MPOWER Student Loan Refinancing: 2024 Review

MPOWER Snapshot

MPOWER is an online lender that offers non-cosigned undergraduate and graduate student loans to international, domestic, and DACA students, as well as student loan refinancing. It is best for international students and DACA students who don’t have a credit history and can’t access a qualified cosigner.

Fixed APR Range: up to 11.74% (12.69% APR)*

Variable APR Range: N/A

Loan Amounts: $2,001 to $100,000.

Minimum Credit Score: N/A

*Rates include an autopay discount.

Best Features	Drawbacks
• Available to international, domestic, and DACA students • Allows borrowers to refinance a parent’s loan in your name • You can get up to 0.25% in rate discounts	• Offers only one repayment term of 10 years • Higher interest rates and fees than other online lenders • Does not allow for biweekly payments via autopay

Best Features of Refinancing with MPOWER

Available to international, domestic, and DACA students

MPOWER offers non-cosigned refinance loans to international, domestic, and DACA students. MPOWER considers dozens of data points, such as future income potential, to determine creditworthiness and make a lending decision. The company reviews credit history, but credit scores are not a factor in its decision since most international students do not have U.S. credit scores.

Allows borrowers to refinance a parent’s loan in your name

If your parent has taken out a Parent PLUS loan or a private student loan in your name, MPOWER gives your parent the option to refinance that loan or transfer the loan to your name (so long as you are the primary applicant).

You can get 0.25% in rate discounts

MPOWER rewards you for borrowing responsibly by offering up to a 0.25% rate discount on refinance loans. You can qualify for these rate discounts by enrolling in autopay.

Autopay will automatically debit your loan payment each month. When you enroll, MPOWER gives you a 0.25% deduction on your interest rate for as long as you remain enrolled.

Your discount will remain if you make on-time payments via autopay. An invalid payment, hardship (i.e., forbearance) request, or entering into a modified payment plan may reset your discount, so you may need to enroll again to earn your interest rate discount.

If you take advantage of the autopay discounts, you could save yourself hundreds, and maybe even thousands, of dollars throughout the lifetime of your loan.

Drawbacks of Refinancing with MPOWER

Offers only one repayment term of 10 years

Unlike other lenders that offer a wide variety of repayment options, MPOWER only offers one 10-year repayment term. MPOWER could improve by expanding their repayment options.

Higher interest rates and fees than other online lenders

MPOWER is unique in that it does not require a cosigner, collateral, or credit history. With that said, its rates are quite high compared to other lenders.

MPOWER also charges a 2% origination fee that is added to your loan balance. You can spread the origination fee across the lifetime of the loan. So for example, if you borrow $10,000, you will have to pay a $200 fee as part of your monthly loan payments after graduation.

Does not allow for biweekly payments via autopay

When you repay your student loan, your payments are due monthly by default. Instead, some borrowers choose to make biweekly payments via autopay — where you automatically pay half your monthly amount once every two weeks. Many borrowers use biweekly autopay in an effort to pay off their student debt faster and pay less in interest over the lifetime of the loan. It is an effective strategy if you want to “set it and forget it” — essentially allowing you to automatically make payments without having to manually do it at the end of each month.

Unfortunately, when you borrow through MPOWER, you don’t have the option to make biweekly payments via autopay.

MPOWER: The Nuts and Bolts

Interest Rates, Fees, and Terms

Fixed APR Range	up to 11.74% (12.69% APR)
Variable APR Range	N/A
Loan Terms	10 years.
Loan Amounts	$2,001 to $100,000.
Ability to transfer a parent loan to the student	Yes.
Application or Origination Fee	Yes, 2% of the total loan amount.
Prepayment Penalty	No.
Late Fees	Yes, $5.00 or 4% of the late amount, whichever is lesser.

Eligibility Requirements – Financial

Minimum Credit Score	N/A.
Minimum Income	Did not disclose.
Typical Credit Score of Approved Borrowers or Cosigners	N/A.
Typical Income of Approved Borrower	Did not disclose.
Maximum Debt-to-Income Ratio	15%.
Ability to qualify if you’ve filed for bankruptcy	No.

Eligibility Requirements – Personal

Citizenship	International students must be from one of the 180 countries MPOWER works with. DACA students do not need a Social Security number to qualify.
Location	Available to international borrowers in all 50 states, Washington, D.C., and Puerto Rico. Borrowers are able to refinance loans originated in 190 countries.
Must have graduated	Yes, with at least a bachelor’s degree.
Must have attended a school authorized to receive federal aid	No.
Percentage of borrowers who have a cosigner	Borrowers cannot apply with a cosigner.

Repayment Options

Academic Deferment	Yes, borrowers can postpone payment if they return to school.
Military Deferment	Yes.
Disability Deferment	Did not disclose.
Forbearance	Yes, up to 24 months.
Cosigner Release	N/A. There is no option to add a cosigner.
Death or Disability Discharge	Yes.
Loan discharge if cosigner dies or becomes disabled	N/A. There is no option to add a cosigner.
Autopay	Allows for surplus payments via autopay: Yes. Allows for biweekly payments via autopay: No.

Customer Service

Loan Servicer	Launch.
In-house Customer Service Team	Yes.
Process for Escalating Concerns	Yes.
Borrowers get assigned a personal customer service representative	Yes.
Average time from approval to payoff	10 days.

Before you take out a loan from MPOWER…

Complete the Sparrow application to compare real rates from more than 15 different lenders to make sure you’re getting the best rate possible.

See real rates, not rate ranges or estimates: Sparrow’s rates mimic those of our lenders so you know what rate you’re getting from each lender.

No impact on your credit score: Checking your rates on Sparrow won’t impact your credit score.

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FAQ

Is MPOWER a legitimate lender?

Yes, MPOWER is a legitimate lender that offers private student loans and student loan refinancing to international and DACA students.

Is MPOWER available in all 50 states?

Yes, MPOWER is available in all 50 states.

How long does it take to get an MPOWER refinance loan?

Submitting an application through MPOWER takes a few minutes. Once you’ve submitted your loan application, MPOWER will instantaneously return a decision about your eligibility. If you qualify, you will receive the rate and terms of your loan.

It may take some time to actually receive your loan. You can speed up the process by requesting debt payoff letters from your existing lenders and loan servicers.

What happens if I don’t qualify for an MPOWER loan?

If you don’t qualify for an MPOWER refinance loan, the company will inform you why. Depending on the reason, you may consider applying with a different lender. To check your rates across multiple lenders at once, try using Sparrow’s free search engine. In just two minutes, you can receive real, personalized offers from over 15 different lenders ready to help you. And best of all, it won’t impact your credit score.

Are MPOWER student loans federal or private?

MPOWER’s loans are private loans. Before you take out a private student loan, we recommend that you exhaust your federal funding options, including grants and scholarships.

Does applying for a loan through MPOWER hurt my credit score?

It is unclear whether it will hurt your credit score. MPOWER conducts a soft credit check to determine your eligibility. While soft credit checks typically don’t hurt your credit score, MPOWER has stated that “Any potential lender pulling your credit may slightly lower your overall credit score temporarily.” Therefore, it isn’t totally clear whether or not applying for a loan with MPOWER will hurt your credit score or not.

See MPOWER’s disclosures here.