FAQWe're here to answer all your questions.
Do I qualify for a loan?
We make loans to students demonstrating high career and academic potential who have 2 years or less of school remaining before graduation. 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 college in the U.S. Check to see if you’re eligible for a loan.
Do I need a credit score or co-signer?
Because our loan decisions are based on your future potential, we do not require a co-signer. And, while we do not require a credit score, we do need to review your detailed credit report to verify payment history and good standing.
What schools are eligible?
MPOWER partners with a variety of schools across the U.S. – and that list continues to grow! Be sure to follow us on social media for updates. Check to see if you’re eligible for a loan.
I am a student in my first year of a 3 or 4 year program. Am I still eligible to apply?
At this time, MPOWER only lends to students in the last 2 years of their program of study.
What is a credit report and what information can I find in it?
Your credit report is a living record of your credit activity and financial history as reported to credit bureaus by your creditors. This includes information such as the total credit that is available to you, the utilization of that credit, lender information, and your payment history. You may also see public records such as tax liens, collection accounts, and information regarding which lenders have accessed your credit history for various purposes such as potentially extending new credit.
Who are the main credit bureaus in the U.S.?
The three national credit bureaus are Experian, TransUnion, and Equifax. In addition, there are a number of smaller, regional credit bureaus that collect and provide credit information.
What is a credit score and how is it determined?
A credit score is a numerical value calculated using the information in your credit file. This score is a numeric reflection of your current ability and willingness to repay your debts and is derived in large part from your history of paying debts and other bills.
Generally speaking, banks and other loan organizations work under the assumption that the higher your credit score, the lower the risk associated with lending money to you. There are multiple credit scores available in the market. Perhaps the most prominent score used by lenders is the FICO(™) credit score provided by Fair Issac Corporation. Examples of other scores are BEACON (Equifax) and EMPIRICA (TransUnion).
Why do you need a credit history?
Your credit history and credit score are the means by which most lenders judge your repayment reliability and trustworthiness. Not having a credit history makes it very difficult for them to evaluate your creditworthiness – which in turn usually means less credit available to you and at higher rates. Having a positive credit and payment history means that you will likely have greater access to more credit at a lower cost.
How does MPOWER pulling my credit report affect my credit score and history?
Any potential lender that pulls your credit information, including MPOWER, will show up as an inquiry on your credit report. As part of that inquiry, there may be a slight lowering of your overall credit score. This impact is temporary, though it can take several months for your score to bounce back up. The U.S. credit bureaus (Experian, TransUnion, and Equifax) can also see if you are rate shopping when you apply for several different student loans during a 30-day period of time. Typically, multiple inquiries in a short amount of time are treated as a single inquiry and will have a relatively small impact on your score. You can learn more about how multiple inquiries affect credit scores by visiting the credit bureaus’ websites. MPOWER obtains U.S. credit information from TransUnion, and the company’s FAQs can be found at https://www.transunion.com/credit-report.
How can I get a copy of my credit report?
If you have a U.S. credit history, you are entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies (Experian, TransUnion, and Equifax). You can obtain a copy of your credit report by visiting www.annualcreditreport.com, the only authorized website for free credit reports, or by calling 877-322-8228.
If you have been declined for credit by MPOWER (or any other lender), you may also request to see a copy of the credit report the company received from the credit bureau. To receive a free copy of this credit report you must contact the credit bureau directly within 60 days of being declined.
How does MPOWER help me build my credit?
MPOWER reports your loan balance and monthly payment history to the U.S. credit bureaus (Experian, TransUnion, and Equifax) each month. Showing a positive payment history allows you to build a solid U.S. credit history. Other creditors can see this information when they pull your credit history and this enables them to make decisions regarding your creditworthiness.
When can I expect to see my MPOWER loan on my credit report?
It can take several months for your MPOWER loan and payment history to show up on your U.S. credit report. Though the U.S. credit bureaus (Experian, TransUnion, and Equifax) can see your information fairly quickly, it can take a few months for them to update your credit file with your new MPOWER account.
How much can I borrow?
Currently, the maximum an individual can borrow from MPOWER is $50,000.00. This is limited to $25,000.00 for each academic period.
Please note that each application is reviewed independently of the other.
What interest rate can I expect?
Our fixed interest rates range between 7.99% (8.89% APR¹) and 13.99% (14.97% APR¹). You can receive a 0.50% rate discount by repaying your loan through automatic withdrawal, an additional 0.50% discount for making 6 consecutive on-time payments while repaying your loan through automatic withdrawal, and another 0.50% discount for reporting proof of graduation and employment. If you qualify for all these discounts, your rate will range between 6.49% (7.53% APR²) and 12.49% (13.63% APR²).
