Business Insider's personal finance team compared MEFA student loans to the best private student loans and found it to be an industry leader due to its low rates, flexible repayment options, and lack of fees.
Plus, not only will MEFA give you an instant decision once you submit your student loan application, but you'll also have set monthly payments. MEFA only offers fixed interest rates, so your monthly payments will be the same throughout the life of your loan.
MEFA Student Loans Overview
MEFA Undergraduate Student Loans is a great option for borrowers looking for fixed loans at low rates, usually offered to borrowers with great credit scores.
The Massachusetts Educational Financing Authority, or MEFA for short, offers undergraduate and graduate student loans, as well as student loan refinancing.
You should consider your federal student loan options before refinancing into any private student loan, including one with MEFA, as you can often get better terms and protections through the government.
5.35% to 7.95%
Undisclosed
$1,500 minimum loan amount, up to 100% cost of attendance
- No origination fee, or application fee
- No late fee
- Low minimum loan amount
- Only one repayment term length
- Only offers fixed rate loans
- Repayment period of 10 or 15 years
- $1,500 minimum loan amount, up to 100% cost of attendance
Compare MEFA Student Loans
4.54% - 17.99% variable and 3.47% - 17.99% fixed (with AutoPay discount)
late payment of 5% of the amount due, capped at $25
mid-600s
Minimum of $1,000
- No prepayment or origination fees
- International students eligible with an eligible cosigner
- Low APR
- Multiple options for repayment term length
- Many ways to contact customer support
- Credit check required
- Late payment fee
College Ave is a great lender for borrowers who want multiple options for repayment term lengths and are after a low APR. College Ave also offers many options for contacting customer support.
College Ave- Apply through your computer or mobile device
- Customer service available via phone, text, email, and live chat
- Five, eight, 10, or 15 year repayment terms available
- Loan minimum of $1,000, maximum up to 100% cost of attendance
- Repayment options available:
- Deferred: No payments for up to six months after leaving school
- Interest only: Only make payments on the loan's interest while in school
- Partial payments: Pay $25 per month while in school
- Full repayment immediately: Start making full payments while still in school
- Loans made through Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC
4.64% - 15.99% variable and 3.54% - 15.99% fixed (with AutoPay discount)
N/A
Undisclosed
Minimum of $1,000
- No origination fees, prepayment penalties, or late fees
- Solid APR
- Several options for repayment term length
- Quick application process
- Credit check required
SoFi is an excellent lender for borrowers who want a competitive APRs. It's also a great lender for those who don't want to worry about fees.
SoFi Undergraduate Student Loans- Apply through your computer or mobile device
- Customer service available via phone, mail, and social media
- Five, seven, 10, or 15 year repayment terms available
- Loan minimum of $1,000, maximum up to 100% cost of attendance
- Loans are originated by SoFi Lending Corp. or an affiliate
5.09% - 14.73% variable and 3.39% - 15.19% fixed (with AutoPay discount, varies by plan)
None
Fair to Excellent
$2,001 - $200,000 ($200,000 aggregate total)
- N/A
- N/A
Ascent provides a variety of repayment term lengths on its student loans and low minimum interest rates on fixed-rate loans. You may also qualify for a 1% cash-back reward that will be paid to you after graduation.
Ascent- Loan amounts available: $2,001* minimum, up to $200,000 for undergraduates, and $400,000 for graduates
- *The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.
- Repayment options available:
- Deferred: No payments for up to nine months after leaving school
- Interest only: Only make payments on the loan's interest while in school
- Partial payments: Pay $25 per month while in school
- Immediate Repayment:Begin making full payments (principal + interest) on the loan right away
MEFA Student Loans Features and Benefits
Flexible Repayment Options
You have three repayment options: deferred, partial, interest-only, and immediate payment. Each option has advantages and drawbacks, so be sure to find the right repayment plan for you. Undergraduate student loans from MEFA must be repaid within 10 to 15 years. Similarly, graduate student loans from MEFA must be repaid within 15 years.
