Earnest vs MPOWER: Which private student loan fits your situation?

For most families and students, the choice between Earnest and MPOWER Financing is straightforward because these lenders serve fundamentally different needs. Earnest is designed for creditworthy U.S. citizens and permanent residents (or those with creditworthy cosigners) who want competitive rates and flexible repayment terms. MPOWER specifically targets international students, DACA recipients, and asylum seekers who often cannot qualify for traditional loans due to a lack of U.S. credit history or a cosigner.

Whether you are a parent trying to minimize the long-term cost of borrowing or a student looking for a way to fund your education without established credit, understanding these distinctions is critical. Choosing the wrong lender can lead to automatic rejection or unnecessarily high costs.

In this guide, you’ll learn exactly how these two lenders compare on eligibility, interest rates, loan limits, and unique benefits. We will walk through the specific requirements for each so you can confidently decide which option aligns with your financial profile and educational goals.

Context: What to know before comparing Earnest and MPOWER

Before diving into the direct comparison, it is essential to understand the broader landscape of student lending. Federal student loans should almost always be your first step. They offer protections like income-driven repayment plans and potential loan forgiveness that private lenders generally cannot match. As suggested in our guide to federal vs. private loans, you should only consider private loans after you have exhausted all federal financial aid options.

According to Betsy Mayotte, student loan expert, “In general, federal loans should be your first stop, but private loans can be appropriate when you’ve maxed out your federal eligibility.” Once you reach that point, the choice between Earnest and MPOWER depends largely on your citizenship status and credit profile.

These two lenders rarely compete for the same borrower. Earnest operates in the traditional private lending space, rewarding strong credit scores and financial stability with lower rates and customization features. In contrast, MPOWER Financing was created to fill a gap for underserved populations, utilizing a forward-looking model that assesses future earning potential rather than past credit history. Consequently, factors like your visa status, choice of university, and access to a cosigner will be the primary drivers of your decision.

Quick comparison: Earnest vs MPOWER at a glance

To help you quickly identify which lender fits your profile, the table below outlines the key differences in their requirements and offerings. Review these high-level distinctions before exploring the specific details in the following sections.

Source: Earnest and MPOWER Financing websites (data as of May 2025).

Eligibility requirements: Who qualifies for each lender

Determining your eligibility is the most critical step in the process, as the criteria for these two lenders are mutually exclusive for many borrowers.

Earnest maintains strict underwriting standards typical of top-tier private lenders. To qualify, you generally must be a U.S. citizen or permanent resident. While independent students with strong income and credit profiles can apply alone, most undergraduate students will need a creditworthy cosigner to meet the income and credit score requirements. According to Earnest as of May 2025, borrowers must attend an eligible Title IV school and be enrolled at least half-time. A minimum credit score of around 650 and a history of on-time payments are standard expectations.

MPOWER has a completely different set of criteria designed to increase access. They lend to international students (including F-1 and J-1 visa holders), DACA recipients, asylum seekers, and U.S. citizens. The most distinct feature is that no cosigner and no U.S. credit history are required. Instead, MPOWER evaluates your future earning potential based on your degree program and university.

However, there is a strict limitation: according to MPOWER as of May 2025, you must attend one of their 400+ partner universities across the U.S. and Canada. Additionally, you typically must be within two years of graduating from your degree program. This focus ensures that borrowers are close to entering the workforce and repaying their loans. For more details on general qualification standards, review our comprehensive guide to private student loans.

Interest rates and APR comparison

Interest rates are a major factor in the total cost of your loan, and the structures offered by Earnest and MPOWER reflect their different risk models.

Earnest offers both fixed rates of 2.99% - 12.78% and variable rates of 0.94% - 11.44%. For borrowers with excellent credit (or those with highly qualified cosigners), Earnest’s rates are among the most competitive in the market. According to Earnest as of May 2025, they also offer a 0.25% interest rate discount for borrowers who enroll in autopay. Their model rewards financial stability; the better your credit score and debt-to-income ratio, the lower your rate is likely to be.

MPOWER offers fixed interest rates only. Because they lend to students without credit history or collateral, their base rates are generally higher than the lowest rates advertised by traditional lenders like Earnest. However, according to MPOWER as of May 2025, borrowers can qualify for rate discounts, such as a 0.25% reduction for enabling autopay and additional reductions for providing proof of graduation and employment. While the starting APR may be higher, the fixed rate provides predictability for students managing finances in a new country.

Note: Interest rates change frequently based on market conditions. It is crucial to check your specific rate offers directly with the lender through a soft credit inquiry before making a final decision.

Loan amounts and repayment terms

Borrowing limits and repayment flexibility determine how well a loan fits into your overall financial plan. Here is how Earnest and MPOWER compare regarding how much you can borrow and how you pay it back.

According to Earnest as of May 2025, you can borrow up to 100% of the school-certified cost of attendance, minus any other financial aid received. This makes Earnest a viable option for covering substantial funding gaps at expensive institutions. In terms of repayment, Earnest stands out with term options of 5, 7, 10, 12, or 15 years. They also offer a unique “Precision Pricing” feature that allows you to customize your monthly payment to fit your budget, which then determines your exact term and rate.

MPOWER has specific caps on borrowing to ensure debt remains manageable relative to expected future income. According to MPOWER as of May 2025, students can borrow between $2,001 and $50,000 per academic year, with a lifetime aggregate limit of $100,000. The standard repayment term is 10 years. While in school and for six months after graduation, borrowers are required to make interest-only payments. This helps build credit history (for those with U.S. social security numbers) and prevents the loan balance from growing during school, but it does require having some income available while studying.

