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: 5.99% while in school, 7.24% therafter.
|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.|
|How to Apply||
Get more information and/or apply online: http://www.mefa.org/loans
Call MEFA at: 800-266-0243