- MPOWER Overview and Mission: Founded in 2014 and based in Washington, D.C., MPOWER Financing aims to reduce financial barriers for international students by offering accessible loans and comprehensive support programs.
- Unique Underwriting Model: MPOWER uses a forward-looking algorithm that assesses future earning potential instead of credit history, allowing international students, DACA recipients, refugees, and asylum seekers to qualify without U.S. credit or collateral.
- Loan Terms and Rates: Interest rates start at 9.99% with a 5% origination fee added to the loan amount, leading to effective APRs between 11% and 18%, with fixed payments and a 10-year repayment period.
- Eligibility and Application Process**: MPOWER serves students at over 500 approved schools in the U.S. and Canada, specifically targeting those within 2 years of graduation, and offers a fully online application with no co-signer required.
- Pros and Cons**: While MPOWER provides valuable services like visa support and career guidance, its higher costs, limited flexibility, and eligibility restrictions mean borrowers should explore all options before applying.
MPOWER Overview
MPOWER Financing is a Public Benefit Corporation (PBC) founded in 2014 and headquartered in Washington, D.C. The company was created by former international students to reduce financial barriers to cross-border education. MPOWER offers fixed-rate private student loans to international students, DACA recipients, refugees, and asylum seekers studying at over 500 approved schools in the United States and Canada. Loans are made by Bank of Lake Mills, Member FDIC, or by MPOWER Financing, PBC directly. MPOWER has funded over 25,000 students from more than 200 countries.
What distinguishes MPOWER from virtually every other private student lender is its underwriting model: the company uses a forward-looking algorithm that assesses future earning potential rather than credit history. No U.S. cosigner, no collateral, and no U.S. credit score are required. In addition to the loan itself, MPOWER provides a comprehensive Path2Success program including free visa support letters, career guidance (resume reviews, interview prep, job search assistance for OPT and H-1B roles), a prequalified U.S. credit card, and a U.S. bank account.
The primary trade-off is cost. MPOWER’s interest rates start at 9.99% (with autopay), and a 5% origination fee is added to the loan balance at disbursement, pushing effective APRs into the 11-18% range. Interest-only payments are required during school. These costs reflect the higher risk of lending to borrowers without a U.S. credit history or collateral. Borrowers should exhaust all scholarship, grant, and home-country financing options before considering MPOWER.
Pros and Cons of MPOWER Student Loans
Pros
- No cosigner, no collateral, no U.S. credit required. MPOWER is one of the very few lenders accessible to international students without a U.S.-based financial backer. Underwriting is based on future earning potential.
- Serves international students, DACA recipients, refugees, and asylum seekers. This breadth of eligibility is unmatched. Most private lenders exclude all or most of these groups.
- Comprehensive support services. The Path2Success program includes visa support letters, career coaching, interview prep, job search guidance for OPT/H-1B roles, a prequalified U.S. credit card, and a U.S. bank account. No other student lender offers this range of non-financial support.
- Fixed rates provide payment predictability. Unlike Prodigy Finance (variable only), MPOWER’s fixed rates ensure payments do not fluctuate over the 10-year repayment term.
- On-time payments build U.S. credit history. For international students planning to work in the U.S. after graduation, establishing a credit history during school is a significant long-term benefit.
- Public Benefit Corporation. MPOWER’s PBC status means it is legally required to consider the impact of its decisions on students and society, not just shareholders.
Cons
- 5% origination fee. Added to the loan balance at disbursement. On a $30,000 loan, this adds $1,500 to the balance on which interest accrues. Most mainstream private student lenders charge zero origination fees.
- High interest rates. Rates start at 9.99% (with autopay). The effective APR, including the origination fee, ranges from approximately 11% to 18%. For context, borrowers with cosigners at other lenders can access rates under 3%.
- Only one repayment term (10 years). No flexibility for shorter or longer repayment horizons.
