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Paying for College

Understanding MEFA Loan Repayment Options

The repayment term on a MEFA Loan will affect the total loan cost and interest rate, and determine when repayment begins. The sooner the repayment begins, the lower the total cost of the loan.
Man standing and reviewing paperworkIf your family decides to borrow a MEFA Loan for college costs, you’ll need to make some decisions as you finalize your loan application. These include determining the co-borrowers on your loan, the amount you need to borrow, and when to begin repayment. The repayment plan you select will have a significant influence on your loan, as it will affect both your interest rate and total loan cost. To provide some clarity, we’ve broken break down each MEFA Loan repayment type below to highlight each one’s distinct features and how they compare to one another.

Some General Information to Begin



  • 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 fees.

  • MEFA Loans have NO origination or application fee

  • Deferred loans may be deferred no longer than 60 months

  • You may only borrow for one academic year at a time

  • Maximum loan amount = the college’s total cost of attendance minus any financial aid received


MEFA Loan Repayment Types


Immediate Repayment (10-year term)

  • Lowest-cost option

  • Repayment of both principal and interest begins on the 28th day of the month following the month of final disbursement (that happens in the spring semester for full-year loans)

  • Interest rate and APR is 3.95%-5.95%

  • Loan must be repaid within 10 years of final disbursement


Immediate Repayment (15-year term)

  • Repayment of both principal and interest begins on the 28th day of the month following the month of final disbursement (that happens in the spring semester for full-year loans)

  • Interest rate and APR is 4.25%-6.20%

  • Loan must be repaid within 15 years of final disbursement


Interest-Only Repayment (15-year term)

  • Repayment of interest begins on the 28th day of the month following the month of final disbursement (that happens in the spring semester for full-year loans) and repayment of principal begins after the student leaves school or graduates

  • Interest rate and APR is 5.45%-7.30%

  • Loan must be repaid within 15 years of final disbursement


Deferred Repayment (15-year term)

  • Repayment of interest and principal is deferred until 6 months after the student leaves school or graduates

  • Interest rate is 5.75%-7.10%

  • APR is 5.49%-7.09%

  • Loan must be repaid within 15 years of final disbursement


Student Deferred Repayment with Co-Borrower Release (15-year term)

  • Repayment of interest and principal is deferred until 6 months after the student leaves school or graduates

  • Interest rate is 5.95%-7.30%

  • APR is 5.67%-7.26%

  • Loan must be repaid within 15 years of final disbursement

  • The co-borrower may request release after the first 48 consecutive on-time payments if the borrower is meeting then current underwriting standards


Ready to apply? Complete our simple online loan application here. You may also apply over the phone at (800) 266-0243.

All information current as of June 1, 2019





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