MPOWER vs Edly: Private student loans compared
If you’re an international or DACA student at a partner school needing visa support and fixed costs, choose MPOWER. If you prefer payments that scale with your post-grad salary and offer downside protection, consider Edly. We’ll flag how each affects monthly cash flow and long‑term budgets.
For many families, the gap between federal financial aid and the actual cost of attendance is a source of significant stress. This guide compares two specialized lenders—MPOWER Financing and Edly—that serve students often shut out by traditional banks. You’ll learn how their eligibility requirements differ, compare their unique cost structures, and use a decision framework to determine which model aligns with your financial future.
While MPOWER offers a traditional loan structure with fixed interest rates, Edly utilizes an income-contingent model (often structured as an Income Share Agreement or income-based loan) where repayment depends on future earnings. By the end of this article, you will be able to compare eligibility and costs, estimate total cost under different income scenarios, and choose the best fit using our decision checklist.
Context: who MPOWER and Edly serve
Before diving into the numbers, it is critical to understand that MPOWER and Edly are not typical private lenders. They exist primarily to serve students who fall through the cracks of the traditional banking system—specifically those who lack a U.S. credit history or a creditworthy cosigner.
MPOWER Financing specializes in funding for international students, DACA recipients, and asylum seekers studying in the U.S. and Canada. Their model is built on the premise that high-potential students should not be penalized for lacking a U.S. credit score. They offer a traditional fixed-rate loan product, meaning your interest rate and monthly payment amount are set upfront and do not change, providing stability for families planning a budget.
Edly, conversely, focuses on an income-contingent repayment model. While they also serve students without cosigners, their defining feature is flexibility based on career outcomes. Instead of a fixed monthly bill, Edly payments are calculated as a percentage of the student’s post-graduation income. This provides built-in downside protection: if the graduate’s income is lower than expected, the payments are lower. If they earn nothing (due to unemployment or returning to school), payments may pause entirely.
These two options represent a choice between certainty and flexibility. MPOWER provides the certainty of a fixed debt obligation, which is often required for student visa applications (I-20 forms). Edly provides the flexibility of payments that adjust to real-world earnings, shifting some of the financial risk from the student to the lender.
MPOWER vs Edly: quick comparison table
This table provides a snapshot of how these lenders stack up on the factors that drive your decision. While MPOWER uses traditional loan terms, Edly uses terms specific to income-based repayment.
| Feature | MPOWER Financing | Edly |
|---|---|---|
| Best For | International/DACA students needing visa support & fixed payments | Students wanting payment flexibility & downside protection |
| Citizenship | International, DACA, Asylum Seekers, U.S. Citizens | U.S. Citizens, Permanent Residents, some International (DACA) |
| Cosigner | Not required | Not required |
| School Network | 400+ Partner Schools (U.S. & Canada) | Broad network of approved U.S. schools |
| Loan Limits | Up to $100,000 lifetime limit | Up to $25,000 per year (varies by program) |
| Cost Structure | Fixed Interest Rate (APR) | Income Share Percentage |
| Origination Fees | 5% added to loan balance | Typically none |
| Repayment Start | Interest-only payments while in school | After graduation (typically with grace period) |
Source: MPOWER Financing and Edly (data as of October 2025)
Why it matters
For Parents: MPOWER’s fixed payments allow for predictable family budgeting, ensuring you know exactly what the obligation is every month. Edly’s model means payments fluctuate, which can be harder to budget for but protects the student if they struggle to find a high-paying job immediately.
For Students: MPOWER helps build U.S. credit history with regular fixed payments. Edly offers safety: if you don’t earn above a certain threshold, you generally don’t pay, preventing default during tough times.
Now that you have the high-level view, the following sections will break down exactly how these differences play out in real-world scenarios.
MPOWER vs Edly: eligibility requirements
Determining eligibility is the first step in narrowing your options. Because these lenders operate without cosigners, they rely heavily on other criteria—specifically your school, your program, and your academic potential—to approve funding.
According to MPOWER Financing as of October 2025, eligibility is strictly tied to their network of partner universities. You must be admitted to or enrolled in one of the 400+ supported schools across the U.S. and Canada. This list includes many top-tier public and private universities, but it is not exhaustive. If your school is not on their list, you cannot apply.
MPOWER is distinct in its acceptance of various citizenship statuses. They lend to international students, DACA recipients, asylum seekers, and U.S. citizens. Critically, for international students, MPOWER provides support letters that can be used to verify funding for the I-20 visa process. You must be within two years of graduating to qualify, as their model assesses your near-term earning potential.
Edly takes a broader approach regarding school eligibility but is often more specific regarding majors or programs. While they work with a wide range of U.S. colleges, approval is often contingent on the return on investment (ROI) of your specific degree program. They assess whether your expected future income will be sufficient to support the income-based payments.
