FAQWe're here to answer all your questions.
Do I qualify for a loan?
We make loans to students who demonstrate high career and academic potential, no established credit history or co-signer needed. Check to see if you’re eligible for a loan.
I’m an international student, am I eligible?
We lend to students from 180 countries who attend school in the U.S. Check to see if you’re eligible for a loan.
Do I need a credit score or co-signer?
No. We don’t look at your credit score and we don’t require a co-signer. Our loan decisions are based on your future earning potential.
What schools are eligible?
We lend to students at a variety of schools across the U.S. Check your school eligibility here.
I am a student in my first year of a 3- or 4-year program. Am I still eligible to apply?
At the moment, MPOWER only lends to students in the last 2 years of their program of study.
How much can I borrow?
Loans from MPOWER are between $1,800 and $25,000 per academic period for a maximum of $50,000, depending on eligibility.
What interest rate can I expect?
Our fixed interest rates range between 7.99% and 13.99%. You can receive a 0.25% rate discount by repaying your loan through automatic withdrawal, and an additional 0.25% discount for making 24 consecutive on-time payments.
Is the interest rate fixed for the life of the loan?
Yes. Your rate will never increase.
What can the loan be used for?
Our loans can be used for all university-related expenses, including but not limited to tuition, books, meal plans, housing, and health insurance.
How much time do I have to pay back the loan?
You can choose to pay back the loan over 3 or 10 years. While in school, you make small touch payments, which allow you to build your credit history. Larger payments on your loan start after you graduate.
How much will I pay monthly while I’m in school?
Payment sample 1: small payments for a $1,800 loan at 7.99% and a 3-year term
$13.32 per month (including origination fee)
Payment sample 2: small payments for a $15,000 loan at 11.99% and a 10-year term
$157.37 per month (including origination fee)
Important disclaimer: Examples provided are estimates. To find out more about your specific rate and loan repayment period, please check your eligibility.
Is there a pre-payment penalty?
No. If you decide to repay part or all of your loan ahead of schedule, there is no penalty.
Are there any fees associated with getting the loan?
There is no fee to apply for a loan. If you are approved and choose to proceed with the loan, a 5.0% origination fee will be added to your loan total. This one-time fee is added to your loan balance and must be repaid over the term of your loan. You are not required to pay this fee upfront. Instead, you pay it back with your monthly loan payments.
What is an origination fee?
Origination fees are a common loan fee. It covers the cost of processing your loan and having the funds disbursed.
What documents should I have prepared when applying?
Typically, we require a combination of the following documents:
Resume – be sure to include your contact information, prior school and employment history
Past university transcripts – these documents must include your name, the name of the school, dates attended and grades received
Current university transcripts or admission letter from the school you’ll be attending
Standardized entrance exam scores or waiver note – this includes the GRE, GMAT, LSAT, MCAT, TOEFL, IELTS; submissions should include your name and the test score
Most recent university invoice or a university financial summary – the invoice should be dated within 30 days and must include your name and the name of the university. If you are just beginning your program, a list of fees from the university is acceptable.
Employment letter or pay stub – this document should include your name, your employer’s name and salary information
Address verification – provide verification of your US address. We can accept a utility bill, a copy of your lease, a letter from your school, etc.
Identification verification – provide a copy of the following identification documents, as applicable:
US Citizen: valid US passport or birth certificate AND your driver’s license
Permanent Resident: valid passport from country of origin AND proof of permanent residency
International Student: valid passport from country of origin AND valid US Visa AND National ID card from country of origin
Credit report (We do not require a credit score but we do like to be aware of outstanding loans and repayment history. You can obtain free reports at www.creditkarma.com and www.freecreditreport.com.) You should be able to pull a credit report if you have lived in the US for 12 months or longer OR you have been employed in the US for any duration.
I-20 or Financial Plan (click here for template) – ensure that your name, country of origin, university name and program start and end dates are keyed correctly on the I-20 form; you must also provide support documents for all referenced expenses and funds noted on either form; document examples are as follows:
Personal savings: most recent bank statements
Family savings: family member’s most recent bank statements AND signed and dated intent letter confirming that they will be supporting you financially thru the completion of your studies
Scholarship: award letter
Income related: pay stubs / tax return / job offer letter
Loan related: detailed loan statement that includes balance, term, payments and interest rate
Please ensure that your name is on all submitted documentation.
What is the status of my application?
Submitted applications are reviewed within 3 business days. Eligible applicants will be contacted by an MPOWER loan agent to review loan details, answer questions and clarify any additional information needed by MPOWER to make a credit decision. Once the application is validated by MPOWER as “complete,” our credit team will provide a loan decision within 5 business days. See our Borrow Page for more information.
