The Federal Stafford Loan is one of the most affordable student loans available. Is is available to help both undergraduate and graduate students pay for their education. If you apply for MEFA's Federal Stafford Loan, you could reduce your interest rate by as much as 2.25% below the standard federal rate.
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.
No fees for MEFA borrowers (compared to the standard federal fees of 2.50%). All borrowers qualify.
MEFA borrowers are eligible for:
- 0.25% Interest rate reduction at repayment. All borrowers qualify.
- 0.50% Additional interest rate reduction for borrowers when payments are made via automatic debit from checking or savings account.
- Up to 1.50% in additional interest rate reductions for on-time payments.
After qualifying for a reduction, it is guaranteed for the life of the loan.
No prepayment penalty.
Interest Rates and Terms for the 2007-08 academic year+ |
| MEFA's Borrower Benefits for the 2007-08 academic year+ | Rate |
| Standard federal fixed rate (Applies to loans with first disbursement on or after July 1, 2006) | 6.80%* |
| - 0.25% interest rate reduction at repayment. All borrowers qualify. | 6.55%* |
| - 0.50% interest rate reduction for borrowers when payments are made via automatic debit from checking or savings account. | 6.05% |
| - Up to 1.50% in additional interest rate reductions for on-time payments. | 4.55% |
*Rate effective July 1, 2007.
To be eligible for a Federal Stafford Loan student borrower must:
Complete the Free Application for Federal Student Aid (FAFSA) in order to apply. The FAFSA will be used by your college financial aid office to determine the amount you may borrow (subject to annual limits as follows), and wheter you qualify for a subsidized Stafford Loan or an unsubsidized Stafford Loan.
Be enrolled at least half-time at an approved institution.
Be a U.S. citizen or eligible non-citizen.
Attend a Massachusetts college or university, OR be a resident of Massachusetts to be eligible for MEFA borrower benefits.
| Undergraduate Students Stafford Loan Limits |
| Academic Year | Annual Loan Maximum† |
| Dependent Student | Independent Student |
| Year 1 | $3,500 | $7,500 |
| Year 2 | $4,500 | $8,500 |
| Years 3, 4 and 5 | $5,500 per year | $10,500 per year |
| Cumulative maximum | $23,000 | $46,000 |
| Graduate and Professional Students Stafford Loan Limits |
| Subsidized Stafford Loan | Total Stafford Maximum† |
| Annual maximum | $8,500 per year | $20,500 per year |
| Cumulative maximum | $65,500 | $138,500‡ |
Repayment begins 6 months after the student graduates or ceases to be enrolled at least half-time. Deferment option may be available.
Repayment term extends up to 10 years. Extended repayment plan may be available. No prepayment penalty.
Your interest payments may be tax deductible.
+Current interest rate and terms for the 2007-08 academic year.
"We have been very pleased with our entire experience with MEFA, beginning with our first application, through the easy automated renewals, to the minimum of paperwork, and the consolidated ACS service."
— Thomas W. Fritts, Franklin, MA
*Applies to loans disbursed on or after July 1, 2006.
†Subsidized/Unsubsidized portions determined by financial aid Office.
‡Some health professions students may borrow up to $189,125.