Regarding citizenship, Edly primarily serves U.S. citizens and permanent residents. However, DACA students may also qualify depending on current underwriting guidelines. Unlike MPOWER, Edly generally requires students to be juniors, seniors, or grad students who are close to entering the workforce.
Key Takeaway: If you are an international student, MPOWER is likely your primary option due to visa support. If you are a domestic student at a school outside MPOWER’s partner network, Edly may be the more accessible choice.
Loan amounts and coverage
Once you confirm eligibility, the next question is whether the lender can cover your funding gap. Both lenders position themselves as “gap financing” solutions, meaning they are intended to cover what federal aid, scholarships, and savings cannot.
According to MPOWER Financing as of October 2025, students can borrow up to $50,000 per academic period, with a lifetime aggregate limit of $100,000. These funds can be used for tuition, housing, meals, health insurance, and other education-related expenses.
The loan amount is certified by your school, meaning MPOWER will not lend more than your school’s official Cost of Attendance (COA) minus other financial aid you have received. This prevents over-borrowing but ensures legitimate expenses are covered.
According to Edly as of October 2025, annual limits generally hover around $15,000 to $25,000, depending on the specific program and the student’s projected income. Because Edly’s model relies on a percentage of future income, they are careful not to overburden a graduate’s future paycheck. Like MPOWER, funds are disbursed directly to the school to cover tuition and fees first.
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.” It is crucial to calculate your exact funding gap before applying. Remember that neither MPOWER nor Edly should replace federal Direct Loans, which offer lower rates and more robust protections.
For a detailed breakdown of federal limits, review our guide to federal student loans.
MPOWER vs Edly: rates, fees, and total cost
Comparing the cost of a traditional loan against an income-contingent product can be difficult. This section breaks down the math so you can see the true financial impact of each option.
MPOWER offers clarity through fixed numbers. According to MPOWER Financing as of October 2025, their loans carry a fixed interest rate (APR) that typically ranges between 11% and 15%. This rate includes an origination fee of 5% which is added to the loan balance upon disbursement. Because the rate is fixed, your monthly payment will never change regardless of market conditions.
MPOWER offers an interest rate discount of 0.25% for enrolling in autopay. There are no prepayment penalties, meaning you can pay off the loan early to save on interest costs.
Edly’s cost structure is fundamentally different. Instead of an interest rate, you agree to an “Income Share Percentage.” According to Edly as of October 2025, this is the portion of your gross monthly income you will pay back—typically ranging from 2% to 10%, depending on the amount borrowed and your major.
There are two critical safety rails in this model:
- Minimum Income Threshold: If you earn less than a specific amount (for example, $30,000 annually), you make no payments ($0/month).
- Payment Cap: There is a maximum amount you will ever pay back, often capped at 2.0x or 2.5x the amount borrowed. This protects you if you land a very high-paying job.
Scenario 1: Moderate Income ($45,000/year)
With MPOWER, you pay the standard fixed monthly payment regardless of this salary. With Edly, your payments would be relatively low because they are a small percentage of that $45,000. In this scenario, Edly might offer better monthly cash flow, though the repayment term might take longer.
Scenario 2: High Income ($100,000/year)
With MPOWER, your payment remains the same, meaning the loan takes up a smaller chunk of your budget. With Edly, your payments scale up proportionally. You will pay off the obligation faster, but the total dollar amount paid back could be significantly higher than the MPOWER loan, up to the payment cap.
Key Insight: MPOWER offers a predictable total cost. Edly offers a variable total cost that rises with your success but protects you against failure.
Quick tip
If you expect a high starting salary (e.g., Computer Science or Engineering), a fixed-rate loan like MPOWER’s often results in a lower total cost. If your field has variable starting salaries, Edly provides a safety net.
Repayment terms and borrower protections
Life after graduation rarely goes exactly to plan. Understanding how each lender handles repayment during financial hardship is just as important as the interest rate.
According to MPOWER Financing as of October 2025, loans typically have a 10-year repayment term. While in school and during the six-month grace period after graduation, borrowers are usually required to make interest-only payments. This prevents the loan balance from growing while you study.
If you face financial difficulty, MPOWER offers forbearance options, allowing you to temporarily pause payments for 6-month increments (up to 24 months total in some cases). However, interest continues to accrue during these pauses. You must actively apply and qualify for these protections.
According to Edly as of October 2025, repayment begins after a grace period, but payments are only due if your income is above the Minimum Income Threshold. If you lose your job or your income drops below this line, your payments automatically adjust to $0. You do not need to “apply” for deferment in the traditional sense; you simply verify your income.
Edly contracts also have a maximum term length. If you haven’t paid off the obligation by the end of the term (for example, 8-10 years) due to low income, the remaining balance is often forgiven, provided you’ve met all reporting requirements.
