MEFA : Get a Loan : MEFA Undergraduate Loan

Current features and terms of the 2009-2010
MEFA Undergraduate Loan:

There's no application fee, only a 4.00% origination fee.
A fixed interest rate gives you the same monthly payments.
Repay your loan over 15 years. There's no penalty for early repayment.
You may choose to defer payments until six months after the student graduates or leaves the program.** Maximum deferment is 5 years.
Your interest payments may be tax deductible*.
You may use a Home Equity Option to possibly extend your tax benefits.

Current interest rates for the 2009-2010 academic year
	Rate†	APR‡	Estimated Monthly Payment per $10,000 Borrowed as low as
Fixed interest rate, immediate repayment	7.75%	8.43%	$99.65
Fixed interest rate, defer payments until graduation**	8.89%	8.66% - 9.52%	$112.36

Eligibility

Up to three borrowers are encouraged to apply: parent borrower, student borrower, and co-borrower. All borrowers have the same rights and responsibilities on the loan, and any borrower may make payments.

The student borrower should enter their information in the student section of the loan application. If applicable, the parent borrower (or other credit-worthy individual) should enter their information in the borrower section of the loan application.

To be eligible for a MEFA Undergraduate Loan, you must meet the following requirements:

You (the student) must be enrolled at least half time in an accredited degree-granting program at an eligible non-profit college or university.
You must meet one of the following:
- The primary borrower and/or your co-borrower live in Massachusetts OR
- The student lives in Massachusetts OR
- The student is attending a Massachusetts college or university
You must maintain satisfactory academic progress as defined by your college or university.
All applicants must be either a U.S. citizen or a U.S. permanent resident.
Applicants must meet MEFA's current credit approval standards.
You may request a loan amount up to the total cost of attendance (including tuition, fees, room, board, and miscellaneous expenses) minus other financial aid.
The minimum loan amount is $2,000 ($1,500 minimum at a public college or university).

"I am entirely happy with MEFA and ACS. I appreciate it that neither organization sends me unsolicited offers of credit cards, life insurance, etc."
— Paul Siders, Duluth, MN

*We strongly recommend that you consult an expert tax advisor to discuss how the regulations apply to your particular situation, or that you review the tax laws and applicable regulations to determine whether the interest paid on your educational loan is deductible. MEFA cannot ensure that interest paid on individual loan(s) will be tax-deductible.

**The deferred repayment option is subject to fund availability, is awarded on a first-come, first-served basis and is subject to significant eligibility guidelines. Interest rates for deferred loans may be higher than other interest rates.

†Please note that interest begins accruing after each disbursement. You are not required but are permitted to make payments toward this accruing interest during your deferment period if you wish.

‡The Annual Percentage Rate (APR) reflects both the accruing interest and effect of borrowing the origination fee and paying the expected monthly payment over the term of the loan. APR varies with length of deferral and the presence of a co-borrower.

MEFA education loan availability is subject to MEFA’s acceptance and approval of a completed loan application, credit approval, and fund availability for the applicable loan category. MEFA reserves the right to modify or terminate benefits, products, services and terms in its sole discretion and without prior notice.

The information provided to you on this Web site has been obtained and/or compiled from sources we believe to be reliable.

The information, products, services, or terms are provided as is. MEFA does not and cannot guarantee the accuracy, validity, timeliness, and/or completeness of any information, data or documents made available on this Web site. Any dated information is published as of its date only, and MEFA does not undertake any obligation and/or responsibility to update or amend any such information or documents.