Funding university education overseas remains one of India’s greatest stumbling blocks to ensuring that Indian students can study at the University in the United States or Canada. Most students grapple with receiving loans as they have a challenging time qualifying in terms of the credit history for the loans because they need a cosigner to sign the documents or even present collateral.

MPower Financing targets the academic potential and professional path of a student more than their economic history. The following article investigates the aspects of MPower Education Loans, including eligibility, amount of loan, interest rate, repayment methods, advantages, and how Indian students can take advantage of this funding in 2025.

What is MPower Financing?

MPower Financing is a public-benefit company that lends education loans to international and DACA students seeking higher studies in the U.S. and Canada. In contrast to conventional banks and lenders, MPower uses future earning ability as the metric for judging students rather than a good credit history or a cosigner.

This makes it possible for students who do not have access to traditional financial options.

Features of MPower Education Loan

  1. Loan Amounts
  • Students can borrow between US$2,001 and US$100,000 in total.
  • Loan amounts depend on the cost of education, including tuition, housing, and other educational expenses.
  1. Interest Rates
  • The fixed interest rate starts at 9.99% (10.89% APR) for loans issued in 2025.
  • Borrowers can avail a 0.25% discount for enrolling in automatic payments.
  • An additional 0.75% discount is available for students who apply early (before January 31, 2025).
  1. No Cosigner or Collateral Requirement
  • Unlike traditional bank loans, MPower does not require a cosigner, making it easier for students who may not have financially strong sponsors.
  • No collateral is required, reducing the financial burden on families.
  1. Use of Funds
  • MPower loans can be used to cover tuition fees, housing, meal plans, health insurance, books, and other educational expenses.
  1. Flexible Repayment Terms
  • Students pay interest-only payments while in school and for six months after graduation.
  • After the six-month grace period, borrowers repay in fixed monthly installments over a 10-year tenure.
  • Prepayment is allowed with no penalty, allowing students to reduce their interest burden by paying off their loans early.

Eligibility Criteria for MPower Education Loan

To qualify for an MPower loan for masters abroad, students must meet the following criteria:

  • Must be an undergraduate or graduate student within two years of graduation or starting a one- or two-year program.
  • Must be admitted to or attending one of MPower’s 400+ approved universities in the U.S. or Canada.
  • Must not require a cosigner, collateral, or a U.S. credit score.

MPower evaluates students based on their academic performance, potential employability, and expected post-graduation earnings.

Special Support for Indian Students

MPower Financing recognizes the unique needs of Indian students and offers additional benefits:

  • Visa Support: MPower provides free visa support letters to assist students in securing their F-1 or study permits.
  • Career Services: Students get access to job search tools, resume-building resources, and employer connections to enhance their career opportunities.
  • Financial Literacy Resources: MPower offers guides on managing student finances, U.S. credit building, and repayment planning.
  • India-Specific Partnerships: MPower collaborates with Indian educational consultants to help students navigate the study abroad journey.

Considerations Before Applying

While MPower Financing offers numerous benefits, students should be mindful of certain factors:

  • Higher Interest Rates: MPower’s fixed interest rates are higher than those of government-backed education loans, so students should compare options.
  • Interest Accrual During Study Period: Interest accumulates even while students are in school, increasing the overall repayment amount.
  • University Restrictions: Loans are only available for students attending MPower’s partner universities, limiting options for those attending other institutions.

Before applying, students should carefully assess their financial needs, compare loan options, and plan their repayment strategy to make the most of this opportunity. With MPower’s financial backing, Indian students can confidently pursue their academic and career aspirations abroad.

Want to know which bank has the lower interest rates on education loan for abroad? Connect with a study abroad consultant for guidance!