No Fees or Prepayment Penalties
MEFA is best for those looking to avoid fees at all costs, as the lender doesn't charge application fees, origination fees, or late payment penalties. Some other lenders with similarly competitive rates hike up the total cost of their loans with sneaky additional fees.
Types of Student Loans Offered by MEFA
MEFA offers student loans in several forms, including:
- Undergraduate student loans
- Graduate loans
- Student loan refinancing
MEFA Undergraduate Student Loans
The minimum you can borrow from MEFA is $1,500, which is perfect for undergraduates who need only a little money to complete their educational financing.
MEFA Graduate Student Loans
MEFA's graduate loans have only one repayment term length — 15 years. However, you can pay off your loan early with no penalty.
MEFA Student Loan Refinancing
MEFA student loan refinancing, or MEFA REFI, gives you the option to refinance your existing private and federal student loans for a lower monthly rate. Current interest rates from MEFA for refinancing range from 6.20% to 8.99%.
When you refinance with MEFA, you can also consolidate your existing student loans into one monthly payment. MEFA only offers fixed interest rates, which means the rate you qualify for will be the same throughout your repayment term. Student loan refinancing repayment terms from MEFA are seven, ten, or 15 years.
MEFA has a quick Get My Rate tool, so you can learn which rates you qualify for within minutes and without impacting your credit.
Below are the MEFA REFI eligibility requirements:
- Be a U.S. citizen or permanent resident
- Have an established credit history or a cosigner who does
- Make six on-time payments in the last six months on all outstanding student loans
- No history of default or delinquencies on student loans within the last 12 months
- Student loans from a MEFA-eligible institution
Additionally, you can only refinance your own student loans with MEFA. This means all student loans you are refinancing must be in your name.
How to Apply for MEFA Student Loans
Eligibility Requirements
To be eligible for a MEFA student loan, you need to meet the following requirements:
- Be enrolled at least half-time in an accredited degree-granting undergraduate program at an eligible non-profit U.S. college or university
- Be a U.S. citizen or permanent resident
- Maintain satisfactory academic progress (SAP)
- Have no history of default on an education loan
- Have no history of bankruptcy or foreclosure in the past 60 months
If you enlist a cosigner to get your loan, you may be able to release them after you have made the first 48 consecutive on-time monthly installments after you have left school.
MEFA also requires that borrowers have an established credit history. Aim for a "good" credit score of 670 or higher.
Step-by-Step Guide to Applying
- Put in an application on MEFA's website. You'll enter your email address, name, phone number, and other personal information. You'll get an estimated monthly payment and rate without impacting your credit score.
- Wait for MEFA to get your college to certify the loan. This process takes a varying amount of time — some colleges don't certify loans until it's toward the end of the semester. Once your loan is certified, MEFA will send you an email letting you know.
- Track when your loan funds will reach your college. MEFA will then send your loan funds directly to your college on its designated disbursement date, which varies from college to college.
Required Documentation
To apply for a loan with MEFA, you'll need to provide the following information:
- SSN
- Date of Birth
- Phone Number
- Email Address
- Current and Prior Address(es)
- Monthly Income
- Employment Information
Approval Timeline
The application process is remarkably quick. MEFA boasts a 15-minute application time and will return a credit decision seconds later. After you are approved, select a loan option, and sign the paperwork. Your academic institution then has 10 days to accept the loan formally. From there, the funds will be transferred to the university.
MEFA Student Loans Rates and Fees
The interest rates on student loans from MEFA are competitively low, with fixed-rate APRs ranging between 5.75% and 8.95% for undergraduate student loans and 7.15% and 8.95% for graduate student loans. There are no variable-rate loans available.
MEFA Student Loan Repayment Options
After you take out your student loan, you have three options to repay it: deferred, partial, interest-only, and immediate payment. Each option has advantages for different types of borrowers.
Deferred payments are the most expensive option because you're not paying off the loan during your time in school or your grace period, so your balance will continue to increase until you graduate and start making payments.
