Best if:
- You attended a public or nonprofit university
- Your credit is good
- You didn’t complete your degree
The Massachusetts Educational Financing Authority (MEFA) is a not-for-profit lender that provides student loans and student loan refinancing to borrowers nationwide. MEFA is known for offering competitive rates to qualified borrowers and for refinancing both private and federal student loans.
In this post:
MEFA refinancing interest rates and loan details
If you’re interested in student loan refinancing, MEFA offers a choice of a fixed- or variable-rate loan, with repayment terms ranging from seven to 15 years. There are no autopay or other interest rate discounts, but MEFA’s rates can still be competitive. MEFA says its customers reduce their interest rate by an average of 24% when they refinance student loans.
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| Rates from (APR) | Fixed: 3.60%+ Variable: 3.24%+ |
| Loan amounts | $10,000 up to the total amount of qualified education debt |
| Loan terms | 7, 10, 15 years |
| Loan types | Any private or federal student loans taken out to attend a nonprofit college or university |
| Min. credit score | 670 |
| Min. income | $24,000 |
| Residency | U.S. citizen or permanent resident |
| Transfer parent loan to child? | No |
| Cosigner release | Not offered |
| Death discharge available | Yes, cosigner not obligated if borrower dies |
| Fees |
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| Key benefits | Competitive rates |
| Education | Degree not required |
| Loan servicer | American Education Services (AES) |
| Best if |
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All APRs reflect autopay and loyalty discounts where available |
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MEFA student loan refinancing review
MEFA will refinance private and federal student loans that you took out in your own name, even if you didn’t earn your degree. But MEFA won’t refinance loans that were taken out to attend a for-profit school, and you can’t refinance PLUS loans that your parents took out on your behalf.
Also, if you do need a cosigner, keep in mind that there’s no option to have them released from their obligation before you’re done paying off your loan.
MEFA is known for offering low rates to borrowers with good credit — seven out of 10 refinancing customers have a credit score of 740 or better. An analysis of a pool of 2,700 recent loans totalling $168 million reveals the characteristics of MEFA’s typical student loan refinancing customer:
- Average FICO score: 763
- Average income: $104,128
- Average amount refinanced: $62,243
- Average interest rate (fixed-rate loans): 5.70%
- Percentage who refinanced with a cosigner: 24.1%
How to qualify
To qualify for student loan refinancing with MEFA, you or your cosigner will need:
- A credit score of at least 670
- Income of at least $24,000
In addition, you must be:
- A U.S. citizen or permanent resident
- The borrower on all loans being refinanced (you cannot refinance a PLUS loan taken out by your parents, for example)
- Refinancing debt taken on to attend a public or nonprofit school — debt taken on to attend a for-profit school is not eligible
- Free of any history of default on an education loan, with no delinquencies on education debt in the past 12 months
- Free of bankruptcy or foreclosure in the past five years
Repayment
MEFA offers three repayment terms — 7, 10, or 15 years — which helps you select a loan that best matches your monthly budget.
MEFA’s loan servicer is American Education Services (AES). You can make payments to AES online, by phone, or mail. You can also set up automatic direct debit payments from a bank account. Unlike some other lenders, you won’t get an interest rate discount for authorizing automatic payments — but you don’t have to pay extra if you want to mail a check.
If you run into unexpected financial difficulties, you can apply for a modified payment plan that allows you to make interest-only or reduced monthly payments for up to 48 months. MEFA says it may grant forbearance if you’re called up on active duty military service or during bankruptcy.
How MEFA compares to other lenders
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| Rates from (APR) | Fixed: 3.60%+ Variable: 3.24%+ | Fixed: 3.54%+2 Variable: 2.37%+2 | Fixed: 3.45%+¹ Variable: 2.19%+¹ |
| Loan repayment terms (Years) | 7, 10, 15 | 16 options from 5 to 20 years | 5, 7, 10, 15, 20 |
| Loan amount | $10,000 to amount of qualified education debt | $5,000 to $300,000 | $10,000 to $500,000 (depending on level of education) |
| Cosigner release? | Not offered for refinancing | Not offered for refinancing | Yes, applications accepted after 36 months of consecutive payments |
| Transfer parent loan to child? | No | No | No |
| Loan servicer | American Education Services (AES) | University Account Service (UAS) | Firstmark Services |
| Best for | Refinancing debt taken on to attend a public or nonprofit college or university | Graduates seeking flexible loan terms | Refinancing large loan balances |
All APRs reflect autopay and loyalty discounts where available | 1Citizens Bank Disclosures | 2College Ave Disclosures | 3 ELFI Disclosures | 4SoFi Disclosures |
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Citizens Bank Education Refinance Loan Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate ("LIBOR") published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of December 1, 2019, the one-month LIBOR rate is 1.70%. Variable interest rates range from 2.19%-8.92% (2.19%-8.92% APR) and will fluctuate over the term of the borrower's loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. Fixed interest rates range from 3.45%-9.02% (3.45%-9.02% APR) based on applicable terms, level of degree earned and presence of a co-signer. Lowest rates shown are for eligible, creditworthy applicants with a graduate level degree, require a 5-year repayment term and include our Loyalty discount and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty and Automatic Payment Discount disclosures. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of their loan. |
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How to refinance student loans with MEFA
MEFA can be a great match if you’ve got good credit and are looking to refinance private or federal student loans taken out to attend a public or non-profit university. But keep in mind that many lenders offer student loan refinancing, and checking rates with multiple lenders helps you find the best deal.
