Ascent vs MPOWER: Private student loans compared

Short answer: Choose Ascent if you are a domestic student or DACA recipient with a creditworthy cosigner (or strong personal credit), as you will likely secure lower rates and flexible terms. Choose MPOWER if you are an international student or DACA recipient who needs a loan without a U.S. cosigner or U.S. credit history.

For many families, federal student loans and savings simply aren’t enough to cover the rising cost of attendance. When a funding gap remains, private student loans become a necessary tool to bridge that distance. However, not all lenders serve the same students. Ascent and MPOWER Financing are two legitimate, popular options, but they are built for very different types of borrowers.

In this guide, you will learn how these lenders differ on critical factors like citizenship eligibility, interest rates, repayment flexibility, and fees. We will break down exactly which loan features matter most for your specific situation so you can borrow with confidence.

Context: How to use this comparison

Before evaluating private lenders, it is essential to exhaust all other options. You should always maximize scholarships, grants, and federal student loans first. Federal loans typically offer protections—such as income-driven repayment plans and forgiveness programs—that private lenders do not matching. For a full breakdown of federal options, review our guide to federal student loans.

According to Mark Kantrowitz, financial aid expert, “Private loans can be a good option when federal loans don’t cover the full cost of attendance.” Once you have reached that point, understanding who these lenders serve is the first step:

• Ascent primarily serves U.S. citizens, permanent residents, and DACA recipients. They offer traditional cosigned loans and specific non-cosigned options for eligible juniors and seniors.
• MPOWER Financing specializes in serving international students and DACA recipients. Their model is unique because it does not require a cosigner, collateral, or a U.S. credit history.

This comparison focuses on the key decision factors: eligibility requirements, the necessity of a cosigner, interest rates, borrowing limits, and total cost. By understanding these distinctions, you can determine which lender is actually accessible to you or your family.

Quick comparison: Ascent vs MPOWER at a glance

To help you make a quick assessment, the table below provides a side-by-side snapshot of how Ascent and MPOWER compare on major loan features.

Source: Ascent Funding and MPOWER Financing websites (data as of October 2025).

Eligibility requirements: Who qualifies for each lender

The most significant difference between these two lenders is who they allow to apply. Before comparing rates, you must determine if you meet the basic criteria.

Ascent operates more like a traditional private lender but with added flexibility for students without established credit. To qualify, you generally need to meet the following criteria:

• Citizenship: You must be a U.S. citizen, permanent resident, or DACA recipient.
• Credit & Cosigner:
  • Cosigned Loans: Require a creditworthy cosigner (often a parent or guardian) with a minimum income and credit score.
  • Non-Cosigned Credit-Based: Available to students who have established their own strong credit history and income.
  • Outcomes-Based: Available to college juniors and seniors with no cosigner and no credit score. Eligibility is based on GPA, major, and school, provided you are a U.S. citizen, permanent resident, or DACA recipient.
• School: You must be enrolled at least half-time at an eligible Title IV degree-granting institution.

MPOWER was built specifically to serve students who are often shut out of the traditional banking system. Their requirements focus on academic potential rather than credit history:

• Citizenship: Open to international students (including F-1 and J-1 visa holders), DACA recipients, refugees, and asylum seekers. U.S. citizenship is NOT required.
• Credit & Cosigner: No cosigner is required, and no U.S. credit history is needed. MPOWER uses a proprietary algorithm to assess your future earning potential based on your education.
• School: According to MPOWER Financing, you must attend one of the 400+ schools MPOWER supports in the U.S. and Canada. This list is more restrictive than Ascent’s, so you must verify your school is on their approved list before applying.

Key Distinction for DACA Students: Both lenders serve DACA recipients. However, Ascent usually requires a cosigner for the best rates, while MPOWER does not require a cosigner at all, making it a vital option for DACA students whose parents may not have U.S. credit status.

Interest rates and APR comparison

Interest rates determine the long-term cost of your loan. Because Ascent and MPOWER use different underwriting models, the rates they offer—and who gets the best ones—vary significantly.

According to Ascent Funding, as of October 2025, they offer fixed rates of 2.89% - 15.31% and variable rates of 3.99% - 15.40% that are highly competitive with other major private lenders. However, the lowest advertised rates are typically reserved for borrowers with excellent credit and a creditworthy cosigner. If you apply for a non-cosigned Outcomes-Based loan, you should expect a higher interest rate compared to a cosigned loan, as the lender is taking on more risk. Ascent also offers a 0.25% interest rate reduction if you sign up for automatic payments.

