Are you looking for Mpower Financing Student Loan Refinance review, then you are on the right article. If you’re an international student, a DACA recipient, or a domestic student in search of specialized refinancing solutions, then Mpower Financing Student Loan Refinance is tailored to your needs.
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It is very difficult to financially manage the debts and loans that are spent on education during higher studies. A mismanagement of finance leads to serious consequences in the future. If you have spent a lot of money and also have study debt then you need to pay the loan repayments along with interest rates.
The loans generally have repayment schedules of around 15 to 20 years. Some even offer less time and higher interest rates. However, if you have taken such a loan or multiple loans then you should refinance your education loan.
The term refinancing is the process where the private lender pays off your debt and grants a new loan with a different interest rate and repayment schedule. There are a lot of refinancing companies that offer extensive features. One of them is the Mpower financing student loan refinance.
Here in this article, we will provide a review of the private lending company that helps you to decide whether to refinance your debts or not from the company.
Explore the transformation LendKey Student Loan Refinance offers for your repayment strategy, guiding you toward financial freedom.
What is Mpower Financing Student Loan Refinance?
Mpower is a private lending company that was founded in 2014. The company provides financial solutions to individuals who have encountered challenges related to financing their education.
The best part of the company is that it allows both US residents and international students to refinance their loans. MPOWER offers student loans and refinancing options that are known to break traditional barriers. The unique aspect of the MPOWER is that it does not have a compulsion for a cosigner.
Also, there is no need for collateral, security, or a U.S. credit history to take a loan or refinance the loan. So, the company offers opportunities for financial management to students all over the world. MPOWER has extended its services to students belonging to more than 190 countries.
However, there is a need to meet the eligibility requirements as specified by the company. This will allow the students to secure education loans to cover the educational expenses of any US-based college or educational institution.
The company offers eligibility criteria that cover international students, DACA recipients, U.S. citizens, refugees, and asylum seekers. However, to qualify for the loan refinancing the students must be within two years of graduation or must be enrolled in any one or two-year program.
Mpower Financing Student Loan Refinance – Pros and Cons
There are various advantages offered by the company. Below are some of them that we’ve mentioned; take a look:
- Credit Score Flexibility:
The students who are applying for a student loan or refinancing through Mpower Financing Student Loan Refinance don’t require minimum credit score requirements. As an alternative, the company adopts a unique way i.e. the credit checks count the existing credit history in the U.S. or Canada. Also, the qualification is based on the location of the educational institution, and the credit score of the borrower in his country.
- Credit Building Opportunity:
Another best part of the company is that it is officially registered and can help you to increase your credit score. Whether you have a credit history in the USA or not, it doesn’t impact the application process of loan refinancing. MPOWER loans offer a chance to students without a credit history to start building their credit score and reach the required levels of loan approvals.
However in the beginning when you refinance the loan it may negatively impact your credit score. But soon it will be recovered once you make continuous repayments as per schedule.
- Automatic Payment Discount:
Almost all loan refinancers provide a discount on allowing auto payments from the bank. Same with the private lending company, MPOWER Finance provides a 0.25% APR discount for the borrowers who select the automatic monthly repayments. This will allow the borrowers to enjoy a discount that will lower the overall loan cost.
- Prepayment Flexibility:
The flexibility of repayments is the biggest feature of the company. If You refinancing your student debt through MPOWER Financing, the loan is offered without any prepayment penalties and hidden costs. This will allow the borrowers to pay off their loans with more flexibility. There is no need to worry if you missed any repayment. There are provisions to forgive skin the repayment as per your schedule without the imposition of additional charges and penalties.
Along with the benefits and advantages, there are some disadvantages of the company as well. Below, let’s take a look at a few of them that have been mentioned:
- Origination Fee:
The private lending company, MPOWER Financing charges a 2% origination fee from the borrowers who are refinancing their student loans. The fee is charged to cover the processing and distribution costs of the application process. This is one of the biggest disadvantages of the company because many private lenders do not impose any kind of origination fee on the student who wants to refinance their loan to cover educational expenses.
- Limited Repayment Term Options:
MPOWER only offers one choice for loan repayment terms i.e. 10 year repayment period, there is no extended period offered to the borrowers. The company is best recommended for borrowers who are planning for a shorter repayment tenure. Whereas on the other hand borrowers who are looking for more extended and customizable repayment terms may face inconvenience.
- Fixed Interest Rates:
The worst part of the Mpower refinance loans is that it has fixed interest rates for all the applications. The interest rates are the same for all whether you have a higher credit score or lower. The company lacked a variable interest rate option. The disadvantage of fixed interest rates is that the borrowers can either face loss or profit due to market-driven fluctuations. The best option is to explore other lenders who are providing variable interest rates for student loan refinancing.