Immediate payments are the least expensive option because by paying down your debt in full monthly payments right away, there's less time for interest to accrue on your loan.
Deferred Payment
- No payments while in school or during the six-month grace period
- Unpaid interest accrues
- Highest overall cost
Interest-Only Payment
- Pay loan's interest monthly while in school
- Moderate in-school payments
- Reduces overall cost
Immediate Payment
- Repay principal plus interest right away
- Lowest overall cost
- Highest in-school payments
MEFA Student Loans Pros & Cons
MEFA Student Loan Pros
- No origination fee or application fee. Origination fees take a chunk out of your overall loan proceeds and add to the original cost of your loan. MEFA doesn't charge an origination fee — and it won't cost you to apply either. (See our guide to the best personal loans with no origination fee.)
- No late fee. If you happen to fall behind on your payments, you won't pay any extra fees with MEFA.
- Low minimum loan amounts. The smallest amount you can borrow from MEFA is $1,500, perfect for borrowers who need only a little money to complete their educational financing.
- Competitive rates on undergraduate loans. MEFA's undergraduate loans have rates that are comparable to those offered by some of the best student loan lenders in the industry.
MEFA Student Loan Cons
- Limited repayment term lengths. You must choose between a 10- or 15-year repayment term length with an MEFA undergraduate loan. The lender only offers a 15-year repayment term length for its graduate loans.
- Only fixed-rate loans available. While fixed loans lock in your rate for the life of the loan, some borrowers prefer variable loans, which have rates that change periodically. Some lenders offer lower starting rates on variable loans when compared to fixed loans. You'll need to go elsewhere if you want a variable loan.
Alternatives to MEFA Student Loans
MEFA Student Loans vs. SoFi Student Loans
If your credit isn't in the best shape, MEFA's maximum interest rate is lower than the maximum rate for SoFi Undergraduate Student Loans. SoFi® and MEFA won't charge any late fees.
MEFA Student Loans vs. College Ave
With MEFA, you won't pay an origination fee, application fee, or any late fees. College Ave charges a late payment fee of 5% of the amount due, capped at $25, but also does not charge origination or application fees.
College Ave's maximum interest rates are more than double MEFA's. So if you don't have the best credit, you're likely to get a better deal if you can qualify for a MEFA student loan.
College Ave Student Loans Review
MEFA Student Loans Customer Experience
MEFA gets excellent reviews on the popular consumer review site Trustpilot. The lender received 4.7 stars out of five, which is uncommon among lending companies. Customers rave about the helpfulness of the student resources on MEFA's website and the ease of the application process.
Is MEFA Trustworthy?
The Better Business Bureau, a nonprofit organization focused on consumer protection and trust, grades MEFA with an A+. The BBB rates companies based on their responses to customer complaints, truthfulness in advertising, and openness about business practices.
The lender also hasn't been involved in any recent controversies. Between its top-notch BBB grade and clean history, you should feel comfortable borrowing from the lender.
Why You Should Trust Us: How We Rated MEFA Student Loans
We rate all student loan products in our reviews and guides on a scale of 1-5. Our overall rating for MEFA student loans is a weighted average, consisting of the following seven categories:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths (15% of rating)
- Repayment options while in school (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category's weighting is determined based on its importance to your borrowing experience. For instance, interest rates are weighted more heavily than customer support, due to their direct impact on the borrowing experience.
Read more about how we rate student loans >>
MEFA Student Loans FAQs
The interest rates on MEFA student loans are competitive fixed interest rates that vary based on the repayment term and the borrower's creditworthiness.
No, you will not find application fees, origination fees, or prepayment penalties with MEFA student loans.
To apply for a MEFA student loan, go online through the website. The application process involves providing personal information, financial details, and supporting documents.
MEFA offers various repayment options, such as immediate repayment, interest-only payments while in school, and full deferment until after graduation.
You can refinance existing student loans with MEFA. It offers options to help borrowers reduce their interest rates and simplify their repayment process.
