MEFA Loan
The Massachusetts Education Financing Authority (MEFA) of Boston,
Massachusetts, enables families (parents & student) to borrow to
help pay educational expenses.
SPECIFIC INFORMATION ABOUT THE MEFA LOAN:
* available to all residents of the U.S. and Canada;
* minimum loan amount is $2000;
* co-applicant is required; student cannot be the primary applicant;
student must be an applicant on loan;
* student must sign the loan documents including the promissory note
and has the same responsibilities and obligations for repayment as
the primary borrower and co-signer;
* 15 year repayment term;
* 3.75% origination fee charged of amount borrowed;
* option of fixed or variable interest rate;
* fixed rate of 6.49% for applications approved between April 1,
2006 and March 31, 2007 (for immediate repayment loans) ;
* variable rate changes every three months and is based on the
3-month LIBOR + 2.30% for applications approved between April 1,
2006 and March 31, 2007 (for immediate repayment loans) ;
* variable rate is capped at 12%;
* repayment begins immediately unless deferment is chosen; once
repayment begins, payments may not be deferred;
* deferment option available with no payments required while student
is enrolled, payment begins within 6 months of student leaving
school, interest accrues during deferment;
* interest rates for the deferment loans are 6.99% on the fixed
rate, and 3-month LIBOR + 2.80% on the variable rate; these rates
for loans approved from April 1, 2006 through March 31, 2007;
* non-Canadian international students may apply with a U.S. citizen
or permanent resident as co-signer;
* a Home Equity Option is available.
For help in deciding if a MEFA loan is appropriate for your family,
review the Tips for borrowing an alternative loan section. This
section, although devoted to alternative loans, may be useful for
you in making a decision regarding the MEFA loan.
HOW TO APPLY:
Apply on-line at www.mefa.org or call 1-800-266-0243.
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