Your interest-only payments begin 45 days after your school receives the funds. 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 period may not exceed 30 months (2.5 years). The maximum grace period post-graduation is six months. Once the grace period ends, borrowers make interest and principal payments each month to repay the loan in 10 years.
How MPOWER’s repayment process helps:
This gives you time to settle in and build your U.S. credit history early with consistent, on-time payments! This structure helps keep payments manageable while you're studying and gives you time to transition after graduation.
Good news! There are no prepayment penalties, so if you’re ready to pay off your loan early, you’re free to do so anytime, with no fees, no extra charges.
Key Details:
The interest-only payment period must not exceed 30 months in total, including any grace period, if applicable, in the postgraduation period.
Example for a 2-year (24-month) program:
- 24 months of interest-only payments while you are in school
- 6 months of interest-only payments after graduation
- 120 months (10 years) of regular payments (principal + interest) -- That’s a total of 150 months of loan payments in this example.
- Monthly payments are based on your disbursed loan amount and an origination fee starting at 5%.
Example for a 2.5-year (30-month) program:
- 30 months of interest-only payments while you are in school
- 120 months (10 years) of regular payments (principal + interest) -- That’s a total of 150 months of loan payments in this example.
- Monthly payments are based on your disbursed loan amount and an origination fee starting at 5%.
