MPower Financing vs Education Loan Finance
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Comparisons
MPower Financing
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Who is it for?
MPower Financing Student Loan is designed for undergraduate or postgraduate students who are within 2 years of graduating or about to begin a 1-year or 2-year program. It caters to international students, DACA recipients, U.S. citizens, refugees, or asylum-seekers.
APR
The APR for MPower Financing Student Loan varies depending on the type of loan and the borrower’s status. The fixed rate for International Undergraduate Loan is 13.99%, and for International Graduate Loan is 11.99%.
Loan/Line of Credit
MPower Financing offers student loans. The loan amounts range from $2,001 to $100,000.
Loan Term
The loan term for MPower Financing Student Loan is a single repayment term of 10 years.
Rewards & Fees
MPower Financing rewards responsible borrowers by offering up to a 0.25% rate discount on student loans. There is no cost to apply. If your loan is approved, a 5% origination fee will be added to your loan balance when the loan is disbursed to your school.
How to Qualify?
To qualify for an MPower Financing Student Loan, you must be admitted to or attending one of their 400+ approved schools in the U.S. or Canada. You should be an undergraduate or postgraduate student within 2 years of graduating or about to begin a 1-year or 2-year program. You should also be an international student, DACA recipient, U.S. citizen, refugee, or asylum-seeker
Educational Loan Finance
Who is it for?
ELFI Student Loans are designed for undergraduate and graduate students enrolled at least half-time. It caters to U.S. residents, those with Deferred Action for Childhood Arrival (DACA) status, or those with a qualifying visa.
APR
The APR for ELFI Student Loans varies depending on the type of loan and the borrower’s status. The fixed rate for International Undergraduate Loan is 13.99%, and for International Graduate Loan is 11.99%.
Loan/Line of Credit
ELFI offers student loans and student loan refinancing. The loan amounts range from $1,000 to 100% of the cost of education for private loans and start at $10,000 for refinancing loans.
Loan Term
The loan term for ELFI Student Loans ranges from five to 20 years in one-year increments
Rewards & Fees
ELFI does not charge loan application fees, and there are no origination, prepayment, early payment, or extra payment fees. However, there are late fees applied to payments that are more than 11 days late. The fee is either 5% of the total payment or $50, whichever is less. There is also a return payment fee of $30 per return payment.
How to Qualify?
To qualify for an ELFI Student Loan, you must meet the following eligibility requirements: - Be at least 18 years old or the age of majority in your state - Be a U.S. citizen or permanent resident alien without conditions and with proper evidence of eligibility - Be enrolled in a program for a bachelor’s, master’s, or doctoral degree - Be attending an eligible school - Have a valid Social Security number - Have a credit score of at least 680 - Earn at least $35,000 annually
Common Terms to Know
- APR (Annual Percentage Rate): This represents the yearly cost of borrowing, including interest and fees. It's crucial to compare the overall cost of different loans.
- Loan/Line of Credit: Defines the type of financial assistance available. MPower Financing primarily offers student loans, while Navient offers a broader range of options, including student loans, refinancing, and other financial products.
- Loan Term: This refers to the duration of the loan. MPower Financing typically offers 10-15 years loan terms, whereas Navient might offer variable terms depending on the specific product or loan.
- Credit Score Required: MPower Financing may not have a strict minimum credit score requirement but often prefers a cosigner. Navient typically requires a good credit score for their loans.
- Cosigner: A person who agrees to take responsibility for a loan if the borrower fails to repay. MPower Financing often recommends having a cosigner, especially for international students, while Navient might have varying policies depending on the borrower's credit history.
- Repayment Options: This includes the flexibility offered in repaying the loan, such as grace periods, deferment, or income-driven repayment plans. Both companies might have different options, so understanding these can be crucial for managing repayments effectively.
- Prospective Interest Rates: Knowing the range of interest rates each company offers can help understand the potential cost of borrowing. Both MPower Financing and Navient offer competitive rates based on creditworthiness and market conditions.
- Customer Service: Understanding the quality and accessibility of each company's customer support services can be crucial during the loan application process and throughout the repayment period.
How to Compare Loans
- Interest Rates and APR: Compare the interest rates and Annual Percentage Rate (APR) to gauge the total cost of borrowing
- Loan Term and Repayment Options: Assess loan duration and available repayment plans to match your financial capability
- Fees and Additional Charges: Scrutinize for hidden fees like origination charges or prepayment penalties to understand the true cost of the loan
- Flexibility in Repayment: Look for options like deferment, forbearance, or income-driven plans to ease repayment during financial difficulties
- Customer Service and Support: Check reviews and ratings to ensure reliable customer service throughout your loan tenure
Before You Take a Loan
- Assess Your Financial Situation: Analyze income, expenses, and borrowing needs while creating a budget for repayment planning
- Research and Compare Options: Explore multiple lenders, their terms, and repayment plans to select the most suitable one
- Check Your Credit Score: Understand your creditworthiness and explore ways to improve your score for better loan terms
- Consider a Cosigner: If needed, secure a cosigner with a good credit history to enhance your loan application
- Read the Fine Print: Thoroughly understand all terms, conditions, and potential implications of the loan
How to Get a Student Loan
- Research Loan Options: Explore federal loans, private lenders, and financial aid possibilities
- Complete the FAFSA: Submit the FAFSA to determine eligibility for federal student aid programs
- Explore Federal Loan Options: Investigate Direct Subsidized Loans, Direct Unsubsidized Loans, and PLUS Loans, known for flexible terms and rates
- Consider Private Loans: Assess private lender terms and compare against federal options for potential additional borrowing
- Gather Necessary Documents: Prepare personal identification, financial statements, and school information for the loan application
- Submit Applications: Complete applications and include all required documentation for the chosen loans
References
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FAQ's
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