MPOWER Financing Names Banking and Fintech Veteran Anand Cavale Chief Growth Officer

Former Citi, SoFi Executive to build on MPOWER’s continued exponential growth 

WASHINGTON, D.C., August 8, 2023 — MPOWER Financing (“MPOWER”), a mission-driven fintech firm and leading provider of non-cosigned loans to promising students from around the world, today announced that Anand Cavale has joined as Chief Growth Officer.

Cavale’s hiring comes on the heels of another year of exponential growth in loan volume for the company, and as MPOWER expands its suite of products and services for students from around the world pursuing higher education in the United States and Canada.

“Anand led several business lines across the world over a nearly 30-year career at Citigroup, and then led student lending at SoFi. He is exactly the leader MPOWER needs to manage the exponential growth we continue to see in our international student loan business, while building the foundation for MPOWER to add more financial products and ultimately become a Neobank for global citizens in the long run,” said Manu Smadja, CEO and Co-founder of MPOWER. “His deep experience leveraging emerging technologies at leading banking and fintech organizations will be invaluable as we continue our rapid growth, develop new financial products, and achieve our mission of making socioeconomic mobility accessible to millions of international students in North America.”  

Cavale has more than 30 years of leadership experience across fintech, lending, payments, and banking in the U.S and Asia-Pacific. Prior to MPOWER, he was Business Head & General Manager at SoFi, where he served on the Executive Team and oversaw SoFi’s Student Loan and Personal Loans business. He spent the bulk of his career at Citibank, where he held several leadership positions, including Business and Country Head of credit card payments at Citibank Singapore; Managing Director and Country Head of cards and consumer lending at Citibank Malaysia; Senior Vice President of international cards; and Managing Director and Business Head of Citibank’s $6.5 billion U.S. consumer lending businesses. Cavale earned a bachelor’s degree in engineering from Bangalore University and Master of Business Administration from St. John’s University. 

“As an international student myself from India, I know what a critical difference a great education can make,” said Cavale. “And as General Manager for student lending at SoFi, I know from first-hand experience that a Neobank can be built from a successful single line of business to a diversified set of products for the same market segment. I’m excited to put my experience to work to support MPOWER’s next phase of growth as we continue to create a pathway to success for international students in the U.S. and Canada.”

Cavale’s hiring comes on the heels of a $150 million revolving asset-backed warehouse facility with Goldman Sachs as MPOWER taps the capital markets again to meet growing demand. 

 

About MPOWER Financing

MPOWER Financing, headquartered in Washington, D.C. and Bengaluru, India, is a mission-driven fintech company and the leading provider of global education loans. Its proprietary algorithm analyzes overseas and domestic credit data as well as the future earning potential to serve promising international and DACA students. MPOWER works with over 500 top universities across the U.S. and Canada to provide financing to students from over 200 countries. The MPOWER team consists of former international students and provides students with personal financial education and career support to prepare them for life after school.

MPOWER is a Certified Great Place To Work, one of the best fintechs to work for, and the best tech workplace for diversity. The company is hiring for various positions worldwide.

 

MPOWER Financing Completes B Corporation™ Certification

This milestone reflects MPOWER’s continued commitment to socio-economic mobility for bright minds across the globe 

WASHINGTON, DC – August 15, 2023 – MPOWER Financing (“MPOWER”), a mission-driven fintech firm and a leading provider of scholarships and no-cosigner loans to promising students from around the world, announced today that it has completed a 2-year process to become a Certified B Corporation™ (“B Corp“), another key milestone in its long-term commitment to making a positive social impact on a global scale.

Certified B Corps are leaders in the worldwide movement to drive an inclusive, equitable, and regenerative economy, according to B Lab, the nonprofit organization that verifies and credentials B Corp applicants. B Lab performed a comprehensive review of MPOWER’s social and environmental policies and processes across five categories: governance, workers, community, environment and customers. Notable B Corps include Patagonia, Toms Shoes, Etsy, and Ben & Jerry’s on the retail side, Laureate Education and Coursera in the Education space, and Lemonade Insurance and Aspiration Bank in financial services.

“This certification is a testament to MPOWER’s continued commitment to democratizing access to education for millions of promising students from around the world,” said Manu Smadja, CEO and Co-Founder of MPOWER Financing. “We were incorporated in Delaware as a Public Benefit Corporation (PBC) nearly a decade ago, we’ve been GIIRS-rated multiple years, we measure and publish our impact according to UN metrics yearly, and we continue to positively change the lives of bright minds around the world with each and every loan we make. We’re impacting 10,000 students this year alone.”

MPOWER publishes an annual Social Impact Report that analyzes the role that its financing plays in helping international students obtain a high-quality education and the many positive outcomes these students achieve when they are empowered to follow their dreams. As one MPOWER student recently wrote, “Many brilliant students can see their dreams of studying abroad become a reality thanks to [MPOWER’s] support.” The report also serves to encourage higher-education institutions, policymakers, and the private sector to collectively further remove barriers that these students face when pursuing higher education.