¹The APR is calculated using the following assumptions: A loan is approved in the amount of $10,000 with a 5% origination fee of $500. The student will start making payments 45 days after loan disbursement. Payments will be interest only till graduation plus an additional 6 month grace period. The remaining months of repayment are calculated using a 120-month amortization schedule. All payments are made on-time, a forbearance is never utilized, and there is no pre-payment of any principal.
At an APR of 8.89%, your monthly payment amount is $69.91 for the first 14 months. For the next 119 months, your monthly payment amount is $127.34. The 134th payment is $127.09.
At an APR of 14.98%, your monthly payment amount is $122.41. For the next 119 months, your monthly payment amount is $162.97. The 134th payment is $162.13.
²The APRs with discounts are calculated using the following assumptions: A loan is approved in the amount of $10,000 with a 5% origination fee of $500. The student will start making payments 45 days after loan disbursement. Borrower signs up for auto debit immediately after the loan is disbursed and remains on it for the life of the loan, which reduces the rate by 0.50%. The first 6 payments are made on time, which allows the borrower to earn another 0.50% discount from the 7th payment onward. This discount continues for the life of the loan due to all payments being made on time. 6 months after graduating the borrower provides proof of employment, which further reduces interest rate by 0.50% from the 7th payment after graduation onward. A forbearance is never utilized and there is no prepayment of any principal.
At an APR of 7.53%, the monthly payment is $65.65 for the first 6 months. For the next 8 payments, the monthly amount is $61.16. For the last 120 payments, the monthly amount is $119.17.
At an APR of 13.63%, the monthly payment is $118.04 for the first 6 months. For the next 8 payments, the monthly amount is $113.66. For the last 120 payments, the monthly amount is $153.63.
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 will make small, interest-only payments in school and after graduation during the 6 month grace period. Loan repayment term is 10 years and starts after the grace period ends.
How much will I pay monthly while I’m in school?
Payment sample if you qualify for discounts: For a loan amount of $10,000 at an interest rate of 11.99% (11.60% APR¹). Your monthly interest-only payment is $100.54 for the first 6 months and $96.16 for the next 8 months. You are required to make this interest-only payment during your in-school period as well as the 6 month grace period post-graduation. After the grace period ends, you are required to make interest and principal payments of $141.62 for the next 120 months.
¹The APR is calculated using the following assumptions: A loan is approved in the amount of $10,000 with a 5% origination fee of $500. Borrower signs up for auto debit immediately after the loan is disbursed and remains on it for the life of the loan, which reduces the rate by 0.50%. The first 6 payments are made on time, which allows the borrower to earn another 0.50% discount from the 7th payment onward. This discount continues for the life of the loan due to all payments being made on time. 6 months after graduating the borrower provides proof of employment, which further reduces interest rate by 0.50% from the 7th payment after graduation onward. A forbearance is never utilized and there is no prepayment of any principal.
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 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 SAT and ACT for undergraduate applicants; GRE, GMAT, LSAT or MCAT for graduate applicants; TOEFL or IELTS for international applicants; 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 U.S. 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:
U.S. Citizen: valid U.S. 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 U.S. Visa AND National ID card from country of origin. If you do not have a National ID, please provide a second form of photo ID.
I-20 or Financial Plan (click here for template) – If your I-20 is not yet available or you are a U.S. Citizen, please complete the Financial Plan. The template helps us see what your expenses are and how they will be covered. The top section of the form is for your expenses – tuition, housing, meals, etc. The bottom section is for income related items. For each item you reference in the income section, we will need to see supporting documentation. Here are some examples:
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 through the duration 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 happens after I submit my application?
Completed applications are reviewed within 3 to 5 business days. Eligible applicants will be sent an informational video upon submission and will be contacted by a Customer Success Analyst shortly thereafter. Our Customer Success Analysts will ensure your application is complete and answer any questions you may have. Once your application is finalized and moved into credit review, it can take our credit team 5 to 7 business days to issue a loan decision. Upon conditional approval, our processing team will work with you and your school to confirm your enrollment and loan amount and provide loan documentation for you to e-sign. The entire loan process can take approximately 6 weeks.
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
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?
In-school interest only payments will begin 45 days after loan funds have been disbursed. Making consistent on-time payments will help build your U.S. credit history and will avoid the accumulation of interest.
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 0.50%. We can also accept payment online through our payment portal, via the phone, via check through U.S. mail and even international money transfers.
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.
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 (0.50% rate discount) to our on-time payment discount (0.50% discount for 6 consecutive on-time payments) to proof of graduation and employment (0.50% rate discount). You can receive a total discount of 1.50% 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.
What type of job support do you provide?
While we’re no substitute for your school’s career services or alumni network, 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 MPOWER help with the visa process?
Upon request, and after pre-approval, MPOWER can issue a support letter to assist 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 email@example.com or call (202)417-3800.
For additional questions simply send us a message through chat or by email