Navigating the Path to an International Loan for Students Without a Credit Score

International students often face unique challenges when it comes to securing financial aid for their education. One of the common hurdles is obtaining a loan without a credit score. However, with the right approach and understanding of the requirements, it is possible to successfully apply and secure a loan. In this article, we will explore the journey to obtaining a loan through MPower, a lender specifically designed to cater to international students.

Understanding the Challenge

When international students apply for a loan without a credit score, they may encounter similar requirements to those with a good credit score. The main difference lies in the interest rates, which tend to be higher. This is because lenders cannot rely on a credit score to gauge the risk involved in providing the loan. Therefore, it becomes essential to follow a structured and well-prepared application process.

The Requirements for MPower Loan

MPower loan, like other financial aid for international students, comes with its own set of requirements. It is important to have a clear understanding of these requirements before you start the application process. Here are the key requirements:

University Partnership: You must have received an offer letter from a university that is a partner of MPower financing. Academic Standing: For master’s degree-seeking students, a minimum CGPA of 3.0 is required. This is equivalent to a 75 on a 100-point scale. Program Duration: The intended program of study should be a maximum of 2 years to completion. Documentation: You need to provide proof of identity and home address, transcripts and degree certificate, Curriculum Vitae, and, if available, a credit score.

The Roadmap to Applying for MPower Loan

The journey to obtaining an MPower loan can be broken down into several steps. Here is a roadmap to guide you through the process:

Eligibility Check: Begin by checking your eligibility for the MPower loan through their official website. Ensure that you have either received an offer letter from one of the universities that partners with MPower or are planning to apply to one of these universities. You should also confirm that your intended program of study is within 2 years to graduation, as MPower only provides loans for programs that meet this criterion. Full Application Process: Once you have confirmed your eligibility, proceed to complete the full application. This process typically takes around 30 minutes. Before starting, ensure you have the total cost of your attendance, a copy of your offer letter, and all the necessary documentation ready. The application process may require: Total cost of attendance Offer letter from a partnered university Transcripts and degree certificate Curriculum Vitae and, if available, a credit score

Loan Approval and Disbursement

If your loan application is approved, MPower will provide you with a support letter that you need to include as part of your financial documents to receive your I-20 for the school you have been admitted to. After securing the I-20, you can apply for your F1 visa and upload the relevant documents to your MPower student portal. Once the visa process is complete, MPower will disburse the loan amount to the school after they have received the school financial certification.

Loan Details

Here are some important details about MPower loans:

Fixed Interest Rate: MPower operates on a fixed interest rate throughout the life of the loan. Repayment Period: The maximum repayment period is 10 years. No Prepayment Penalty: You can pay off the loan before the standard repayment period without any penalty.

A Personal Note

I am personally a beneficiary of and an MPower ambassador while writing this article. I hope this information helps in your quest to secure a loan for your international academic journey.