MEFA 529 student loans for college

Massachusetts Educational Financing Authority
Follow MEFAtweets on Twitter Read the MEFA blog


Our unique fixed interest rate Student Deferred Loan is an alternative education loan that allows the student to be a co-borrower. A credit-worthy co-borrower may be required, which reduces the origination fee and helps the student establish credit. After 48 consecutive on-time payments, the co-borrower may be released. 



Current Features and Terms of Student Deferred Loans 


  • Repay your loan over 15 years.1 
  • Defer payments until six months after the student graduates or leaves the program. Maximum deferment is 5 years. 
  • Co-borrower release option2 after 48 consecutive on-time payments. 
  • There's no application fee, only a 4.00% origination fee. (The fee is 7.00% without a co-borrower.) 
  • Benefits Massachusetts residents attending college in-state or out-of-state, and for students from across the U.S. attending a Massachusetts college or university. 


Download PDF 

Download a Fact Sheet PDF  

For an even lower fixed interest rate, learn more about the MEFA Undergradute Loan. The parent and student are co-borrowers and equally responsible for repayment. 



How A Co-Borrower Can Help 


Adding a creditworthy co-borrower can strengthen your MEFA loan application and may help your application be approved. A co-borrower can be a parent, grandparent, aunt, uncle or other creditworthy adult. Each borrower (including you!) is equally responsible for repayment, and any borrower on the loan application may make a payment. With the MEFA Student Deferred Loan, the co-borrower may be released after 48 consecutive on-time payments.2 


Benefits of adding a co-borrower to your MEFA Student Deferred Loan application: 

  • Increase your chances of being approved 
  • Still able to establish credit history (many students don't have one yet)  
  • Co-borrower may request to be released after 48 consecutive on-time payments from the first payment date2 


Eligibility for a Student Deferred Loan 


Up to three borrowers are encouraged to apply: student borrower and up to two co-borrowers. All borrowers have the same rights and responsibilities on the loan, and any borrower may make payments. The co-borrower(s) may be released after 48 consecutive on-time payments.2

To be eligible for a MEFA Student Deferred 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 student 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). 





1. The deferment period does not extend the overall repayment period. . 


2. Co-borrower release option is available upon request and must meet the then-current underwriting standards. 


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



4. Interest payment and principal repayment begin 6 months after the student graduates, leaves the program, is not making satisfactory academic progress as defined by the institution, or reduces his/her hours to less than half-time status while in school. 


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


We'll email helpful tips, reminders and updates.
Sign up to receive helpful tips, reminders and updates via email for college planning, savings and financing issues

And get an instant credit decision
Apply By Phone




MEFA’s Application and Solicitation Disclosures and Self-Certification form.  


Undergraduate Loan PDF 
Graduate Loan PDF 
Self-Certification Form PDF  







MEFA Loans U.Fund U.Plan Your Plan For The Future
Follow MEFAtweets on Twitter Read the MEFA blog
© 1998-2014 Massachusetts Educational Financing Authority All Rights Reserved. MEFA Massachusetts Educational Financing Authority℠, MEFA®, MEFA Loans, MEFA UPLAN PREPAID TUITION PROGRAM®, MEFA UPLAN℠, U.PLAN®, MEFA UFUND COLLEGE INVESTING PLAN℠, MEFA UFUND MASSACHUSETTS 529 PLAN®, MEFA UFUND℠, U.FUND START U.READING℠, U.FUND® and Massachusetts YOUR PLAN FOR THE FUTURE COLLEGE CAREER LIFE℠, are service marks of the Massachusetts Educational Financing Authority. All other trademarks and service marks appearing on this web site are the property of their respective owners.