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.
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:
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.
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).
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:
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:
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 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.
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.
MPOWER offers a simpler, standardized structure designed to be manageable for international students.
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.
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.
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.
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.
To help you synthesize the details, here is a summary of the strengths and limitations of each lender.
Both lenders are reputable and fill necessary gaps in the market, but their ideal customers are quite different.
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Based on eligibility, cost, and benefits, here is our verdict on who should choose which lender.
Choose Ascent if:
Choose MPOWER if:
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:
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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To ensure accuracy, the data in this article was sourced from the following: