MPOWER Financing is a Public Benefit Corporation whose stated mission is to reduce the financial barriers to international education. The company offers its student loans to students who cannot typically qualify for a loan from other banks or lenders unless they have a co-signer or collateral.
MPOWER lends to highly-employable domestic & international students at top US campuses who are left out of traditional banking options.
MPOWER Financing was founded in 2014 by Manu Smadja and Michael Davis. The company is based in Washington, DC, with offices in New York and Bangalore, India.
MPOWER Financing lends to students who are within 2 years from graduation and uses a proprietary credit model that considers borrowers’ academic success and career path. Students who benefit from these services typically are international students or domestic students whose parents do not have the credit history to cosign, as well as recipients of DACA. MPOWER Financing's services are available at 223 university programs as of July 2017.
MPOWER Financing offers 10-year, fixed-rate loans ranging from 42,000 to $50,000 and charges an administrative fee of 5%, which is added to the total loan amount. Interest rates range between 7.99 and 13.99 percent. Applicants also receive support letters that can be used to apply for a US visa, career support during school, and can pay off their loan early without incurring prepayment penalties.
MPOWER Financing is backed by Goldman Sachs, Breega, Potencia Ventures, AI8, Cometa, Zephyr-Peacock, 1776, Fresco Capital and others. The company raised $9M in a new round on June 09, 2020. This brings MPOWER Financing's total funding to $229.5M to date.