Investment

MPOWER Funding Review: Loans for International Students and DACA

MPOWER Financing works with international borrowers and Deferred Action for Childhood Arrivals (DACA) without the need for a co-signer. Eligible students can borrow up to $ 50,000, but not everyone will be eligible for a loan.

International and DACA students often find it difficult to find funding to go to college in the United States, as they are generally not eligible for federal student loans. Private student loans may be their only option.

MPOWER Funding Review: International Student Loans
How to apply for an MPOWER Financing student loan
How to Make Student Loan Payments from MPOWER Financing
Advantages and disadvantages of MPOWER student loan financing
What types of student loans does MPOWER Financing offer?
How to refinance your MPOWER Financing student loans
MPOWER Student Loan Funding FAQs

MPOWER Funding Review: International Student Loans

MPOWER Student loan financing
APR range International students: 13.63% to 14.98% APR
International graduate students: 11.59% to 12.94% APR
DACA Undergraduates: APR from 9.56% to 10.91%
DACA graduate student: 7.52% to 8.89% APR
Note: Lower rates include maximum interest rate deductions
Amount of the loan $ 2,001 to $ 50,000
Loan conditions 10 year fixed rate loans
Fresh 5% creation costs
Grace period Interest payments only up to six months after graduation
Minimum credit score Credit score not required

Rates are correct as of February 27, 2020

Eligibility criteria

International and DACA students can benefit from an MPOWER Funding student loan if they meet the following criteria:

  • You must be admitted or enrolled in an eligible school in the United States or Canada
  • You must be within two years of completing your program
  • Your program must start within 12 months
  • You must live in the United States or Canada while you are in school
  • Your program must award a degree

MPOWER funding does not take into account your credit score or require you to have a co-signer. Instead, it examines a number of factors, such as your future income potential, to determine whether to approve you for a loan. No warranty is needed either.

The lender offers international student loans from over 190 countries. However, your college must be one of over 350 schools that MPOWER Financing works with to be eligible for funding. You can check your eligibility online in as little as 60 seconds.

School reimbursement options

MPOWER financing offers a single repayment option to borrowers. You are required to pay interest only while you are in school and for six months after graduation. Once this period is over, your repayment term is 10 years. You will make fixed payments until the loan is paid off.

However, you can make additional payments and repay your loan early. MPOWER Financing does not charge prepayment penalties, so paying off your debt early can help save you money.

Discounts on interest rates

MPOWER offers several interest rate discounts. DACA students are entitled to lower interest rates than international students, but both groups can benefit from the following discounts and lower their interest rate by up to 1.5 percentage points:

  • 0.50 percentage point discount for setting up automatic payments
  • 0.50 percentage point discount for making six consecutive monthly payments on time when signing up for automatic payment
  • 0.50 percentage point reduction if you can prove that you have graduated and are employed

Scholarship opportunities

International and DACA students can reduce the amount they need to take out in student loans by applying for Gift Aid, including Scholarships and subsidies. Unlike student loans, gift assistance does not need to be repaid.

MPOWER Financing offers three scholarships:

  • Global Citizen Scholarship: One grand prize winner will receive a scholarship of $ 5,000, while four regional winners will receive $ 3,000 each. To be eligible, you must be an international student studying at an eligible school in the United States or Canada.
  • Women in STEM Scholarship: International and DACA students who are enrolled or accepted into an eligible full-time STEM program may receive $ 5,000, $ 3,000, or $ 2,000.
  • Central American Fellowship Program: Central American students accepted into an eligible full-time program in the United States or Canada may receive $ 3,000 or $ 1,000.

How to apply for an MPOWER Financing student loan

According to MPOWER, the application process takes around 30 minutes. MPOWER recommends that you verify the eligibility of your loan before starting an application.

If you find out that you meet MPOWER’s eligibility criteria, you can proceed by completing the application. You will be asked to enter basic information, such as your country of citizenship and the name of your passport. You’ll also need to note the school you attend, when you plan to graduate, and how much you want to borrow.

How the MPOWER Financing loan process works

Once you submit your application, it enters the initial review phase, which can take one to three business days. At this point MPOWER may decide to make you a conditional offer, which tells you how much you can borrow, but you must submit the requested documents for verification before you can be approved.