The B certification comes on top of several other impact distinctions that MPOWER received this year, including being a Certified Great Place to Work, topping the Washington Business Journal’s Corporate Diversity Index, and Fintech Futures Banking For Good. 

 

About MPOWER Financing

MPOWER Financing, co-headquartered in Washington, D.C. and Bengaluru, India, is a mission-driven fintech company and the leading provider of global education loans. Its proprietary algorithm analyzes overseas and domestic credit data as well as the future earning potential to serve promising international and DACA students. MPOWER works with over 500 top universities across the U.S. and Canada to provide financing to students from over 200 countries. The MPOWER team consists of former international students and provides students with personal financial education and career support to prepare them for life after school.

MPOWER is a Certified B Corp and Great Place To Work, one of the best fintechs to work for, and the best tech workplace for diversity. The company is hiring for positions worldwide.

3 Benefits of a Fixed-rate Loan for International Students

As an international student preparing for study abroad in the U.S. or another country, you may have to get a loan to fund your college education.  When shopping for student loans, you’ll have the option to choose a variable- or fixed-rate loan.  

Although variable rates have advantages, a fixed interest rate offers more financial security. Here are a few key reasons to want a loan at a fixed rate. 

3 benefits of a fixed-rate student loan

1. Your interest rate never changes 

One of the main benefits of a fixed-rate loan is that the interest rate doesn’t change at all. The total amount you’ll pay toward your student loan is clear from day one. Your unpaid balance is also always charged at the same interest rate while repaying your loan. Even if economic conditions change, the rate on your loan remains the same.

2. Monthly payment amount stays the same

Since fixed rates are static, you can also expect a fixed monthly payment. Having the same payment amount is convenient when budgeting your money.

As a fixed-rate loan borrower, you don’t have to worry about your student loan payment increasing unexpectedly like you would, with a variable-rate loan. Having a predictable payment amount makes it easier to budget for other necessities that experience price swings, like gas or groceries.

3. Lock in an interest rate when market interest rates are rising

Locking in a fixed-rate student loan when the interest rate environment is low means you’ll limit the amount you pay in interest over the course of the loan.

A lot can happen in an economy over a repayment period of five, seven or 10 years. If market rates increase over a long period, you’ll have peace of mind knowing you’re reducing the cost of your overall education debt.

When it makes sense to choose a fixed-rate loan

Certain scenarios and personal preferences can make a fixed-rate student loan for study abroad a wise option:

• If you need a long repayment term. The longer your loan term, the higher the risk of market rates shifting. A fixed rate in this situation keeps your rate consistent despite uncertain economic conditions.

• If you don’t like taking risks outside of your control. Fixed-rate loans have zero risk of sudden and unexpected interest rate fluctuations. If regular changes in your financial budget make you uneasy, a fixed interest rate is ideal.

Is a fixed-rate international student loan right for you?

To truly gauge whether the advantages of fixed-rate loans are worth it for you, examine your financial stability. Then, ask yourself how comfortable you are with potential changes to your monthly loan payment and budget. 

If you don’t like surprises when it comes to your student loans, consider a fixed-rate international student loan.

FAQs about fixed-rate loans

What are the advantages of a fixed-rate loan for international students?

Student loans with fixed interest rates make borrowing costs and monthly payments predictable for borrowers. It’s a safe option for those who worry about rising market rates and who prefer a predictable budget.

How does a fixed-rate student loan work?

When taking a fixed-rate student loan for study abroad, the interest rate remains the same for the life of the loan. Regardless of economic conditions, or the lender’s general rate changes, your loan’s rate will never change. As a result, your monthly payment stays the same for the whole term.

Can I pay a fixed-rate loan early?

For some U.S. lenders, you can pay a fixed-rate loan early without issues. However, the rules might vary for loans borrowed from non-U.S. lenders. Always check your student loan agreement to confirm whether your lender charges prepayment penalties before proceeding.

 

6 Tips to Prepare for Studying Abroad in Canada

Canada is a top choice for international students looking to study abroad, and foreign enrollment in the country has skyrocketed. If you’re thinking of studying in Canada, making a list of what you have to do once you arrive will ensure your experience starts strong. 

6 tips to help you prepare for college in Canada

Adapting to a new country and culture can be daunting. But by using these six tips, the transition to living and studying in Canada will be much easier: 

1. Explore your school’s services

According to Immigration, Refugees and Citizenship Canada, 807,750 foreign students had active study visas in Canada in 2022 – a 31 percent percent increase from the number of students in the previous year. With this many international students accepted to Canadian schools, it’s not surprising that schools have entire departments dedicated to helping students adjust to their new environments. Contact your university’s international student office to find out what services are available. Common programs include:

• Clubs: You can join clubs that are specifically designed for international students. These clubs give you a chance to connect with students going through the same experience as you, and the other members can provide advice on the culture and your coursework.
  

