MEFA : Get a Loan : Federal PLUS Loan

The Federal PLUS Loan is one of the most affordable ways to spread out payments for college. And as a non-profit, MEFA is able to offer one of the lowest priced PLUS loans available.

Please note that interest rates, terms and products displayed within the MEFA website are for the 2007-2008 academic year. As soon as possible, MEFA will provide information on 2008-2009 loan availability.

MEFA is suspending all Federal education loans including the Stafford Loan for undergraduate and graduate students, PLUS and Graduate PLUS for the 2008-2009 academic year. Additionally, effective immediately, MEFA will not accept any new Federal Consolidation applications.

MEFA benefits for the 2007-2008 academic year+

Families of all income levels may apply.
There's no application fee or guarantee fee; only a 3% origination fee.
Your interest payments may be tax deductible.
All borrowers receive an automatic 1% interest rate reduction once repayment begins.
You can earn an additional 0.25% interest rate reduction when you use automatic account debits.
Federal PLUS Loan available for Graduate students as of July 1, 2007.
There's no penalty for early repayment or prepayment.

Interest Rates and Terms for the 2007-08 academic year+
Borrower Benefits for 2007-08 the academic year+	Rate
Standard Federal rate (Fixed Rate beginning July 1, 2007)	8.50%
-1% rate reduction at repayment for all	7.50%
-0.25% rate reduction for using ACH automatic account debits	7.25%

Repayment begins within 60 days after the loan has been fully disbursed
Maximum repayment term is 10 years
Minimum required monthly payment amount is $50

Eligibility+

To be eligible for a Federal PLUS Loan, you must meet the following requirements:

You (parent or legal guardian) must be a U.S. citizen or eligible noncitizen
One of the following must be true:
- You and/or your co-borrower live in Massachusetts OR
- Your child lives in Massachusetts OR
- Your child is attending a Massachusetts college or university
You (parent or legal guardian) and your student must have social security numbers

+ Current interest rate and terms for the 2007-08 academic year.