Hampshire College

The Massachusetts Education Financing Authority (MEFA) of Boston, Massachusetts, enables families (parent and student) to borrow to help pay educational expenses. This loan is available to residents of every state, it is not limited to those of Massachusetts.

MEFA LOAN FEATURES:

• Co-signer required? Yes, parent must apply with the student; co-signer can be other than parent
• Fees: 4% of amount borrowed
• Interest rate type: Fixed
• Interest rates for 2010/11: three rates depending on choice of repayment plan: 6.89% during in-school period and 7.89% thereafter for loans with immediate repayment option; 7.19% during the in-school period and 8.19% thereafter for the interest only while enrolled repayment option; or 7.69% for the deferment of payment option with payments beginning six months after student leaves school
• Payment incentive: No discounts available
• Payments begin immediately unless you choose the deferment of payment until after graduation option. Maximum deferment is five years.
• Repayment plan options include immediate repayment, interest only while enrolled, or the deferment of payments until six months after student graduates or leaves school
• Repayment term: 15 years
• Forbearance options: None
• Loan limits: $2,000 minimum loan amount
• Pre-payment penalty: None

LOAN SERVICER
ACS of Los Angeles, California

PROS AND CONS OF THE MEFA LOAN
Pros: Fixed interest rates.

Cons: Fee; higher interest rate for interest only and deferred payment plan options; no future payment postponements; short repayment term if borrowing large amount; no payment discounts available. Note that the loan must be fully repaid within 15 years of final disbursement. The interest-only repayment plan and the deferment option do not extend the overall repayment period. This means that if you choose one of these repayment options you will need to pay the loan off in 11 or 10 years after the in-school enrollment period which will increase your monthly payment.

HOW TO APPLY:
Apply over the phone at 800.266.0243 or apply online.