Is a Refinancing Loan Right for You?

Benefits of a Refinancing Loan

With a MEFA Education Refinancing Loan, you may be able to:

• Reduce your monthly payments: You can reduce the amount of your monthly loan payment and potentially lower your interest rate.
• Secure a low fixed or variable interest rate: Both fixed and variable interest rates are available, allowing you to select the type of loan that fits your needs best.
• Simplify your finances: If you refinance multiple private and/or federal college loans, you will have just one loan to monitor and one payment to make each month.

Things to Consider Before Refinancing a Federal Loan

A federal student loan offers unique benefits that will expire if the loan is refinanced through a MEFA Education Refinancing Loan. These benefits include:

• Repayment options based on income: You may qualify for a reduced monthly payment if you have a low level of income.
• Loan forgiveness for public employees: If you hold a public service job, you may qualify to have portions of your federal student loans forgiven.
• Medical and economic forbearance: Federal loan payments may be excused for up to 24 months in the case of a medical or economic hardship.
• Rehabilitation of defaulted loans: If your federal loan is in default, you may be able to have the default removed from your credit report.

To preserve these federal loan benefits, you may want to consider a Federal Direct Consolidation Loan as an alternative way to simplify your federal student loan debt.

Choosing the Right Type of Interest Rate: Fixed or Variable

MEFA is offering both fixed and variable rate refinancing loans. Fixed interest rate refinancing loans have an interest rate and payment amount that remains the same over the term of the loan. Variable interest rate refinancing loans have an interest rate that may change over the term of the loan. The interest rate and monthly payment on a MEFA variable rate refinancing loan may increase or decrease as its index, One-Month LIBOR, fluctuates.

LIBOR is the benchmark rate that banks use when lending money to one another. LIBOR is an acronym for London InterBank Offered Rate. This rate is published in the Wall Street Journal each day.

The decision of selecting a fixed or variable interest rate should depend on your particular financial situation. We encourage you to review all of the options available to you and make the decision that meets your personal preference.

*The interest rate and monthly payment on a MEFA variable rate Education Refinancing Loan may increase or decrease as its index, the 1-Month London Interbank Offered Rate (LIBOR), fluctuates. Rate listed is as of 3/1/2021.

Our Loan Disclosure Form below provides all of the important details about our education refinance loans.

MEFA's Education Refinance Loan Application and Solicitation Disclosure