MEFA Student Loan Refinancing
Student debt is hitting record levels as tuition increases each year at a disproportionate rate to inflation and wages. Many graduates enter the working world saddled with tens of thousands (and sometimes hundreds of thousands) in student debt — all while on an entry-level salary — which can severely hamper their ability to build wealth.
After achieving a stable income and a healthy credit score, many borrowers refinance their loans for lower rates. However, many lenders won’t refinance if the borrower didn’t complete their degree program.
Fortunately, you can refinance your loans for a lower rate and save thousands on interest through the Massachusetts Educational Financing Authority (MEFA). Don’t worry — the MEFA may have Massachusetts in its name, but its services are available in all 50 US states.
MEFA Student Loan Refinance Overview
|APR (fixed interest rate)||3.65% – 5.50%|
|APR (variable interest rate)||3.05% – 5.55%|
|Eligible loan types||Federal, Private, Parent PLUS|
|Refinance amount||Minimum of $10,000, no maximum|
|Repayment terms||7, ,10 and 15 years|
|Minimum credit score||No minimum requirement|
|Lender type||Direct lender|
|Good for:||No degree, large loan balances|
- Available for people who haven’t earned a degree
- Offers both fixed and variable rates
- No application/origination/prepayment fees
- No maximum loan limit
- Offers prequalified rates with a soft inquiry to avoid credit damage before applying
- Available in all 50 US states
- No formal deferment/forbearance programs
- No cosigner release available
First, you’ll create an account by providing basic information about yourself and creating a password. Once you do so, you can find your preliminary rates by providing information about income and agreeing to a soft credit check (this won’t affect your credit score).
MEFA will show your best offers. You then upload your documents, which include the following.
- Personal: Proof of identity and Social Security number
- Financial: Monthly income, housing expense, job information, your two most recent pay stubs, and your current billing statements.
- Contact: Physical addresses (current and prior), phone number, email address
From there, you can choose your loan, get approved, and review and e-sign your documents. MEFA will then send your lender the proceeds to pay off your current loans. You’ll then begin repaying your MEFA refinancing loan.
Terms & Requirements
MEFA requires solid financials, including a stable income and a good credit score. It offers a wide variety of loan and repayment terms. Learn more below.
Here are MEFA’s financial requirements for obtaining a refinancing loan:
- Minimum credit score: 670
- Minimum annual income: $24,000/year
- Qualifying after bankruptcy?: Yes, after five years
And here is its other requirements:
- Citizenship status: US citizen or permanent resident
- Availability: Available to borrowers in all 50 US states
- Graduation required?: No
- School: Must have attended a school that is authorized to receive federal aid
- Minimum repayment time before qualifying: Must have repaid loans for 12 months before refinancing
Here are the loan terms MEFA offers:
- Loan amounts: Minimum $10,000, no maximum
- APRs: Fixed and variable
- Fixed: 65%-5.50%
- Variable: 05-5.55%
- Application/origination fees: No
- Prepayment penalties: No
- Prequalification/soft credit check: Yes
Here are MEFA’s repayment terms for its refinancing loans:
- Loan repayment terms: 7, 10, or 15 years
- Deferment programs: Military deferment
- Forbearance: No formal forbearance, but MEFA can work with lenders on individual bases
- Cosigner release: No
- Death or disability discharge: Yes
Privacy and Security
MEFA collects a lot of information from you, but it doesn’t share that information with other companies or affiliates for marketing purposes. Concerning marketing, MEFA only uses your information to market its own products and services.
MEFA may also use your information for everyday business purposes, such as the following.
- Transaction processing
- Account maintenance
- Credit bureau reporting
- Responding to court orders or legal investigations
MEFA’s loan servicer is American Education Services (AES). It also has an in-house customer service team.
You have the following options for customer service.
- Phone: You can contact AES by phone M-F 7:30 am-9 pm.
- Blog: Read MEFA’s blog to learn about student lending subjects.
- Podcast: MEFA has a podcast discussing student lending topics.
- Events: You can attend virtual events and webinars to learn more about student loans.
- Videos: MEFA has several educational videos on its site and more on YouTube.
MEFA is smaller and less known in the student loan refinancing industry. Consequently, it may not have as many options available to borrowers.
That said, it’s still an excellent option if you meet its requirements. After all, you can refinance every last penny of your student loans, even if you don’t have a degree. Plus, you can check your rates before formally applying and subjecting yourself to a hard inquiry.
Consider MEFA if you have significant outstanding loans.
60 State Street
Boston, MA 02109