Massachusetts Educational Financing Authority Announces Low-Cost College Loans for Fall

BOSTON--(BUSINESS WIRE)--Families in need of financing for the upcoming fall semester can still apply for college loans through MEFA, which is offering a 6.89% fixed interest rate loan to Massachusetts families and students. Yesterday, a study by Fidelity Investments reported that Massachusetts parents are currently projected to meet only 18% of college costs, down from 22% last year. MEFA, the Massachusetts Educational Financing Authority, advises families who need financing to seek state-sponsored loans as a second step, after first exploring all federal student loan options.

This year, the MEFA Undergraduate Loan has a 6.89% fixed interest rate, one of the lowest rates of its kind, even in comparison to the federal PLUS Loan for parents which offers a 7.89% interest rate. New this year, the MEFA Loan offers three repayment options: immediate repayment, interest-only while in school, or deferred.

"When it comes to borrowing for college, parents and students should take the time to explore their options. Federal student loans like the Stafford are a great place to start, but they probably won't be enough to cover the entire bill, so the second best option is to look to state-sponsored programs. For Massachusetts families and students attending a college in the Commonwealth, MEFA offers highly competitive rates, flexible repayment terms and quick approval so you can pay the bill and get to class," said Thomas Graf, Executive Director of MEFA, a not-for-profit state authority that provides low-interest loans and college savings options (www.mefa.org).

MEFA also offers Massachusetts families and students access to college financing specialists who can provide free, independent guidance on options to pay for college. MEFA's knowledgeable counselors are available toll-free at 1.800.449.MEFA (6332) for extended hours as students head back to school. Call Monday through Friday from 8 a.m. to 10 p.m. and Saturday from 9 a.m. to 3 p.m. EST.

MEFA's website offers important advice to consider when shopping for education loans, including the suggestion to "Go Federal First, State Second." College loans offered by the federal government (like the Stafford Loan for students) and many state programs offer fixed interest rates with competitive terms. Only after exhausting these options should families consider private loans. For the full list, visit www.mefa.org.