MEFA may be a good option for nongraduates who attended public or nonprofit private schools. MEFA is a nonprofit direct lender that works solely with education financing and charges no hidden fees.
| Loan Limits | $10,000+ |
| Fixed Rates | 6.20% – 8.99% |
| Variable Rates | None |
| Terms | 7, 10 or 15 years |
| Min. Credit Score | 670 (soft minimum) |
| Apply | Link |
Skip to: Rates & Fees | Eligibility Requirements | Repayment Options | Consumer Reviews & Complaints | FAQ
| Private student loans | ✓ |
| Private parent loans | ✓ (in parent’s name only) |
| Federal student loans | ✓ |
| Federal Parent PLUS loans | ✓ (in parent’s name only) |
MEFA Refinance Rates & Fees
The Massachusetts Educational Financing Authority (MEFA) offers fixed loan rates for student and parent refinance loans.
| Term | Low | High |
|---|---|---|
| 7 Years | 6.20% | 8.75% |
| 10 Years | 6.30% | 8.90% |
| 15 Years | 6.40% | 8.99% |
Additional information about MEFA refinance rates:
- Checking your rate with MEFA will not affect your credit score. They will conduct a soft, not hard, credit inquiry (learn the difference).
- MEFA does not offer a discount for setting up auto-pay.
| Year End | Low | High |
|---|---|---|
| 2025 | 6.20% | 8.99% |
| 2024 | 6.20% | 8.99% |
| 2023 | 5.75% | 8.50% |
| 2022 | 4.75% | 7.15% |
| 2021 | 2.50% | 5.70% |
Additional Fees
Beyond interest rates, there are a number of fees a refinance lender may charge up-front or during the loan servicing period. Below is a list of fees that MEFA does or does not charge.
| Fee Type | Amount Charged |
|---|---|
| Application Fee | None |
| Loan Origination Fee | None |
| Disbursement Fee | None |
| Prepayment Penalty | None |
| Late Payment Fee | None |
| Returned Payment Fee | None |
| Collection Fee | Not specified |
- Application fee – fee to apply for rates & approval.
- Loan origination fee – fee to create the new loan.
- Disbursement fee – fee for distributing funds to lenders to pay off loans that have been refinanced.
- Prepayment penalty – fee for making extra payments to reduce a refinance loan balance or pay it off early.
- Late payment fee – fee for making a late payment.
- Returned payment fee – fee for failed payments due to insufficient funds, also known as a “bounced check”.
- Collection fee – fee for collection activity on a defaulted debt; MEFA promises to “charge only those collection fees that are reasonable in relation to the cost of collecting the debt”.[1]
Current Promotions & Offers
MEFA is typical of many nonprofit lenders in that it does not offer special promotions or discounts.
MEFA Refinance Eligibility Requirements
To qualify for refinancing with MEFA, loans must be actively in repayment and must have been repaid on time in each of the previous 12 months. Additionally, all borrowers must meet the criteria below.
- Citizenship Requirement: U.S. citizenship or permanent residence.
- Income Requirement: none specified.
- Credit Score Requirement: borrowers must have an established credit history; 670 is the minimum for what MEFA’s website calls a “good” credit score.
- Graduation Requirement: no graduation requirement.
- Location Requirement: none specified.
Additional restrictions apply for certain individuals and loans.
- Loans must have been used to attend an eligible, not-for-profit, degree-granting university as defined by MEFA.
- Loans may not be in a grace period, deferment, or forbearance.
- Borrowers must have no history of default on an education loan.
- No history of default on education loans.
- No delinquencies on education debt in the past 12 months.
- No history of bankruptcy or foreclosure in the past 60 months (5 years).
- Six (6) on-time payments for the last six (6) months on all loans to be refinanced.
MEFA Student Loan Repayment Options
Lenders vary greatly on the benefits and options provided to borrowers during the loan servicing period. Additionally, benefits may only be available on a case-by-case basis. MEFA does not offer any specific relief options.
