What Happens After MEFA Loan Approval?

Applying for a MEFA Loan is fairly quick and simple. The student and their co-borrower on the loan will each submit their information separately, and then be told instantly if they've been approved. Families may be wondering what happens after that. We've laid out the steps below.

1. Right after families are approved, the primary borrower on the loan (that's usually the parent) will be prompted to select a repayment option. The repayment option dictates the interest rate and the timeline of when families will repay the loan. Once they’ve made a selection, each borrower will be prompted to electronically sign the MEFA Loan Agreement (MLA), and the primary borrower will need to sign the Self-Certification Form.
2. The college financial aid office will then certify the loan electronically and select a loan disbursement date for each semester.
3. MEFA will send the loan funds to the school on the school's determined disbursement date. If families have applied for a full-year loan, the loan funds will be split between a fall semester disbursement and a spring semester disbursement. Once the first disbursement is sent to the college, the family will receive email notifications prompting them to set up an account with MEFA’s loan servicer, American Education Services (AES). This account is different from the log-in they created to apply for the MEFA Loan.
4. Interest on the MEFA Loan will begin to accrue once funds are disbursed. Families may opt to reduce their MEFA Loan at any time before the loan is fully disbursed if they don't need the full amount for which they originally applied. If the loan funds have already disbursed to the college, families should contact the financial aid office and ask if they can refund all or part of the loan to MEFA as soon as possible. When a refund is received by MEFA, interest accrual is adjusted accordingly.
5. If at any point families need additional loan funds higher than their approved loan amount, they will need to submit a new application for the loan increase.
6. Families may make voluntary payments before their first loan payment is due, which is approximately 45 days after the loan is fully disbursed for Immediate Repayment and Interest-Only Repayment options and 6 months after graduation for Deferred Repayment options.

If the families you work with need any help throughout the process or guidance on how to pay the college bill, encourage them to contact MEFA's college planning experts at (800) 449-MEFA (6332) or [email protected].