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. 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 to help you understand what you are buying. Be sure to consult with 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.

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Refinancing with Laurel Road

Refinancing rates from 1.89% APR. Checking your rates won’t affect your credit score.

Check out Laurel road

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 [email protected] 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 2020!
LenderVariable APREligible Degrees 
1.99% – 5.64%1Undergrad
& Graduate

Visit Earnest

1.89% – 5.90%2Undergrad
& Graduate

Visit Laurel Road

2.25% – 6.28%3Undergrad
& Graduate

Visit SoFi

1.89% – 6.77%4Undergrad
& Graduate

Visit Splash

2.39% – 6.01%Undergrad
& Graduate

Visit Elfi

1.99% – 5.61%5Undergrad
& Graduate

Visit CommonBond

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

Earnest Disclosures

To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

Earnest fixed rate loan rates range from 2.98% APR (with Auto Pay) to 5.79% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 5.64% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of July 31, 2020, and are subject to change based on market conditions and borrower eligibility.

Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.

The information provided on this page is updated as of 7/31/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.

© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.


2 Important Disclosures for Laurel Road.

Laurel Road Disclosures

All credit products are subject to credit approval.

Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.

As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.

  1. Checking your rate with Laurel Road only requires a soft credit pull, which will not affect your credit score. To proceed with an application, a hard credit pull will be required, which may affect your credit score.
  2. Savings vary based on rate and term of your existing and refinanced loan(s). Refinancing to a longer term may lower your monthly payments, but may also increase the total interest paid over the life of the loan. Refinancing to a shorter term may increase your monthly payments, but may lower the total interest paid over the life of the loan. Review your loan documentation for total cost of your refinanced loan.
  3. After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship. During any period of forbearance interest will continue to accrue. At the end of the forbearance period, any unpaid accrued interest will be capitalized and be added to the remaining principle amount of the loan.
  4. Automatic Payment (“AutoPay”) Discount: if the borrower chooses to make monthly payments automatically from a bank account, the interest rate will decrease by 0.25% and will increase back if the borrower stops making (or we stop accepting) monthly payments automatically from the borrower’s bank account. The 0.25% AutoPay discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster.

Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.

Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.

Interest Rate: A simple annual rate that is applied to an unpaid balance.

Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.

KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.

This information is current as of September 9, 2020. Information and rates are subject to change without notice.
 


3 Important Disclosures for SoFi.

SoFi Disclosures

  1. Student loan Refinance: Fixed rates from 2.99% APR to 6.28% APR (with AutoPay). Variable rates from 2.25% APR to 6.28% 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 2.25% APR assumes current 1 month LIBOR rate of 0.18% plus 2.32% 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. See eligibility details. 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. Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. 

4 Important Disclosures for Splash Financial.

Splash Financial Disclosures

Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount.

The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.

To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of September 10, 2020.


5 Important Disclosures for CommonBond.

CommonBond Disclosures

Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. ‍All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.16% effective Sep 1, 2020 and may increase after consummation.

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. 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 to help you understand what you are buying. Be sure to consult with 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.