MEFA 529 student loans for college

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Families who start a college savings account have more options when determining how to pay for their children’s education. The more money you save and the earlier you start a college fund, the better. 



Saving vs. Borrowing 


When you save for college instead of using loans to cover education costs, you earn interest instead of paying interest. For example, to accumulate $10,000 in 10 years at 7% interest, you’d need to save $58 per month. To borrow $10,000 over 10 years at 7% interest, you’d have to repay $116 per month. 


What’s the Real Cost of Borrowing*? 


Compare the costs of borrowing versus saving for college 


 Starting a college savings fund ahead of time instead of borrowing and repaying the loan will save you $6,960.* 


* This example is an estimate only. Market conditions may change. 



Two Great Ways to Start a College Fund 


MEFA and the Commonwealth of Massachusetts have two innovative college savings accounts to help you save. You can save with both the U.PlanSM and the U.Fund®. Here are some key differences: 



 U.Plan is a Massachusetts prepaid college tuition program prepaid tuition program that locks-in tuition rates at participating Massachusetts colleges and universitites.
  • Use proceeds for undergraduate tuition and mandatory fees.
  • 80 public and private colleges and universities in Massachusetts participate.
  • Get your investment back, plus interest, if you don’t go to one of the 80 participating schools.
           Learn more: Massachusetts Prepaid College Tuition Plan  



 U.Fund is a market-based Massachusetts 529 plan that helps families save for college market-based 529 investment plan that lets families invest in portfolios of mutual funds.
  • Covers tuition, fees and other qualified expenses including room, board, books and supplies.
  • Use at any accredited college or university nationwide, for undergraduate or graduate education.
           Learn more: Massachusetts 529 College Savings Plan  




Tips on Starting a Successful College Savings Account 


  • Set a clear goal that you can attain within your particular timeframe. 
  • Add saving for college to your regular budget, and set up automatic transfers to your college savings account. 
  • Know your options. There are lots of ways to save for college, and many people use more than one. Download our savings comparison chart to learn about popular options. 
  • Ask relatives to contribute money to your child’s college savings account at holidays and birthdays. 
  • If you receive a bonus, tax refund or other unscheduled income, set a portion of it aside for college. 


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Find a MEFA financial aid seminar near you 




Download MEFA's college financing eBook for Massachusetts students and families 




Start  U.Reading 


The U.Fund Start U. Reading is a state wide youth literacy initiative that visits libraries and community centers throughout the state. 


Find An Event  




Estimate how much to save for college using MEFA's college cost calculator tool 



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