• Cultural activities: Schools frequently plan cultural activities for students, such as trips to the theater or local museums or on-campus concerts. These events are typically free or available at a discounted rate for students.
  

• Language classes: Some colleges have language groups or classes for international students. These programs give you a chance to practice your language skills outside of the classroom.
  

• Counseling: Adjusting to life in another country can be challenging. If you’re feeling stressed or anxious, you can visit your campus counseling center to talk to a therapist. 

2. Think about health care

Canada is unique in that its provinces and territories have different healthcare policies. In some areas, international students are eligible for free healthcare if they meet certain residency requirements, but others do not extend eligibility to international students. 

In some cases, you may have to purchase your own health insurance policy, since universities often require it for all students. Your school’s international student center may be able to recommend an insurance company or may even have an insurance partner that issues policies. 

Many campuses have their own health clinics, and you may be able to use telehealth services to get nonurgent care without leaving your dorm. 

3. Open a Canadian bank account

As a student in Canada, you’ll need to open a Canadian bank account. At a minimum, you’ll need a checking account so you can pay your bills and withdraw cash for expenses, but it may be a good idea to also open a savings account to set aside money for emergencies. 

When researching your banking options, look for a bank or credit union with ATMs either on campus or nearby so you can avoid added ATM fees when you withdraw cash. Some colleges have partnerships with banks or credit unions, so your school may be able to refer you to financial institutions.

TD* is a leading bank for international students and offers the TD International Student Banking Package, which includes specific services to help international students manage their finances in Canada. Students are eligible for checking and savings accounts with no monthly fees (see terms). If you’re looking to build credit, the TD Cash Back Visa card can help you accomplish this through timely payments, and will allow you to earn cash back on everyday purchases like groceries and gas. TD’s extensive ATM network and mobile banking app also makes it easy to manage your money from anywhere. Connect with a TD banking consultant to learn more. 

To open a bank account as an international student, you’ll need to visit a branch and provide your passport, your university letter of acceptance and your study permit.

A Canadian bank account will make your life easier in managing your day to day finances and is the first step on building your credit profile in Canada which will help you over time.  

4. Prepare for the weather

Canada’s weather can come as a shock to many students. Summers in the country can be quite warm, but the winters can be especially brutal. Temperatures can be extremely cold, and heavy snow is common. 

You may find your clothing isn’t appropriate for Canada’s weather. Before you go shopping and spend lots of money on new items, find out if your college has a thrift shop or a low-cost student supply store. Or you may be able to shop at a local thrift store like Goodwill or Value Village. By shopping at thrift stores, you could get the coats, gloves and other items you need for much less than if you bought them at major retailers. 

5. Consider working part time

In Canada, international students can work part time when they start their study programs. Getting a part-time job can be an excellent way to earn money while you’re in school to cover your day-to-day expenses and reduce the amount of money you need to borrow. In Canada, international students can work up to 20 hours per week while class is in session. 

On-campus work

Many colleges hire students to work on campus, and you can do so without a work permit if you meet certain requirements. Each province may have different criteria, so you’ll need to check with your school to see if you’re eligible. 

Off-campus work

If you are eligible for work while in school, it will say so in the conditions of your study permit. If eligible, you can work for employers beyond your college if your study program has already started. 

You can work off campus without a work permit if you meet the following requirements: 

• You’re a full-time student at a designated learning institution.
• You’re enrolled in a qualifying postsecondary program.
• Your study program is at least six months long and leads to a degree, diploma or certificate.
• You have a Social Insurance Number. 

6. Explore financial aid and private loans

Studying in another country can be expensive, and Canada has a fairly high cost of living. If you need additional help finding international student funding, contact your school financial aid office. The financial aid representatives may be able to recommend certain scholarships to you, and you may be able to search for additional opportunities on your own. Useful tools to find potential financial aid include the following:

• International Education Financial Aid (IEFA).
• EduCanada.
• UnivCan.

You may also be eligible for private student loans designed for international students. With international student loans, you can borrow enough money to cover up to 100 percent of your tuition. 

Financing your education with a private loan

Studying in Canada can be an excellent opportunity for you to reach your academic and personal goals. You’ll get a chance to attend top-notch schools, develop your language skills and learn about different cultures. 

If you need help securing international student funding, check out MPOWER Financing’s student loan options. MPOWER provides loans to students attending more than 500 eligible schools in Canada and the United States, and you don’t need a cosigner to qualify for a loan. Get answers to all your international student loan questions in our international student loan FAQ.

Apply Now

Preparing to study abroad in Canada

Studying abroad in Canada can be an excellent way to explore the customs and culture of another country while working toward your degree. Although adjusting to school in another country can be challenging, preparing ahead of time can make the transition much smoother. By researching your financial aid options, thinking about work opportunities and ensuring you have appropriate healthcare coverage, you will be ready for the upcoming semester. 