- Interest-only payments are required during school. Borrowers must make interest payments from the time of disbursement through the 6-month grace period. Full deferment is not available.
- Must be within 2 years of graduation. Freshmen and early sophomores at four-year institutions typically do not qualify. MPOWER focuses on students near the finish line.
- Limited to 500+ approved schools. Not all U.S. and Canadian institutions are eligible. Students must verify their school before applying.
- No formal forbearance or deferment policy. Borrowers struggling to make payments should contact MPOWER to discuss options, but no structured relief program is publicly documented.
MPOWER Financing
MPOWER earns a 3.0 out of 5.0 and is the clear leader for international students studying in the United States. It serves borrowers from 200+ countries at 500+ U.S. and Canadian schools without requiring a U.S. co-signer, collateral, or credit history. No other lender at this scale offers comparable access to international students, DACA recipients, refugees, and asylum seekers. The Path2Success program provides visa support letters, career guidance, resume reviews, and help with OPT/H-1B job searches.
MPOWER is structured as a Public Benefit Corporation, legally required to consider student and societal impact alongside financial returns. Every borrower is assigned a dedicated relationship manager. The company has served students from over 200 countries and operates in all 50 U.S. states, with loan amounts from $2,001 to $100,000 and fixed rates that provide payment predictability for borrowers unfamiliar with U.S. interest rate dynamics.
The cost is high. A 5% origination fee (added to the loan balance, not deducted from proceeds) and effective APRs starting around 9.99% reflect the elevated risk profile of lending to borrowers with no U.S. credit history. These rates are significantly above what domestic borrowers with co-signers can obtain. But for eligible international students, MPOWER may be the only private loan option available, making the cost comparison moot: the alternative is often not attending at all.
- Effective APR: ~9.99% – 18.00% (includes 5% origination fee impact)
- No U.S. co-signer, collateral, or credit history required
- Serves 200+ countries at 500+ U.S. and Canadian schools
- Path2Success program: visa support, career services, OPT/H-1B guidance
- Dedicated relationship manager for every borrower
MPOWER Rates and Fees
MPOWER’s interest rates are fixed, starting at 9.99% (with 0.25% autopay discount). The company charges a 5% origination fee that is added to the loan balance at disbursement, not deducted from proceeds. This means if you borrow $20,000, your loan balance becomes $21,000, and interest accrues on the full $21,000. The effective APR, which reflects both the interest rate and the origination fee, ranges from approximately 11.16% to 18%, depending on the rate offered.
No prepayment penalty. The only discount available is the 0.25% autopay reduction. There are no application fees, disbursement fees, or late fees disclosed. Variable rates are not offered. The fixed-rate structure provides payment predictability, which is particularly valuable for international borrowers managing currency exchange risk.
MPOWER In-School Repayment and Loan Terms
Loan amounts range from $2,001 to $50,000 per academic period, with a lifetime cap of $100,000. The repayment term is 10 years after the grace period. Interest-only payments are required during school and during the 6-month grace period after graduation. Full principal and interest repayment begins after the grace period. In the U.S., funds can cover tuition, room and board, books, supplies, insurance, and living expenses. In Canada, funds cover tuition only.
MPOWER Eligibility and Application Process
MPOWER serves international students, DACA recipients, U.S. citizens, refugees, and asylum seekers. Borrowers must be admitted to or attending one of 500+ approved schools in the U.S. or Canada. Undergraduates must be within the last 24 months of a bachelor’s or Ph.D. program; graduate students must be within the last 30 months of an MBA, master’s, DDS, or MD program (or starting a 1-2 year program). No U.S. credit score, cosigner, or collateral is required. MPOWER assesses future earning potential, academic background, and financial documentation.
The application is fully online. Prequalification takes minutes and provides a conditional offer decision. After uploading documents (passport, bank statements, admission letter), MPOWER validates and issues a final approval. MPOWER also provides a free visa support letter. After school certification (U.S. schools only), funds are disbursed directly to the school.
