MPower Financing vs Splash Financials
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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
Splash Financials
Who is it for?
Splash Financials Student Loans are designed for borrowers who want to refinance their student loans and get a lower rate. It caters to those with completed graduate and professional school degrees, borrowers with undergraduate degrees (from a Title IV-accredited institution), associate degree graduates (or those enrolled in the final term and in specific fields of study), and medical degree graduates while completing a residency or fellowship.
APR
The fixed APR ranges from 5.34% to 8.73%, and the variable APR ranges from 7.35% to 7.35%3
Loan/Line of Credit
Splash Financial offers student loan refinancing. The loan amounts range from $5,000 to $500,000
Loan Term
The loan term for Splash Financial Student Loans ranges from five to 25 years
Rewards & Fees
Splash Financial doesn’t charge origination fees, application fees, or prepayment penalties. However, it does charge late fees. Splash Financial does not offer a grace period for refinance loans.
How to Qualify?
To qualify for a Splash Financial Student Loan, you must meet the following qualifications: Meeting minimum financial standards, such as income and credit score. Graduation from an associate’s or four-year degree or higher, or applicants in the final term of their program at a Title IV eligible school who have an offer of employment in certain medical fields. U.S. citizenship, or for some lending partners, permanent residency status. A low debt-to-income ratio (no more than 30%). A history of on-time payments. Good to excellent credit (preferably 640 or higher). Always consider your federal student loan options before refinancing into any private student loan, including one with Splash Financial, as you can often get better terms and protections through the government.
Common Terms to Know
- APR (Annual Percentage Rate): This represents the yearly cost of borrowing, including interest and fees. It's crucial for comparing 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 loan terms of 10-15 years, 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 available, so understanding these can be crucial for managing repayments effectively.
- Prospective Interest Rates: Knowing the range of interest rates offered by each company can help in understanding the potential cost of borrowing. Both MPower Financing and Navient offer competitive rates, but these rates can vary based on creditworthiness and market conditions.
- Customer Service: Understanding the quality and accessibility of customer support services offered by each company 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.
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 loan(s).
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FAQ's
