MEFA Student Loans: 2025 Review

The Massachusetts Educational Financing Authority (MEFA) was created by the Massachusetts state legislature in 1982 as a source of higher education financing. Though it was created in Massachusetts, MEFA offers private student loans and student loan refinancing to borrowers nationwide.

Compare current student loan rates

MEFA is known for offering competitive rates to qualified borrowers and for refinancing both private and federal student loans.

MEFA student loan refinancing

Any federal or private student loan used to pay for your attendance at an eligible college or university can be refinanced through MEFA REFI, their refinancing product. You’re eligible to refinance even if you didn’t graduate — an opportunity that’s not commonly offered by lenders.

MEFA’s refinancing loans have repayment terms ranging from seven to 15 years. There’s no autopay discount, but MEFA features competitive rates and some borrowers may save money by refinancing with this lender.

Eligibility

To be eligible for a MEFA REFI loan, you’ll need to meet the minimum criteria. Specifically, you must:

• Be a U.S. citizen or permanent resident
• Have education debt that was used to attend an eligible not-for-profit, degree-granting college or university
• Be the primary borrower on all the loans you refinance (meaning you can’t refinance Parent PLUS Loans taken out for your education)
• Meet minimum credit and income requirements
• Have made six on-time loan payments over the most recent 6 months
• Have no history of default or delinquency on education debt for the past 12 months, and no history of bankruptcy or foreclosure in the past 60 months

Repayment

MEFA offers three repayment terms for its REFI loan: seven-, 10-, and 15-year terms. In each case, repayment begins as soon as the loan is disbursed to you.

If you’re struggling to make payments on your MEFA REFI loan, the lender offers personalized relief options. Reach out to MEFA’s loan servicer, American Education Services (AES) to access this relief — AES will set you up with a dedicated representative to work with you one-on-one. For example, you may be able to temporarily reduce your monthly payment amount to get through a difficult time.

Notable features

• Zero fees: It’s common for lenders to waive application and origination fees, but with MEFA, you also won’t pay late fees or returned check penalties.
• No graduation requirement: Most lenders require refinance applicants to have graduated with their degree, but MEFA doesn’t.

MEFA private student loans

If you’ve exhausted your federal financial aid options, a MEFA private loan may help you fill any funding gaps for your undergrad or graduate program. With low, fixed rates, MEFA’s APRs could also be competitive with federal loan rates, if you have good credit.

No variable rates are available, and with a minimum repayment term of 10 years, you could be in debt for longer than you would with other private lenders offering five- or seven-year terms. However, there’s no penalty for paying off your loan early if you want to save on interest fees.

Eligibility

To receive a MEFA private loan for your undergraduate or graduate program, you must:

• Be a U.S. citizen or permanent resident
• Be enrolled at least half-time at a degree-granting, not-for-profit institution
• Meet minimum credit and income requirements (or apply with a cosigner who can)
• Maintain satisfactory academic progress, as determined by your school
• Have no history of default or delinquency on an education loan, and no history of bankruptcy or foreclosure in the past 60 months

Repayment

MEFA’s undergraduate student loan has several different repayment options to choose from:

• Immediate 10- or 15-year repayment: Payments begin the month after your loan is fully disbursed — that means you’ll make full payments while you’re still in school. You must completely repay the loan within 10 or 15 years. Borrowers who choose the 10-year option may be offered the lowest interest rates.
• Interest-only repayment: With this 15-year plan, you make interest-only payments starting the month after your loan is disbursed. Your monthly payment while you’re in school will be relatively low and your interest won’t capitalize, meaning you’ll graduate owing the same amount you took out. Full monthly payments begin after you graduate or leave school.
• Deferred repayment: Make no payments until six months after you graduate or leave school, for a maximum deferral of 60 months. Interest will compound while you’re in school, and you’ll graduate owing more than you borrowed. You must repay the loan within 15 years.
• Deferred repayment with cosigner release: If you borrow with a cosigner, this 15-year repayment plan allows you to defer repayment until six months after graduation or leaving school, with a maximum deferral of 60 months. Your cosigner can request a release after the first 48 consecutive, on-time payments.

Graduate student loans from MEFA only have two repayment options, both with a 15-year term:

• Interest-only repayment: Begin interest-only payments the month after your loan is fully disbursed; full payments will begin after the end of your anticipated in-school period.
• Deferred repayment: Defer all payments until six months after you graduate or leave school, with a maximum deferral of 36 months.

Notable features

• Cosigner release: Undergraduate students who enroll in an eligible repayment plan and have a cosigner could release them after making four years of on-time payments.
• No fees: You won’t pay origination, disbursement, or late fees.

How to apply for a MEFA student loan

You can apply for a MEFA loan online, and you’ll need the following information to start your application:

• Social Security number and date of birth
• Phone number and email address
• Mailing address, both current and prior
• Employment information, including documentation of your monthly income

Once you’ve completed the form, MEFA will conduct a hard credit check and may provide an instant decision. However, if the lender needs more information, they’ll contact you.

If approved, select the loan you want and sign the necessary documents. These include the MEFA loan agreement, loan approval disclosure, and the Department of Education’s self-certification form.

Once complete, your school will complete certification of your loan before MEFA sends the funds to your college. It will apply the money to any outstanding tuition and fees before sending any extra cash to you.

How to contact MEFA

There are several ways to get in touch with MEFA if you need assistance.

General information

• Email: [email protected]
• Phone: (800) 449-6332, Monday to Friday from 9 a.m. to 5 p.m. ET
• Request a one-on-one virtual appointment: mefa.org/appointment-request

Private student loans

• Email: [email protected]
• Phone: (800) 266-0243, Monday to Friday from 8 a.m. to 8 p.m. ET

Student loan refinancing

• Email: [email protected]
• Phone: (855) 433-7334, Monday to Friday from 8 a.m. to 8 p.m. ET

Matt Carter has contributed to the reporting of this article.