*TD is a partner of MPOWER Financing

7 Science Scholarships for Women

Women have long been underrepresented in science, technology, engineering and math (STEM) fields. To combat this inequity, a variety of organizations now offer STEM scholarships for women who want to study and launch their careers in these fields. 

Scholarships can help cover your cost of attending college or graduate school so you can earn your degree without having to take on a burdensome amount of debt in the process. Read on to learn more about women-in-STEM scholarships, along with seven specific science scholarship opportunities. 

Women in STEM fields

While women’s involvement in STEM fields is growing, it still seriously lags behind men’s. According to the National Girls Collaborative (NGC) Project, women make up only 34 percent of the workforce in STEM fields. Only 16 percent of engineers are women, and just 26 percent of computer and mathematical occupations are held by women. 

According to the American Association of University Women, girls are “systematically tracked away from STEM fields throughout their education,” making it more difficult to access these fields as adults. But here’s the good news: If you’re looking to study STEM in college, there are a number of women-in-STEM scholarships available to help cover the costs of your degree.

Earning one or more of these science-related scholarships for female students can help you gain the education and experience you’re passionate about and eventually help you move into a career in a scientific field. 

Science scholarships for females students

There are several science scholarships for female students that women from around the world can apply for. Here are the details. 

1. Science Ambassador Scholarship

This full-tuition women-in-STEM scholarship in science is funded by the game Cards Against Humanity and is open to high school seniors and undergraduate students from anywhere in the world. All the proceeds from the sale of the company’s Science Pack expansion set go toward the scholarship fund, which is worth more than US$1 million. Applicants are required to submit a three-minute video of themselves talking about the area of study they want to pursue and why they’re passionate about it.

2. MPOWER’s Women in STEM Scholarship

At MPOWER, we’re committed to helping women from around the world get their education in science and other STEM fields. Three STEM scholarships for female students are awarded each year to women who are international or DACA students pursuing a STEM degree program. Students must be enrolled in an eligible school in the U.S. or Canada.

3. Amelia Earhart Fellowship

This scholarship is funded by Zonta International and is geared toward women who want to pursue a Ph.D. degree in aerospace science and engineering. It’s named after the famous female pilot Amelia Earhart, the first woman pilot to make a solo flight across the Atlantic Ocean. The fellowship is worth US$10,000 and is awarded to as many as 30 women from across the globe each year.

4. Graduate Women in Science (GWIS) Fellowship Program

The GWIS fellowship offers scholarships to women from all over the world who are pursuing their graduate degree in science. In particular, this scholarship supports women who are interested in research, primarily in the natural sciences and hypothesis-driven work. The scholarship is up to US$10,000 and is awarded annually.

5. Girls in STEM (GIS) Scholarship Award

This is a US$500 scholarship awarded annually to women who are pursuing their undergraduate degree in science and other STEM programs. Students must be enrolled in their school of choice.

6. Faculty for the Future

The Faculty for the Future scholarship is offered by the Schlumberger Foundation. It’s awarded annually to women who are from a developing country and are pursuing a Ph.D. or doctoral degree in science or another STEM-related program. The scholarship is awarded based on academic ability, involvement in STEM outreach activities and leadership qualities.

7. Women in Technology Scholarship

Sponsored by Visionary Integration Professionals (VIP), this scholarship awards up to US$2,500 to female students majoring in computer science, information technology (IT) or another IT-related major. Along with reviewing your essays, transcript and other information, the scholarship committee also looks for creativity, initiative and leadership skills. 

 

Get a Scholarship to Launch Your Future Science Career

If you’re a woman looking to pursue an education in the U.S. so you can enter into a career in a science-related field, these science scholarships for female students will help make that possible. It’s important to research the eligibility requirements of each scholarship, which vary from one organization to another. Fulfilling all the criteria and applying early will help improve your chances of earning a scholarship for women in science.

 

For more information on scholarships for women pursuing STEM fields, visit our Women in Stem Scholarship web page.

5 Tips for Preparing to Study Abroad in the United States

Whether you’re coming to the United States for a single semester or the entirety of your college program, studying in the USA can be an incredible experience. Having a plan for what to do upon arrival can help make the transition much easier and set you up for success for the rest of the semester. 

5 tips to prepare you for college in the United States

Going to college in another country can be daunting. But these tips will ensure you’re ready for the academic year: 

1. Create a budget

You may be surprised by how expensive things can be in the United States, especially if you’re coming from a country with a lower cost of living. Creating a budget will help you manage your expenses and set aside money for fun activities, such as sightseeing in your new city or souvenirs to send home. 