MPOWER Financing may request the following information:

  • CV or CV
  • Proof of home country address, such as a utility bill or lease
  • Proof of DACA status (for DACA students)
  • Standardized test results
  • English proficiency exam results
  • Letter of admission
  • Previous transcripts
  • Estimated cost of your program, such as a screenshot of the university’s website
  • Passport
  • Identity document with secondary photo from your country of origin
  • Bank or stock exchange statements
  • MPOWER video and quiz
  • The references
  • Letter of financial support from a parent or relative who will help you pay your living expenses
  • Payslips

Once you submit the necessary documentation, MPOWER Financing will review the documents and decide whether or not to approve you for a loan. If approved, she will send you a final loan offer and visa application letter, if needed.

MPOWER will send the loan application to your school for verification once you are approved. Depending on how quickly the school reacts, your loan could be disbursed in two to ten weeks.

How to Make Student Loan Payments from MPOWER Financing

There are three payment options:

  • If your loan manager is Launch: You can make payments online, through your bank’s bill payment service, or by calling 877-354-2629.
  • If your loan manager is Firstmark: Make payments online with your checking account, savings account or debit card. You can also use your bank’s bill payment service or call 202-417-3800.
  • If you are abroad: If you are outside of the United States or Canada, you can make payments online with Flywire.

How to Contact MPOWER Customer Service About Your Student Loans

If you have any questions or problems, you can contact MPOWER via secure messaging. Or, you can call:

  • WE: 202-417-3800
  • Canada: 1-647-503-4607
  • India: 91-974-099-3115

Advantages and disadvantages of MPOWER student loan financing

Benefits The inconvenients
● No co-signer required
●  no credit check
● Discounts available to lower the interest rate by up to 1.5 percentage points
● Only available to students within two years of graduation
● Limited loan amounts
● Only students attending certain schools will be eligible

What types of student loans does MPOWER Financing offer?

  • International undergraduate student loans
  • International graduate loans
  • National Undergraduate Loans and DACA
  • Loans to national graduates and DACA

How to refinance your MPOWER Financing student loans

If you are not happy with your MPOWER Financing student loans or want a lower interest rate to save money, student loan refinancing can be a smart strategy. To refinance your debt, you will work with a private lender to take out a new loan for the amount of your MPOWER loans. The new loan may have different terms, including the interest rate, the repayment term, and the minimum monthly payment.

The refinancing process is slightly more complicated for international and DACA students. Not all lenders work with borrowers who are not U.S. citizens or permanent residents, but some do. In general, you will need to have an established credit history in the United States to qualify, or you will need to find a eligible co-signer who is a US citizen or permanent resident to apply for a loan from you.

If you decide to refinance your student loan debt, compare the offers of several lenders to find your best loan terms.

MPOWER Student Loan Funding FAQs

Does MPOWER Financing offer prequalification? No, MPOWER does not offer prequalification. You can check your loan eligibility, but you won’t get an interest rate quote until you submit your application.

Can MPOWER funding help you with the visa process? Once you are approved for a loan, MPOWER can issue you a letter of support to help you with the visa process.

Will the loan funds be paid to me directly? The loan is disbursed directly to your school, whether the loan is used for tuition or for accommodation and meals.

Does MPOWER funding offer some forbearance? If a student is facing financial difficulties, they can abstain for 24 months. Loan payments can be deferred or students can make reduced payments of $ 25 per month.

When will my loan payments show on my credit report? According to MPOWER Financing, it may take several months for your loan and payment history to be reflected on your credit report in the United States. MPOWER is not the responsibility of Canadian credit bureaus.

What types of career support are offered? MPOWER offers free resume advice, advice from a career coach, and access to a LinkedIn community group. The company also offers webinars throughout the year on building a strong LinkedIn profile, conducting successful information interviews, and more.

Is Interest On Student Loans Tax Deductible? Private student loans, such as those offered by MPOWER Financing, are eligible for tax deduction of interest on student loans. However, your eligibility for the deduction depends on your status and your specific circumstances. If in doubt, contact a tax expert.

Does MPOWER Financing offer scholarships? MPOWER Financing offers three scholarships: the Global Citizen Scholarship, the Women in STEM Scholarship, and the Central America Scholarship Program.

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