Understanding your loan payments is an important part of managing your MPOWER Financing loan. This page outlines everything you need to know. While you’re in school and during the first six months after graduation, you’ll make small monthly payments toward your loan’s interest. Once that period ends, you’ll begin making regular payments on both the principal and the interest, helping you stay on track toward full repayment and long-term financial success. Dive into our repayment examples for the information you need. 

“Annual percentage rate” or “APR” means the cost you pay each year based on the loan’s interest rate and fees, expressed as a percentage. An APR provides an “apples-to-apples” comparison across available loan products and providers.

When you borrow from MPOWER, the lowest available interest rate without any discount or promotion is 10.24% (10.24% APR), and the median interest rate for loans is 12.24% (12.74% APR).¹ The interest rate you qualify for will be a fixed rate and will not increase for the life of the loan. MPOWER also offers borrowers a way to qualify for a 0.25% rate discount by making your loan payments through automatic withdrawal from your bank account.

If you qualify for this discount and the median interest rate given above, your effective interest rate would be 11.99% (12.49% APR).²

Monthly loan payment examples for interest rates without a discount for a loan amount of $10,000:

• If your interest rate is 10.24%, which equates to an APR of 10.24% including an origination fee of 0%, the monthly payment amount is $85.33  for the first 30 months. For the next 120 months, the monthly payment amount is $133.48.
• If your interest rate is 12.24%, which equates to an APR of 12.74% including an origination fee of 2%, the monthly payment amount is $104.04 for the first 30 months. For the next 120 months, the monthly payment amount is $147.76.
• If your interest rate is 14.24%, which equates to an APR of 15.53% including an origination fee of 5%, the monthly payment amount is $124.60 for the first 30 months. For the next 120 months, the monthly payment amount is $164.55.

Monthly loan payment examples for interest rates with a discount for a loan amount of $10,000:

If the borrower signs up for automatic debit immediately after the loan is disbursed and remains on it for the life of the loan, the interest rate declines by 0.25%.

• If your interest rate is 9.99%, which equates to an APR of 9.99% including an origination fee of 0%, the monthly payment amount is $83.25 for the first 30 months. For the next 120 months, the monthly payment amount is $132.10.
• If your interest rate is 11.99%, which equates to an APR of 12.49% including an origination fee of 2%, the monthly payment amount is $101.91 for the first 30 months. For the next 120 months, the monthly payment amount is $146.28.
• If your interest rate is 13.99%, which equates to an APR of 15.27% including an origination fee of 5%, the monthly payment amount is $122.41 for the first 30 months. For the next 120 months, the monthly payment amount is $162.97.

¹[U.S. Graduate Success Loan interest rate without the discount] The annual percentage rate (APR) is the interest rate plus any additional fees calculated as an annual percentage. For example, a loan is approved in the amount of $10,000 with a 0% origination fee of $0. Therefore the APR would be calculated as the interest rate plus the 0% origination fee and expressed as an annual percentage. Similarly, a loan is approved in the amount of $10,000 with a 2% origination fee of $200. Therefore the APR would be calculated as the interest rate plus the 2% origination fee and expressed as an annual percentage. The student begins their program up to 30 months to graduate and maintains full-time enrollment to graduate in exactly that period. The student will start making payments 45 days after loan disbursement. During the in-school period and grace period that follows the in-school period, students are required to make interest only payments. The total duration of this interest only payment period may not exceed 30 months (2.5 years). Once the grace period ends, borrowers make interest and principal payments each month to repay the loan in 10 years. The remaining months of repayment are calculated using a 120-month amortization schedule. All payments are made on time; a forbearance or deferment is never used; and there is no prepayment of any principal.

²[U.S. Graduate Success Loan interest rate with the discount] The APRs with discounts are calculated using the following assumptions: A loan is approved in the amount of $10,000 with a 0% origination fee of $0. Therefore the APR would be calculated as the interest rate plus the 0% origination fee and expressed as an annual percentage. Similarly, a loan is approved in the amount of $10,000 with a 2% origination fee of $200. Therefore the APR would be calculated as the interest rate plus the 2% origination fee and expressed as an annual percentage. The student will start making payments 45 days after loan disbursement. The borrower signs up for automatic debit immediately after the loan is disbursed and remains on it for the life of the loan, which reduces the rate by 0.25%.