Designing a budget is simple:

• List your sources of income: As a college student, your income is likely from international student funding, such as student loans, grants or scholarships. Or you may draw on savings or money from your family. Any money that you will use for your expenses during the academic year should be included in this category. Divide that amount by the number of months in the academic year to determine your monthly income.
• Think about your expenses: Next, list all of your monthly expenses. This category isn’t just your tuition and fees but also your textbooks, groceries, transportation and entertainment.
• Look for areas where you can reduce your spending: If your income doesn’t cover all of your expenses or if you’re just breaking even, reducing your spending can give you more breathing room while you’re in school. Getting a roommate, renting textbooks instead of buying them and preparing your own meals rather than using a school meal plan are all ways to cut down your expenses.
• Allocate money for emergencies: Be sure to create a line item in your budget that accounts for emergency expenses. As a student, unexpected expenses can pop up, such as a classroom fee you didn’t know about or a medical bill. Setting aside a little money each month will help you prepare for those added costs. 

Once you have a budget in place, track your spending so you don’t exceed your income. You can use free tools like Mint or GoodBudget. 

2. Design a schedule

Transitioning to a schedule in the United States can be challenging. From different time zones to rigorous class schedules, you may feel disoriented at first. As you adjust to living and studying in the USA, sticking to a schedule can help you adapt and keep up with your coursework. 

Review your class schedule and design a schedule for yourself. Think about setting a certain window to wake up, such as between 7 a.m. and 10 a.m. local time, and when you’ll go to sleep; sticking to those windows will help you adjust to the different time zone faster. Note when you have classes and when you’ll study or work on your assignments. 

Be sure to set aside specific blocks of time – or even whole days when you don’t have classes – for relaxation and leisure activities. Balancing your coursework with your social life will give you a more robust study abroad experience. 

3. Join clubs

Homesickness is a natural part of studying abroad, and many students struggle with it. You can combat those feelings by getting involved on campus and joining college clubs. Being a part of a group will give you access to a support network and establish a sense of community on campus. 

Colleges often have hundreds of clubs. There may be clubs specifically for international students (or even for students from your home country), for certain majors and other interests. Colleges also have groups dedicated to casual sports, such as flag football or frisbee. 

To find out what clubs are available, contact the university’s residence life department or ask your international student office how to get involved. 

4. Take advantage of university services

Many students are unaware of how many services their university offers. But your school likely has a lengthy list of amenities and services that can help your experience. For example, your school may offer the following services:

• Tutoring: Colleges often have free tutoring services provided by students who’ve excelled in certain subjects.
  

• Counseling: Many schools have mental health services, including counseling or support groups. For students struggling with homesickness or depression, utilizing these services can be a significant help.
  

• Career development: Whether you plan on staying in the United States or returning to your home country, you can use the career development department to get assistance writing a resume or cover letter and improving your interview skills.
  

• Theater and cultural events: Universities often host plays, comedians, artists and musicians, and these events are typically free or low-cost for current students.
  

• Physical activities: Colleges typically have substantial physical fitness amenities that are free for students. For example, your school may have a fitness center with the latest gym equipment, lap pools, running tracks, tennis courts and recreational fields. 

Talk to your college advisor or the school’s international student office to find out what services and amenities are available to you. 

5. Contact the school financial aid office

The university financial aid office can be an invaluable resource to you as you adjust to studying in the United States. Not only can they help you find international student funding opportunities, such as private student loans, but they can also identify other solutions to funding gaps. 

The financial aid office may be able to enroll you in a payment plan or recommend scholarships or grants that are designed for international students to cover your living expenses during holiday breaks. (See MPOWER Financing scholarship information.) The financial aid office may provide other resources, as well, including free or low-cost classes on budgeting.

Learn More

How to plan ahead for your USA study abroad experience

Studying in the United States can be a life-changing experience. As an international student, it’s important to plan ahead so you can maximize your time in the USA. Creating a budget and getting help from your financial aid office will give you clarity and ensure your financial needs are met. By creating a schedule, you can complete your coursework and still enjoy yourself during your free time. And by getting involved in the campus community, you can build a support network and lifelong connections. 

International Student Loan Refinancing: Your Questions Answered

For international students, repaying their student loans is an inevitable step in their educational journey. One repayment option that might lessen the financial burden is refinancing. 

Refinancing a student loan may provide students access to competitive interest rates, terms or even a better service experience. As an international student, student loan refinancing options are more limited, but they’re not entirely out of reach.  

How refinancing student loans works

When refinancing a student loan, the refinancing lender pays your original lender the full unpaid balance on the loan, and a new refinance student loan is created for the total amount that was paid on your behalf, plus any applicable fees.

The new loan has completely new features, like a fixed or variable interest rate, and repayment period. You’ll then make monthly payments to the refinance lender to pay down the refinance loan.   

Can international students apply for student loan refinancing?

U.S. citizenship is typically a minimum requirement for many U.S. banks and financial institutions that refinance student loans. U.S. institutions that have no experience in servicing and collecting upon international loans will generally limit their eligibility requirements to U.S. permanent residents and citizens.

There are some lenders, such as MPOWER Financing, that finance international education loans. 

Refinancing lenders often consider other eligibility factors when they examine a refinance student loan application, including: 

• U.S. residency for some period of time (i.e., two years).
• U.S. credit history.
• Employment history.
• Stable income.
• Debt-to-income ratio.

