Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). In some cases, we receive a commission from our partners; however, our opinions are our own.
Who is MEFA Best For?
MEFA is best for borrowers looking to avoid fees at all cost, as the lender doesn't charge origination fees or late payment penalties. Some other lenders with similarly competitive rates hike up the total cost of their loans with sneaky additional fees.
Types of Student Loans Offered by MEFA
MEFA offers student loans in several forms, including:
- Undergraduate student loans
- Graduate loans
- Student loan refinancing
MEFA Student Loan Details
The Massachusetts Educational Financing Authority, or MEFA for short, offers undergraduate and graduate student loans, as well as student loan refinancing.
You should consider your federal student loan options before refinancing into any private student loan, including one with MEFA, as you can often get better terms and protections through the government.
To be eligible for a MEFA student loan, you need to meet the following requirements:
- Be enrolled at least half time in an accredited degree-granting undergraduate program at an eligible non-profit US college or university
- Be a US citizen or permanent resident
- Maintain satisfactory academic progress
- Have no history of default on an education loan
- Have no history of bankruptcy or foreclosure in the past 60 months
If you enlist a co-signer to get your loan, you may be able to release them after the first 48 consecutive on-time monthly installments have been made after you have left school.
MEFA Undergraduate Student Loans
The least you can borrow from MEFA is $1,500, perfect for undergraduates who only need a little bit of money to complete their educational financing.
MEFA Graduate Student Loans
MEFA's graduate loans have only one repayment term length — 15 years. However, you can pay off your loan early with no penalty.
Pros and Cons of MEFA Student Loans
How to Apply for a MEFA Student Loan
- Put in an application on MEFA's website. You'll enter your email address, name, phone number, and other various items of personal information. You'll get an estimated monthly payment and rate with no impact on your credit score.
- Wait for MEFA to get your college to certify the loan. This process takes a varying amount of time — some colleges don't certify loans until it's toward the end of the semester. Once your loan is certified, MEFA will send you an email letting you know.
- Track when your loan funds will reach your college. MEFA will then send your loan funds directly to your college on its designated disbursement date, which varies from college to college.
MEFA Student Loans Frequently Asked Questions
Yes, MEFA is a reputable lender with an A+ grade from the Better Business Bureau.
MEFA, like all other private student loan lenders, will not forgive student loans. Federal loans may be forgiven through certain programs.
No, MEFA is a non-profit student loan lender — they are not associated with the federal government.
What Options Do I Have to Repay My MEFA Student Loans?
You have three options to repay your student loan after you've taken it out: deferred, partial, interest-only, and immediate payment. Each option has its advantages for different types of borrowers.
| Deferred | Interest-only | Immediate |
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Deferred payments are the most expensive option because you're not paying off the loan during your time in school or in your grace period, so your balance will continue to increase until you graduate and start making payments.
Immediate payments are the least expensive option because by paying down your debt in full monthly payments right away, there's less time for interest to accrue on your loan.
MEFA Trustworthiness
The Better Business Bureau, a nonprofit organization focused on consumer protection and trust, gives MEFA an A+ grade. The BBB rates companies by looking at their responses to customer complaints, truthfulness in advertising, and openness about business practices.
The lender also hasn't been involved in any recent controversies. Between its top-notch BBB grade and clean history, you may feel comfortable borrowing from the lender.
MEFA Competitors
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MEFA Undergraduate Student Loans
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SoFi Undergraduate Student Loans
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Discover Undergraduate Student Loans
MEFA Undergraduate Student Loans vs. SoFi Undergraduate Student Loans
If your credit isn't in the best shape, MEFA's maximum interest rate is lower than what you could pay with SoFi Ave. SoFi and MEFA won't charge any late fees.
SoFi also comes with an unemployment protection program that allows eligible borrowers to suspend payments on their loans if they lose their job through no fault of their own, for up to 12 months. College Ave doesn't have a similar offering.
MEFA Undergraduate Student Loans vs. Discover Undergraduate Student Loans
You can get a lower minimum APR on your loan with MEFA than with Discover, so if your credit is in good shape, MEFA might be the better choice.
Discover offers a unique perk that MEFA does not. Discover has a one-time 1% cash reward on its student loans if you achieve a GPA of 3.0 or higher during any academic term covered by the loan. You have to redeem your reward within six months after your loan is disbursed or six months after your academic term is over, whichever is later.
You won't pay any origination fees, prepayment penalties, or late fees with either company.
Methodology: How We Rated MEFA Student Loans
We rate all student loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths (15% of rating)
- Repayment options while in school (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category's weighting is determined based on its importance to your borrowing experience. Rates and fees have the most significant impact on the total cost of your loan, so we weigh those the most heavily. Customer support and ethics are still crucial parts of the borrowing experience, but do not directly tie to a student loan's terms, so they have less of an impact on the overall rating.
Read more about how we rate student loans >>
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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