State Offering Low-Cost College Loans
BOSTON [July 1, 2014] - The Massachusetts Educational Financing Authority (MEFA) is pleased to announce it has lowered rates on its fixed interest rate college loans for the upcoming academic year. Setting the interest rate well below that of the Federal PLUS Loan program is an important example of how MEFA helps families across the Commonwealth with college affordability.
"The first step toward future success starts with education and securing opportunities for tomorrow's workforce," said Governor Patrick. "Through our continued partnership with MEFA, we are making a college education affordable and accessible for more Massachusetts students."
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 call MEFA at 1-800-449-MEFA (6332) during business hours for assistance or visit www.mefa.org anytime for guidance on college financing, advice on selecting college loans, and monthly payment calculators.
"At MEFA, our first priority is to help families plan and save for college by assisting them with strategies to meet college costs. For those families who need to borrow, we encourage them to take advantage of MEFA's advisory services and be wise education consumers," said Thomas 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 as low as 5.49% (APR: 6.60% - 6.94%), continues to provide a variety of flexible repayment options. Families may select from immediate, interest-only, and deferred repayment options while completing an easy online application. By providing clear, complete information to families, borrowers know in advance the amount of their fixed monthly payment and the ultimate total cost of the loan.
MEFA is now accepting applications for the 2014-2015 academic year. The MEFA Loan's low, fixed interest rate is available to all qualifying borrowers and unlike loans offered by other lenders, does not vary depending on credit score.
For more information on how MEFA helps families plan, save, and pay for college, call 1-800-449-MEFA (6332) or visit www.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 access and college 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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