As an international student, satisfying all of these points might be challenging, though not impossible.

What to do if you’re not eligible for refinancing student loans

If you don’t meet general eligibility requirements for refinancing education loans today, you still have a few options.

Build your U.S. credit profile

International students who borrowed a private student loan from a U.S. lender likely already have the beginnings of a credit history in the U.S. However, if this isn’t your situation, you can slowly build a U.S. credit profile to be eligible later for international student loan refinancing. 

Ask a trusted family member if they’re willing to add you as an authorized user on their credit card. Some card issuers report repayment and activity data for all users on a credit card account to the major credit bureaus. As an authorized user on the card, positive repayment activity and responsible usage on the card account can help boost your credit.   

Find a creditworthy cosigner

A cosigner is an individual who agrees to take legal financial responsibility for the loan if you fail to make timely payments. If you don’t qualify on your own, some lenders allow a cosigner with strong credit as a co-borrower on a refinancing loan. 

The minimum requirements necessary to be considered for cosigning a loan include a minimum credit score of 670. However, credit score requirements for cosigners vary among lenders. Additionally, a cosigner must meet the lender’s other requirements, such as income and debt-to-income ratio.

Since cosigning a loan is a major responsibility and favor, cosigners typically are a spouse, parent, grandparent, close relative or trusted and long-term friend.

Explore lenders offering flexibility

Meeting the eligibility requirements for a student loan refinance has its fair share of barriers. Fortunately some lenders, like MPOWER Financing, offer student loan refinancing specifically for international students.

Flexible requirements could include not requiring a cosigner or collateral to secure the loan, among other advantages.     

What to look for when refinancing a student loan 

Private refinance lenders have different underwriting requirements and repayment rules. Below are a few features to examine before refinancing student loans as an international student.

• Eligibility criteria. As mentioned above, the base eligibility requirements for refinancing ranges among lenders. For example, before submitting an application, make sure you confirm that you meet the lender’s requirements for U.S. credit (if noted), income and employment history.
• Cosigner requirements. If you’re refinancing education loans with a cosigner, be clear about the lender’s requirement for cosigners and confirm your chosen cosigner meets this criteria. This includes credit history, income and the lender’s rules about cosigner release, if available.
• Rates and fees. Lenders set their own lending requirements, interest rates and fee structure. As a refinancing applicant, you’re responsible for comparing interest rate offers and fees – like origination or application fees – across multiple lenders. Doing your due diligence to shop around for the most competitive rate helps you save money in the long-run on interest charges. The annual percentage rate (APR), for instance,  creates an apples-to-apples comparison of a loan’s interest and fees by annualizing the cost of that loan.
• Repayment terms. The longer your repayment term, the lower your monthly payment amount will be. However, a longer term also means you’ll pay more interest over the life of the loan. Ensure that your potential student refinancing lender offers a repayment term that matches your repayment goals. 

Finding the right refinancing education loan

If you qualify, international student loan refinancing can offer many perks – from securing a potentially lower interest rate to simplifying your repayment experience. However, as an international student, you might face challenges qualifying for student loan refinancing.

If you believe refinancing your education loans is the right move for you, there are a handful of ways to move forward starting with the options above. When you’re ready to apply, shop around to find a lender that can help you best reach your student loan repayment goals.

Why Refinance Your Private Student Loan

After you’ve graduated with your college degree, you might be looking for a way to make student loan repayment easier and save money on your loans. Refinancing your student loans can make your debt more manageable and reduce your interest rate. While refinancing student loans in the U.S. can be more challenging for international students, it’s still possible and worth exploring. If you’re wondering how to refinance private student loans, read on for all the details. 

Reasons to refinance your student loan

When you refinance a student loan, a private lender pays off your existing student loan and issues a new one in its place. This can: 

• Give you a lower interest rate than what you were previously paying, which can help you save money.
• Reduce your monthly student loan payment.
• Allow you to switch from a variable interest rate to a fixed rate for more predictable monthly payments. 
• Release a cosigner or collateral from your current student loan. 
• Pay back your student loan to a U.S. lender, so you no longer have to make payments overseas. 
• Make your international student loan eligible for employer student loan assistance, if available. 

How to refinance private student loans

At first glance, refinancing your private student loans seems like a great deal, and it can be. However, as an international graduate, you may have a difficult time refinancing private student loans with many lenders because of certain requirements. 

To refinance your private student loans, for example, you may need one of the following:

• A good credit history in the U.S.
• A cosigner for your loan.
• A loan product specifically designed for international graduate students.

As an international graduate, you may qualify with any of these options. Depending on which lender you choose, you may need to take these steps to refinance your private student loan: 

1. Check your credit score/profile – Once you’ve been living and working in the U.S., you may have started building a good credit history of your own. If this is the case, it should be relatively easy to refinance your student loans.
2. Compare lenders – Just as you did when you searched for a lender for your original student loans, you need to do your homework to determine which lenders offer refinancing to international students and what their interest rates, fees and terms are.
3. Fill out your application form – Fill out the form completely. Read it over carefully before you hit Submit and make sure not to leave anything out.
4. Submit your form and documentation – Submit any required documentation along with your application form, such as pay stubs, bank statements or proof of graduation.

