Facts on MEFA Loans

If you need to borrow a loan to help you cover a portion of college costs, have your child start with the Federal Direct Student Loan, which students can receive by submitting the FAFSA^®. The Federal Direct Student Loan, however, has annual limits, from $5,500 to $7,500 depending on class year. If your family needs financing beyond that amount, we recommend you compare your options thoroughly. Our Comparing College Loan Options webinar can help you do that.

MEFA offers a private loan for families, with multiple repayment choices. Here are some other facts about MEFA Loans that you might find helpful. Keep them in mind as you compare your financing options.

• We're nationwide. Though we have "Massachusetts" in our name, you don't need any connection to the Bay State to borrow a MEFA Loan. We're available to families across the country for students going to school anywhere in the U.S.
• Interest doesn't accrue until the loan is disbursed. If you borrow a MEFA Loan for the full academic year, we'll spit the loan into two parts, and send those funds before the fall semester and spring semester. Interest won't start accruing on each part until it's disbursed. So if you borrow $20,000, and receive $10,000 each semester, your second $10,000 won't start accruing interest until we send it to the school, usually sometime in January.
• We're a family loan. Though MEFA Loans help pay the student's college bill, most students need a co-borrower, who often ends up being a parent or other family member. We therefore refer to MEFA Loans as family loans. Each borrower on the loan is equally responsible for repayment.
• Our interest rate range is small. As you compare your loan options, review the Application and Solicitation Disclosure of each one. The document will show the range of interest rates that potential borrowers could be offered on the loan. The rates for some lenders go into double digits, up to the neighborhood of 15%. MEFA's range of rate possibilities is narrow, and the highest rate doesn't go anywhere near that high.
• We offer free guidance. When you borrow a MEFA Loan, we'll send you periodic emails with information and updates relevant to your family. That includes topics related to college internships, summer jobs for students, finding scholarships, loan repayment, and more.

If you'd like to learn more about MEFA Loans, visit our dedicated page. And if you have questions about borrowing a loan for college and would like to speak with someone, give us a call at (800) 449-MEFA (6332). We have dedicated team members ready to assist.

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