How Refinancing Your Student Loans With MEFA Can Save You Thousands

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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.

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Refinancing with Earnest

Refinancing rates from 2.57% APR. Checking your rates won’t affect your credit score.

Check out Earnest

Whether you’re just learning about student loan refinancing or are ready to compare rate quotes, it’s important to read reviews of various lenders. This will help you see what benefits they can offer you  — and find out their shortfalls, too. Working with the wrong lender can cost you in both high interest fees or even damaged credit.

One of the lenders you might have heard about is the Massachusetts Educational Financing Authority (MEFA). Although it offers student loans to students from Massachusetts, it provides student loan refinancing nationwide. In this MEFA review, find out what you need to know about eligibility, repayment terms, and interest rates.

Learn More About MEFA

MEFA review

Although you have many options for private student loans or refinancing, MEFA can be a smart choice for some borrowers. As one of the few companies that offer refinancing loans to borrowers who did not complete a degree, MEFA loans can help you take charge of your debt.

MEFA products

MEFA offers a range of products to help families pay for a college education, including:

  • Private student loans: MEFA provides undergraduate and graduate student loans to Massachusetts residents or borrowers attending school in the state.
  • Refinancing loans: MEFA also offers refinancing loans to borrowers across the country.
  • Pre-paid tuition: For those looking to save on tuition, MEFA runs U.Plan, a prepaid tuition program available only to Massachusetts residents.

Using MEFA online

MEFA allows you to apply for a student loan or refinancing loan via the website or phone. To start the process online, click on “Apply For a Loan” on the top right of the website.

mefa loans

Image via MEFA

The site will redirect you to their list of financial options before prompting you to choose the appropriate loan type to complete the application.

Scroll down to find the loan you want and then click on “Apply Now.” Your online application will take just a few minutes. However, you do need to have documents on hand to verify your income, necessary loan amount, or cosigner information.

mefa student loans

Image via MEFA

The MEFA website is intuitive and easy to use. However, it doesn’t offer a mobile app, so it can be difficult to navigate on a smartphone.

Check Out MEFA Online

MEFA interest rates and fees

If you have exhausted your federal student loan options and need to take out additional loans to pay for school, MEFA could help.

For undergraduate student loans, MEFA offers fixed interest rates as low as 4.69%. Because the loan has a fixed interest rate rather than a variable one, your interest rate and your payments will stay the same for the length of your loan.

Undergraduate student loan borrowers can choose 10- or 15-year repayment terms; the shorter the term, the lower your interest rate. Although there is no application fee, there is a 4 percent origination fee if you need a cosigner.

For graduate loans, you might be able to get an interest rate as low as 6.09% with a repayment period of 15 years. Like undergraduate loans, if you need a cosigner, there is an origination fee.

If you’re interested in refinancing your loans, MEFA says that the average borrower reduces their monthly payment by $191. You can refinance both federal and private student loans.

If your application is approved, you can take out a loan with a fixed interest rate as low as 4.95%. If you opt for a variable rate, your rate could be as little as 3.84%.

MEFA repayment options

MEFA is not a federal loan lender, so it does not offer benefits such as income-driven repayment plans, forbearance, or deferment. However, MEFA does have some repayment options to help you manage your loans.

For undergraduate loans, you can choose one of four repayment plans:

  • Immediate: With this payment plan, you must begin making payments while in school (45 days after MEFA disburses your loan). However, the interest rate is lower while you’re enrolled in college. Your payment covers both principal and interest. Depending on your loan, you might have 10 to 15 years to pay it off.
  • Interest-only: While you’re still in school, you can opt for an interest-only plan. With this approach, you only pay the interest that accrues, but not the principal. Once you graduate, you pay both. You have 15 years to pay off your loan. Because your payments don’t go towards principal at first, you will pay more in interest over time.
  • Deferred: Under a deferred plan, you can put off payments until six months after graduation. Interest accrues during the deferment period. That means you will pay more in interest over the length of your loan.
  • Deferred with cosigner release: This plan is the same as the deferred option, except after making 48 consecutive, on-time payments, you can ask MEFA to release your cosigner from their responsibility on the loan.

If you apply for a loan from MEFA for graduate school, there are only two repayment options: interest-only and deferred. For all the repayment plans, there is no penalty for early repayment.

MEFA refinancing loans offer a 15-year repayment term, but there are no alternative payment plans.

MEFA eligibility requirements

MEFA’s eligibility requirements differ for student loans and refinancing offers. To qualify for student loans, you must:

  • Be a resident of Massachusetts or attend a school in the state
  • Be enrolled at least half-time in an accredited, degree-granting program at an eligible non-profit college or university
  • Show academic progress as defined by your school
  • Borrow a minimum of $2,000 for private school and $1,500 for public school
  • Pay a 4 percent origination fee if you have a cosigner

If you’re looking to refinance your student loans instead, you must:

  • Be a citizen or permanent resident in the U.S.
  • Not have a history of defaulting on your student loans
  • Not have a history of bankruptcy or foreclosure in the past 60 months
  • Have federal or private student loan debt
  • Have loans in active repayment — not in deferment, forbearance, or in the grace period
  • Refinance at least $10,000

Unlike some other lenders, MEFA doesn’t require you to have completed your degree before refinancing. That means MEFA could be an option for you if you left school early.

See If You’re Eligible

MEFA customer service

While MEFA is not accredited by the Better Business Bureau (BBB), it currently has an “A+” review on the BBB site.

Negative complaints on BBB and Yelp share the same concerns. The few reviews on those platforms revolve around the lack of repayment options compared to federal loans.