With Credible, it’s easy to compare rates from some of the best companies to refinance with, including MEFA. You fill out just one form to request prequalified rates, and checking rates won’t affect your credit.
See Your Refinancing Options
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MEFA private student loans interest rates and loan details
For students looking to close gaps in their college funding, MEFA offers private student loans with fixed rates that can be competitive with federal PLUS loans.
Undergraduates have a choice of a 10- or 15-year repayment terms. You can defer payments for up to 60 months while attending school or make interest-only or full monthly payments while you’re still enrolled.
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| Fixed rates | 3.95%+ |
| Loan minimum |
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| Loan maximum | Up to certified cost of attendance (minus other financial aid received) |
| Loan terms |
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| Min. credit score | 670 |
| Min. income | $25,750 |
| Residency | U.S. citizen or permanent resident |
| Fees | No application, origination, or disbursement fees |
| Prepayment penalty | None |
| Key benefits | Defer payments for up to 60 months |
| Enrollment | Must be enrolled at least half time in degree-granting public or nonprofit college or university |
| Cosigner release |
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| Repayment plans | Defer payments until 6 months after leaving school, or:
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| Loan servicer | American Education Services (AES) |
| Best if |
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Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available |
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MEFA private student loans review
Although MEFA is a nonprofit, state-chartered lender based in Massachusetts, its private student loans offer competitive rates to families nationwide.
Since most students won’t have the credit and earnings history needed to qualify for a loan on their own, 98% of MEFA’s private student loans are cosigned by a parent or other “co-borrower.”
The co-borrower (or cosigner) is responsible for taking over payments if the student can’t make them. MEFA offers cosigner release after 48 consecutive on-time payments — but only on 15-year loans to undergraduates who are deferring payment while in school.
How to qualify
To qualify for a private student loan from MEFA, you or your cosigner will need:
- A credit score of at least 670 (710 if payments are fully deferred)
- Income equal to at least the federal poverty guideline for a family of four ($25,750 in 2019)
In addition, you must be:
- A U.S. citizen or permanent resident
- Enrolled at least half-time at an eligible nonprofit school (students attending for-profit schools are not eligible)
Learn More: How to Apply for a Student Loan
Repayment
Undergraduates can choose a loan with a 10- or 15-year repayment term and have a choice of three repayment plans:
- Defer monthly payments until 6 months after leaving school (most expensive option)
- Make interest-only payments while still in school (reduces total interest charges)
- Begin making full monthly payments immediately (cheapest option)
All loans to graduate students have 15-year repayment terms, and borrowers can either defer payments or make interest-only payments while still in school.
About half of all MEFA borrowers defer payments while still in school, while one in three choose to start making full monthly payments right away. The remaining 15% make interest-only payments while enrolled.
How MEFA compares to other lenders
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| Rates from (APR) | Fixed: 3.95%+ Variable: N/A | Fixed: 4.89%+2 Variable: 2.84%+2 | Fixed: 4.40%+1 Variable: 2.73%+1 |
| Loan repayment terms (Years) | 10, 15 (depending on degree type) | 5, 8, 10, 15, 20 | 5, 10, 15 |
| Loan amount | $1,500 up to 100% of certified cost of attendance ($2,000 minimum for private schools) | $1,000 up to 100% of cost of attendance | $1,000 minimum, up to school's cost of attendance (aggregate limits apply) |
| Cosigner release? | On some loans, applications accepted after 48 consecutive on-time payments | Yes, applications accepted after more than half of the scheduled repayment period has elapsed |
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| Loan servicer | American Education Services (AES) | University Account Service (UAS) | University Account Service (UAS) |
| Best for | Students attending public or nonprofit universities | Students and parents seeking flexible loan terms | Professional students (law, medicine, and MBA) |
Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available | 1Citizens Bank Disclosures | 2,3College Ave Disclosures | 6Discover Disclosures | 7SunTrust Bank Disclosures | 9Sallie Mae Disclosures |
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Citizens Bank Student Loan Rate Disclosure Variable rate, based on the one-month London Interbank Offered Rate ("LIBOR") published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of December 1, 2019, the one-month LIBOR rate is 1.70%. Variable interest rates range from 2.73%-11.06% (2.73%-10.91% APR) and will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. Fixed interest rates range from 4.40%-12.19% (4.40% - 12.04% APR) based on applicable terms, level of degree earned and presence of a co-signer. Lowest rates shown requires application with a co- signer, are for eligible applicants, require a 5-year repayment term, borrower making scheduled payments while in school and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of the loan. |
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How to take out student loans with MEFA
MEFA can be a reliable source of funding for students and families who have hit their limits on the most affordable federal student loans. This is because they offer rates that can be competitive with federal PLUS loans.
But before taking out private student loans, it’s a good idea to compare rates from several lenders. Unlike federal student loans, the rates you’re offered can vary by lender.
Credible makes it easy to request personalized rates from some of the best private student loan companies, including MEFA. It takes about three minutes to submit your request, and checking rates does not affect your credit.
See Your Rates
Checking rates will not affect your credit
How MEFA can improve
While MEFA has provided great rates on student loans and student loan refinancing to many borrowers over the years, it could improve by:
- Offering cosigner release for student loan refinancing
- Serving students who attended for-profit colleges
- Offering a broader choice of repayment terms
Keep Reading: Best Ways to Pay for College
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