MEFA Loan for Undergraduate Education

Who Is the Borrower?With some loans the parent borrows on behalf of the student. With other loans the student is the primary borrower, usually with a credit-worthy co-borrower who may or may not be the parent, depending on program restrictions.
The parent (or other creditworthy individual and the student are equally responsible for loan repayment. Massachusetts residency is not required.
Is this loan available for International Students?Some lenders will not allow international students to borrow, others will, but will often require a credit-worthy US citizen co-borrower. Check program restrictions.
No. The student and all co-borrowers must be U.S. citizens or permanemt residents.
Interest Rates and FeesLoans may be offered with interest rates that are fixed for the life of the loan, or they may be variable and indexed to the prime or LIBOR rate. Fixed and variable rates may be tiered which means that the rate you are offered is determined by the strength of your credit. Most, but not all lenders charge no fees. Check program restrictions.
Interest rates are fixed.
Immediate 10 year repay : 4.69% while in school, 5.54% thereafter.
Immediate 15 year repay: 5.09% while in school, 5.94% thereafter.
Interest-only repay: 6.09% while in school, 6.89% thereafter.
Deferred repay:6.29%.
Student Deferred with Co-borrower release: 7.09%.
Origination fee of 4% (7% without a co-borrower) is added to the loan amount.
Average Rate BU Borrowers got Last YearThe rate you are offered may be higher or lower than the average rate offered to BU borrowers for this loan in the past.
N/A
Credit CriteriaSome lenders evaluate the strength of your credit based on your credit score, others consider your credit history, others use a combination of both, and some include an assessment scale that is at least in part proprietary. In most cases, a credit-worthy co-borrower is encouraged.
Must meet MEFA’s current credit approval standards. Online credit decisions are instant.
Minimum and MaximumWhile the maximum amount a student could borrow in a credit-based educational loan is the annual cost of education (as determined by BU) minus any financial aid, including any Federal Stafford Loan, some lenders impose minimum and maximum limits that are more restrictive.
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 TermsRepayment terms are set by the lender and may include the length of the repayment term, minimum monthly payment amounts, and whether principal and/or interest payments are due while the student is enrolled. Most lenders have no prepayment penalties.
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 StatusMany but not all lenders require that the student be enrolled at least half time and be in a degree program to be approved for the loan. Check program restrictions.
Students must be enrolled at least half time each semester in an undergraduate degree program.
Deferment OptionsMany lenders offer borrowers the option to pay principal and interest while the student is enrolled or to pay interest only or make no payments while enrolled. Deferring repayment may increase the overall cost of borrowing. Check program restrictions.
Multiple repayment options are offered.
Immediate: start paying principal and interest 45 days after the final disbursement.
Interest-only: start paying interest 45 days after the 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.
Can Loan be Sold?Some lenders retain ownership of the loans they originate while others bundle and sell their loans to a third party. Check each lender’s stated practice if this is a determining factor for you.
MEFA states that they do not routinely sell their loans.
Other Borrower BenefitsSome lenders offer benefits such as interest rate reductions to borrowers who, for example have a prior customer relationship with the lender, agree to make payments electronically, graduate with good grades. Check borrower benefits offered by each lender you are considering.
Student Deferred Release option borrowers can request co-borrower release after 48 consecutive on-time payments.
Lender Website and More InformationMore detailed information about loan products is available on each lenders website or by contacting the customer service department of the lender.
Get more information at: http://www.mefa.org/pay-for-college/get-a-loan.aspxCall MEFA at: 800-266-0243
How to ApplyMost loans are applied for electronically via the lender’s website.
Apply online at: http://www.mefa.org/pay-for-college/get-a-loan.aspx
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.