Rates Drop on State's Low-Cost College Loans
BOSTON [June 12, 2015] - The Massachusetts Educational Financing Authority (MEFA) has lowered rates on its fixed interest rate college loans for the upcoming academic year. The MEFA Loan for 2015-2016 offers families a lower rate than its federal counterpart, the PLUS Loan.
"A college education opens the door to a world of opportunities. That is why we chose to invest in higher education and through our partnership with MEFA, this administration is proud to help open those doors by making higher education more affordable for families and students," said Governor Charlie Baker. "MEFA is a great example of state government creatively working, at no expense to the taxpayers, to improve the lives of families and children by offering a program to help them achieve their goals."
In addition to its low-cost college loan program, MEFA also offers free advisory services to all Massachusetts families seeking guidance on how to pay for college and how to select the right college financing option. Families are encouraged to contact MEFA for guidance on college financing, advice on selecting college loans, and help with monthly payment calculators. MEFA can be reached at (800) 449-MEFA (6332) during business hours or online anytime at mefa.org.
"Setting the interest rate below that of the Federal PLUS Loan program is an important example of how MEFA helps families across the Commonwealth with college affordability. Our first priority is to help families with smart strategies to meet college costs, which is why we encourage families to save early and be wise borrowers when paying for higher education," said Tom Graf, Executive Director of MEFA.
The MEFA Loan is a state-based loan available to families. Unlike the Federal Direct Student Loan, which is borrowed by the student, the MEFA Loan is a family loan, requiring a parent and student to co-sign the loan together. MEFA recommends that students exhaust their federal student loan eligibility before seeking other loan options, allowing students to take advantage of the federal government's flexible repayment plans.
The MEFA Loan, with interest rates starting as low as 4.99% (APR 6.13% - 6.51%), provides a variety of flexible repayment options. Families may select from immediate, interest-only, and deferred repayment options when completing an easy online application. By providing clear, complete information to families, MEFA informs borrowers in advance of the amount of their fixed monthly payment and the ultimate total cost of the loan.
MEFA is now accepting loan applications for the 2015-2016 academic year. The MEFA Loan's low, fixed interest rate is available to all qualifying borrowers, and unlike loans offered by other lenders, the rate does not vary depending on credit score.
For more information on how MEFA helps families plan, save, and pay for college, call (800) 449-MEFA (6332) or visit mefa.org. Also, follow MEFA on Twitter through @mefatweets and on Facebook.com/mefaMA for tips and information.
The Massachusetts Educational Financing Authority (MEFA) is a self-financing quasi-public authority, not reliant upon state or federal appropriation, working to make higher education more accessible and affordable for students and families across the Commonwealth. MEFA's mission to increase college access and affordability is achieved through community education programs, financing expertise on planning, saving, and paying for higher education, and college savings and education loan programs. In its over thirty-year history, MEFA has assisted hundreds of thousands of families finance a college education. Follow MEFA on Twitter through @mefatweets and on Facebook.com/mefaMA.
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