MEFA Responds to Federal Student Loan Restrictions with Expanded, Competitive State-Based Options
New restrictions on federal student loans start July 1st, increasing the need for supplemental financing options that college students may rely on to complete their degrees. The Massachusetts Educational Financing Authority (MEFA) has responded to the need by expanding its graduate loan program and offering an undergraduate loan rate lower than the Federal Parent PLUS Loan.
For the 2026-27 academic year, the MEFA Undergraduate Loan features a fixed interest rate range of 4.95% to 8.90% (4.95% - 8.90% APR*), determined by applicant credit history, with no annual loan limits, covering up to the full cost of education less aid. In contrast, the Federal Parent PLUS Loan offers a 9.07% interest rate, a $20,000 per year per student borrowing limit, and a $65,000 in aggregate limit per student for new borrowers starting July 1st.
The MEFA Graduate Loan features a 7.15% to 9.95% fixed interest rate range (6.60%-9.93% APR*), determined by applicant credit history. Meanwhile, the Federal Graduate PLUS Loan program will be discontinued on July 1st for all new borrowers.
MEFA’s undergraduate and newly enhanced graduate loan programs are now accepting applications. Both MEFA Loan programs feature no application or origination fees and repayment options designed to meet individual budgets.
