BOSTON--(BUSINESS WIRE)--The starting interest rate on the Commonwealth of Massachusetts’ college loan will decrease for the upcoming academic year for its most competitive loans, according to the Massachusetts Educational Financing Authority (MEFA). The MEFA Loan will offer a fixed interest rate starting at 4.50% for in-school repayment and 5.40% for post-school repayment (Annual Percentage Rate 5.63-6.03%).
The MEFA Loan is an education loan available to Massachusetts families with a student attending college anywhere in the United States, or to any U.S. family sending a student to college in Massachusetts. MEFA is a not-for-profit state authority with a mission to help students and families access and afford higher education through education programs, tax-advantaged savings plans, low-cost loans, and expert guidance.
The MEFA Loan’s rate decrease stands in contrast to the increase in interest rates on federal education loans. The interest rates offered by MEFA are among the lowest rates offered by an education loan lender and are a significantly lower-cost option than the Federal PLUS Loan.
The lower MEFA interest rate will allow families to save thousands of dollars in interest costs over the life of their loans. This will help to reduce the overall cost of borrowing and make college educations more affordable.
While MEFA is pleased to offer a competitive product, the state authority advises families to exhaust all financial aid eligibility from federal, state, and institutional sources, take advantage of other resources, such as college savings accounts and payment plans, and not to borrow more than they need. MEFA recommends that students first exhaust their Federal Student Loan eligibility before considering other loan options such as the MEFA Loan.
The MEFA Loan’s low, fixed interest rate is available to all qualifying borrowers. MEFA provides clear, complete information to families and informs borrowers in advance of the amount of their fixed monthly payment and the projected total cost of the loan.
MEFA is now accepting loan applications on mefa.org/loans for the upcoming academic year.
MEFA’s mission, since its founding in 1982, has been to help Massachusetts students and families access and afford higher education and reach financial goals. MEFA can be reached at (800) 449-MEFA (6332) during business hours or online anytime at firstname.lastname@example.org. Also, follow MEFA on Twitter through @mefatweets and on Facebook for tips and information.