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MEFA Loan Rate Decreases Amid Rising Interest Rates

The interest rates offered by MEFA are among the lowest rates offered by an education loan lender.

BOSTON [July 10, 2018]  -  The starting interest rate on the state's college loan will decrease for the upcoming academic year in contrast to the increase in interest rates on federal education loans, announced the Massachusetts Educational Financing Authority (MEFA). The MEFA Loan will offer a fixed interest rate starting at 4.50% for in-school repayment/5.40% for post-school repayment (Annual Percentage Rate 5.63-6.03%).

The interest rates offered by MEFA are among the lowest rates offered by an education loan lender, and are a significantly lower-cost option than the PLUS Loan.

"The Commonwealth is committed to creating opportunities for students to achieve their dreams of a quality, affordable college education, and MEFA's innovative loan program helps them succeed by reducing the cost of college by lowering 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 lower MEFA interest rate will allow Massachusetts families to save thousands of dollars in interest costs over the life of their loans. This will help to reduce the overall cost of borrowing and make college educations more affordable.

The MEFA Loan is an education loan available to Massachusetts families with a student attending college anywhere in the United States, or to any U.S. family sending a student to college in Massachusetts.

While MEFA is pleased to offer a competitive product, the state authority urges students and families to be wise borrowers. MEFA advises families to exhaust all financial aid eligibility from federal, state, and institutional sources, take advantage of other resources, such as college savings accounts and payment plans, and not to borrow more than they need. MEFA recommends that students first exhaust their Federal Student Loan eligibility before considering other loan options such as the MEFA Loan.

"MEFA is proud to be able to reduce the interest rate on our most affordable loan while the interest rates on federal loans increase. The MEFA Loan is just one of the services we offer families as we help them prepare for higher education. Our expert staff is ready to assist with guidance and information, and our online tools and resources at provide additional assistance for families and students across the Commonwealth" said Thomas Graf, Executive Director of MEFA.

MEFA is now accepting loan applications on for the upcoming academic year. As a family loan, both the student and a co-borrower borrow the loan, and may select from immediate, interest-only, and deferred repayment options. The MEFA Loan's low, fixed interest rate is available to all qualifying borrowers. MEFA provides clear, complete information to families and informs borrowers in advance of the amount of their fixed monthly payment and the projected total cost of the loan.

In addition to its low-cost college loan program, MEFA offers free advisory services to all Massachusetts families seeking assistance on how to pay for college. Families are encouraged to contact MEFA for guidance on college financing options, advice on selecting a college loan, and help with monthly payment calculators.

MEFA can be reached at (800) 449-MEFA (6332) during business hours or online anytime at Also, follow MEFA on Twitter through @mefatweets and on for tips and information.

*The Annual Percentage Rate (APR) is designed to help consumers understand the relative cost of a loan and reflects the loan's interest rate, timing of payments, and origination fee.


About MEFA

MEFA is a not-for-profit 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 to learn more or follow MEFA on Twitter @mefatweets and on Facebook at mefaMA.

Lisa Rooney
Public Relations Manager
(617) 224-4838

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