MEFA Review

The Massachusetts Educational Financing Authority (MEFA) offers one huge advantage to its clients: the organization is a state-chartered nonprofit organization. This makes it one of the most consumer-friendly options in the private student loan industry.

MEFA’s extensive lineup of undergraduate and graduate student loans and refinancing plans puts people before profits. The organization grants borrowers access to low rates and one of the industry’s strongest support systems.

There’s a lot to like about MEFA as a student loan provider, so let’s dig in and see exactly what the organization offers.

Background and Company Information

MEFA was created in 1982 by an act of the Massachusetts state legislature. The organization was established in response to ongoing calls from the state’s higher education institutions, which lobbied to expand the range of options available to borrowers who could not afford the rising costs of postsecondary schooling.

The organization’s original mission statement remains in effect today: MEFA strives to provide practical, low-cost financing solutions to students and families with higher education aspirations.

MEFA operates according to a highly ethical set of guiding principles that prioritize the long-term financial health of its borrowers. The organization also maintains in-house guidance programs, liaising with high schools and colleges to offer complete educational planning resources to students and their parents.

Undergraduate Student Loans

As of December 2020, MEFA offers undergraduate student loan programs with the following features:

In most cases, undergraduate borrowers need a parent, guardian, or other individual to act as cosigner. Additional eligibility standards are as follows:

Repayment terms include the following unique features:

Credit inquiries into the backgrounds of the borrower and/or cosigner are required, but MEFA does not apply any extra or hidden fees, charges, or early repayment penalties to any of its loans.

Graduate Student Loans

The following terms apply to MEFA loans for graduate students as of December 2020:

Eligibility requirements mirror those that apply to undergraduate loans. The key difference is that all MEFA graduate student loans carry 15-year repayment terms. There is no 10-year term option as of December 2020.

Additional Borrower Resources

As a nonprofit organization, MEFA places a premium on the lifelong financial health of its borrowers. To that end, it supports one of the most complete collections of client resources of any lender operating in the private market.

The organization’s website offers:

MEFA also makes counselors and professionals readily available to assist prospective clients. You can contact the company by phone or email.

Pros and Cons

Here’s what reviewers and real borrowers particularly like about MEFA:

On the down side, MEFA has also attracted a few points of criticism:

Our Take

MEFA is a nonprofit organization with an exemplary customer satisfaction record. Eligible borrowers in need of private loans can proceed with confidence, as MEFA delivers the market’s most competitive rates along with generous repayment terms and understanding, helpful service and advice.