Once your refinancing application is approved and your new loan is up and running, make sure to submit all your payments on time. Making on-time student loan payments can help build your credit score. 

Challenges of refinancing private student loans

As an international student or graduate, you may face some challenges that domestic students don’t have. At the top of the list is not having a credit history. You can build a credit history by:

• Getting a U.S. credit card and using it responsibly by making purchases and keeping up with the monthly payments (ideally paying off the balance each month).
• Becoming an authorized user on someone else’s credit card.
• Having your monthly rent payments count as positive credit (your landlord may be able to report these to the credit bureaus, or you can use a third-party reporting service).

If you don’t yet have a good credit history of your own, you may need to apply to refinance private student loans with a cosigner who is a U.S. citizen or permanent resident. Perhaps you have a partner, or you have developed some trusted friends. Any of these people would qualify, as long as they have decent credit and are willing to share this debt.

Finally, to qualify for refinancing your student loans, you will need to provide your visa status. You may need one of the following visa types: J-1, H-1B, E-2, O-1 or TN. In addition to this, it is a good idea to prove that you plan to stay in the U.S. for the long term and are reliable. You can prove this by:

• Opening a U.S. bank account
• Showing that you have a steady job and reliable income
• Sharing your lease agreement
• Providing the payment history with your rent and your bills

 

Learn more about how to refinance a private student loan.

MPOWER Financing Launches Non-profit Arm to Expand Scholarships to Global Citizens

Global Citizens Fund is dedicated to expanding educational opportunities for international, DACA, and refugee students

WASHINGTON, DC – – MPOWER Financing, a mission-driven fintech firm and a leading provider of scholarships and no-cosigner loans to promising students from around the world, has announced the launch of the Global Citizens Fund, a 501(c)(3) nonprofit scholarship fund designed to support refugee, DACA, and international students more broadly, seeking educational opportunities in the U.S. and Canada.

The fund will enable more students like MPOWER’s recent Refugee Scholarship award winners Kateryna Shapovalenko and Fatema Hosseini to fulfill their educational potential. Kateryna is a Harvard educated, internationally recognized and awarded public policy consultant who fled the War in Ukraine as a refugee and now advocates for her country from Washington, D.C.. Fatema is an investigative journalist attending graduate school at the University of Maryland who fled Afghanistan after a career there reporting on the systematic oppression of women by the Taliban. 

The launch of the scholarship fund coincides with United Nations World Refugee Day (June 20), a day honoring refugees around the world. MPOWER has long supported refugees and asylum seekers with education financing. Recently, the firm launched the MPOWER Refugee Scholarship, which was made possible thanks to a generous donation from Tytus Michalski, Managing Partner at Fresco Capital, who was once a refugee himself and is now an active student mentor.

“Students can only benefit from education if they have the necessary access and resources,” said Michalski. “I was one of those fortunate enough to experience this transformation in access and support after moving to Canada from Poland during the early 1980s. Helping vulnerable students overcome challenges is also helping ourselves because we all benefit from their future success.”

In 2022, MPOWER announced that its total five-year scholarship pledge, combined with outside donations, had exceeded $500,000. The Global Citizens Fund will grow and distribute this pool of funding, as well as manage the generous donations of individuals and organizations that share MPOWER’s commitment to education. 100% of funds donated to the Global Citizens Fund will go directly toward providing scholarships. MPOWER Financing will be providing all operational support for the fund to achieve no overhead expenses, enabling all donations to go directly toward helping deserving students.

The Global Citizens Fund will allow eligible students to apply for scholarships for attending one of 500+ leading colleges and universities across the U.S. and Canada. Nearly 80% of MPOWER students are from the Global South, and over 90% reported that financial support from MPOWER was critical to their ability to study abroad. According to the 2022 MPOWER Social Impact Report, a significant majority report that they would have been unable to study abroad or would have had to defer their admission without financial support from MPOWER. These scholarships will give students an additional, independent funding option to pursue their educational goals and help them overcome a lack of societal and financial support.

Students are invited to browse scholarships on the Global Citizens Fund’s website, www.globalcitizensfund.org. Donors interested in contributing to a scholarship fund are welcome to write to inquiries@globalcitizensfund.org.

 

About MPOWER Financing

MPOWER Financing, co-headquartered in Washington, D.C. and Bengaluru, India, is a mission-driven fintech company and the leading provider of global education loans. Its proprietary algorithm analyzes overseas and domestic credit data as well as the future earning potential to serve promising international and DACA students. MPOWER works with over 500 top universities across the U.S. and Canada to provide financing to students from over 200 countries. The MPOWER team consists of former international students and provides students with personal financial education and career support to prepare them for life after school.