MPOWER Financing also offers fixed rates as of October 2025, which provides stability for international students planning their financial future. Because MPOWER does not rely on credit scores or collateral, their rates are generally higher than the “lowest advertised” rates you might see from lenders requiring excellent credit. Their pricing reflects the risk of lending without a cosigner. However, for an international student who cannot qualify elsewhere, MPOWER’s rates are often much cheaper than credit cards or personal loans in their home country. MPOWER also offers interest rate discounts for autopay and for making consecutive on-time payments.

The Bottom Line: If you have a strong U.S. cosigner, Ascent will likely offer a lower interest rate. If you do not have a cosigner, MPOWER provides access to financing that might otherwise be unavailable, with fixed rates that protect you from market fluctuations.

Loan amounts, terms, and repayment options

Flexibility in how much you can borrow and how long you have to pay it back can significantly impact your monthly budget after graduation.

According to Ascent Funding, borrowers can choose repayment terms of 5, 7, 10, 12, 15, or 20 years as of October 2025. This allows you to choose a shorter term to save on interest or a longer term to lower your monthly payment.

• Loan Limits: You can borrow from $2,001 up to the full cost of attendance (minus other aid) per year. The aggregate (lifetime) limit is $200,000.
• In-School Repayment: You can choose to defer payments completely while in school, make $25 flat payments, pay interest-only, or make full principal and interest payments.
• Grace Period: You have a 9-month grace period after graduation before full repayment begins, which is longer than the standard 6 months offered by many lenders.

MPOWER offers a simpler, standardized structure designed to be manageable for international students.

• Loan Limits: According to MPOWER Financing, you can borrow from $2,001 up to $50,000 per academic period as of October 2025, with a lifetime limit of $100,000. This is generally sufficient for tuition but may be lower than Ascent’s cap for expensive medical or law programs.
• Repayment Terms: MPOWER typically offers a standard 10-year repayment term.
• In-School Repayment: Borrowers are required to make interest-only payments while in school and during the 6-month grace period after graduation. This prevents the loan balance from growing while you study but requires you to have some cash flow during college.

While Ascent offers more choices, MPOWER’s requirement for interest-only payments during school is a financially healthy habit that keeps debt from ballooning, though it does require having funds available monthly.

Fee comparison: What you’ll pay beyond interest

When calculating the total cost of a loan, you must look beyond the interest rate to see if any upfront fees will reduce the amount of money you actually receive for school.

Ascent charges no origination fees. This is a standard feature for top-tier domestic private lenders. If you are approved for a $10,000 loan, the full $10,000 is sent to your school. Ascent does charge late fees if payments are missed after the grace period, and returned payment fees may apply, but there are no penalties for paying off your loan early (prepayment penalty).

MPOWER charges an origination fee. According to MPOWER Financing, as of October 2025, MPOWER includes an origination fee ranging from 0% to 5% of the loan amount. This fee is added to your loan balance. For example, if you borrow $10,000 with a 5% fee, you are responsible for repaying a principal balance of $10,500, even though the school receives $10,000. Like Ascent, MPOWER charges late fees but has no prepayment penalty, meaning you can pay the loan off faster to save on interest.

While origination fees are an added cost, they are common in lending products that serve borrowers with thin credit files. For many international students, paying an origination fee is a worthwhile trade-off for accessing education funding without a cosigner.

Borrower benefits and unique perks

Both lenders offer benefits that go beyond the money itself. These perks can provide financial relief or career assistance that adds substantial value to the loan.

• 1% Cash Back Reward: Borrowers can receive 1% of the principal amount back after graduation if they meet specific criteria.
• Cosigner Release: This is a massive benefit for parents. According to Ascent Funding, after making 24 consecutive on-time full principal and interest payments, eligible borrowers can apply to release their cosigner from the loan. According to Mark Kantrowitz, financial aid expert, “Cosigner release is a valuable feature offered by some private lenders, rewarding responsible repayment.”
• Hardship Options: Ascent offers a progressive repayment option and various forbearance options for temporary financial hardship.

