MEFA Student Loans Review: Non-Profit Lender With Low Rates And Fees

When you need a private student loan for school, finding a student loan provider who can meet your needs and has reasonable loan terms is critical.

Private student loan providers are not all created equal. So researching providers is a must when it comes to finding a good deal. Looking for lenders that are non-profit organizations can be a good starting point as they may be willing to offer more attractive rates and/or terms.

MEFA is one such non-profit provider. For undergraduate and graduate students who are United States citizens and attend an eligible college, MEFA student loans could be a strong option. We’ll explain the loan features and when a private student loan from MEFA could make sense.

See how MEFA compares to other private lenders in minutes on Credible!

Who Is MEFA?

MEFA is the Massachusetts Educational Financing Authority. They are a non-profit organization based in Boston, MA. MEFA provides student loans for undergraduate and graduate students alike. MEFA was created in 1982 by the Massachusetts state legislature at the request of colleges and universities across the state.

MEFA Student Loans

MEFA offers private student loans to undergraduate and graduate students. While MEFA is a Massachusetts-based organization, they lend to families in all 50 states. They're also part of the Credible network which makes it easy to compare their rates with other lenders.

A MEFA loan only covers one school year. Students must apply each year that they will be in school. For example, if you want a loan to cover four years of school, you’ll need to apply four times for four loans.

Students can borrow up to the cost of attendance minus any financial aid. Minimum loan amounts are $2,000 for private schools and $1,500 for public schools. Cosigners are generally required for undergraduate loans.

Undergraduate Loans

There are several types of student loans for undergraduates to choose from. Fixed rates vary from 5.35% to 7.95% APR. Note: rates subject to change.

Graduate Loans

There are two types of graduate student loans available from MEFA. Both have fixed rates. The same loan minimum and maximum amounts apply for graduate as undergraduate loans.

Interest rates for MEFA's graduate loans range from 6.55% - 7.95%.

How Do MEFA Student Loans Compare?

MEFA student loans offer a lot of in-school payment flexibility and 6-month grace periods. But only one of their loans offers cosigner release. And even with that loan you'll have to wait 48 months before you can apply to release your cosigner. Wondering how MEFA stacks up to the competition? Check out this quick comparison table.

MEFA Student Loan Refinancing

MEFA's refinance loans come with terms of 7,10, or 15 years. That's more flexibility than you'll get with its private student loans. But it's still less than some private lenders which also offer 5- and 20-year repayment terms.

The minimum loan amount is also higher for refinancing at $10,000. On the flip side, there's no hard-fast maximum loan amount. All refinance loans with MEFA start repayment immediately with no grace period. There's also no cosigner release program and parent loans can't be transferred to children.

Unlike with its private student loans MEFA offers both fixed and variable interest rates to its refinance borrowers. As of writing, its refinancing interest rates start at 6.20%. If you apply for MEFA student loan refinancing through Credible, you can get up to a $1,000 gift card bonus! Terms apply.

How Does MEFA Student Loan Refinancing Compare?

The interest rates for MEFA student loan refinancing can be competitive and it offers moderate payment flexibility. But its minimum loan amount is on the high end and there's no way to release a cosigner. Check out this quick comparison here:

What Borrower Protections Are Available?

Private student loans are typically far less flexible than federal student loans and MEFA students loans are no exception. While they do offer in-school deferment of 36 to 60 months, there's unfortunately no formal forbearance policy for borrowers who are already in repayment.

If you decide to go back to school, you can temporarily defer payments but only for up to 12 months. They do provide death discharge, but notably they won't discharge student loan balances when borrowers become permanently disabled.

Are There Any Fees?

All of MEFA's student loans come with no application or origination fees. They also don't charge fees for late payments or returned checks. Finally, there are no prepayment penalties.

How Do I Open An Account?

You can visit MEFA's website to apply for a loan or use Credible. Keep in mind that on its own website, MEFA only offer pre-qualified rate quotes for refinancing. If you submit a loan application for a private student loan, a hard credit inquiry will be placed on your credit report.

For its private student loans, you must be enrolled at least half-time in an accredited degree-granting undergraduate or graduate program and maintain satisfactory academic progress as outlined by the school. The school must be a non-profit but can be public or private.

Notably, MEFA does not have a graduation requirement for its student loan refinancing product. So as long as you have a solid income and credit score, you may be able to refinance with MEFA even if you left school before earning your degree.

How Do I Contact MEFA?

You can get in touch with MEFA Monday-Friday from 8 AM to 8 PM (ET) at (800) 266-0243 or mefaloans@mefa.org.

If you have questions related to the repayment of your existing MEFA student loan, you'll need to reach out to its loan servicer, American Education Services (AES). AES can be contacted at 800-233-0557, Monday – Friday, 7:30 AM –9:00 PM (ET)

Is It Safe And Secure?

Since MEFA doesn’t take deposits, there isn’t any money to lose. If you're approved for a MEFA student loan, the funds will be disbursed directly to your college or university.

Is It Worth It?

For students who need to take out private student loans to help pay for school, MEFA student loans could be worth it. They have competitive rates and terms and do offer some in-school deferment options.

However, one major downside is that they don't have any formal hardship forbearance policy. And since they use traditional loan underwriting methods, it's likely that you'll need a cosigner to get approved for a MEFA undergraduate student loan (and only one of their loans offers cosigner release).

Before you apply for any MEFA student loans, be sure to compare them with other private lenders on Credible. And if you're looking to take out a private student loan without a cosigner, check out our guide.

MEFA Student Loans FAQs

Here are a few of the most common questions we hear about MEFA:

Is MEFA a non-profit lender?

Yes, MEFA is a not-for-profit, state-based organization that was created by the Massachusetts state legislature in 1982.

Is a MEFA loan a federal loan?

No, even though MEFA is a state-based organization, its student loans are private and are not eligible for federal student loan benefits.

Do you have to live in Massachusetts to take out a MEFA loan?

No, even though MEFA was created to support Massachusetts-based students, it offers private student loans and student loan refinancing in all 50 states.

Does MEFA offer variable-rate student loans?

MEFA's in-school student loans only come with fixed-rate terms, but it offers both fixed- and variable-rate refinance loans.

Are there any MEFA bonuses or incentives?

While MEFA doesn't offer any incentives on its in-school student loans, refinance borrowers can earn a gift card bonus of up to $1,000 by applying through Credible.

MEFA Student Loans Features