Nepali students will no longer have to face the hassle of collateral when studying abroad. For the first time in Nepal, a US-based institution called MPower Financing has introduced an education loan facility of up to USD 100,000 (around NPR 13,000,000) for master’s (postgraduate) level students, without collateral and without a guarantor.
MPower Financing, which has successfully funded more than 20,000 students from over 190 countries so far, has now included Nepali postgraduate students in its program as well. The institution stated that, considering the high demand for international education from Nepal, it is committed to supporting students here.
MPower Financing has been providing financial support for 11 years to students going to study at more than 500 leading colleges and universities in the United States and Canada. According to the institution, the reason it does not require collateral or a guarantor is its special algorithm-based education loan assessment system. This algorithm analyzes a student’s academic and career profile and produces an accurate estimate of the ability to repay the education loan over a 10-year period. The institution claims that, because it has already provided education loans to a large number of students, this data-driven model is very strong.
MPower Financing mainly funds students who want to pursue a master’s degree and a Master of Business Administration in science, technology, engineering, and mathematics. According to the institution, these fields have high demand in the international market and deliver the best results for students’ careers. MPower Financing provides education loans at a fixed interest rate. The interest rate is determined based on the risk of the student’s profile, but once the loan is approved, it remains fixed for the full 10-year period and does not change, said the company’s Associate Director, Claire Almond.
Almond said MPower Financing primarily focuses on three things to select eligible students for an education loan.
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The student must be admitted to one of the 500 colleges/schools that MPower Financing partners with.
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Importance is given to the student’s academic record, test scores, work experience, and future career plans.
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The student’s current credit record (if any) is also reviewed, but for new students it does not matter even if there is no credit record.
MPower Financing provides education loans from USD 2,001 to USD 100,000. Students can cover their tuition fees, living expenses, and housing costs through this. The institution provides a high level of flexibility in how the education loan is used. Students can use only as much of the approved amount as they need and pay interest only on the amount used. If a scholarship or other support is received later, the student can also decide not to take the remaining loan amount.
In addition, MPower Financing provides free webinars and resources for visa interview preparation, along with career services such as a “Career Accelerator.” The program also runs boot camps and classes to help students prepare for internships and the job market even before they reach the United States or Canada.
The entire application process for MPower Financing is fully digital (online) and paperless. This frees students from the hassle of visiting offices or sitting in long lines as with traditional lenders. Interested students can complete the application process from home in just 30 minutes through the institution’s website, said Associate Director Claire Almond.
