Business Insider's personal finance team compared MPower Financing to the best private student loans of 2025 and found it to be in need of improvement, due to its lack of loan term flexibility, high APR, and limited list of eligible schools.
Other lenders like SoFi or Earnest may offer more competitive interest rates, flexible repayment terms, and additional borrower benefits, such as deferment options and no origination or late fees.
Go after federal student loan options before considering taking out any private student loans, including an MPower Financing loan, as you usually get better terms and protections through the government.
MPower Financing Student Loan Overview
9.99% to 16.99% fixed (with AutoPay discount)
5% origination fee and undisclosed late fee
Undisclosed
$2,001 — $100,000 lifetime
Pros
Cons
You might like MPower Financing if you're an international student without a cosigner. Otherwise, you may prefer another lender for more repayment options and better rates.
MPower Financing Undergraduate Student Loan- 10-year repayment term
- 5% origination fee and undisclosed late fee
- Customer service available by filling out a form or phone
- $2,001 loan minimum, up to $100,000 lifetime loan limit
- 1.5% reduction in your interest rate with automatic payments, six on-time payments, and proof of graduation and employment
- Lends to students for 350 schools
- Loan amounts available: $2,001 minimum, up to $100,000 lifetime limit
- Repayment options available:
- Interest only: Only make payments on the loan's interest while in school, then full payments after a 6-month grace period
- Loans are made by Bank of Lake Mills or MPOWER Financing
MPower Financing has student loans for only a couple of degree types, including:
- Undergraduate
- Graduate
Catered to international students, MPower Financing only offers loans if you're beginning a one- or two-year program or if you will graduate from school in the next two years. You may qualify to get a loan if you attend one of MPower's 500+ approved schools; if you go to a school outside this list, you won't be eligible to get a loan from MPower.
To contact MPower's customer support, you can fill out a form on the website or give the lender a call. There is no chat feature on the website, nor is there a mobile app.
MPower Financing Undergraduate Student Loans
MPower Financing Undergraduate Student Loan offers undergraduate loans at set rates, with no variable-rate option available.
MPower Financing Graduate Student Loans
MPower Financing Graduate Student Loan has better rates on its graduate student loans than on its undergraduate student loans, but its APR range is still much higher than what similar competitors charge.
Student Loan Refinancing with MPower Financing Student Loans
You can also refinance student loans that you already have through MPower, but the loan amount must be a minimum of $2,001. The maximum loan amount goes up to $100,000, making this lender a good option for borrowers with moderate to high student loan balances. MPower allows refinancing of both federal and private loans, with no application fee, prepayment penalty, or late fees.
While there's no minimum credit score or specific income requirement, applicants must be employed in the U.S. for at least three months and have a valid visa (H1-B, F-1 on OPT), or be a U.S. citizen, refugee, or asylum seeker. There's also no co-signer option, though refinancing removes the original co-signer.
Refinancing your student loans with MPower could help you change your loan term, pay off your loan faster, or consolidate multiple loans into one.
How to Apply to MPower Financing
MPower Financing is one of the best student loans without a cosigner. It's particularly a good option for international students who want to take out a loan and don't have a cosigner who is a U.S. citizen to add to their loan. Eligible applicants include:
- Undergraduate or graduate students who are within two years of graduating
- Graduate students who are about to begin a one- or two-year program
International students, DACA recipients, U.S. citizens, refugee or asylum-seekers admitted to/attending one of MPower's approved schools in the U.S. or Canada
(comparison product card)
MPower Financing Application Process
1. Collect the required documents and information. This includes your passport (which is not always required by other lenders), your school of enrollment, your major field of study, the loan amount you need, your address, and certain financial documents. If your school isn't one of the 500+ MPower supports, you won't be able to take out a loan.
2. Complete MPower Financing's online application. The application will take about 20 minutes to complete. After doing so, you'll get your prequalified rates without affecting your credit score or needing to enlist a cosigner.