Fees and total cost considerations

When calculating the true cost of a loan, you must look beyond the interest rate to include any additional fees charged by the lender.

According to Earnest as of May 2025, they do not charge origination fees, application fees, or prepayment penalties. Furthermore, they do not charge late payment fees, although late payments can still accrue interest and negatively impact your credit score. This structure means that the APR you see is effectively the cost of the loan, making it easier to compare against other offers.

MPOWER charges an origination fee, which is added to the loan balance at the time of disbursement. According to MPOWER as of May 2025, this fee is typically 5% of the loan amount. While there are no prepayment penalties, the presence of an origination fee increases the Annual Percentage Rate (APR) and the total cost of borrowing. Students should factor this fee into their requested loan amount to ensure the net disbursement covers their tuition bill.

While the origination fee is a cost to consider, for many international students, the alternative is often personal loans with much higher rates or no access to credit at all, making MPOWER’s structure a necessary trade-off for access.

Unique features: What sets each lender apart

Beyond the numbers, both lenders offer distinct benefits designed to support their specific borrower base. These features can add significant value depending on your needs.

According to Earnest as of May 2025, their standout feature is the ability to skip one payment every 12 months (once repayment begins in earnest) without penalty, provided your account is in good standing. They also allow biweekly payments, which can help borrowers pay off their loans faster and save on interest. Their underwriting process looks at a broader financial picture—savings patterns and career trajectory—rather than just a credit score, potentially benefiting young professionals with thin but positive credit files.

MPOWER operates more like a partner for international students than a traditional bank. According to MPOWER as of May 2025, since their borrowers are often navigating a new country, they provide extensive career support services, including resume reviews, interview preparation, and networking opportunities. They also offer visa support letters to help students prove they have sufficient funds for their I-20 documentation. According to Mark Kantrowitz, financial aid expert, “Private lenders sometimes offer benefits like autopay discounts or career support.” For a student looking to secure a job in the U.S. post-graduation, these services can be just as valuable as the loan itself.

Application process and timeline

Understanding the application logistics can help you plan your funding timeline and avoid last-minute stress.

The Earnest application is fully digital and streamlined. You can check your eligibility and rate estimates in a few minutes with a soft credit check, which does not impact your credit score. Once you proceed with a full application, you will need to upload proof of income, a government ID, and school enrollment information. If applying with a cosigner, they will need to provide similar documentation. Approval can be quick—often within a few business days—though school certification and disbursement times vary by institution.

MPOWER’s process is designed for students who may lack standard U.S. documentation. The application is online and does not involve a credit check. Instead, you will need to provide your passport, visa documents, university admission letter, and past academic records. Because they verify international documents and visa status, the review process can take longer than domestic lenders. It is advisable to apply as soon as you receive your university acceptance to ensure funds are certified in time for your visa interview or tuition deadline.

Which lender is right for you? Decision framework

Now that you have the details, use this framework to decide which lender aligns with your specific situation. Remember, you can check rates with multiple lenders without hurting your credit score.

If you are a U.S. citizen attending an MPOWER partner school, you might technically qualify for both. In that case, compare the rates and fees directly. Typically, a creditworthy U.S. borrower will find lower costs with Earnest, but MPOWER remains a strong backup if you lack a cosigner. Always remember to check our guide to federal student loans to ensure you aren’t missing out on government aid first.

Frequently asked questions

Generally, no. Earnest requires borrowers to be U.S. citizens or permanent residents (10-year non-conditional Green Card holders). International students should look at lenders like MPOWER or Prodigy Finance.

No, MPOWER does not require a cosigner. This is one of their primary benefits, as finding a U.S.-based cosigner is often the biggest hurdle for international students.

Earnest typically offers lower interest rates because they lend to borrowers with established credit histories and cosigners. MPOWER’s rates are generally higher to account for the risk of lending without credit checks or collateral.

Yes, both lenders allow for refinancing if you meet their eligibility criteria later. For example, an international student who graduates, secures a U.S. job, and builds credit might eventually refinance an MPOWER loan with a U.S. lender like Earnest to secure a lower rate.

Earnest offers parent student loans for parents who want to borrow on behalf of their child. MPOWER does not offer specific parent loans; their loans are in the student’s name. For more on parent options, see our guide to Parent PLUS loans.

Choosing between Earnest and MPOWER ultimately comes down to your residency status and access to credit. They are both reputable lenders filling different needs in the student loan market.

• Earnest is best for creditworthy U.S. borrowers and those with cosigners who want low rates, no fees, and flexible repayment terms.
• MPOWER is the go-to solution for international students and DACA recipients who need funding without a cosigner or U.S. credit history.
• Always maximize federal student loans and scholarships before applying for private financing.
• Check your rates with eligible lenders to see real numbers; advertised rates are not a guarantee of what you will be offered.
• Consider the total cost, including origination fees, when comparing offers.

You have the knowledge to make a smart financial choice. By selecting the lender that fits your profile, you can secure the funding you need while keeping your future financial goals on track.

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References and resources

• Earnest Official Website
• MPOWER Financing Official Website
• StudentAid.gov – Official Federal Student Aid
• Federal vs. Private Student Loans Comparison
• Complete Guide to Private Student Loans

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