Guide to MEFA Student Loans: What You Need to Know

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Refinance Student Loans

• No degree necessary
• Multiple repayment terms available
• Check your rates with no credit impact
• Almost all loans eligible, including parent loans

• Can’t apply right out of school
• Loans from for-profit schools don’t qualify

Rates (APR)	6.20% – 8.99%
Loan amounts	Starting at $10,000
Repayment terms	7, 10, or 15 years

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• Use your loan to cover prior-term balance
• Summer courses eligible, even if enrolled below half-time
• Low minimum loan amount
• Undergrads can defer payments for up to 60 months

• Must reapply each year
• Can’t prequalify before applying
• Most undergrads must have a co-borrower
• Grad deferment capped at 36 months
• Co-borrower release not guaranteed

Rates (APR)	5.75% – 8.95%
Loan amounts	$1,500 – 100% of the cost of attendance
Repayment terms	10 or 15 years for undergraduate loans; 15 years for graduate loans

The Massachusetts Educational Financing Authority’s (MEFA) versatile loan offerings, competitive rates, and fee-free structure help make its student loans and refinancing more accessible. That said, there are some eligibility considerations before signing on. 

For one, you must be in student loan repayment for six months before you can refinance. Undergraduate student loan borrowers also must have a co-borrower. Here’s everything to know about MEFA student loans and refinancing.

How does MEFA work? 

Since 1982, MEFA has offered fixed-rate student loans. In addition to its private loans, MEFA offers college savings plans and student loan refinancing.

While MEFA is headquartered in the Bay State, its loans are available to students nationwide. You can apply solo or with up to two co-borrowers, although it calls its undergraduate student loans “family loans” because most applicants require a co-borrower for approval. 

MEFA doesn’t offer prequalification before applying for its student loans. However, when you do apply, most applicants get a decision right away. You can prequalify without affecting your credit score for student loan refinancing.

MEFA student loan refinancing

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Refinance Student Loans

• Refinance even if you didn’t finish your program.
• Multiple repayment terms mean you’ll repay your loan on your timeframe.
• Prequalify with a soft credit check before submitting a full application.
• Fixed rates give you stable, consistent payments.
• Refinance both private and federal student loans

• Must be in repayment for at least six months before applying.
• Can only refinance loans used to attend a not-for-profit school.

Rates, borrowing limits, and fees

Deciding which company to refinance with is just as important as deciding whether to refinance at all. Here’s an overview of what you can expect if you refinance your student loans with MEFA:

Feature	Details
Fixed rates (APR)	6.20% – 8.99%
Variable rates (APR)	N/A
Loan amounts	Starting at $10,000
Repayment terms	7, 10, or 15 years
Co-borrower release?	Not available

What are the eligibility requirements?

Often, we think of loan eligibility solely in terms of creditworthiness. In actuality, though, qualification hinges on much more than that. Here are MEFA’s refinancing requirements. 

Requirement	Details
Citizenship	U.S. citizen or permanent resident
State of residence	All 50 states and D.C.
Minimum age	Not disclosed
Graduation status	Graduation not required, but you must have been in repayment for at least six months
Credit score	Not disclosed but a credit score of 670+ is recommended; You also can’t have a student loan default or a bankruptcy or foreclosure within the last 60 months.

How does repayment work?

When you choose a MEFA refinance loan, you’ll get your choice of repayment terms, ranging from seven to 15 years. Because every MEFA loan comes with fixed rates, your payment won’t change from your first due date to your last.

Unlike with standard student loans, refinance loans don’t come with deferment or grace periods. Instead, you’ll likely start paying on your loans roughly a month after disbursement.

While MEFA processes your application and disburses your loan, its loan servicer, American Education Services (AES), handles repayment. 

Tip

Loan servicers act as a go-between, coordinating repayment on behalf of lenders. Before you refinance, learn who your loan servicer is on your existing loans.

Should you have trouble repaying your loan, you’ll go through AES, not MEFA, to work out a solution. MEFA doesn’t list any specific hardship options on its website, but AES can help you determine if any such options are available to you.

How do MEFA refinance student loans compare to other lenders?

MEFA is one of few lenders that actively prioritizes affordability alongside profitability. Other lenders going the extra mile to craft commendable borrower experiences include:

These lenders rival MEFA in terms of repayment flexibility. Earnest lets you choose between biweekly and monthly payments, and SoFi allows for in-school deferment if you decide to earn another degree. ELFI, on the other hand, offers repayment terms from five to 20 years.

Truth be told, you can’t go wrong with any of these companies, and that makes for a tough decision. But that’s where Credible comes in. With Credible, you can view multiple loan offers side by side, simplifying your research process and streamlining your comparison shopping.

MEFA private student loans

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Private student loans

• Pay for a previous tuition balance, summer courses, and even off-campus living expenses.
• Loans start at $1,500, so you won’t have to borrow more than you need.
• Choose from several repayment plans, including in-school deferment up to 60 months.

