MPOWER Financing: A Legitimate Option for International Students
Are you an international student looking for financing options to pursue higher education in the United States? If so, you may have come across MPOWER Financing. But is MPOWER Financing a legitimate option? In this article, we will take a deep dive into MPOWER Financing, its services, benefits, and drawbacks to help you make an informed decision.
What is MPOWER Financing?
MPOWER Financing is a public-benefit corporation founded in 2014 by Manu Smadja and Michael Davis with the mission to reduce the financial barriers to international education. The company is based in Washington, D.C., with an office in Bangalore, India, and has helped thousands of international students finance their education in the United States.
How Does MPOWER Financing Work?
MPOWER Financing provides loans to international students without requiring a cosigner or collateral. The company uses a unique approach to determine a borrower’s creditworthiness by assessing factors such as academic performance, future earning potential, and career prospects. MPOWER Financing also offers interest rate discounts to borrowers who set up automatic payments or have a U.S. cosigner.
Benefits of MPOWER Financing
No Cosigner or Collateral Required: One of the significant advantages of MPOWER Financing is that it doesn’t require a cosigner or collateral from borrowers. This means that international students who don’t have a U.S. cosigner or collateral can still qualify for a loan.
Credit History Not Required: Unlike traditional lenders, MPOWER Financing doesn’t require a credit history from borrowers. Instead, the company assesses a borrower’s creditworthiness based on other factors such as academic performance and future earning potential.
Flexible Repayment Options: MPOWER Financing offers flexible repayment options to borrowers, including a six-month grace period after graduation. Borrowers can also choose to make interest-only payments while in school to reduce the overall cost of the loan.
Drawbacks of MPOWER Financing
Higher Interest Rates: MPOWER Financing offers higher interest rates compared to traditional lenders due to the higher risk associated with lending to international students without a cosigner or collateral.
Limited Loan Amounts: MPOWER Financing has a maximum loan amount of $50,000, which may not be sufficient for some students, especially those pursuing graduate degrees.
Limited Eligibility: MPOWER Financing is only available to international students attending eligible schools in the United States.
Is MPOWER Financing Legitimate?
Yes, MPOWER Financing is a legitimate option for international students looking to finance their education in the United States. The company is registered as a public-benefit corporation and operates in compliance with state and federal regulations. Moreover, MPOWER Financing has received positive reviews from borrowers and has a rating of 4.7 out of 5 on Trustpilot.
Frequently Asked Questions (FAQs)
Q1. What is the interest rate for MPOWER Financing loans?
A1. MPOWER Financing offers variable interest rates ranging from 7.99% to 14.99% APR.
Q2. How do I apply for a loan from MPOWER Financing?
A2. You can apply for a loan from MPOWER Financing online by filling out the application form and submitting the required documents.
Q3. What is the repayment term for MPOWER Financing loans?
A3. The repayment term for MPOWER Financing loans is ten years.
Q4. Can I use MPOWER Financing to refinance my existing student loans?
A4. No, MPOWER Financing only offers loans to international students for their education in the United States.
Q5. What happens if I can’t make my loan payments?
A5. If you can’t make your loan payments, you should contact MPOWER Financing as soon as possible to discuss your options.
How to Apply for a Loan from MPOWER Financing?
Applying for a loan from MPOWER Financing is easy and can be done entirely online. Here are the steps to follow:
Step 1: Go to MPOWER Financing’s website and click on “Apply Now.”
Step 2: Fill out the application form, providing personal and financial information.
Step 3: Submit the required documents, such as proof of enrollment, passport or government-issued ID, and bank statements.
Step 4: Wait for a decision. MPOWER Financing typically makes a decision within two weeks of receiving a completed application and all required documents.
Step 5: If approved, sign the loan agreement and receive the funds.
Conclusion
MPOWER Financing is a legitimate option for international students who want to pursue higher education in the United States. The company provides loans without requiring a cosigner or collateral and uses a unique approach to assess a borrower’s creditworthiness. While MPOWER Financing offers many benefits, such as flexible repayment options, it also has some drawbacks, such as higher interest rates and limited loan amounts. Overall, MPOWER Financing can be an excellent option for international students who don’t have access to other financing options. However, it’s essential to compare different lenders and choose the one that best suits your needs and financial situation.