We compared the top private lenders for schools.
Our goal?
To help you make an informed decision.
We compared Gratify, MPower, Lendcare Capital, Prodigy Finance and Leap Finance for this post.
Let’s get started.
First, here’s an at-a-glance comparison of these financing options.
Each service has unique strengths and is tailored to specific needs, making it essential for potential borrowers to consider what best aligns with their circumstances and goals.
| Gratify | Mpower | Lendcare | Prodigy Finance | Leap Finance | |
| Focus Area | Canadian colleges and career colleges | International and DACA students | Various consumer financing | International grad students | Indian students studying abroad |
| Eligibility Criteria | Broad accessibility, no hard credit checks | No minimum credit score, international focus | Accessible to diverse credit profiles | Focus on future income; no co-signers | Indian nationals |
| Application Process | 1 minute form | Online docs required | Online, accessible | Online, no credit scores; docs needed | Online with a personal assessment |
| Financing Model | Fixed upfront payment | Fixed APR loans for students | Fixed monthly instalments | Variable APR loans for postgrads | compound interest rates |
| Special Features | White label options for businesses | Offers refinancing, specialized for int’l/DACA | No down payment | No co-signer; future earnings are considered | Simplified process for U.S. education |
| Repayment Terms | Fixed payment model | 10-year fixed repayment term | Terms up to 60 months | 7 to 20 years | Details not specified |
| Customer Support | Comprehensive support options | Phone, email, and third-party services | Support via live chats, email, and phone | Multiple international contact options | Support via phone, WhatsApp, email |
| Number of schools in Canada | 100+ | 23 | N/A | 3 | N/A |
| Cosigner required | No | No | Yes | No | Yes |
| Website | Gratify | Mpower | Lendcare | Prodigy Finance | Leap Finance |
Gratify
Gratify offers an innovative financing solution for different levels of Canadian education, including colleges and career colleges.
Unlike traditional financing options that may have lengthy application processes and conduct credit checks, Gratify offers the fastest tuition funding process in Canada where students can apply and be funded in a matter of minutes.
Financial Products Offered
Gratify sets itself apart by introducing a pay-as-you-go financing model, where payments commence during the student’s enrollment period. This strategy allows students to cover their education costs in real time, aiming for a debt-free graduation. This model simplifies the payment process, making it more predictable and lessening the financial stress typically linked to educational expenses..
Eligibility Requirements
A hallmark of Gratify’s approach is its inclusive financing model, which goes beyond traditional credit checks. Instead of relying on a conventional credit history, Gratify evaluates a wider array of factors, uncovering multiple positive reasons to approve financing. This method opens the door to financing for a broader spectrum of students, including those with limited credit history or concerns about the credit checks because Gratify does not perform hard checks that show up on credit records.
Application Process
Gratify revolutionizes the application process with instantaneous underwriting, setting a new standard for efficiency and convenience. This breakthrough approach ensures decisions are made in just two mins, enabling students to determine precisely how much they can finance without delay. This immediate clarity is a game-changer, starkly contrasting with other financing options that can take weeks to process, thereby significantly reducing the stress and wait time traditionally associated with securing educational funds.
Repayment Terms
Gratify’s repayment strategy is designed around a transparent, flat-fee model, distinctly more accessible and economical than traditional compounding interest methods that can substantially increase the total cost of education. By initiating payments while still in school, Gratify offers a proactive approach to managing educational expenses. This method starkly contrasts with conventional options, where significant debt accumulates and is only addressed post-graduation, providing students with a clearer, more manageable financial pathway through their education.
Customer Support
Gratify is committed to providing excellent customer service, ensuring students and educational institutions can easily access support when needed. This service commitment helps enhance the overall user experience and ensures that users can confidently navigate the financing process.
Pros of Gratify
- Streamlined application process without hard credit checks.
- The fixed upfront pay model provides transparent and predictable repayment terms.
- They are designed specifically for the Canadian educational system, including colleges and career colleges.
- Option for businesses to white label the product, enhancing brand perception and user experience.
Cons of Gratify
- As with any financing option, students need to consider their ability to meet the repayment terms and fully understand their financial commitment.
Gratify represents a compelling option for students and educational institutions in Canada, offering an accessible, straightforward financing solution tailored to the needs of the Canadian education system.
Its emphasis on simplicity, transparency, and customer service makes it a noteworthy choice for those seeking alternative financing.
