Editorial Review

MPOWER Review: Private Student Loans for International Students

MPOWER offers hard-to-find student loans for international and DACA students.

Anna HelhoskiJanuary 16, 2020

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Our Take

4.5

NerdWallet rating 

The bottom line: MPOWER Financing is an online lender that offers student loans aimed at international students without a co-signer or U.S. credit history. Its private loan is best for international students and students with Deferred Action for Childhood Arrivals, or DACA, status.

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Full Review

MPOWER Private Student Loan

MPOWER Private Student Loan

Fixed APR

7.52 - 13.63%

Pros & Cons

Pros

  • Offers a hard-to-find option: non-co-signed student loans for international and DACA students.

  • Borrowers are assigned a dedicated student loan advisor.

  • Forbearance of 24 months is longer than many lenders offer, and borrowers can access national disaster forbearance as well.

Cons

  • Payment required while in school and during the grace period.

  • Offers only one repayment term: 10 years.

How does this loan compare?

Ascent Private Student Loan
Discover Private Student Loan
NerdWallet rating 
NerdWallet rating 
Check RateCheck Rate
Fixed APR

3.82 - 14.50%

Fixed APR

4.49 - 12.39%

Variable APR

2.71 - 12.99%

Variable APR

1.49 - 11.49%

Min. Credit Score

540

Min. Credit Score

Does not disclose

Find the Right Student Loan

Full Review

MPOWER Financing offers student loans for undergraduate juniors and seniors, as well as graduate students. MPOWER is best used as an option for international students and students with Deferred Action for Childhood Arrivals, or DACA, status.

U.S. students have access to federal student loans and can get private loans with better terms and more beneficial repayment options from other lenders. If you're a U.S. citizen in search of a lender, you can compare private student loans here.

MPOWER is one of the few lenders to offer loans to international and DACA students, who make up 90% of its borrowers. The company lends to students from 180 countries who attend college in the U.S.

Since most international borrowers do not have a U.S. credit history, MPOWER considers borrowers' earning potential as it makes underwriting decisions.

MPOWER at a glance

• Ideal for international and DACA students without a co-signer or U.S. credit history.

• Higher fixed interest rates and fees than other student loans.

• Interest-only payments required while in school and during the six-month grace period.

How MPOWER could improve

MPOWER could improve by offering additional programs such as:

• The option to fully pause payments while in school, rather than making interest payments each month.

• Eliminating its origination fee.

• Biweekly student loan payments via autopay.

MPOWER private student loan details

  • Soft credit check to qualify and see what rate you’ll get: Yes. Borrowers will be told what amount they’d be approved for the rate as long as their documents prove all the data they’ve already given.

  • Loan terms: 10 years.

  • Loan amounts: $2,001 minimum. $50,000 annual maximum limited to $25,000 per semester.

  • Application or origination fee: Yes; 5% origination fee added to the loan balance.

  • Prepayment penalty: No.

  • Late fees: Yes.

Compare MPOWER's range of interest rates with private student loan lenders. Your actual rate will depend on factors including your — or your co-signer's — credit history and financial situation. To see what rate MPOWER will offer you, apply on its website.

Financial

MPOWER considers dozens of data points, such as future income potential, to determine creditworthiness and make a lending decision. The company reviews credit history, but credit scores are not a factor in its decision since most international students do not have U.S. credit scores.

  • Minimum credit score: Credit score not considered.

  • Minimum income: Did not disclose.

  • Typical credit score of approved borrowers or co-signers: Credit not required.

  • Typical income of approved borrowers: Did not disclose.

  • Maximum debt-to-income ratio: Did not disclose.

  • Can qualify if you’ve filed for bankruptcy: Bankruptcy history not considered.

Other

  • Citizenship: International students must be from one of the 180 countries MPOWER works with. DACA students do not need a Social Security number to qualify.

  • Location: Available to international borrowers attending eligible colleges in all 50 states, Washington, D.C., and Puerto Rico.

  • Must be enrolled half-time or more: Yes.

  • Types of schools served: Borrowers must attend a four-year Title IV school that MPOWER works with.

  • Percentage of borrowers who have a co-signer: No co-signer required.

In-school

  • All MPOWER borrowers are required to make interest-only payments starting 45 days after loan funds have been disbursed.

    • Post-school

    All loans have a 10-year repayment term.

    • Grace period: 6 months. Interest-only payments are still required.

    • In-school deferment: Students enrolled at least half-time are eligible for up to 24 months of deferment while continuing to make interest-only payments.

    • Military deferment: Active-duty service members can defer payments for 24 months, in 12-month increments. Interest still accrues, but during the period of active service, interest on loans will be reduced to 6%.

    • Hardship forbearance: Available if you have a late payment or are about to miss a payment. Borrowers have a 24-month limit on forbearance, available in six-month increments. During forbearance, interest will continue to accrue on the loan.

    • Natural disaster forbearance: Available in three-month increments for borrowers affected by natural disasters, as confirmed by the Federal Emergency Management Agency. Interest still accrues.

    • Co-signer release available: No co-signer required.

    • Death or disability discharge available: Yes.

    Repayment preferences

    • Allows greater-than-minimum payments via autopay: Yes.

    • Allows biweekly payments via autopay: No.

    • Loan servicer: Nelnet.

    • In-house customer service team: Yes.

    • Process for escalating concerns: Yes.

    • Borrowers get assigned a dedicated banker, advisor or representative: Yes.

    • Average time from application to approval: 7 days.

    • Career coaching staff available.

    • Visa process assistance for preapproved borrowers.

    • Online tutoring: Borrowers can access Study Starter, which offers up to 120 minutes of live, online tutoring or step-by-step textbook problem solutions from Chegg.

    • Credit score tracking. Free quarterly FICO credit scores.

    • Autopay interest discount: 0.50%.

    • On-time payment discount: 0.50% discount for six consecutive on-time payments.

    • Proof of graduation and employment discount: 0.50%.

    How to apply for an MPOWER student loan

    Before taking out an MPOWER student loan or any other private student loan, exhaust your federal student loan options first. Submit the Free Application for Federal Student Aid, known as the FAFSA, to apply.

    » MORE: NerdWallet’s FAFSA Guide

    Compare your international student loan options to make sure you’re getting the best rate you qualify for. In addition to interest rates, look at lenders’ repayment alternatives and the flexibility they offer to borrowers who struggle to make payments.

    Student loan ratings methodology

    NerdWallet believes the best student loan is one you can repay at the lowest interest rate you can get. That's why NerdWallet’s student loan ratings reward lenders that offer a variety of loan terms, limit their fees and penalties, and extend borrowers multiple options to avoid default. Points are also awarded for soft credit checks, underwriting transparency and other consumer-friendly features. Use these ratings as a guide, but we encourage you to shop around for the lowest interest rate you can qualify for. NerdWallet does not receive compensation for its reviews. Read our editorial guidelines.