Home Finance 15 Common Questions Students Ask About MPower Financing

15 Common Questions Students Ask About MPower Financing

If you have been on the lookout for a student loan with a pretty straightforward application process, less competition, and no collateral, then MPower financing might be the option you have been looking for.

65
0
Questions students ask about MPower Financing
0Shares

Do you have questions begging for answers about MPower financing? Did you know that the average public university student in the U.S. borrows approximately $32,000 to get a bachelor’s degree?

Are you an international student in Canada or the U.S. looking for education or student loans you can get without collateral?

In this blog post, I am going to provide answers to common questions you may have about MPower financing. This will enable you to decide whether it is for you or not.

What is MPower Financing?

MPower financing is a type of international student loan available to undergraduate and graduate students in Canada and the United States. It was founded in the year 2014 by two international students—Manu Smadja and Michael Davis. It has its headquarters in Washington DC.

These two students faced difficulties financing their education in the United States. They decided to come together to remove the financial obstacles students face when pursuing an international education. 

The student’s future potential—not their past—is the basis for disbursing the loan. MPower takes pride in providing financial aid to students in over 400 top universities across the United States and Canada. It accepts applications from students from over 200 countries worldwide. 

Also Read:

How Does MPower Financing Work?

You can get as little as $2,001 and as much as $50,000 per academic period, up to a lifetime total limit of $100,000. The good thing about it is that you do not need a cosigner, collateral or a line of credit to get it.

When you get a loan through MPower, you are only required to make interest-only payments while you’re in school and for the first six months following your graduation. After these 6 months, and within the next 10 years, you are required to pay off the principal loan.

The other unique thing about it is that it allows you to focus on your education without having to worry about servicing the loan. The burden of the loan is relatively removed from you such that you study while building your credit line. 

15 Common Questions Students Ask About MPower Financing

1. Who is the Owner of MPower?

Manu Smadja and Michael Davis own MPower. They are former international students who faced difficulties financing their education in the U.S.

2. What Canadian Schools are Eligible for MPower Loans?

MPower has affiliations with over 400 schools in the U.S. and Canada. All you need to do is to check your institution’s eligibility and you’re good to go.

3. What is MPower Financing Eligibility?

The following are the requirements to obtain a loan from MPower:

  1. You must be an International student, DACA recipient, U.S. citizen, refugee, or asylum-seeker.
  2. You must be admitted to or attending any of the 400+ approved schools in the U.S. or Canada.
  3. You must be an undergraduate or graduate student in his/her penultimate year or about to begin a 1-year or 2-year program. 

4. What is MPower Interest Rates?

The interest rate for MPower is fixed. This means that the rate will not change as market interest rates change. It starts at 12.99% (13.98% APR), and in some cases can be as low as 12.74% (13.72% APR). 

The interest payments can come from other funds like internships, part-time gigs, weekend remote jobs, e.t.c. These payments are remitted to credit bureaus, effectively helping you to build a credit history.

5. What does MPower Loan Cover in Canada?

It covers tuition, textbooks, and living expenses such as utilities, food, housing, etc.

6. When Should One Apply For MPower Financing?

You can apply for MPower as early as 12 months before the beginning of your program. It is always better to be early than sorry. Applying early helps you avoid last-minute pressure.

7. How Long Does it Take for MPower to Approve a Loan?

Processing the loan takes about 10 business days. If they do not request additional documentation and approve your application, the loan can get into your school’s account in a couple of days.

Also Read:

8. Does MPower Require Collateral?

No, MPower does not need collateral or credit lines. However, there are other criteria you must meet to qualify. 

9. What is MPower Student Loan Requirement?

  1. You must be an international student, DACA recipient, U.S. citizen, refugee, or asylum-seeker.
  2. One of the requirements of MPower student loan is that you must have no more than two more years to spend in school.
  3. You must have admission into one of the 400+ approved schools and universities in the United States or Canada.

10. How Much Can I Borrow from MPower?

You can borrow as small as $2,001 and as much as $50,000 at once, but you must not exceed a lifetime loan of $100,000.

11. What is the Repayment Period for an MPower Loan?

Students start making interest-only payments 45 days after the loan gets to your institution and continue monthly until the loan is paid off.  

12. How does MPower Disburse Loans?

MPower disburses loans directly to your institution of study. If you want to use the loan for other things apart from tuition, then go through your institution to get the funds.

13. Does MPower Finance Online Programs?

Yes, MPower finances online programs. However, it must be at approved schools. Secondly, you have to be residing in the country of the school (in the United States or Canada) while taking the program.

14. What are the Advantages of MPower?

The following are the advantages of MPower:

  1. You do not need collateral, cosigner, or credit history to obtain it.
  2. The process is not rigorous.
  3. You can obtain as much as $50,000 in one application.
  4. A discount of 0.25% is available for you if you use automatic debit from your bank account to pay for the loan.

15. What are the Disadvantages of MPower?

Despite its advantages, MPower is not without disadvantages. They include the following:

  1. Their interest rates are high when you compare them to other student loans.
  2. Not all schools are eligible.
  3. You can only qualify to obtain it if you have not more than 2 more years to spend in school or your program is not more than 2 years.
  4. There is a 5% origination fee.
  5. You have to pay interest on the loan while still in school and for the next 6 months after graduation.

Also Read:

Conclusion

Many students have been able to finance their education without having to go through the financial strain that lack of funds imposes on them. If you have been on the lookout for a student loan with a pretty straightforward application process, less competition, and no collateral, then MPower financing might be the option you have been looking for.

0Shares
Previous article9 Best Social Media Platforms for Business in 2024
Next articleInfluencer Marketing: 5 Easiest Ways to Find Your Brand’s Ideal Influencer in the USA
Chidinma Dinwoke is an SEO content writer and contributor at EntrepreneurBusinessBlog.com. You can connect with her via [email protected].

LEAVE A REPLY

Please enter your comment!
Please enter your name here