Who Is the Borrower? |
The parent of an eligible undergraduate is the primary borrower. The student applies with the parent and is also obligated to repay the loan. All applicants (and co-applicants, if any) must be either a U.S. citizen or a permanent resident. The BU student borrower is not required to be a Massachusetts resident, nor is the parent borrower or co-borrower. |
Interest Rate |
Fixed interest rate, immediate repayment at 7.75%. |
Credit Criteria |
Must meet MEFA's current credit approval standards. Online credit decisions are instant. |
Fees |
Origination fee of 4% is added to the loan amount. |
Minimum and Maximum Allowed |
Loans are approved from $2,000 up to the total annual cost of education minus any financial aid, including any Federal Direct Stafford Student Loan. |
Repayment Terms |
A 15-year monthly repayment of $9.97 per $1,000 borrowed with the immediate repayment option or $11.24 per $1,000 borrowed with the deferred repayment option. No prepayment penalty. |
Enrollment Status |
Students must be enrolled in an undergraduate degree program for at least 6 credits each semester. |
Deferment Options |
The deferred repayment option is subject to fund availability, is awarded on a first-come, first-serve basis and is subject to significant eligibility guidelines. Interest rates for deferred loans may be higher. Repayment on deferred loans begins 6 months after the student ceases to be enrolled in the program of study. |
Can Loan be Sold? |
MEFA will finance and hold all of its loans from disbursement through repayment. MEFA does not sell its loans. |
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Other Borrower Benefits |
MEFA will work with borrowers on a case-by-case basis to modify repayment schedules to fit the borrower's circumstances. |
How to Apply |
Get more information and/or apply online:
http://www.mefa.org/loans/
Call MEFA at 800-449-MEFA.
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