of 5).
Mpower CFPB Complaints
As consumer finance companies, student loan refinancing lenders fall under the jurisdiction of the Consumer Financial Protection Bureau (CFPB), a federal agency. As part of their mission, the CFPB allows consumers to log official complaints. These complaints are publicly available on the CFPB official website.
Since its founding in 2014, Mpower Financing, PBC (Mpower) has not been subject to complaints registered with the CFPB.
To search for complaints made against Mpower in the CFPB’s Consumer Complaint Database, click here.
Mpower Financing, PBC has not been subject to any major litigation.
Note that while this information is updated regularly, ongoing legal action is subject to change.
Frequently Asked Questions
These are the most common questions consumers have about student loan refinancing with Mpower.
- Is Mpower good for refinancing student loans?
Mpower may be the best option for international students with no FICO score or credit history.
- Does Mpower require a minimum credit score to qualify for student loan refinancing?
No, Mpower does not require a minimum credit score. Mpower advertises its services as a means to building a credit history.
- Do I have to have a U.S. bank account?
No, Mpower accepts payment from eligible international financial institutions.
- Are Mpower loans federal?
Mpower loans are not federal. Mpower has no affiliation with the federal government or the U.S. Department of Education.
- Does Mpower charge a prepayment penalty?
There are no penalties for early payments or repaying a loan in full before its term is over.
- Does checking your rates with Mpower hurt your credit score?
It depends; while Mpower does not require a FICO credit score, the refinance application process does include a review of any existing U.S. or Canadian credit history, or a credit history in the applicant’s country of origin (if available). This inquiry may temporarily impact a U.S. credit score.
- Is Mpower a bank?
No, Mpower is not a bank. Bank of Lake Mills originates Mpower loans.
- Can I refinance a Mpower loan?
No; because Mpower offers the same APR (and interest rate reductions) to every refinance borrower, there is no reason to refinance an Mpower loan more than once.
- Can I refinance just some of my loans with Mpower?
Yes, you can refinance some, all, or just one of your qualifying student loans with Mpower. You may choose to refinance your private loans only or refinance private and federal loans together.
- Can I refinance loans that have already been refinanced?
Yes, you can refinance loans as many times as you want with Mpower. Note that each time you refinance, you will have to submit a new application; every application requires a hard credit check that may affect your credit score.
- Can my spouse and I refinance our loans together with Mpower?
Mpower only refinances loans for which the applicant is the primary borrower.
- How long does it take to refinance with Mpower?
Mpower does not specify a timeline for refinancing student loans.
- Who services Mpower refinance loans?
Mpower has loan servicers authorized to work with different borrowers. For example, NorthStar processes payments from students studying in Canada who need to make payments using Canadian dollars.
- Does Mpower offer a grace period?
Borrowers may be eligible for interest-only payments for the first six (6) months after graduation. Contact Mpower for details.
- How often do variable rates change?
Mpower does not offer variable rates.
- Can I get any special rates or discounts with Mpower ?
Mpower offers up to 1.50% in interest rate reductions for borrowers who make a minimum six (6) months eligible automatic payments and who provide proof of graduation and U.S. employment.
- What happens if I file for bankruptcy?
Mpower does not specify a course of action; it is safe to assume that you will still have to repay your Mpower loan in the event that you file for bankruptcy.
- Does Mpower partner with any major student refinance lender marketplaces?
Mpower does not appear to partner with any major student refinance lender marketplaces.