Massachusetts Educational Financing Authority

MEFA, which stands for Massachusetts Educational Financing Authority, is a state-affiliated nonprofit lender offering private student loans. Although it is based in Massachusetts, MEFA loans are available to students nationwide who are attending eligible colleges and universities, not just those studying in Massachusetts.

As a nonprofit organization, MEFA does not pursue profit from its lending activity, which can translate into competitive rates compared to some commercial lenders. However, as with all private student loans, you should complete the FAFSA and maximize federal student loan eligibility before considering MEFA or any private lender. Federal loans provide income-driven repayment, deferment, and forgiveness options that private loans do not offer.

MEFA typically offers fixed interest rate loans, which means your rate does not change over the life of the loan. This provides predictability when budgeting for repayment. Variable rate options may also be available depending on the current product lineup.

Most applicants will need a creditworthy co-signer to qualify or to access the best available rates, particularly if the student has limited credit history. Co-signer requirements and release options should be confirmed directly with MEFA.

MEFA is known for straightforward loan terms without origination fees, which means the amount you borrow is the amount you receive. This is worth comparing against lenders who charge upfront origination fees, which effectively increase the cost of borrowing.

Repayment options typically include deferred payments during school, interest-only payments, or immediate full repayment, with the last option minimizing total interest cost.

When considering MEFA, compare its annual percentage rate, total loan cost, repayment terms, and any fees against other private loan offers. Residents and students connected to Massachusetts may find particular value in exploring MEFA.