MPOWER Financing, a fintech company focused on helping international students get education loans, claims to have successfully completed its first-ever private student loan securitisation worth $100.5 million.
The company asserts that this deal marks the beginning of a series of private financings that MPOWER plans to do alongside its public asset-backed securitisation (ABS) programme. Together, these moves aims to help the company attract more investors and create more funding options for student loans, the company said.
Loans supporting global students
The securitised pool includes fixed-rate, US dollar loans given to international graduate students, mainly those studying STEM and business courses at top universities in the US and Canada. It also includes international refinance loans.
“The private securitisation shows growing trust among investors in international student loans. These loans, especially for students in Graduate STEM, Business, and Health fields, offer a stable and socially impactful investment with good risk-adjusted returns,” Jatin Rajput, Chief Finance Officer, MPOWER, said.
Adding to it, Manu Smadja, MPOWER’s co-founder and CEO, said the deal is about more than just finance – it’s about empowering bright students from across the world. Around 93% of MPOWER borrowers say their loans were essential for completing their education. Smadja said the initiative helps first-generation students, many from the Global South, while also supporting universities in building more diverse student communities.
How can students avail loans?
International students can avail loans from MPOWER Financing by following a streamlined digital application process tailored to their unique needs.
Eligibility check: Students must be enrolled or planning to enroll in an eligible university supported by MPOWER Financing in the US or Canada.
Loan application: Students apply online through MPOWER’s website by creating an account and filling out the application form. They provide personal, academic, and financial information.
Assessment: MPOWER assesses applicants based on academic performance, future earning potential, and other factors rather than requiring cosigners, credit history, or collateral, which international students often lack.
Documentation: Students submit necessary identity and enrollment verification documents digitally.
This process allows international students to finance their education without needing a cosigner or collateral, focusing on their academic potential and career prospects.