The private lending company, Mpower Financing Student Loan Refinance is unique from all other lenders because of the conditions where there is no need for a credit score or any credit history for the approval of the application. These unique features which are offered to the borrowers make the company apart from many other private student loan providers.
However, the lender may review the credit files in the U.S., Canada, or the home country of the applicant. This is done to check whether the borrower has a clear repayment record or not. Whereas the credit score is not considered in the decision-making process of application.
However, the Mpower Financing Student Loan Refinance are accessible only to students who are enrolled in some specific schools in the U.S. All these schools are located across the USA and Canada. If your educational institution is not on the list of supported schools. You can go for the other private lenders to refinance your education loan. You can check the Mpower official list of supported schools on their website to determine the eligibility for loan refinancing.
There are a lot more eligibility criteria and requirements that need to be satisfied by the applicants to refinance their loan from Mpower. Some of these eligibilities are mentioned below, let’s have a look:
- The Approval for the refinancing is available only for U.S. legal citizens, permanent residents, DACA recipients, asylum seekers, refugees, and visa holders.
- The loan or loan refinancing is only available for the students. There are no parent loans available to choose from.
- To become eligible the students must maintain half-time enrollment at an eligible school, as per the eligible schools lists.
- The Applicants who are applying for the loan or refinancing must have reached the age of majority in their state of residence.
- The Eligibility can be extended only to individuals in their last two years of school or to the students who are pursuing the one-year or two-year programs in the eligible institution.
However, keep in mind that Mpower in-school loans are not available for Canadian residents who are studying in Canada. If a similar situation is found Canadian citizens or permanent residents are not eligible to qualify for refinance loans from the private lending company, Mpower.
The Loan Amount offered by the company in the case of Private loans is around $2,001 to $50,000. And the lifetime limit for private loans is around $100,000. One can borrow only $100,000 on his profile. On the other hand, the minimum refinancing limit for the loans is around $2,001 and the maximum limit is around $100,000.
The APR in the case of Private loans starts from a minimum of 13.72% and a maximum of 15.01% fixed APR. There are some discounts applied on the interest rates in case of auto payment.
While the Refinancing loan APR is around 12.23% to 12.48%, which is also fixed. The loan is only offered for the tenure of 10 years. Whether you are borrowing private loans or refinancing your loan, the only time for repayment is 10 years.
Most of the borrowers are looking for the Grace Period.
With the Mpower Financing Student Loan Refinance the borrowers can get a grace tenure of around 21 to 60 days after loan disbursement. Moreover, the Principal payments can also be related until 6 months after graduation. There are different types of loans offered by the private lending company. These include undergraduate, graduate, and refinancing. Also, there is no need for Cosigner to get the loan or refinance the existing loan.
1. Is there any Collateral Requirement for Mpower loan refinancing?
No, the private lending company, MPOWER does not demand any kind of collateral or security for their loans. Additionally, the applicants who have borrowed the loan from the company do not need to have a cosigner for the approval of their loan. Almost all the lending companies required any collateral or cosigner for the approval of the loan. Whereas the Mpower is unique and stands out of them all with reliable specifications.
2. What are the disadvantages of MPOWER Financing?
There are some disadvantages of MPOWER financing as well. The loans and refinancing are offered to international students in the U.S. or Canada. Which makes it less suitable for U.S. citizens. Also, the lender offers only a single repayment tenure and repayment period with higher interest rates. Their interest rates are also fixed and can not be altered as per the market fluctuation.
3. What is the Loan Disbursement Process?
The MPOWER student loan and refinancing funds are directly transferred to your school. Once you have finished signing the final loan documents, the process will start. Which includes a four-day window. In the process, the loan can be canceled for any suitable reason either by the applicant or the lender. After getting approved in all the procedures you can grant the date and schedule to transfer the funds directly to the educational institution.
4. What are the Credit Score Requirements for MPOWER Student Loans?
The private lending company MPOWER does not have the credit score requirements during the application for student loans. However, the lender may review the credit score of the applicant for any payment history if available. Also, the lender adopts any alternative eligibility criteria to check whether the applicant is worthy of the loan or loan refinancing. The application can only be rejected in case of any default history or no payment history of the applicant.
There are a lot of loan refinancing companies in the market that allow borrowers to refinance their education loans and get more flexible repayment terms and lower interest rates. One such company is the Mpower Student Refinance. The company is unique and stands out from all the refinance companies because of its provisions where there is no need for a credit score, collateral, or co-signer to get approval for the loan.
But there are some disadvantages of the company as well. These included fixed interest rates and only one repayment schedule of 10 years. The repayment tenure can not be extended above 10 years. If you refinance federal loans to private loans then you lose all the benefits and perks you are receiving from government student loan programs.