Mpower Financing
Mpower Financing focuses on providing student loans and refinancing options specifically for international and DACA students.
The company stands out for offering loans to a niche market that typically faces challenges securing educational financing due to a lack of a U.S. co-signer or credit history.
Financial Products Offered
Mpower offers private student loans with fixed APRs between 13.74% and 15.01%. These loans are designed for juniors, seniors, and graduate students, highlighting the company’s focus on supporting students later in their education.
Eligibility Requirements
Mpower does not require a minimum credit score, making it an accessible option for students without a U.S. credit history. The company focuses on serving students within two years of graduating and attending specific schools and programs.
Application Process
Prospective borrowers can start by completing an eligibility check on Mpower’s website. They can complete the application process and submit the necessary documentation if they meet the basic requirements.
Repayment Terms
Mpower’ss loan offerings come with fixed repayment terms that span a decade. Initially, borrowers are afforded the flexibility to make interest-only payments for the first two years.
This is followed by a six-month grace period post-graduation before the commencement of full principal and interest payments.
An illustrative example of borrowing $10,000, with an added 5% origination fee, under a 15% annual interest rate over 10.5 years, demonstrates the financial implications of such a loan. The origination fee brings the total borrowed amount to $10,500. Monthly repayments on this amount, calculated over the 10.5-year term, would be $165.94.
By the end of the loan term, the total amount repaid would reach around $20,908.09, which includes approximately $10,408.09 in interest alone. This example underscores the significant financial commitment entailed in MPOWER’s loan products, particularly noting that the company’s interest rates and fees may be higher than some alternatives.
Consequently, while MPOWER provides crucial access to funding for international students, the higher total loan costs merit careful consideration by potential borrowers.
Customer Support
Support is available via phone for U.S. and Canadian students, with dedicated numbers for each. Mpower also utilizes third-party companies for loan servicing, ensuring borrowers can access assistance throughout their loan term.
Pros of Mpower Financing
- No co-signer or U.S. credit history is required
- Offers refinancing options
- Provides visa support letters and career strategy services
Cons of Mpower Financing
- High origination fee (5%).
- No option for deferment during postgraduate training.
- Higher interest rates compared to other lenders.
LendCare Capital
LendCare Capital, a subsidiary of goeasy Ltd., is a Canadian financing provider known for its point-of-sale financing solutions. It caters to consumers across various sectors, including retail, automotive, healthcare, and home improvement, enabling businesses to offer financing options to their customers to boost sales.
Financial Products Offered
LendCare specializes in installment loans with terms of up to 5 years. Their solutions are designed to accommodate various credit profiles, offering bi-weekly and monthly repayment options.
Eligibility Requirements
LendCare is accessible to consumers with diverse credit backgrounds. They do not provide specific eligibility criteria like minimum credit score or income, focusing instead on offering financing solutions tailored to individual needs.
Application Process
Prospective borrowers can initiate the loan application process by contacting LendCare’s customer service. The process is designed to be straightforward, with assistance available through various channels.
Repayment Terms
Loans offered by LendCare can be repaid over terms of up to 60 months, with the option for borrowers to make additional payments or pay off the loan early without penalty.
Customer Support
LendCare’s customer service is noted for its accessibility. It offers support through live chats, email, and phone. Reviewers have highlighted the responsiveness and helpfulness of the support team.
Pros of Lendcare Capital
- Services are available to borrowers with diverse credit profiles.
- Flexible and customizable financing solutions.
- There is no penalty for early loan repayment.
Cons of Lendcare Capital
- Specific loan details, such as interest rates and requirements, are not publicly disclosed.
LendCare offers flexible financing options catering to a wide range of credit profiles, supported by commendable customer service.
While the company provides valuable solutions, particularly for businesses looking to offer financing to their customers, potential borrowers should inquire directly to obtain detailed information on loan terms and conditions.
Prodigy Finance
Prodigy Finance is renowned for providing international students with non-co-signed graduate student loans. It is particularly beneficial for international students who need access to a qualified co-signer or a U.S. credit history.
Financial Products Offered
Prodigy Finance offers variable APR loans ranging from 4.09% to 15.71%, catering to international postgraduate students across various fields such as business, engineering, law, public policy, and health sciences.
Loans are available in 150 countries for students attending one of over 400 schools supported by Prodigy Finance.
Eligibility Requirements
To be eligible for a loan from Prodigy Finance, applicants must be international master’s students accepted into supported graduate schools.
