MEFA Loan for Undergraduate Education
|Who Is the Borrower?||The parent (or other creditworthy individual) and student are co-borrowers and are equally responsible for loan repayment. All applicants must be either a U.S. citizen or a permanent resident. Massachusetts residency is not required.|
|Interest Rate||Interest rates are fixed.Immediate 10 year Repay: 5.49% while in school, 6.24% therafter.
Immediate 15 year Repay: 5.99% while in school, 6.74% therafter.
Interest-Only Repay: 6.84% while in school, 7.79% therafter.
Deferred Repay: 7.19%. Student Deferred with Co-Borrower Release: 7.89%.
|Credit Criteria||Must meet MEFA’s current credit approval standards. Online credit decisions are instant.|
|Fees||Origination fee of 4% (7% without a co-borrower) 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 Stafford Student Loan.|
|Repayment Terms||Borrowers can elect a 10 or 15 year repayment term with payment of principal and interest starting 45 days after the final disbursement. There are no prepayment penalties.|
|Enrollment Status||Students must be enrolled at least half time each semester in an undergraduate degree program.|
|Deferment Options||Multiple repayment options are offered.
Immediate: start paying principal and interest 45 days after final disbursement.
Interest-only: start paying interest 45 days after final disbursement, principal after the end of the in-school period.
Deferred: start paying principal and interest 6 months after student ceases to be enrolled at least half time.
No prepayment penalty.
|Can Loan be Sold?||MEFA states that they do not routinely sell their loans.|
|Other Borrower Benefits||Borrower can request co-borrower release after 48 consecutive on-time payments with the Student Deferred Release option.|
|How to Apply||
Get more information and/or apply online: http://www.mefa.org/pay-for-college/get-a-loan.aspx
Call MEFA at: 800-266-0243
This information is based on information provided by lenders identified in response to a Request for Information issued by Boston University. The terms and conditions of any loan may vary depending on, among other things, market conditions and your credit score. Proposed terms may have changed since lenders provided information to Boston University. You should contact the lender to obtain current terms and information. You should review any proposed terms and obligations carefully.