MEFA offers college loans for families, with multiple repayment choices. Here are some other facts about MEFA Loans that you might find helpful. Keep them in mind as you work with families to compare financing options.
- We're nationwide.?Though we have "Massachusetts" in our name, families don't need any connection to the Bay State to borrow a MEFA Loan. We're available to families across the country for students going to school anywhere in the U.S.
- Interest doesn't accrue until the loan is disbursed.?If families borrow a MEFA Loan for the full academic year, we'll split the loan into two parts, and send those funds before the fall semester and spring semester. Interest won't start accruing on each part until it's disbursed. So if families borrow $20,000, and receive $10,000 each semester, the second $10,000 won't start accruing interest until we send it to the school, usually sometime in January.
- We're a family loan.?Though MEFA Loans help pay the student's college bill, most students need a co-borrower, who often ends up being a parent or other family member. We therefore refer to MEFA Loans as family loans. Each borrower on the loan is equally responsible for repayment.
- Our interest rate range is small.?As families compare loan options, they should review the?Application and Solicitation Disclosure?of each one. The document will show the range of interest rates that potential borrowers could be offered on the loan. The rates for some lenders go into double digits, up to the neighborhood of?15%. MEFA's range of rate possibilities is narrow, and the highest rate doesn't go anywhere near that high.
- We offer free guidance. When families borrow a MEFA Loan, we'll send them periodic emails with information and updates relevant to them. That includes topics related to college internships, summer jobs for students, finding scholarships, loan repayment, and more.
If you'd like to learn more about MEFA Loans, visit our?dedicated page. And if you or families you work with have questions about borrowing a loan for college and would like to speak with someone, give us a call at (800) 449-MEFA (6332).