MPOWER is a Certified Great Place To Work, one of the best fintechs to work for, and the best tech workplace for diversity. The company is hiring for various positions worldwide.

 

About the Global Citizens Fund

Global Citizens Fund, a 501(c)(3) organization, is the nonprofit arm of MPOWER Financing whose mission is to expand the reach and impact of scholarships, grants, and other activities that support international students in the U.S. and Canada.

Students are invited to browse scholarships on the Global Citizens Fund’s website, www.globalcitizensfund.org. Donors interested in contributing to a scholarship fund are welcome to write to inquiries@globalcitizensfund.org.

Listing Your Funding: Why It’s Important When Applying for an International Student Loan

Studying in the United States can be an exciting and enriching experience. Before you can start taking classes, you’ll need to come up with a financial plan. Many students use a variety of funding sources, including savings, scholarships, and international student loans, to cover college costs. 

In fact, MPOWER Financing asks you to list your various sources of funding when you apply for an MPOWER loan. That way, MPOWER will have a better sense of your finances and help you take out the right amount in loans — and avoid borrowing more than you need. 

Applying for an international student loan with MPOWER 

MPOWER Financing offers international student loans without requiring a cosigner or collateral. That means you can obtain the funding you need for your degree on your own. You won’t have to burden your parents with debt or risk any of your assets to take out a loan. 

You can borrow between US$2,001 and US$100,000 from MPOWER. Student loans for graduate students have fixed-interest rates starting as low as 9.99% (11.16% APR). This interest rate and APR includes a 0.25% discount for automatic recurring payments.

You can complete your loan application online, but make sure you have your passport ready when you start applying, as well as information about other sources of funding you’ll be using to pay for school. 

The importance of listing your funding 

Before taking out a student loan, it’s important to figure out exactly how much you should borrow. You need enough to cover your cost of attendance, but you also don’t want to over-borrow. 

Taking on too much debt can lead to unaffordable payments after you graduate. Since you have to pay student loans back with interest, it’s a good idea to keep borrowing to a minimum. 

MPOWER Financing helps you determine the right loan amount by asking you to list your funding sources during the application process. It considers your school’s cost of attendance, minus other funding you already have, to help you determine your loan amount. 

When you fill out your international student loan application, MPOWER will ask about your personal accounts, scholarships, sponsor funding, and any other sources of funding. 

Personal accounts and earnings 

First, you’ll need to indicate whether you have funding from any of the following sources: 

• Savings
• Investments
• Wages/earnings 
• Checking 
• Retirement / provident funds 
• Other sources  

You can select any category that applies to you. Make sure to enter the total amount of money you have in each category. If you have two separate savings accounts, for instance, add them together to fill in your total savings amount. 

The application asks you to enter the amount in U.S. dollars (USD), so you may need to use a currency conversion calculator to convert your country’s money into USD. 

Grants and scholarships 

You’ll also share information on any grants or scholarships you’ve received. In this section, you’ll list each grant or scholarship separately, along with its dollar amount. If you’ve received two scholarships, for instance, you’ll list each one individually. 

Sponsor funding 

Next up is sponsor funding. You can select whether you’re receiving sponsorship from any of the following: 

• Employer
• Business
• Government 
• Other 

You’ll list each sponsor separately and include the total amount you’ll be receiving from each one over the course of your education. If your employer offers US$12,000 per year for two years, for instance, you’ll fill in US$24,000 from that employer. 

You’ll need to provide proof of sponsorship later on in the application. MPOWER has a template you can use to meet this requirement. 

Other sources 

If you have any other sources of funding, you’ll also list these in your application. For instance, you’ll be asked to indicate whether you’re getting money from friends or family or are using a non-MPOWER student loan to pay for your education. The application also asks if you’ve paid in advance for your program. 

Cost of attendance

Finally, you’ll provide the annual cost of attendance for your program. Cost of attendance includes all your expenses, from tuition to housing to food to books. 

Your school will provide an estimated cost of attendance on its website or your admissions paperwork. The MPOWER application asks you to list:

• Tuition costs
• Cost of living 
• Health insurance cost 
• Other additional costs 

After you’ve entered all this information, MPOWER subtracts the funding you already have from your cost of attendance to determine your gap in funding. This amount represents an estimate of how much to borrow in student loans. Please keep in mind that if you’re studying in Canada an MPOWER loan can cover tuition costs, if you’re studying in the U.S. it could cover tuition along with other living expenses. 

List all your funding for an accurate financial plan 

Listing your funding is important for preparing your financial plan for college or graduate school. By comparing the funding you already have with your cost of attendance, you’ll have a clear sense of how much more money you need to cover your expenses. 

Make sure to list all your funding when you apply for a loan so you don’t accidentally take on more debt than you need. Review your MPOWER application carefully before you hit submit to ensure you’ve shared a complete and accurate picture of your financial situation. 

*Rates as low as 9.99% (11.16% APR). This interest rate and APR includes a 0.25% discount for automatic recurring payments.