3. Review loan offers and pick the one you can afford. After you submit your information, MPower will give you different term options. A shorter term means larger monthly payments — but you'll save more in interest.
4. Accept your loan terms and plan for repayment. After you sign the document accepting your loan terms, your loan will be approved and funded. Make sure you've worked your loan payments into your budget — late payments may add significant costs to your loan.
Required Documentation for MPower Financing
The required documentation for your MPower Financing application depends on your position as an applicant; it varies based on whether you're an international application, a DACA applicant, or a domestic applicant. It also depends on whether you're applying as a graduate or an undergraduate. However, applicants can generally expect to provide:
- A resume or CV
- Proof of address/residency/DACA status
- Relevant test scores
- Formal ID and passport
- Supporting evidence for the funds listed in your application (bank statements, scholarships, pay stubs)
Approval Timeline at MPower Financing
MPower Financing has broken down the approval timeline, starting with the eligibility process, down to the second.
- Checking your loan eligibility takes roughly 60 seconds
- It takes approximately 30 minutes to complete the application
- Initial application review has a turnaround time of about 10 business days
- Uploading required documents takes around 30 minutes if all documents are on hand
The final review takes an estimated 10 business days; if approved, what follows is certification and disbursement.
- U.S. schools — If your loan is approved, MPower will then request verification from your selected school. The amount of time it takes is contingent on your academic institution, but it's estimated to take 2-6 weeks.
- Canadian schools — With Canadian schools, MPower must verify your immigration documentation. From there, your loan disbursement will be scheduled by the school, which should take about 2-4 business days.
MPower Financing Student Loans Interest Rates and Fees
MPower Financing's student loan rates start at 9.99% to 16.99% fixed (with AutoPay discount). Because they're fixed, the interest rate will not increase for the life of the loan.
MPower Financing charges a 5% origination fee on all approved loans, and a late fee of $5.00 or 4% of the total amount due (whichever is less) if payment is not made within the 15-day grace period after your due date. Additionally, a $5 fee will be applied to your account if a payment is returned.
MPower Financing Student Loan Repayment Options
Grace Period
While enrolled in school and for six months after graduation, you must make interest-only payments. Interest-only payments are the only option you have to repay your loans with MPower Financing, so you'll pay a loan's interest monthly while in school and during the six-month grace period. After that grace period, you'll begin paying off the loan's principal and interest in full.
Loan Disbursement Deferment
While you cannot defer your MPower loan, you can request to defer loan disbursement by notifying MPower and your respective school and logging into your MPower dashboard.
Income-Driven Repayment Options
MPower Financing does not offer income-driven repayment plans.
MPower Financing Student Loans Pros and Cons
Advantages of MPower Financing
- No prepayment penalties. You'll be able to pay off your loan early with no fees.
- Lends to international students. Most lenders won't lend to international students without a cosigner — MPower will do so.
- No cosigner, collateral, or credit history is required. MPower Financing's qualification requirements are more accessible than those of other lenders.
- Autopay discount. MPower Financing offers a 0.25% rate reduction when borrowers enroll in autopay.
- Extra support. Applicants can get help with their visas, access career services, and build their US credit history with timely payments.
Potential Drawbacks of MPower Financing
- One repayment term. You must take out a loan with a 10-year repayment term when you borrow from MPower Financing.
- One repayment option while in school. You can only make payments on the loan's interest while in school, then full payments after a 6-month grace period.
- Only offers fixed-rate loans. If you want to take out a variable-rate loan, you won't be able to do so with MPower.
- Origination and late fees. MPower will add a 5% origination fee to your loan and charge an undisclosed late fee.
- No mobile app. You won't be able to manage your loan conveniently on the go.
- Not all schools eligible. If your school isn't one of the 500+ MPower supports, you won't be able to take out a loan.
- Limited loan availability. Can only get a loan if you're in a 1-year or 2-year program or if you will graduate in the next 2 years.
- High APR range. You'll pay a higher interest rate with MPower Financing than with other lenders.