• Application is only good for one year, not the duration of your program.
• Can’t get a personalized rate without incurring a hard credit inquiry.
• Undergraduate students without a co-borrower can’t apply online.
• In-school deferment for graduate students is only 36 months.
• Can’t apply for co-borrower release until you’ve been out of school and in repayment for at least four years.

Rates, borrowing limits, and fees

MEFA offers both undergraduate and graduate loans with fixed rates and low minimum loan amounts. Here are more of the details.

Feature	Details
Fixed rates (APR)	5.75% – 8.95%
Variable rates (APR)	N/A
Loan amounts	$1,500 – 100% of the cost of attendance
Repayment terms	10 or 15 years for undergraduate loans; 15 years for graduate loans
Co-borrower release?	Not available for graduate loans, but undergrads can request release upon making 48 consecutive, on-time payments after student leaves school

What are the eligibility requirements?

While MEFA doesn’t require a cosigner, applicants without a strong credit history are encouraged to apply with a more creditworthy co-borrower. According to its website, MEFA calls its undergraduate loans “family loans” because most student borrowers must apply with a family member to be approved.

Tip

A cosigner helps you qualify for a student loan but isn’t responsible for making payments unless you default. A co-borrower, on the other hand, shares equal responsibility for repaying the loan from the start.

Here’s a closer look at what prospective undergraduate and graduate borrowers need to qualify:

Requirement	Details
Citizenship	U.S. citizen or permanent resident
State of residence	All 50 states and D.C.
Minimum age	Not disclosed
Credit score	Not disclosed, but MEFA considers good scores to be above 670. You also can’t have defaulted on a previous student loan and must be bankruptcy- and foreclosure-free for the preceding 60 months.
Income	Not disclosed

How does repayment work?

MEFA knows that every student is different, so it doesn’t expect borrowers to adhere to a one-size-fits-all repayment plan. In the table below, we’ve summarized the repayment pathways you can choose from when you work with MEFA:

Terms	Details
Repayment options	Immediate (not available for graduate loans), interest-only, or deferred
Repayment terms	10 or 15 years for undergraduate loans; 15 years for graduate loans
Grace period	36-month (graduate) or 60-month (undergraduate) maximum deferment, including six-month grace period after dropping below half-time enrollment
Co-borrower release?	Not available for graduate loans, but undergrads can request release upon making 48 consecutive, on-time payments after student leaves school

While graduate students can’t formally elect immediate repayment, MEFA doesn’t charge prepayment penalties. In other words, MEFA won’t punish or prevent you from paying extra toward your loans while you’re in school or at any point thereafter.

If you’re not sure which repayment plan is best for your situation, it may help to consider your obligation under each one:

• Immediate: Pay both principal and interest every month for 10 or 15 years.
• Interest-only: Pay only toward accrued interest while in school.
• Deferred: Postpone all payments until six months after leaving school or reaching the maximum deferral period, whichever comes first.

It’s worth mentioning, however, that the 10-year term extended to undergraduates is only available under the immediate repayment plan. All other plans come with a single 15-year term.

Like with refinance loans, you’ll work directly with AES to manage your loan repayment. That includes requesting a co-borrower release. 

Before AES can approve such requests, students must demonstrate an ability to repay the debt on their own. If you plan to apply for co-borrower release, take steps to improve your credit and financial standing well before submitting your request. 

How do MEFA private student loans compare to other lenders?

MEFA’s private student loans come with several advantages. But since you can’t check your rates without running a credit check, we suggest exploring what these student loan companies can offer first:

Every lender on this list—with the exception of Sallie Mae—lets borrowers get prequalified rates before committing to a hard inquiry. What Sallie Mae offers that MEFA doesn’t is cosigner release eligibility after just 12 on-time payments.

It’s these fringe benefits, so to speak that make these lenders stand out. SoFi, for example, pays you for getting good grades. Meanwhile, Earnest gives borrowers a nine-month grace period instead of the traditional six.

Besides their special perks, many of these lenders’ loan products may simply be better suited to your situation. Some, like ELFI and College Ave, lend to parents as well as students. Credible, on the other hand, presents you with multiple loan offers at once to ensure you’re getting the best deal.

Is MEFA a reputable lender?

Each lender we feature passes a rigorous vetting process, and MEFA is no exception. 

Part of what makes MEFA so trustworthy is its insistence that students don’t borrow or refinance unless doing so is in their best interest. That’s not our only evidence of MEFA’s integrity, however. MEFA’s hundreds of positive reviews speak volumes about the company’s reputation.

Source	Customer rating	Number of reviews
Trustpilot	4.6/5 stars	432
Better Business Bureau	N/A	0

Customers appreciate MEFA’s dedication to consumer education. Many reviews speak to the quality of MEFA’s free resources, from hosting college planning webinars to sharing scholarship links.

While MEFA doesn’t have any BBB reviews, it does have an A+ BBB rating. Several factors go into these ratings, from a company’s licensure to its complaint history. 

