MEFA Loan Offers Low Interest Rates as Fed Options Climb
BOSTON [June 24, 2021] – As federal college loan rates increase, the MEFA Loan for college undergraduates will hold steady. The MEFA Loan, provided by the Massachusetts Educational Financial Authority, will feature the same low interest rates for the upcoming academic year as it did last year, offering families nationwide the potential to save thousands of dollars on student loans.
The MEFA Loan interest rates will start at 3.75% for the 2021-22 academic year, substantially lower than the 6.28% offered by the Federal Direct PLUS Loan. And, while the PLUS Loan has an origination fee of 4.228%, MEFA Loans have no origination fee, no application fee, and no prepayment penalties. MEFA Loans are available to qualifying borrowers nationwide who may select from multiple repayment options and benefit from fixed interest rates that result in predictable and steady monthly payments for the life of the loan.
"The Commonwealth is committed to ensuring access to higher education, so that students can achieve a quality, affordable college education. MEFA's innovative loan program helps them succeed by reducing the cost of college by consistently offering low interest rates," said Governor Charlie Baker. "With programs focused on planning, saving, and paying for college, MEFA is a valuable resource both for families seeking higher education and the Massachusetts colleges and universities who attract students from across the nation."
The MEFA Loan interest rates for the upcoming academic year will range from 3.75% to 5.75%. The loan rate will depend on multiple factors including the selected repayment option and the borrower's credit profile. The annual percentage rate, or APR, will be 3.75% to 5.75%. The APR helps consumers understand the relative cost of a loan and reflects the interest rate, timing of payments, and fees.
"At MEFA, we work hard to hold the line on interest rates, and we strive to serve families and students planning for the future. The MEFA Loan can be a part of making the college dream a reality. As students and parents explore their options to select the right loan program for their family, MEFA will be there as a competitive option," said Thomas Graf, Executive Director of MEFA.
Since 1982, MEFA has offered low-cost, fixed-interest rate loans to help families nationwide finance college costs for students attending an accredited, degree-granting college or university in the United States. The organization also provides expert college planning guidance with free webinars, educational emails, and a popular podcast series, all created with the goal of helping families through the busy college planning years.
MEFA is a state authority, not reliant on state or federal appropriations, established under Massachusetts General Laws, Chapter 15C. MEFA's mission, since its founding in 1982, has been to help Massachusetts students and families access and afford higher education and reach financial goals through education programs, tax-advantaged savings plans, low-cost loans, and expert guidance. All of MEFA's work aligns with the ever-present goal to support the independence, growth, and success of Massachusetts students and families. Visit mefa.org to learn more or follow MEFA on Twitter @mefatweets and on Facebook at mefaMA.