• No Cosigner Required: The primary benefit is access itself—removing the burden of finding a wealthy U.S. relative to sign for you.
• Visa Support Letters: MPOWER provides support letters to help international students during the visa interview process, proving they have secured funding.
• Career Support Services: This is a standout feature. According to MPOWER Financing, they offer a Path2Success program providing resume review, interview preparation, and networking opportunities to help international students secure high-paying jobs in the U.S. or abroad.

While Ascent focuses on financial flexibility and releasing parents from debt, MPOWER focuses on the holistic success of the international student, helping ensure they land the job needed to repay the loan.

Pros and cons: Ascent vs MPOWER summary

To help you synthesize the details, here is a summary of the strengths and limitations of each lender.

• Pros: No origination fees, flexible repayment terms (5-20 years), cosigner release after 24 months, and 1% cash back at graduation.
• Cons: Typically requires a cosigner for best rates, outcomes-based loans have higher rates, and eligibility is limited to U.S. citizens, permanent residents, and DACA students.

• Pros: No cosigner or U.S. credit history required, available to international students, fixed interest rates, and includes career support services.
• Cons: Origination fee (0-5%), limited to 10-year repayment term, requires interest-only payments while in school, and only available at approved schools.

Both lenders are reputable and fill necessary gaps in the market, but their ideal customers are quite different.

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Which lender is right for you? Best-fit scenarios

Based on eligibility, cost, and benefits, here is our verdict on who should choose which lender.

Choose Ascent if:

• You are a U.S. citizen, permanent resident, or DACA recipient.
• You have a creditworthy cosigner (like a parent) willing to help you get the lowest possible rate.
• You want to avoid origination fees entirely to maximize your funding.
• You need flexible repayment terms, such as a 15 or 20-year term to lower monthly payments.
• You are a parent who wants the option of cosigner release down the road.

Choose MPOWER if:

• You are an international student (F-1 or J-1 visa) or DACA recipient.
• You do not have a U.S. cosigner or do not want to burden a family member.
• You have no U.S. credit history but have high career potential.
• Your school is on MPOWER’s approved list of 400+ institutions.
• You value career support services to help navigate employment after graduation.

Frequently asked questions

Can international students get Ascent loans?
Generally, no. Ascent requires borrowers to be U.S. citizens, permanent residents, or DACA recipients. International students on F-1 visas typically do not qualify for Ascent loans and should consider MPOWER or other lenders specializing in international funding.

Does MPOWER require a cosigner?
No. MPOWER specifically serves students who do not have cosigners. They utilize a proprietary algorithm based on your academic success and career potential rather than your credit history or a cosigner’s income.

Which lender has lower interest rates?
It depends on your credit profile. For borrowers with excellent credit and a strong cosigner, Ascent typically offers lower interest rates. However, for students without credit history or cosigners, MPOWER offers competitive fixed rates that are often much lower than other unsecured financing options available to international students.

Can I use MPOWER at any school?
No, MPOWER is only available at approximately 400+ approved schools across the U.S. and Canada. You must check their website to ensure your specific university is on their eligible list before applying.

Does Ascent offer cosigner release?
Yes. Ascent allows borrowers to apply to release their cosigner after making 24 consecutive on-time full principal and interest payments, provided the student meets income and credit requirements at that time.

Choosing between Ascent and MPOWER largely comes down to your citizenship status and access to a cosigner. Both lenders provide legitimate, safe pathways to fund your education when federal aid falls short, but they serve different needs.

Key takeaways:

• Ascent is the stronger choice for domestic students and DACA recipients who have a cosigner, offering lower rates, flexible terms, and no origination fees.
• MPOWER is the go-to solution for international students and DACA recipients who need funding without a cosigner or U.S. credit history.
• Always exhaust federal loan options first, as they offer protections private lenders cannot match.
• Compare rates from multiple lenders to ensure you are getting the best deal for your financial profile.
• Consider the total cost of the loan, including origination fees and interest, not just the monthly payment.

Taking on student debt is a significant commitment, but with the right lender, it is an investment in your future earning power. By selecting the loan that fits your profile, you can focus on your studies knowing your financing is secure.

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References and resources

To ensure accuracy, the data in this article was sourced from the following:

• Ascent Funding Official Website (Rates and Eligibility)
• MPOWER Financing Official Website (Rates and Terms)
• StudentAid.gov (Federal Loan Information)
• College Finance FAFSA Guide
• College Finance Federal Loans Guide