If you received your MPOWER loan offer, also known as a Private Education Loan Approval Disclosure, don’t let it sit without a response. Your loan can’t be funded without your acceptance. We want to provide the information you need to make the best decision for you, so read on to get clarity.
A: Every student who receives our initial loan approval, also known as a Private Education Loan Approval Disclosure, must decline or accept the loan offer for the loan process to continue. Federal regulations require you to accept this disclosure in order to continue your loan application.
A: This can easily be done online in your dashboard. If you have questions on the loan approval disclosure, don’t wait until the last minute and risk having to start over — contact your relationship manager.
A: Some key items to consider include:
|Interest Rate||A yearly percentage of the borrowed amount that will be assessed as a cost of financing your loan.|
|Fixed Interest Rate||An interest rate that doesn’t change during the life of the loan. This is favorable in a rising rate environment.|
|Variable Interest Rate||An interest rate that adjusts during the life of the loan based on changes to the relevant market rate.|
|Total Loan Amount||The total amount you are borrowing.|
|Finance Charge||An estimated amount the credit will cost you. This includes the interest charged and loan fees paid during the life of the loan.|
|Annual Percentage Rate (APR)||The cost of your loan as a yearly rate including fees.|
|Origination Fee||A one-time cost — typically a percent of the amount financed. This fee isn’t paid up front or out of pocket; it’s added to the amount borrowed.|
|I-20||After you’ve been accepted into a U.S. school and paid the SEVIS fee, you will receive Form I-20. This form is required during the U.S. visa process.|
|Support Letter||A document that shows proof of funding.|
A: Your initial loan approval is not your loan contract — it’s simply an estimate of your loan terms. However, your loan can’t move forward without your acceptance of the loan terms.
A: The loan approval estimate is just that — an estimate. Keep in mind that you won’t start making payments until as specified by your school during the school certification process (if you plan to attend a U.S. school) and the funds are disbursed. While you are still in school, and for six months after graduation, you will pay interest-only payments on your loan. Two benefits of making payments while in school include:
A: Yes, you’re able to make payments that are higher than required so you can work toward paying off your loan early. Payments over the minimum amount will be applied to your principal balance and your regular payment will still be due the following month. If you pay off your loan early, you will not have a prepayment penalty or additional fee.
A: Interest rates can either be fixed or variable. When the rate is variable, it can change as frequently as monthly — including sharp increases that will increase your monthly repayment. Fixed interest rates do not change — you know exactly how much you’ll owe each month without having to worry about a rate spike. With MPOWER, you can always count on a fixed-rate loan.
A: There are three ways you can qualify for an interest rate discount!
DISCLAIMER – Subject to credit approval, loans are made by Bank of Lake Mills or MPOWER Financing, PBC. Bank of Lake Mills does not have an ownership interest in MPOWER Financing. Neither MPOWER Financing nor Bank of Lake Mills is affiliated with the school you attended or are attending. Bank of Lake Mills is Member FDIC. None of the information contained in this website constitutes a recommendation, solicitation or offer by MPOWER Financing or its affiliates to buy or sell any securities or other financial instruments or other assets or provide any investment advice or service.
2022 © MPOWER Financing, Public Benefit Corporation NMLS ID #1233542. 1101 Connecticut Ave NW Suite 900, Washington, DC 20036