MEFA review: Private student loans and refinancing

The Massachusetts Educational Financing Authority (MEFA), established by the Commonwealth of Massachusetts in 1982, has been offering affordable undergraduate, graduate, and student loan refinance options for 40 years. The lender’s goal is to help students finance their education and provide current borrowers the chance to refinance their loans for better rates and terms.

Fixed-rate loans are available to qualified borrowers nationwide for use at all eligible nonprofit colleges or universities around the country. MEFA does not offer variable-rate student loans.

MEFA private student loans review

Best for: Borrowers with good credit

MEFA determines eligibility for its private student loans based on your credit history. The lender offers competitive fixed interest rates to borrowers with a minimum credit score of 670. Those with even higher credit scores may qualify for lower rates. If you don't meet the minimum credit requirements, you'll need a co-borrower with strong credit to be eligible for a loan. 

Unlike some lenders, MEFA doesn’t offer prequalification with a soft credit check for its student loans (except refinance loans). This means you can't see potential rates and terms without undergoing a full credit check, which might slightly impact your credit score.

Eligibility requirements 

To qualify for a MEFA private student loan, you must: 

• Be a U.S. citizen or permanent resident
• Be enrolled at least half-time in an eligible degree-granting program in the United States
• Have a minimum credit score of 670
• Maintain satisfactory academic progress
• Have no history of defaulting on student loans
• Have no bankruptcies or foreclosures in the past 60 months

If you don’t meet these qualifications, you can apply with a co-borrower who does. But you should know that MEFA requires 48 months of on-time payments before a co-borrower can be released, which is longer than many lenders. It also only allows co-borrower release on one of its loans.

Also note that MEFA doesn’t disclose minimum income requirements for its private student loans.

Notable benefits 

• MEFA's maximum interest rate is often below what many competitors charge. 
• MEFA provides an instant decision on completed applications. 
• MEFA offers borrower education, including webinars, virtual community events, and a free college and career planning site at mefapathway.org. 

What to consider before applying

• Variable rates not available: MEFA offers only fixed-rate loans, so if you are interested in variable-rate loans — those with rates that may start lower and fluctuate over time — a different student loan lender might be a better fit. 
• Limited repayment terms: MEFA only offers 2 repayment terms (10 or 15 years), while most lenders offer at least 3. More options may give you flexibility to choose a plan that fits your budget, whether you want lower monthly payments or a shorter repayment period.
• No prequalification option: Prequalification shows estimated rates without affecting your credit score, helping you compare offers. Without it, you must undergo a hard credit inquiry, which can slightly lower your credit score. 
• No autopay discount: This discount is common among other lenders, reducing your interest rate if you set up automatic payments. 

How to apply

To apply for a loan with MEFA:

• Gather the required information: You’ll need your Social Security number, date of birth, telephone number, email address, current and past addresses, employment information, and monthly income. 
• Apply through MEFA’s website: You will be taken to an application form to provide the requested information. You'll need to include personal details about your income, your address, and the school that you plan to attend. 
• Submit your application for credit review: MEFA will review your application to determine if you qualify based on your credit. You should receive an instant credit decision and will be contacted if MEFA requires any extra information. 
• Choose your MEFA loan: If approved, compare the cost and terms of different loan products MEFA has on offer. If the loans provided to you have competitive rates and terms, you can select a loan to move forward with. 
• Complete your loan documents: Once you’ve selected a loan offer, you can review and sign your loan documents.

MEFA student loan refinance 

Best for: Borrowers with no degree

Unlike most student loan lenders, MEFA doesn’t require you to have earned a degree before you refinance your student loans. This makes the lender an ideal choice for those who were unable to finish their education before moving forward with refinancing. 

Eligibility requirements 

To refinance your student loans with MEFA, you must: 

• Be a U.S. citizen or permanent resident
• Be a borrower on all of the loans you are refinancing
• Have a minimum credit score of 670 or higher
• Have made 6 on-time payments on all loans included in the refinance, all within the most recent 6 months
• Have no history of defaulting on an education loan or being delinquent on student debt in the past year
• Have no history of bankruptcy or foreclosure in the past 5 years 
• Have student loans that were used to pay for enrollment at an eligible not-for-profit degree-granting college or university 
• Have at least $10,000 in outstanding debt to refinance 

Note that MEFA does not disclose minimum income requirements for its refinance loans.

Notable benefits 

Here are some big advantages of refinancing with MEFA:

• You are not required to have a degree to refinance.
• You can find out your rate in minutes without a hard credit check. 
• You can select a 7-, 10-, or 15-year repayment plan.

What to consider before applying

• No co-borrower release option: MEFA’s student refinance loans don’t come with the option for co-borrower release. This means if you have a co-borrower, they may be obligated to remain on the loan and be responsible for repayment until the loans are paid in full. 
• You can’t refinance parent loans: This means if your parents took out loans to help pay for your education, those loans can’t be included in a MEFA refinance. You would need to look for another lender that offers refinancing options for parent loans.
• No autopay discount: This means you won’t receive a reduction in your interest rate for setting up automatic payments from your bank account. Many lenders offer this discount, which is typically 0.25 percentage points, as an incentive for automatic payments. 

How to apply 

To apply for a MEFA refinance loan, follow these steps:

• Gather your documents: Collect proof of identity, Social Security number, address, phone number, email address, and financial information. This includes housing costs, employment details, proof of monthly income (two most recent pay stubs), and billing statements for the loans you’re refinancing. 
• Find your rate: Click “Find My Rate” on the lender’s website. You’ll be asked to provide some basic personal information to receive your preliminary rate, which you should get within minutes. 
• Upload requested documents: After you've received preliminary approval, you'll undergo a hard credit check, get final approval, and be asked to upload the required documents from above.
• E-sign your loan agreement: Review and sign your loan documents electronically.

More student loan resources

• Best private student loans of 2024
• Best student loans without a cosigner
• Best student loans for bad credit
• Best graduate student loans 
• Best medical school loans
• Best parent student loans 

FAQ 

Is MEFA a trusted lending provider? 

MEFA is considered a reputable lending provider, having received an A+ rating from the Better Business Bureau. The lender is fully licensed as a loan provider in 15 states throughout the U.S. 

Is it hard to get approved for a student loan with MEFA? 

MEFA reviews income and credit in determining whether you’re eligible for a private student loan or a student loan refinance. You may have trouble qualifying if you have a limited income or poor credit. The lender encourages you to apply with a co-borrower if you can’t qualify on your own.

What credit score do you need for a MEFA student loan? 

MEFA requires a credit score of at least 670 to qualify for both its private student loans and student loan refinancing. 

How long does it take to get approved for a MEFA student loan?

Submitting an application with MEFA takes around 10 to 15 minutes, and you can receive conditional approval quickly. A full review of your application can take around 10 to 14 days, and disbursal of loan funds can take another five days after you sign your loan documents.