My school's payment deadline is approaching, can you expedite the loan process?
We take great care in assessing each student’s application and work speedily to provide funding to our borrowers. If your payment deadline is approaching and you feel that your funds will not reach the university in time, reach out to your university’s financial aid office to see if you can extend your deadline. If your MPOWER application has been approved and your loan documents are in the process of being finalized, most universities will allow for an extension.
Approval and Servicing
What happens after I submit my application?
We contact you within 3 business days to validate your application. We will conduct a short (15-minute) introductory call with you to go over your application, make sure we have all the information we need, and answer any questions you may have. It then takes our credit team an additional 5 business days to issue a loan decision. Upon a conditional approval, our loan processing team will work with you and your school to confirm your information and to provide the final loan documentation for you to e-sign. The entire loan process can take approximately 1 to 3 weeks.
How long until the loan is disbursed to my school?
The disbursement dates are set up by your school electronically in accordance with MPOWER’s rules. You may check the status of your loan in real time on our online borrower portal.
How is the loan disbursed?
MPOWER disburses funds directly to your university. There is no additional effort required from your end to send the money to your school.
When will I start repaying the loan?
To help build your U.S. credit history and to avoid accumulating interest, you start making small payments while in school.
What payment methods can I use to repay my loan?
Our auto-withdrawal option allows you to make on-time monthly payments directly from your U.S. bank account. This option also reduces your interest rate by 0.25%. You may also pay directly on our online payment portal, mail us a check, or make an international money transfer to us.
What type of job support do you provide?
We’re no substitute for your school’s career services or alumni network, but our career coaching staff is available to review your resume, help you practice your interview skills, and connect you with our network of professionals in a variety of different fields.
Can I apply for an MPOWER loan before I'm accepted into a school?
In order to be eligible for a loan and to proceed with your application, you must have been accepted into the school for which you are requesting funds. For support in your college application process, please consider some of the options below:
- Mentorverse: Expert mentors who provide one-on-one help for international students applying to U.S. colleges
- Globalizers: India-based education consulting firm
- MBA Catalyst: MBA admissions consulting firm with strong personal focus
- Athletes USA: Matches American and international athletes with sports scholarships. Use referral code “MPOWER”
Can I find out my interest rate before I apply?
All circumstances are unique. In order to truly understand your potential and accurately calculate your rate, we’ll need to look over your submitted application. If you submit an application and find that you no longer wish to take out a loan with MPOWER, you can turn down the terms at no cost.
Is my interest rate reduced if someone can co-sign?
Having an available co-signer will not affect the interest rate you receive. Our loan process was created so students wouldn’t have to worry about having a co-signer or credit score. Several options are in place to help you lower your rate, from our auto-withdrawal payment option (0.25% rate discount) to our on-time payment discount (0.25% discount for 24 consecutive on-time payments). You can receive a total discount of 0.5% on your interest rate.
I have already taken out a loan from another company. Can I use an MPOWER loan to repay my current loan?
Not at this time. Loans from MPOWER are disbursed directly to the university to pay for university-related expenses.
What do you mean by automatic withdrawal?
Automatic withdrawal, or auto-ACH, is the electronic method we use to collect payments from our borrowers on a recurring basis. You provide us with your U.S. bank account information through our secure portal, and when it’s time to pay your loan, your bank will automatically transfer the money to us. You’ll see these withdrawals reflected in your bank statements.
I’m not sure how much I need to borrow. What’s an appropriate loan amount to request?
If you are unsure of the loan size that will be needed to cover the cost of your education, we suggest that you request the maximum amount of $25,000. During the application process, you will have the opportunity to decrease the amount of funds initially requested. For example, if you initially applied for $25,000, but then realize that you only need $10,000, your loan amount can be reduced. However, If you apply for a smaller loan and want to increase the amount later in the process, you may be required to fill out a new application as our credit analytics team will need to re-review your application.
If I apply for $25,000 but my university only requires $10,000, do I pay for the whole loan?
MPOWER certifies your outstanding expenses with the university and only disburses the amount required to pay your balance. You only pay back the amount that was disbursed.
Can MPOWER help with the visa process?
Upon request, and after pre-approval, MPOWER can issue a pre-approval letter to support you in the visa process.
Do you have an office in India?
Yes. We have an office in New Delhi, India. If you have any questions you can email our office there at firstname.lastname@example.org or call +1-202-930-4116.
How do I make payments if I go back to my country after school?
We accept payments made from your U.S. bank account. We can continue to withdraw automatically from this account as long as it remains open and has sufficient funds. You may also pay directly on our online payment portal, or make an international money transfer to us. Things are moving quickly at MPOWER and we’re working on having more options available to all students.
For additional questions simply send us a message through chat or by email