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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)
Questions? Contact us:
(800) 449-MEFA (6332)
info@mefa.org
mefa.org/loans

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Your guide for borrowing college loans

Editor's Notes

  1. MESSAGE: Need-Based Aid: awarded based upon your financial eligibility, as determined by your reported household and financial data Merit-Based Aid: awarded based upon specific skills, talents, accomplishments, or other achievements, as determined by your academic record, application, and/or nomination Financial aid comes from four primary sources. Each source has different requirements for eligibility Most Federal and State grants are allocated for lower income families You want to actively explore each of these sources More about outside scholarships including resources to find outside scholarships later
  2. MESSAGE: Need-Based Aid: awarded based upon your financial eligibility, as determined by your reported household and financial data Merit-Based Aid: awarded based upon specific skills, talents, accomplishments, or other achievements, as determined by your academic record, application, and/or nomination Financial aid comes from four primary sources. Each source has different requirements for eligibility Most Federal and State grants are allocated for lower income families You want to actively explore each of these sources More about outside scholarships including resources to find outside scholarships later
  3. MESSAGE: Need-Based Aid: awarded based upon your financial eligibility, as determined by your reported household and financial data Merit-Based Aid: awarded based upon specific skills, talents, accomplishments, or other achievements, as determined by your academic record, application, and/or nomination Financial aid comes from four primary sources. Each source has different requirements for eligibility Most Federal and State grants are allocated for lower income families You want to actively explore each of these sources More about outside scholarships including resources to find outside scholarships later
  4. MESSAGE: Need-Based Aid: awarded based upon your financial eligibility, as determined by your reported household and financial data Merit-Based Aid: awarded based upon specific skills, talents, accomplishments, or other achievements, as determined by your academic record, application, and/or nomination Financial aid comes from four primary sources. Each source has different requirements for eligibility Most Federal and State grants are allocated for lower income families You want to actively explore each of these sources More about outside scholarships including resources to find outside scholarships later
  5. MESSAGE: Need-Based Aid: awarded based upon your financial eligibility, as determined by your reported household and financial data Merit-Based Aid: awarded based upon specific skills, talents, accomplishments, or other achievements, as determined by your academic record, application, and/or nomination Financial aid comes from four primary sources. Each source has different requirements for eligibility Most Federal and State grants are allocated for lower income families You want to actively explore each of these sources More about outside scholarships including resources to find outside scholarships later
  6. MESSAGE: Need-Based Aid: awarded based upon your financial eligibility, as determined by your reported household and financial data Merit-Based Aid: awarded based upon specific skills, talents, accomplishments, or other achievements, as determined by your academic record, application, and/or nomination Financial aid comes from four primary sources. Each source has different requirements for eligibility Most Federal and State grants are allocated for lower income families You want to actively explore each of these sources More about outside scholarships including resources to find outside scholarships later
  7. MESSAGE: Need-Based Aid: awarded based upon your financial eligibility, as determined by your reported household and financial data Merit-Based Aid: awarded based upon specific skills, talents, accomplishments, or other achievements, as determined by your academic record, application, and/or nomination Financial aid comes from four primary sources. Each source has different requirements for eligibility Most Federal and State grants are allocated for lower income families You want to actively explore each of these sources More about outside scholarships including resources to find outside scholarships later
  8. MESSAGE: Need-Based Aid: awarded based upon your financial eligibility, as determined by your reported household and financial data Merit-Based Aid: awarded based upon specific skills, talents, accomplishments, or other achievements, as determined by your academic record, application, and/or nomination Financial aid comes from four primary sources. Each source has different requirements for eligibility Most Federal and State grants are allocated for lower income families You want to actively explore each of these sources More about outside scholarships including resources to find outside scholarships later
  9. MESSAGE: Need-Based Aid: awarded based upon your financial eligibility, as determined by your reported household and financial data Merit-Based Aid: awarded based upon specific skills, talents, accomplishments, or other achievements, as determined by your academic record, application, and/or nomination Financial aid comes from four primary sources. Each source has different requirements for eligibility Most Federal and State grants are allocated for lower income families You want to actively explore each of these sources More about outside scholarships including resources to find outside scholarships later
  10. MESSAGE: Need-Based Aid: awarded based upon your financial eligibility, as determined by your reported household and financial data Merit-Based Aid: awarded based upon specific skills, talents, accomplishments, or other achievements, as determined by your academic record, application, and/or nomination Financial aid comes from four primary sources. Each source has different requirements for eligibility Most Federal and State grants are allocated for lower income families You want to actively explore each of these sources More about outside scholarships including resources to find outside scholarships later
  11. MESSAGE: Need-Based Aid: awarded based upon your financial eligibility, as determined by your reported household and financial data Merit-Based Aid: awarded based upon specific skills, talents, accomplishments, or other achievements, as determined by your academic record, application, and/or nomination Financial aid comes from four primary sources. Each source has different requirements for eligibility Most Federal and State grants are allocated for lower income families You want to actively explore each of these sources More about outside scholarships including resources to find outside scholarships later
  12. MESSAGE: Need-Based Aid: awarded based upon your financial eligibility, as determined by your reported household and financial data Merit-Based Aid: awarded based upon specific skills, talents, accomplishments, or other achievements, as determined by your academic record, application, and/or nomination Financial aid comes from four primary sources. Each source has different requirements for eligibility Most Federal and State grants are allocated for lower income families You want to actively explore each of these sources More about outside scholarships including resources to find outside scholarships later
  13. MESSAGE: Need-Based Aid: awarded based upon your financial eligibility, as determined by your reported household and financial data Merit-Based Aid: awarded based upon specific skills, talents, accomplishments, or other achievements, as determined by your academic record, application, and/or nomination Financial aid comes from four primary sources. Each source has different requirements for eligibility Most Federal and State grants are allocated for lower income families You want to actively explore each of these sources More about outside scholarships including resources to find outside scholarships later
  14. MESSAGE: Need-Based Aid: awarded based upon your financial eligibility, as determined by your reported household and financial data Merit-Based Aid: awarded based upon specific skills, talents, accomplishments, or other achievements, as determined by your academic record, application, and/or nomination Financial aid comes from four primary sources. Each source has different requirements for eligibility Most Federal and State grants are allocated for lower income families You want to actively explore each of these sources More about outside scholarships including resources to find outside scholarships later
  15. MESSAGE: Need-Based Aid: awarded based upon your financial eligibility, as determined by your reported household and financial data Merit-Based Aid: awarded based upon specific skills, talents, accomplishments, or other achievements, as determined by your academic record, application, and/or nomination Financial aid comes from four primary sources. Each source has different requirements for eligibility Most Federal and State grants are allocated for lower income families You want to actively explore each of these sources More about outside scholarships including resources to find outside scholarships later
  16. MESSAGE: Need-Based Aid: awarded based upon your financial eligibility, as determined by your reported household and financial data Merit-Based Aid: awarded based upon specific skills, talents, accomplishments, or other achievements, as determined by your academic record, application, and/or nomination Financial aid comes from four primary sources. Each source has different requirements for eligibility Most Federal and State grants are allocated for lower income families You want to actively explore each of these sources More about outside scholarships including resources to find outside scholarships later