An MPower Financing Review for International Students Seeking Funding

What Types of Student Loans Does MPower Financing Offer?

MPower Financing offers private student loans for international students enrolled in one of the U.S. or Canadian approved institutions and within two years of graduation. There is a refinancing option available too, whether it’s from a U.S. or foreign bank.

• Private student loans
• Student loan refinancing

Private Student Loans Review

Private Student Loans Features

International students can apply for MPower Financing student loans if they attend one of the approved U.S. or Canadian institutions. There is only one loan option, and it includes a 10 year repayment period and fixed interest rate. Loans are open to applications from U.S. citizens, international students, DACA recipients or refugee and asylum seekers. You can apply for a loan up to 12 months before you need the funding.

Private Student Loan Interest Rates and Fees

MPower Financing offers student loans to those who may face challenges finding funding elsewhere, but you should be aware of the fees with the loan. There is a 5% origination fee which is added to the loan balance. The fixed interest rate starts at 9.56% and there is an opportunity to earn up to 1.50% off in discounts from AutoPay, making on-time payments for six months and successfully graduating and getting a job.

Private Student Loan Qualification Requirements

Unlike numerous other private student loan lenders, credit scores and collateral are not a consideration factor when applying for an MPower Financing loan, nor do you have to have a U.S. credit history. You do, however, need to be enrolled at one of the approved schools, which may limit eligibility for many students. Loans are available to students who are graduating within two years or entering into a one to two year program.

Student Loan Refinancing Review

Refinancing Features

If you live in the U.S. and have worked for at least three months then you may be eligible to refinance your student loans. You are also required to have work authorization for at least two years. If you meet these requirements, a refinanced loan is available with a 10-year repayment and a fixed interest rate. It may be a good opportunity for you to release a cosigner from another loan and refinance into a new private student loan with no cosigner required.

Refinancing Interest Rates and Fees

Before entering into a refinancing agreement with MPower, you should be aware of the fees associated with the loans. There is a 2% origination fee, which is added to the loan amount and paid over the life of the loan. The fixed rate is 7.99% but there are additional discounts offered. You can reduce your rate by 0.50% by enrolling in AutoPay, plus another 0.50% by making six on-time automatic payments. There is also foreign currency exchange rate fee and a conversion service charge added to your refinanced loan balance.

Refinancing Qualification Requirements

Credit score and credit history are not the determining factors with an MPower student loan refinancing, however your credit history in the U.S. (via TransUnion) and your home country are reviewed (through Nova Credit). You are also required to have a valid visa (OPT, H1-B, PGWP and others), a DACA recipient, a refugee or asylum seeker or a U.S. citizen. The refinance application is open to anyone who has graduated from any institution in the world.

MPower Financing Application Process

Whether you’re applying for the private student loans or the refinancing, MPower Financing suggests the entire application process is about 30 minutes. You will need to have your documentation ready to go, which generally includes:

• Your CV or resume
• Standardized test scores and English proficiency exam scores
• College admissions letter
• Transcripts
• Passport
• References
• Supporting documentation for income (scholarships, sale of personal property, any other sources you want considered for the application)
• Valid photo I.D.

Before getting started you will be asked a series of questions to determine your eligibility.

Once your eligibility is determined, you will need to submit the complete application along with the required documents. There are specific document requirements depending on the loan you’re applying for (graduate, undergraduate or refinancing) so be sure to review carefully.

Once your application has been submitted, a hard credit check is performed. Although your credit score is not a requirement, your credit history still needs to be reviewed. A hard credit check does show up on your credit report in the Inquries section. It will be visible on your report to other lenders for up to two years and could possibly lower your credit score by a few points.

MPower Financing Customer Support

Specific customer support hours are not listed on the website but there are two options for contacting them. You can either fill out the online form or you can call during business hours.

• +1-202-417-3800 (U.S.)
• +1-647-503-4607 (Canada)

There is also a chat bot available online for general questions.

The MPower Financing reviews on Trustpilot are generally very positive regarding customer service. Most reviews note how their questions were answered throughout the application and funding process. Here is one example of an online review:

“Excellent customer service! All my queries were answered promptly when needed. Maybe the disbursement period to the University could be shortened a little since 10 days after school certification can be a lot considering all the necessary student pre-expenses. I am very satisfied with MPower!!!”-Review from TrustPilot

MPower Financing Online Reviews

You’ll find more MPower Financing reviews online through third-party sites like Trustpilot that speak not only about customer service but about the overall student loan experience.

Again, the reviews are generally positive, with MPower Financing earning a 4.6 out of 5 through Trustpilot. The company is not listed or accredited with the Better Business Bureau, although no complaints have been received either.

The reviews range from the quick approval to working with the Relationship Manager ensuring every step of the loan process was completed.

“The journey with Mpower is incredible, the loan process was quick and the relationship manager was available all the time. I'm really grateful to the finance company for helping me out.” - Review from Trustpilot

MPower Financing Perks and Bonuses

When you receive an MPower Financing student loan, either as a new one or a refinance, you also receive several benefits with payment and perks.

Payment Flexibility

• MPower Financing occasionally offers a “Plan Ahead” promotion. This is an interest-rate reduction (about 2%) if you apply for a loan you will need in the future.
• While you’re in school, you are eligible to make interest-only payments.
• There is a six-month grace period after you graduate to start making full loan payments, although you must make interest-only payments during this time.
• Forbearance is not listed as an option with MPower Financing loans, but you are able to contact them to discuss payment options during financial hardship.
• There is a “Refer a Friend” bonus of $300 if your referral closes on a loan.

Mentorship

• You’re assigned a Relationship Manager as soon as your application is submitted. The RM will walk you through each step and assist you with any documentation questions.
• Immigration support, including vital updates and COVID-19 information.
• Scholarships for international students, including specifically for Women in STEM and x undergraduate and graduate students.
• Job search preparation with the Path2Success program, including both student and career development.

Final Thoughts

Attending a school for higher education is a dream of many across the globe, but financing and funding can often be a stumbling block to reaching those dreams. MPower Financing is one option that may be available to international students, especially for those who do not want to use a cosigner or do not have an established credit history. While this type of financing may be a welcome option, it also comes at a price. The interest rate is higher than what many student loan lenders typically charge, plus there are hefty origination fees which further add to the cost of an education.