MEFA having such a high rating means that it stays in regulatory compliance and honors its commitment to customers. MEFA’s only received two complaints in the last three years, and it responded promptly to each one to seek a resolution.

Does MEFA have a customer service team?

MEFA doesn’t just have one customer service team—it has several. That’s in addition to its student loan servicer, AES. Here’s how to contact the right MEFA department, as well as AES:

• For answers to general questions:
  • Phone: 800-449-6332 (Monday through Friday, 8 a.m. to 5 p.m. Eastern)
  • Email: [email protected]
  • Mail: 60 State Street, Suite 900, Boston, MA, 02109
• To apply for undergraduate or graduate loans:
  • Phone: 800-266-0243 (Monday through Friday, 8 a.m. to 8 p.m. Eastern)
  • Email: [email protected]
• To apply for student loan refinancing:
  • Phone: 855-433-REFI (7334) (Monday through Friday, 8 a.m. to 8 p.m. Eastern)
  • Email: [email protected] 
• For repayment assistance through AES:
  • Phone: 800-233-0557 (Monday through Friday, 7:30 a.m. to 9 p.m. Eastern)
  • Mail: P.O. Box 65093, Baltimore, MD, 21264-5093

AES also offers support via email when borrowers register for and sign in to their AES account.

How to apply for a MEFA refinance or student loan

No matter which loan type you need, MEFA makes it easy to apply online. Keep reading to see how to secure a MEFA loan.

Apply for MEFA student loan refinancing

MEFA’s refinance application takes around 15 minutes to complete. Here’s what to expect along the way:

1. Prep your paperwork. MEFA starts with a soft credit pull for its student loan refinance, but if you move forward, you’ll need to supply proof of identity and income. You’ll also need your most recent student loan statements. Gathering that information now can save you time later. 
2. Navigate to MEFA’s refinancing hub. MEFA has separate applications for its student loan products, so it’s crucial to start your application from the refinancing page.
3. Click “Find My Rate.” Checking your rate won’t impact your credit, and with MEFA, it’s a required part of the application process.

4. Register for a MEFA account. If you already have one, you’ll log in instead.
5. Enter your information. MEFA needs your contact, employment, and education details. During this step, you’ll tell MEFA the dollar amount of student debt you’re looking to refinance, as well as your Social Security number.
6. Get your rates. If you’re conditionally approved, you can proceed with a full application and submit your documents.
7. Add your co-borrower(s). If you weren’t approved on your own or if you want to use a co-borrower to try for a better rate, you can include your co-borrower’s information before accepting a loan.

After finalizing your application, you’ll move into the final review stage. MEFA may need as many as 14 days to review your information, so don’t panic if you don’t hear back right away.

Before accepting your loan, you’ll have an opportunity to choose your preferred rate and terms. You’ll also need to read and e-sign your loan documents. Once you’ve agreed to open your refinance loan, MEFA will disburse your funds within five days.

Apply for a MEFA private student loan

MEFA designed its private student loan application to be completed in one day at most. This application involves a similar set of steps as applying to refinance, with one caveat: Undergraduate students without a co-borrower have to apply over the phone. 

Here are the required steps in more detail:

1. Gather your documents. Before it can approve your loan, MEFA will need proof that you are who you say you are. Have your ID and proof of income ready to speed up the application process.
2. Navigate to the online application. You can do this from either the undergraduate or graduate loan pages or by hovering over “MEFA Loans” in the menu bar.
3. Create your account. Alternatively, you can log in to an existing MEFA account.
4. Select your level of study. At this stage, undergraduate students without at least one co-borrower will be directed to call MEFA at (800) 266-0243. All other applicants can proceed with the online application.

5. Enter your information. On the next two screens, you’ll share details like your Social Security number and address. If you’re a graduate student, you’ll indicate whether you’re applying independently or with up to two co-borrowers.
6. Read through MEFA’s disclosures and policies. You’ll need to review and consent to these policies before proceeding.
7. Enter any supplementary information. Depending on your application type, this may include details about your employment or about your co-borrower(s).
8. Receive your credit decision. If approved, you can compare the loan terms you qualify for and choose what works best for you.

You’ll then review and sign your loan documents to accept your MEFA student loan. Once those documents are submitted, MEFA will coordinate loan disbursement with your university.

Read More

How to apply for student loans

How we compiled ratings for our MEFA student loan refinancing review

We designed LendEDU’s editorial rating system to help readers find companies that offer the best student loans and loan refinancing. Our system awards higher ratings to companies with affordable solutions, positive customer reviews, and online transparency of benefits and terms.

We compared MEFA to several student loan lenders, using hundreds of data points from company websites, public disclosures, customer reviews, and direct communication with company representatives. We weighted, scored, and combined each factor to produce a final editorial rating. This rating is expressed on a scale from 1 to 5, with 5 being the highest possible score. Our take is represented in our ratings, recapped below.

Product	Our rating
MEFA student loan refinancing	4.1/5
MEFA private student loans	3.9/5