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MASSACHUSETTS EDUCATIONAL FINANCING AUTHORITY
YOUR GUIDE FOR BORROWING COLLEGE LOANS
Learn loan terminology
Fixed interest rate:
Monthly payment remains the same
Variable interest rate:
Monthly payment adjusts with the market
Annual Percentage Rate (APR):
The total cost of the loan, including fees and the repayment term
Repayment Term:
Number of years to repay the loan (which affects the total
cost)
Tiered Pricing:
Used by some lenders, the interest rate is based on
credit score
Application & Solicitation Disclosures:
Required statements from lenders explaining the cost of
the loan
Co-Borrower:
Signs the loan with the student and is equally
responsible for repayment
Be a wise borrower
1. Submit the FAFSA to borrow Federal Direct
Student Loans (Subsidized & Unsubsidized) first
2. Minimize borrowing by using savings and current
income
3. Only borrow what you need, and borrow for the
full year
4. Use MEFA’s Loan Payment Calculator
to learn your total loan cost
5. Ask questions of lenders and financial aid
offices
6. Apply for any loans two weeks before the bill due
date, which is usually early August for the fall
semester
MEFA Loans have fixed interest rates starting at 4.69% (APR 5.81-6.18)