Prodigy Finance does not require a U.S. credit score, co-signer, or collateral, unlike many lenders. Instead, loan eligibility is based on the borrower’s future income potential, proof of income, and a credit report from their home country or current country of residence.
Application Process
The application process with Prodigy Finance is streamlined and can be completed online. Applicants must provide proof of identity, address, income, admission, savings (if applicable), and scholarships (if applicable). The process is designed not to adversely affect the applicant’s credit score.
Repayment Terms
Prodigy Finance distinguishes itself with a range of flexible loan terms, spanning from 7 to a maximum of 20 years, tailored to accommodate the financial circumstances of its borrowers.
This flexibility extends to its repayment options, which notably include the possibility of full deferment of payments while the borrower is still enrolled in their educational program, coupled with a six-month grace period following the conclusion of their studies to begin repayment.
Consider a scenario where a borrower takes a $10,000 loan at an interest rate of 15.71% over a 20-year period. In this case, the total cost of borrowing amounts to $22,000 in interest, culminating in a total repayment sum of $32,000.
This example highlights the financial burden that can accumulate over long-term loans, especially at higher interest rates.
Also, the company does not impose penalties for early repayment, and repayment can be made via various international payment platforms.
Customer Support
Prodigy Finance provides customer support through multiple international phone numbers and emails, catering to the diverse geographies of its borrowers.
Pros of Prodigy Finance
- No co-signer, collateral, or U.S. credit score is required.
- Flexible loan terms and repayment options.
- Supports a wide range of postgraduate programs and universities worldwide.
Cons of Prodigy Finance
- Limited to international postgraduate students.
- Loans carry a variable APR, which might increase over time.
- Admin fee up to 5% so borrowing $10,000 means repayment of $10,500 .
Prodigy Finance’s emphasis on future earning potential over current financial status offers a lifeline to students with promising prospects who need the means to secure traditional financing.
However, careful financial planning must be considered, given the variable nature of the interest rates and the significant admin fee associated with their loans.
Leap Finance
Leap Finance is focused on helping Indian students finance their education abroad, particularly in the United States.
The company emphasizes a straightforward application process and competitive interest rates to make education more accessible to international students.
Leap Finance caters primarily to Indian students seeking education loans to study in the U.S., based on the information available.
Financial Products Offered
While specific loan products for Canadian schools were not directly mentioned, Leap Finance primarily offers education loans for students aiming to study in the U.S. They provide loans with interest rates ranging from 11.50% to 12%, depending on various factors, including academic record and future job prospects.
Eligibility Requirements
Applicants typically need to be Indian nationals and may require an Indian co-signer. The company significantly emphasizes making education loans accessible to students planning to study in the U.S., with the eligibility check and application process available through their website.
Application Process
The application process is online and involves several steps, including document submission, a video call for personal assessment, and a processing fee payment. The comprehensive online process culminates in issuing a final sanction letter necessary for the U.S. student visa application.
Repayment Terms
Detailed repayment terms were not explicitly listed, but the process includes selecting loan amounts and tenures upon accepting the loan offer. The company also mentions direct disbursement of tuition and fees to the university or college, indicating a streamlined process for managing loan funds.
Customer Support
Leap Finance offers customer support through phone, WhatsApp, and email, indicating a commitment to accessible and versatile communication channels for prospective and current borrowers.
Pros of Leap Finance
- Competitive interest rates
- Comprehensive online application process.
Cons of Leap Finance
- The limitation is the geographical focus, primarily supporting students heading to the U.S.
Leap Finance is an attractive option for Indian students seeking to finance their education in the U.S., offering competitive rates and a thorough online application process.
Canadian students or those looking for financing options for schools in Canada might need to explore other lenders or contact Leap Finance directly to inquire about available services for their specific needs.
Conclusion
Gratify, MPower, Lendcare Capital, Prodigy Finance, and Leap Finance—offer unique advantages tailored to specific student needs and circumstances.
Whether you’re an international student studying in Canada or pursuing postgraduate studies abroad, there’s a financing solution that aligns with your educational goals and financial situation.
Among these options, Gratify stands out for its commitment to making education more accessible and affordable, particularly within the Canadian context.
With a streamlined application process, no credit check requirement, and a fixed upfront payment model, Gratify offers a compelling choice for students and educational institutions. Its focus on simplicity, transparency, and customer support ensures that borrowers can manage their finances with confidence and ease.
Take the next step towards securing your educational future by exploring Gratify financing options.