Deferment & Forbearance
In the event that borrowers have difficulty making payments, MEFA appears to direct them to the company’s loan servicer, American Education Services (AES). AES may offer relief under certain conditions.
| Condition | Coverage |
|---|---|
| Returning to grad school (half- or full-time basis) | Undisclosed |
| Disability rehabilitation | Not specified |
| Active military duty | Undisclosed |
| Involuntary unemployment | Undisclosed |
| Economic hardship | Undisclosed |
| Natural Disaster | Undisclosed |
| Temporary Hardship | Undisclosed |
Additional Options
MEFA may offer some opportunities to modify a refinance loan contract.
- Co-signer release is not available for MEFA refinance loans.
- Death / disability discharge is available in the unfortunate circumstance that a borrower passes away or suffers total permanent disability.
MEFA Reviews, Complaints & Lawsuits
Beyond our own findings, our team also collected the most genuinely insightful customer experiences we could find, including any instances of legal action against the company in which the details became public.
MEFA Online Reviews
Few MEFA customer reviews are readily available on public forums. We have included this material for its value as uncensored and unsolicited user experience. Note that these reviews are unverified, may include inaccuracies, and may provide outdated information (about rates, bonus offers, etc.).
“This situation is extremely concerning. My son recently entered repayment on his MEFA student loan and created an online account. Despite being the student borrower, he has zero access to view his loan details, set up payments, or manage anything on the account. I am listed only as the co-signer on the original loan application, yet MEFA has suddenly reclassified me as the “borrower” and my son as the “co-signer.”
We’ve both contacted their customer service department multiple times, but we keep receiving vague, repetitive responses with no resolution. At this point, I’m considering having an attorney review the situation. MEFA is effectively preventing my son from making his own payments by restricting his access, which improperly shifts the primary responsibility onto me.
On top of that, I do not want the tax interest statement issued in my name because my income is too high to benefit from it. They have refused to correct this as well.
It’s unbelievable that a loan servicer can mishandle an account this badly.” – Sea-Cry-9268 on reddit, 12/4/2025
“MEFA changed My son from primary Borrower to cosigner and made me the Primary. They did this without telling us or giving me a chance to SAY NO. they slipped it in loan docs. This has created issues, (my son will not receive bills for his loan it will be up to me to pay then collect from son. Son will not get any tax benefit from interest payments. Refinancing is now all but impossible. I only found out because they sent him a letter stating he is the co signer and is only responsible if I, the dad defaults. This is INSANE and should be illegal.” – Jeffrey C. on Yelp, 2/26/2025
“Don’t use MEFA. Their service is easy when you apply, however, if you have any delinquencies, hardships, etc. they will not work with you. Also, if it ends up in court, they are strict with their settlement terms. Avoid the possibility by staying away.” – Business-Force3233 on reddit, 6/19/2024
More (unfiltered) customer reviews of MEFA are available at TrustPilot.com (4.7 of 5 rating).
MEFA Consumer Complaints
As consumer finance companies, student loan refinancing lenders fall under the jurisdiction of the Consumer Financial Protection Bureau (CFPB). As part of its mission, this federal agency allows consumers to log official complaints. These complaints are publicly available on the CFPB official website.
Since March 7, 2012, the CFPB has logged 183 complaints about Massachusetts Education Financing Authority (MEFA) at a rate of one (1) complaint every 27½ days; that is 61.7% higher than the average daily complaint rate among reviewed lenders. Among 85 complaints that include narrative details, at least 18 (21.2%) specifically reference refinance.
In 2025, consumers filed 12 complaints about MEFA, which is equivalent to:
- 90.8% of the average annual complaint total.
- one (1) complaint for every $13.4 million in that year’s operating revenue.
- one (1) complaint for every four (4) employees.
The allegations made in these complaints are unverified, are not necessarily representative of all consumers’ experiences with MEFA, and may contain outdated information (about rates, bonus offers, etc.). Note that a lender with a large customer base is likely also to have a higher number of complaints when compared with smaller lenders.
