MPower is a student loans marketplace that targets both domestic and interntional student attending US universities and colleges. The loans offered by MPower can be used to pay for tuition and university-sponsored services, such as health insurance, meal plans, or housing. As well as providing student loans, MPower also helps students build their credit histories, gives them personal finance education, and offers additional financial products after they have finished college. At this time, MPower only offers first time student loans: no student loan refinancing.
MPower provides lenders with a platform where they can help the next generation gain access to the best universities and colleges and earn a competitive return on their investment. Unlike most other student loan providers, MPower helps both domestic and international students. MPower does this by focusing in high potential students with promising careers in lucrative sectors.
MPower provides student loans of $1,800 to $25,000 a year for a maximum of $50,000 over 2 years. Loan terms vary from 3 to 10 years.
MPower student loans only have fixed rates, which range between 7.99% and 13.99%. Borrowers receive a 0.25% rate discount when they opt-in for automatic payments. They receive an additional 0.25% discount when they make 24 consecutive payments on time.
There is a 5% origination fee that is added to the loan balance. Unlike other lenders, MPower does not deduct the origination fee from the loan balance disbursed. Instead, it is added to the loan balance and paid gradually with monthly payments.
MPower uses an online application form that only takes minutes to complete. It requires the usual information, full name, email, school, degree, major, anticipated graduation date, citizen status and loan purpose. Within three days of completing and sending the form, MPower will contact borrowers and conduct a 15-minute interview. The information provided in the form and interview is verified. Successfull applicants receive their money within one to three weeks. The money is sent directly to the school.
Unlike most student loans, MPower does not require a cosigner. In fact, its not even an option. MPower's loan process was designed so that students, domestic and international, wouldn't have to worry about not having a credit history or a cosigner. All the loans have fixed interest rated and there are no prepayment penalty fees.
Students are required to start making small payments while they are in college. MPower sells this as a benefit because they report these to the credit bureaus, which helps borrowers build their credit.
MPower doesn't look at a student's credit score when assessing eligibility. This also means you don't have to worry about credit inquiries when checking what rates you would qualify for with MPower.
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