MPOWER student loans: 2024 review

Written by
Heidi Rivera
Edited by
Rebecca Betterton
Updated on May 16, 2024

At a glance

See rates
On lender's site
3.3
Bankrate Score
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Repayment Options
3.0
Affordability
3.0
Customer Experience
4.0

About Bankrate Score

Full methodology

MPOWER Financing is a public benefit corporation that specializes in private student loans and student loan refinancing. This D.C.-based lender was founded by former international students and focuses on loans tailored for current international students. 

Lender Details

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Loan amount

$2,001 to $100,000

Rates

APR from

Starting at 13.72% Fixed APR with autopay

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Term lengths

10 years

MPOWER overview

MPOWER student loans are open to international and DACA students without a co-signer. By removing the need for a co-signer, collateral and credit history, MPOWER makes it easy for students to be eligible for its loans.

Besides that, MPOWER goes the extra mile by helping international students with their visa application process and finding a U.S.-based job after graduation at no additional cost. These services are completely optional. So if you want to return to your home country, that’s okay, too. MPOWER has partnered with payment platform Flywire so you can repay your loans from abroad using the currency of your choice.

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
Starting at 13.72% Fixed APR with autopay
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 can be a great alternative to help international students cover the costs of college when other types of financial aid fall short. Still, weighing the pros and cons before you apply is important to ensure this is the best option for you.

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Pros

  • Open to noncitizens without a co-signer – no credit history or collateral needed.
  • Multiple currencies supported and visa assistance.
  • Apply up to 12 months prior to your start date.
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Cons

  • Only select schools are supported and applicants must be within 2 years of graduating or about to begin a 1- or 2-year program.
  • Limited 10-year repayment term.
  • Applicants are required to start making interest payments 45 days after loan disbursement.

MPOWER student loan requirements

MPOWER offers private student loans to international students, DACA recipients, U.S. citizens, refugees and asylum-seekers. To be eligible, you must:

  • Be admitted to or enrolled in one of the U.S. schools supported by MPOWER.
  • Be an undergraduate or graduate student within two years of your expected graduation date.

To apply for a student loan refinance, you must:

  • Be a college graduate.
  • Have worked in the U.S. for at least three months after graduating.
  • Have a valid visa or be a DACA recipient, U.S. citizen, refugee or asylum-seeker.

Who is this loan good for?

MPOWER’s student loans are a good option for international and DACA students who are enrolled in a degree-seeking program in the U.S. and need financial assistance to pay for school. If you’re a U.S. citizen or a permanent resident, however, you might be better off looking into other options, as you could potentially find better terms and interest rates than those offered by MPOWER.

Interest rates, fees and discounts

MPOWER’s rates are higher than the industry average student loan rates. With most lenders, having a better credit score gets you a better rate and you may choose between a fixed and variable rate. MPOWER only offers a fixed annual percentage rate (APR). 

Loan product Variable rate Fixed rate
Undergraduate student loans N/A Starting at 13.98% APR
Graduate student loans N/A Starting at 13.98% APR
Student loan refinancing N/A Starting at 13.98% APR

The lowest rate on the table reflects a 0.25 percent rate discount for signing up for automatic payments.

Graduate and undergraduate loans have an origination fee of 5 percent of the loan amount. Refinance loans have a smaller origination fee of 2 percent. MPOWER also charges a late payment fee and a returned check fee, although these costs are not specified.

Repayment terms and grace period

All of MPOWER’s loans have a 10-year repayment term, which can be limiting, especially for current or former students who want to refinance.

Its grace period is also unconventional. You are not required to make any payments on the principal balance until six months after you graduate. However, MPOWER does require borrowers to start making interest payments 45 days after the loan is disbursed.

Other lenders allow you to choose between deferring your loans’ entire cost while in school, making small flat payments or making interest-only payments. For example, competitor Prodigy Finance allows full-time students to defer all payments while in school and for six months after graduation.

Customer service

MPOWER holds a 4.7 out of 5 stars rating on Trustpilot, with numerous reviews praising the company’s customer service and seamless loan application process.

The customer service department is open during “business hours.” You can contact customer service by submitting a form through MPOWER’s website or by phone.

How to apply for a loan with MPOWER

The application process is done online and takes about 30 minutes to complete. Before you begin, see if you are eligible to apply for a loan with MPOWER. 

Then, follow these steps to apply: 

MPOWER frequently asked questions

How Bankrate rates MPOWER

Overall Score 3.3
Repayment Options 3.0 MPOWER is widely available and has several types of loans, but its limited repayment options make it less ideal for borrowers who need flexibility.
Affordability 3.0 While not unreasonable for a lender that doesn’t require co-signers, MPOWER’s interest rates and fees are high compared to more traditional lenders.
Customer Experience 4.0 MPOWER does not specify its customer service hours but does make loan management easy with an online portal and discounts for automatic payments.

Methodology

The Bankrate team evaluated over 20 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.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.