Borrowers will be sent a shortened application to renew the loan in subsequent years. Therefore, the actual amount paid to the school will be the same as the loan amount approved. There is no application fee. The MEFA Loan variable rate option repayment extends to fifteen years, and there are no prepayment penalties. Repayment begins within 45 days after the loan is disbursed.
Families finance one year of college at a time and make monthly payments of principal and interest.
Payments may vary with changes in the interest rate each year. Borrowers will be sent a shortened application to renew the loan in subsequent years. Therefore, the actual amount paid to the school will be the same as the loan amount approved. There is no application fee. A Home Mortgage Option is available for some borrowers.