Below we’ve included three (3) of the most recent complaints (as of this writing) in which the consumer consented to share their details.
Complaint 11186608
12/17/2024
Texas
“To Whom It May Concern : I am writing to file a formal complaint about the servicing of my student loan account with XXXX XXXX XXXX ( XXXX ). There are two primary concerns that urgently need to be addressed : XXXX. Lack of Reasonable Forbearance or Deferment Options : I recently began working in XX/XX/year> after a period of personal hardship involving relocation and difficulty securing employment. During this time, I fell behind on my loan payments. When I sought assistance from XXXX to help manage these circumstancessuch as a temporary forbearance or defermentno reasonable options were provided. Instead of working with me to establish a viable repayment plan, XXXX repeatedly reported my late payments to the credit bureaus, causing unnecessary damage to my credit profile. I have consistently expressed a long-term commitment to making monthly payments once stabilized, but XXXX has not offered a fair and practical solution. 2. Incorrect Loan Information and Conditions : There is a serious issue with the account setup. The loan should list XXXX XXXX as the primary borrower and XXXX XXXX as the co-signer. XXXX XXXX was not enrolled in school, and this incorrect configuration has led to improper loan terms. Specifically, the loan did not receive the standard grace period after graduation, which is commonly afforded to student borrowers. Instead, the loan was set to immediate repayment under erroneous assumptions. I have contacted XXXX multiple times to correct this account information, but to date, no proper resolution has been provided. Requested Resolution : Correct the Primary Borrower and Co-Signer Information : Update the account immediately to reflect XXXX XXXX as the primary borrower and XXXX XXXX as the co-signer. Reinstate Appropriate Student Loan Terms : Adjust the repayment schedule to include the appropriate grace period and deferment options that should have applied had the account been set up correctly from the start. Reasonable Accommodation for Hardship : Offer a temporary deferment or forbearance that accounts for the recent hardships Ive experienced, as well as a fair repayment plan going forward. Credit Reporting Corrections : Remove or correct any negative credit reporting that resulted from AESs refusal to provide relief and the incorrect application of loan terms. This situation is both urgent and important to me. I am prepared to continue making timely payments now that I am employed, provided XXXX addresses these issues fairly and in accordance with industry standards. Please respond with a clear plan for resolving these matters. Thank you for your immediate attention to this complaint. Sincerely, XXXX XXXX”
Complaint 10924983
11/25/2024
Maine
“My daughter took out four private student loans through Mefa. Each application she applied as primary borrower and Mefa had me, her father, sign in and sign as Co-Borrower. They approved all her applications. The loan Agreement also shows her has Borrower and me as Co-Signer. Mefa uses XXXX XXXX XXXX ( XXXX ) to service their loans. When this company reached out to me listed as primary and my daughter as Co-Signer. The refuse to correct this and indicated this is standard process. They send the bills to me and send a letter to my daughter saying she co-signer and they reached out to me. I am not sure how they legally can do this- I never agreed to be primary and none of the loan agreements supports this. Please help. They are rude and refuse to help. I am loan Application so you can see.”
Complaint 9204028
6/7/2024
Massachusetts
“I wrote : ” I am writing to request a XXXX XXXX XXXX XXXX. I attended a school that I believe engaged in fraudulent practices, and I am seeking to challenge my private student loans based on this misconduct. Please send me the application form and any relevant instructions to proceed. I appreciate your prompt attention to this matter. ” Their reply : ” Thank you for contacting us. Your private loan does not offer a discharge for school misconduct. This is only offered for federal loans under specific circumstances.””
For a full list of complaints made against MEFA in the CFPB’s Consumer Complaint Database, click here.
MEFA Lawsuits
While MEFA hasn’t faced any recent litigation, the organization has been the plaintiff in several collections lawsuits starting in 2019. Many of these suits were, in effect, “inactive” until recently due to the current moratorium on federal student loan debt collection.[2]
Frequently Asked Questions
These are the most common questions consumers have about student loan refinancing with MEFA.
