The starting interest rate on the Commonwealth of Massachusetts’ college
loan will decrease for the upcoming academic year for its most
competitive loans, according to the Massachusetts Educational Financing
Authority (MEFA). The MEFA Loan will offer a fixed interest rate
starting at 4.50% for in-school repayment and 5.40% for post-school
repayment (Annual Percentage Rate 5.63-6.03%).
The MEFA Loan is an education loan available to Massachusetts families
with a student attending college anywhere in the United States, or to
any U.S. family sending a student to college in Massachusetts. MEFA is a
not-for-profit state authority with a mission to help students and
families access and afford higher education through education programs,
tax-advantaged savings plans, low-cost loans, and expert guidance.
The MEFA Loan’s rate decrease stands in contrast to the increase in
interest rates on federal education loans. The interest rates offered by
MEFA are among the lowest rates offered by an education loan lender and
are a significantly lower-cost option than the Federal PLUS Loan.
The lower MEFA interest rate will allow families to save thousands of
dollars in interest costs over the life of their loans. This will help
to reduce the overall cost of borrowing and make college educations more
While MEFA is pleased to offer a competitive product, the state
authority advises families to exhaust all financial aid eligibility from
federal, state, and institutional sources, take advantage of other
resources, such as college savings accounts and payment plans, and not
to borrow more than they need. MEFA recommends that students first
exhaust their Federal Student Loan eligibility before considering other
loan options such as the MEFA Loan.
The MEFA Loan’s low, fixed interest rate is available to all qualifying
borrowers. MEFA provides clear, complete information to families and
informs borrowers in advance of the amount of their fixed monthly
payment and the projected total cost of the loan.
MEFA is now accepting loan applications on mefa.org/loans
for the upcoming academic year.
MEFA’s mission, since its founding in 1982, has been to help
Massachusetts students and families access and afford higher education
and reach financial goals. MEFA can be reached at (800) 449-MEFA (6332)
during business hours or online anytime at email@example.com.
Also, follow MEFA on Twitter through @mefatweets
and on Facebook
for tips and information.
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