MPOWER Customer Experience
MPOWER assigns a relationship manager to each borrower. Customer reviews consistently praise the application process and the responsiveness of support staff. U.S. News describes the Trustpilot rating as “excellent.” The CFPB received 4 student loan complaints about MPOWER in 2024, all of which were closed with timely responses and explanations. MPOWER’s BBB rating is A+. The company also offers scholarships and the Path2Success career program.
MPOWER Financial Strength and Reputation
MPOWER Financing is a Public Benefit Corporation (NMLS #1233542). Loans are made by the Bank of Lake Mills (Member FDIC) or MPOWER directly. The company was named one of the best fintechs to work for eight years running and ranked #1 on the corporate diversity index for midsize companies in the greater D.C. area. MPOWER has funded over 25,000 students from 200+ countries across 500+ schools. No regulatory actions on record.
Who Is MPOWER Best For?
Good Fit
- International students without a U.S. cosigner studying at an approved school. MPOWER is one of the very few options for this underserved population.
- DACA recipients, refugees, and asylum seekers. MPOWER explicitly serves these groups, which most lenders exclude.
- Students who value visa support and career services. The Path2Success program is a unique add-on that no competitor matches.
Not the Best Fit
- U.S. citizens or permanent residents with a cosigner. Rates at mainstream lenders start under 3% vs. MPOWER’s ~11% APR.
- International students with a U.S. citizen cosigner. Abe, Sallie Mae, and Ascent accept international students with a U.S. cosigner at lower rates.
- Students at schools not in MPOWER’s network. Verify eligibility at mpowerfinancing.com.
How MPOWER Compares
Feature | MPOWER | Prodigy Finance |
Rate Type | Fixed only | Variable only |
APR Range | ~11.16% – 18.00% | ~10.67% – 14.96% (avg) |
Origination Fee | 5% (added to balance) | 4-5% (added to balance) |
Loan Amounts | $2K – $50K/period ($100K lifetime) | $15K – $220K |
Repayment Terms | 10 years | 7, 10, 15, or 20 years |
Cosigner | Not required | Not required (not accepted) |
In-School Payments | Interest-only required | Deferred (full-time); 3-mo. for part-time |
Eligible Students | UG (last 2 yrs) + grad | Graduate only |
Schools | 500+ (U.S. + Canada) | 1,800+ (19 countries) |
Career Services | Yes (Path2Success) | Yes (Student Mentors) |
Visa Support | Yes (free letter) | Yes (acceptance letter) |
BBB Rating | A+ | Not rated |
Final Verdict on MPOWER Student Loans
MPOWER earns a 3.0 out of 5.0 in our scoring framework. It serves a population that virtually no other lender will touch: international students, DACA recipients, refugees, and asylum seekers who lack U.S. credit history, cosigners, and collateral. The Path2Success program, visa support, and credit-building features add genuine value beyond the loan itself. For eligible borrowers at approved schools, MPOWER may be the only viable private student loan option.
The costs are real. The 5% origination fee and rates starting around 11% APR make MPOWER loans significantly more expensive than mainstream private student loans. Interest-only payments during school add to the burden. The single 10-year repayment term offers no flexibility. Borrowers who can access financing through their home country, through a U.S. cosigner at another lender, or through school-based aid should explore those options first.
Before applying for MPOWER, borrowers should exhaust all scholarship, grant, school-based aid, and home-country financing options. For U.S. citizens and permanent residents, federal student loans should always be the first source of funding.
Frequently asked questions
Answers to your questions about MPOWER student loans.
Yes. MPOWER offers refinancing for international graduates who have worked in the U.S. for at least three months.
Generally no. Undergraduates must be within 24 months of graduation. Freshmen at four-year schools are typically too early in their program.
5% of the loan amount, added to the balance at disbursement. This increases the total amount on which interest accrues.