Those issues emphasize why it’s so important to understand the terms of the loan before accepting it. That way, there’s no surprises later on.

More about MEFA

MEFA, located in the heart of Boston, focuses on helping students and families afford college. Created by the state legislature in 1982, MEFA offers a range of services, from student loans to college savings programs.

In its 30-year history, MEFA has issued over $4.4 billion in bonds and has assisted hundreds of thousands of families in paying for school.

MEFA contact information

If you have questions about MEFA student loans, you can contact them by calling 1-800-266-0243 Monday through Friday, from 9 a.m until 5 p.m. EST.

You can also email them at and a team member will get back to you within 24 hours.

Follow MEFA on Facebook and Twitter.

To compare MEFA with other lenders, check out our list of the best student loan refinancing companies and private student loan lenders.

Interested in refinancing student loans?

Here are the top 6 lenders of 2018!
LenderVariable APREligible Degrees 
Get real rates from up to 4 Lenders at once

Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Laurel Road.

Laurel Road Disclosures

  1. VARIABLE APR – APR is subject to increase after consummation. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes.

2 Important Disclosures for SoFi.

SoFi Disclosures

  1. Student Loan RefinanceFixed rates from 3.999% APR to 7.804% APR (with AutoPay). Variable rates from 2.480% APR to 7.524% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.480% APR assumes current 1 month LIBOR rate of 2.07% plus 0.91% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score
  2. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (

3 Important Disclosures for CommonBond.

CommonBond Disclosures

  1. Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). The following table displays the estimated monthly payment, total interest, and Annual Percentage Rates (APR) for a $10,000 loan. The Annual Percentage Rate (APR) shown for each in-school loan product reflects the accruing interest, the effect of one-time capitalization of interest at the end of a deferment period, a 2% origination fee, and the applicable Repayment Plan. All loans are eligible for a 0.25% reduction in interest rate by agreeing to automatic payment withdrawals once in repayment, which is reflected in the interest rates and APRs displayed. Variable rates may increase after consummation. All variable rates are based on a 1-month LIBOR assumption of 2.08% effective July 25, 2018.

4 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Education Refinance Loan Rate DisclosureVariable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of August 1, 2018, the one-month LIBOR rate is 2.07%. Variable interest rates range from 2.72%-8.17% (2.72%-8.17% APR) and will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a cosigner. Fixed interest rates range from 3.50%-8.69% (3.50% – 8.69% APR) based on applicable terms, level of degree earned and presence of a cosigner. Lowest rates shown require application with a cosigner, are for eligible, creditworthy applicants with a graduate level degree, require a 5-year repayment term and include our Loyalty discount and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty and Automatic Payment Discount disclosures. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of their loan.
  2. Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer with the Education Refinance Loan. Borrowers should carefully review their current benefits, especially if they work in public service, are in the military, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans and replace those with the benefits of the Education Refinance Loan. For more information about federal student loan benefits and federal loan consolidation, visit We also have several resources available to help the borrower make a decision at, including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review.
  3. Citizens Bank Education Refinance Loan Eligibility: Eligible applicants may not be currently enrolled, must be in repayment of their existing student loan(s) and must make the minimum number of payments after leaving school. Primary borrowers must be a U.S. citizen, permanent resident or resident alien with a valid U.S. Social Security Number residing in the United States. Resident aliens must apply with a co-signer who is a U.S. citizen or permanent resident. The co-signer (if applicable) must be a U.S. citizen or permanent resident with a valid U.S. Social Security Number residing in the United States. For applicants who have not attained the age of majority in their state of residence, a co-signer will be required. Citizens Bank reserves the right to modify eligibility criteria at anytime. Interest rate ranges subject to change. Education Refinance Loans are subject to credit qualification, completion of a loan application/consumer credit agreement, verification of application information, certification of borrower’s student loan amount(s) and highest degree earned.
  4. Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  5. Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.
  6. Co-signer Release: Borrowers may apply for co-signer release after making 36 consecutive on-time payments of principal and interest. For the purpose of the application for co-signer release, on-time payments are defined as payments received within 15 days of the due date. Interest only payments do not qualify. The borrower must meet certain credit and eligibility guidelines when applying for the co-signer release. Borrowers must complete an application for release and provide income verification documents as part of the review. Borrowers who use deferment or forbearance will need to make 36 consecutive on-time payments after reentering repayment to qualify for release. The borrower applying for co-signer release must be a U.S. citizen or permanent resident. If an application for co-signer release is denied, the borrower may not reapply for co-signer release until at least one year from the date the application for co-signer release was received. Terms and conditions apply.
  7. Average savings based on 18,113 actual customers who refinanced their federal and private student loans through our Education Refinance Loan between January 1, 2017 and December 31, 2017. The calculation is derived by averaging the monthly savings of Education Refinance Loan customers whose payments decreased after refinancing, which is calculated by taking the monthly student loan payments prior to refinancing minus the monthly student loan payments after refinancing. The borrower’s savings might vary based on the interest rates, balances and remaining repayment term of the loans they are seeking to refinance. The borrower’s overall repayment amount may be higher than the loans they are refinancing even if their monthly payments are lower.
2.57% – 5.87%Undergrad
& Graduate
Visit Earnest
2.80% – 6.38%1Undergrad
& Graduate
Visit Laurel Road
2.48% – 7.52%2Undergrad
& Graduate
Visit SoFi
2.47% – 7.99%Undergrad
& Graduate
Visit Lendkey
2.57% – 6.65%3Undergrad
& Graduate
Visit CommonBond
2.72% – 8.17%4Undergrad
& Graduate
Visit Citizens
Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.