MEFA Student Loans Review September 2025

The Massachusetts Educational Financing Authority (MEFA) was established in 1982 by the Massachusetts State Legislature with the goal of helping families in the Bay State pay for college. Since then, MEFA has expanded its reach to help students nationwide access affordable private student loans for higher education.

In this MEFA private student loans review, learn about the lender's eligibility requirements, rates, and repayment options to determine if it's the right fit for you.

MEFA private student loans review

Best for: Borrowers with good credit

A MEFA private student loan may be a good option if you or your cosigner has strong credit, since the lender offers low fixed interest rates for qualified borrowers. However, MEFA doesn't offer variable-rate loans, autopay discounts, or many repayment choices, so you'll need to weigh the trade-offs against the savings from lower rates.

Pros and cons

Pros of MEFA private student loans

• Low fixed interest rates: MEFA offers competitive interest rates for borrowers with good credit, which could make funding your education more affordable.
• No fees: You won't find any loan application, origination, or prepayment fees through MEFA.
• High borrowing limits: You can borrow as little as $1,500 all the way up to your school's total cost of attendance.

Cons of MEFA private student loans

• No autopay discount: Unlike many lenders, MEFA doesn't lower your rate when you set up automatic payments.
• No prequalification: You have to consent to a hard credit check before you can see your rates or loan options.
• Limited repayment terms: You can only opt for a 10- or 15-year repayment term, which is less than what most lenders offer.

Eligibility requirements

To take out a private student loan through MEFA, you'll need to meet the following eligibility requirements:

• Credit score: You or your cosigner typically needs a FICO score of at least 670 to qualify.
• Credit history: You can't have a history of default on any education loans, any bankruptcies, or foreclosures in the last 60 months.
• Income: Although MEFA doesn't share specific income requirements, you or a cosigner must have sufficient income to support the loan's repayment.
• Academic status: You must maintain satisfactory academic progress (SAP). SAP is defined by each individual school and generally means you must be on track toward completing your degree.
• Enrollment: You must be enrolled at least half-time in an accredited degree-granting program at an eligible nonprofit college or university in the United States.
• Residency: You must be a U.S. citizen or permanent resident.

Current private student loan rates

Borrowing limits

MEFA allows you to borrow up to your school's total cost of attendance, minus any financial aid you receive, including federal loans, scholarships, and grants. Your school's total cost of attendance typically includes expenses such as tuition and fees, room and board, course materials, and transportation. The minimum amount you can borrow through MEFA is $1,500.

Repayment terms

MEFA offers a standard 15-year term, or you can choose a 10- or 15-year term if you select immediate repayment, which requires making full principal and interest payments while you're still in school. Here's a look at private student loan repayment options:

• Immediate repayment: Make full principal and interest payments as soon as the loan is disbursed.
• Interest-only repayment: Pay only the interest that accrues on your loan while in school. Full principal and interest payments begin 6 months after leaving school.
• Deferred repayment: No payments are required until 6 months after leaving school. Deferment can extend up to 60 months for undergraduates and 36 months for graduate students.

Notable benefits

MEFA offers several benefits that could improve your borrowing experience, including:

• No fees: You won't pay application, origination, or prepayment fees with MEFA.
• Cosigner release: If you choose the Student Deferred Repayment with Co-Borrower Release option, you can apply to release your cosigner from the loan after 48 consecutive on-time payments. Be sure your loan includes this feature if cosigner release is important to you.

What to consider before borrowing from MEFA

Before applying for a private student loan from MEFA, make sure to consider the following:

• No prequalification: MEFA doesn't let you check your rates without a hard credit check. However, you can use a marketplace like Credible to see estimated offers from multiple lenders, including MEFA, with only a soft credit check.
• Interest rates: MEFA's rates are competitive, but it's still smart to shop around to find the lowest cost for your situation.
• Other funding options: It's a good idea to exhaust free and lower-cost resources before turning to private loans. Consider scholarships, grants, savings, part-time work, employer tuition assistance, and federal student loans before borrowing.

See Also: MEFA Student Loan Refinancing Review 2025

How to apply for a MEFA private student loan

You can start the process of applying for a MEFA student loan online. Be prepared to provide the following information:

• Social Security number
• Date of birth
• Contact information
• Employment information
• Income information
• Driver's license

If you prefer to apply over the phone, that's an option, too. You can call 800-266-0243 to get started.

Once you submit an application, MEFA will run a hard credit check and review your information. If approved, you'll receive loan offers to choose from. Borrowers and cosigners must each sign the loan agreement to accept the loan.

Why you can trust our Credible experts

The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology below.

Methodology

To determine MEFA's lender rating, Credible collected more than 1,000 points of data on two dozen private student loan companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.

• Repayment options: 30%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 15%
• Customer support: 10%

While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.

Learn more about our methodology.