Get Rates
Today's student loan rates will vary by loan issuer, and even small differences in interest rates will add up over time. Compare rates from the best student loan refinance companies and best private student loans using the tool below.
MPower Financing Student Loan Alternatives
MPower Financing vs. Custom Choice Undergraduate Student Loans
MPower is the lone lender that offers only fixed-rate loans, whereas Custom Choice offers variable-rate loans as well as fixed-rate loans. MPower's APR range is also significantly higher than Custom Choice's.
You can choose your term length with Custom Choice.
Custom Choice Student Loan Review
MPower Financing vs. Sallie Mae Undergraduate Student Loans
Sallie Mae sets your repayment term length, while MPower only offers one term length.
Neither Sallie Mae nor MPower Financing charges prepayment fees. Sallie Mae doesn't charge origination fees, though MPower does. MPower and Sallie Mae both charge late fees.
Sallie Mae Student Loan Review
9.99% to 16.99% fixed (with AutoPay discount)
Undisclosed
Pros
Cons
- 10-year repayment term
- 5% origination fee and undisclosed late fee
- Customer service available by filling out a form or phone
- 1.5% interest rate reduction with automatic payments, six on-time payments, and proof of graduation and employment
- $2,001 loan minimum, up to $100,000 lifetime loan maximum
- Lends to students for 350 schools
- Loans are made by Bank of Lake Mills or MPOWER Financing
MPower Financing Customer Experience
MPower's customers generally report a good experience with the lender. It rates 4.7 stars out of 5 on Trustpilot, and borrowers praised MPower student loans for their quick approval process and timely customer service.
Is MPower Financing Trustworthy?
The company is considered trustworthy, too, boasting an A+ rating from the Better Business Bureau. This means it's good at responding to complaints and communicating with customers.
There are no major lawsuits pending against the company.
Why You Should Trust Us: How We Rated MPower Financing Student Loans
We rate all student loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories: interest rates, fees, term lengths, borrower accessibility, repayment options, customer support, and company ethics.
Each category's weighting is determined based on its importance to your borrowing experience.
Read more about how we rate student loans >>
MPower Financing Student Loans FAQs
What is the interest rate for MPower Financing student loans?
MPower Financing's student loans has fixed interest rates starting at 9.99% to 16.99% fixed (with AutoPay discount), based on the repayment term and the borrower's credit profile. Because they're fixed, the interest rate will not increase for the life of the loan.
MPower offers a 0.25% discount to borrowers who set up automatic payments. Check the MPower website for more details.
Are there any fees associated with MPower Financing student loans?
There are no application fees or prepayment penalties with MPower Financing, but there are origination fees and late payment fees.
MPower also charges a 5% origination fee on all approved loans, and a late fee of $5.00 or 4% of the total amount due (whichever is less) if payment is not made within the 15-day grace period after your due date.
How do I apply for an MPower Financing student loan?
Apply for an MPower Financing student loan through their website. The application involves providing personal information, financial details, and academic documentation.
Can international students apply for MPower Financing student loans?
Yes, international students can apply for MPower Financing. MPower student loans specifically cater to international and DACA students studying in the U.S. or Canada.
What repayment options are available with MPower Financing?
MPower Financing has several repayment options, such as standard repayment, deferred repayment, and income-driven repayment plans.
Sallie Mae Student Loans: Borrow responsibly We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan. Explore federal loans and compare to make sure you understand the terms and features. Private student loans that have variable rates can go up over the life of the loan. Federal student loans are required by law to provide a range of flexible repayment options, including, but not limited to, income -based repayment and income-contingent repayment plans, and loan forgiveness and deferment benefits, which other student loans are not required to provide. Federal loans generally have origination fees, but are available to students regardless of income. SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. ©️ 2025 Sallie Mae Bank. Sallie Mae loans are made by Sallie Mae Bank. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners. SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America. W646400 0325 Information advertised valid as of 12/26/2025.