- Is MEFA good for refinancing student loans?
MEFA may be a good option for nongraduates who attended public and/or nonprofit private schools and have an established credit history.
- Does MEFA have a minimum credit score requirement to refinance student loans?
While MEFA does not explicitly specify a minimum credit score, its website refers to 670 as a “good” score.
- Are MEFA loans federal?
MEFA loans are not federal. MEFA has no affiliation with the federal government or the U.S. Department of Education.
- Does MEFA charge a prepayment penalty?
There are no penalties for early payments or repaying a loan in full before its term is over.
- Does checking your rates with MEFA hurt your credit score?
For their prequalification process, MEFA performs a soft credit check, which will not hurt your credit score. If you proceed with an application, however, MEFA will perform a hard credit check which may affect your credit score.
- Does MEFA charge a late fee?
There are no penalties for late payments or returned payments.
- Is MEFA a bank?
MEFA is not a bank nor is it affiliated with any bank. MEFA is a lender that deals solely in education loans.
- Can I refinance a MEFA loan?
You can refinance a MEFA student loan or a student loan from another private lender. There is no limit to the number of times a borrower may refinance with MEFA. Note, however, that every new line of credit requires a hard credit check that may affect your FICO score.
- Can I refinance just some of my loans with MEFA?
Yes, you can refinance some, all, or just one of your qualifying student loans with MEFA. You may choose to refinance your private loans only or refinance private and federal loans together.
- Can I refinance loans that have already been refinanced?
Yes, you can refinance loans as many times as you want with MEFA. Note that each time you refinance, you will have to submit a new application; every application requires a hard credit check that may affect your credit score.
- Can my spouse and I refinance our loans together with MEFA?
MEFA does not combine spouses’ student loan debts for refinancing unless the spouse is a co-signer on the original loan..
- How long does it take to refinance with MEFA?
The entire process from prequalification until the day the first payment is due takes between 6 and 10 weeks. Conditional approval takes 10 to 15 minutes if you apply without a co-signer or co-borrower. Final review takes 10 to 14 days. Once you have accepted the loan terms and provided your e-signature, fund will be disbursed within the next 5 business days.
- Who services MEFA refinance loans?
American Education Services (AES) services all MEFA loans.
- Does MEFA offer a grace period?
MEFA refinance loans do not include a grace period.
- Does MEFA offer deferment or forbearance?
MEFA does not specify any circumstances (such as economic hardship or a return to school) that allow deferment or forbearance; MEFA’s loan services (AES) may offer these repayment options.
- What happens if I file for bankruptcy?
According to MEFA, “filing for bankruptcy does not necessarily discharge refinance loans.”
- Does MEFA partner with any major student refinance lender marketplaces?
MEFA partners with Credible as part of its multilender marketplace. INvestEd also advertises MEFA as a featured lender.
Compare Student Loan Refinance Reviews
| Lender | Rating |
|---|---|
| RISLA | A |
| Brazos | A- |
| ELFI | A- |
| Credible | A- |
| Advantage | B+ |
| Laurel Road | B+ |
| Splash Financial | B |
| LendKey | B |
| Panacea Financial | B |
| UW Credit Union | B |
| Purefy | B |
| SoFi | B- |
| INvestEd | B- |
| Mpower Financing | B- |
| Earnest | C+ |
| Yrefy | C+ |
| EDvestinU | C+ |
| SC Student Loan | C+ |
| Sparrow | C+ |
| Citizens Bank | C |
| College Ave | C |
| ISL | C |
| MEFA | C |
| SuperMoney | C |
| SELF Refi | C |
| CU Student Choice | C |
| iHelp | C |
| Navy Federal | C |
| BECU | C |
| First Tech Federal | C |
| PA Forward | C- |
| Nelnet Bank | C- |