It is vital to remember that neither lender offers the same level of protection as federal loans. According to Jason Delisle, regarding the broader private loan market, “Federal loans are more lenient … no late fees, unlike private loans.” Federal loans offer Income-Driven Repayment (IDR) plans and potential forgiveness programs (PSLF) that private lenders cannot match. Always review StudentAid.gov for the latest on federal protections.
Application process comparison
The application experience differs significantly between these two lenders due to their different underwriting criteria.
The MPOWER application is document-heavy because they must verify your international status and future potential.
- Step 1: Complete the online application (about 30 minutes).
- Step 2: Upload documents. You will need your passport, visa documents, admission letter, past transcripts, and standardized test scores.
- Step 3: Review. MPOWER assesses your academic standing and career potential.
- Step 4: Approval and Certification. Once approved, MPOWER works with your school to certify the loan amount and issues a visa support letter if needed.
Because MPOWER does not look at credit scores, the focus is entirely on your academic and professional trajectory.
Edly’s process focuses on your program’s ROI.
- Step 1: Create a profile and select your school and major.
- Step 2: Connect accounts. Edly may ask to connect to your bank account or upload transcripts to verify your standing.
- Step 3: Offer review. You will receive terms based on your major’s expected earnings.
- Step 4: Sign and certify. Edly confirms enrollment with your school before disbursing funds.
Edly’s approval is faster for students in high-demand majors, as the underwriting is largely automated based on program data.
Borrower benefits and support
Beyond the money, both lenders offer “soft” benefits designed to help their specific borrower base succeed.
MPOWER invests heavily in career support for international students. They offer a visa support letter service, which is invaluable for students needing to prove liquidity for their I-20. Additionally, they provide resume reviews and exposure to a network of employers willing to sponsor visas. According to Mark Kantrowitz, financial aid expert, “Private lenders sometimes offer benefits like autopay discounts or career support,” and MPOWER’s focus here is a major differentiator for non-U.S. citizens.
Edly’s incentives are aligned with yours: they only get paid if you get hired. Consequently, they offer access to career coaching and networking opportunities. Their support is focused on income optimization—helping you land the best possible job after graduation so that you can comfortably manage your income-share payments.
Decision framework: which lender is right for you?
If you are still weighing your options, use this checklist to clarify your decision.
- You are an international student or DACA recipient needing a visa support letter.
- You attend one of MPOWER’s 400+ partner universities.
- You prefer the stability of a fixed monthly payment amount.
- You expect a high starting salary and want to cap your total costs (avoiding the high-income “tax” of an ISA).
- You want to build a U.S. credit history through regular installment loan payments.
- You are a U.S. citizen or permanent resident (or eligible DACA student) at a school outside MPOWER’s network.
- You are worried about finding a job immediately after graduation and want downside protection.
- You prefer payments that automatically scale down if your income drops.
- You are comfortable potentially paying back more in total in exchange for financial flexibility during your early career.
Know which direction you’re leaning? Compare your personalized rates and terms now.
Frequently asked questions
Yes. Both lenders explicitly design their products for students without cosigners. MPOWER uses your future earning potential and academic success to approve you, while Edly looks at the return on investment of your specific degree program.
With Edly, if your income is below their Minimum Income Threshold, your monthly payments are $0. With MPOWER, you would typically need to apply for unemployment forbearance or make interest-only payments, as the obligation does not automatically disappear based on income.
Edly primarily serves U.S. citizens and permanent residents. However, they may accept DACA recipients or international students with a valid U.S. cosigner depending on the specific fund or program year. MPOWER is generally the stronger option for international students without cosigners.
Federal student loans should always be your first choice. They offer lower fixed rates and government-backed protections like Public Service Loan Forgiveness (PSLF). See our federal loans guide for more details.
Neither is strictly “better”; they manage risk differently. An ISA (like Edly) offers insurance against low income but charges a premium for high earners. A traditional loan (like MPOWER) is cheaper for high earners but riskier for those who struggle to find employment.
Choosing between MPOWER and Edly ultimately comes down to your residency status and your risk tolerance. Both lenders provide essential liquidity to students who are often ignored by the major banks, but they do so with very different mechanics.
Key takeaways:
- Access: MPOWER is the go-to for international students requiring visa support; Edly is a strong alternative for domestic students needing flexibility.
- Cost: MPOWER offers predictable, fixed costs. Edly offers variable costs that protect you if you earn less but cost more if you earn more.
- Eligibility: Check MPOWER’s partner school list first; if your school isn’t there, Edly’s broader network may be the solution.
- Strategy: Always maximize federal financial aid and scholarships before turning to either private option.
Remember to exhaust your federal options first. Visit our FAFSA guide to ensure you haven’t missed any government aid. If you still have a funding gap, these innovative lenders offer a way forward that doesn’t rely on your parents’ credit score.
Compare rates from MPOWER, Edly, and other private lenders to find your best fit
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