MEFA : Get a Loan : MEFA Undergraduate Loan

The MEFA Undergraduate Loan offers a variety of options to customize a loan to your needs.

MEFA benefits for the 2007-2008 academic year****

There's no application fee, only a 2.50% origination fee.
Your interest payments may be tax deductible‡.
You may use a Home Equity Option to possibly extend your tax benefits.
There's no penalty for early repayment.
You may choose to defer payments until six months after the student graduates or leaves the program.

2007-2008 Interest Rates and Terms for the 2007-2008 academic year
	Rate†	APR‡	Estimated Monthly Payment per $1,000 Borrowed
Fixed rate, immediate repayment	6.39%	6.71%	$7.68
Fixed rate, defer payments until Graduation	6.89%	6.76 - 7.18%	$8.31
Variable rate**, immediate repayment	4.90%	5.20%	$6.78
Variable rate**, defer payments until Graduation	5.40%	5.39%- 5.69%	$7.30-$9.00

Variable Interest Rates for quarter beginning April 1, 2008.

Prior quarter rates and terms

Prior Quarter Interest Rates and Terms
	Rate†	APR‡	Estimated Monthly Payment per $1,000 Borrowed
Fixed rate, immediate repayment	6.39%	6.71%	$7.68
Fixed rate, defer payments until Graduation	6.89%	6.76 - 7.18%	$8.31
Variable rate***, immediate repayment	6.93%	7.25%	$8.02
Variable rate***, defer payments until Graduation	7.43%	7.23% - 7.73%	$8.70-$11.45

Interest Rates effective January 1, 2008

Eligibility****

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:
- You and/or your co-borrower live in Massachusetts OR
- Your student lives in Massachusetts OR
- Your student is attending a Massachusetts college or university
You must maintain satisfactory academic progress as defined by your college or university.
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).

2008-2009 academic year interest rates for MEFA Loans have not yet been determined.

"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

**Rate effective April 1, 2008. Variable interest rates change quarterly based on 3-month LIBOR and will never exceed 12%.

***Rate effective January 1, 2008.
†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.

****Current interest rates and terms for the 2007-2008 academic year.

‡APR calculation includes both interest accrued before repayment begins and the effect of repaying the origination fee over the term of the loan. If you opt to defer repayment, the APR will vary based on the student's graduation date.