Has anyone had experience with the MEFA loans? I’m getting ready to take on the debt to send my Daughter through College. Lots of lending institutions but MEFA seemed as good as any of them. My daughter is going to UMASS Amherst and MEFA seems to be an institution that they recommend. I was going to check out Wells Fargo and maybe PMC. They all seem to be averaging around 4%-7% for interest rates. Do any of the lenders exclude the kids from being responsible for the loan? Rather not have her name on it but not sure that is possible.
If you take a Parent Plus loan, it will be in your name only…they don’t include the student.
Federal loans are by far the most flexible and will consider your post graduation circumstances, an especially important characteristic in our current economy. MEFA in particular is inflexible. Your personal and professional status, employment and health status, mean nothing to them. They have no Income based repayment program. Check to see if their loans survive the student’s death and whether they will attach a lien on your primary residence if you can not make payments.
If you have a parent plus loan, the parent will be one hundred percent responsible to pay it back. Check to make sure whether the loan repayment period extends to your retirement years and if so whether you can afford those payments when you income drops (if it does).
MEFA staff- unforgiving and inflexible.
Does your D have a more cost-effective? I assume you are taking out the loan because your D has already maxed out on her own loans, work study, etc. I cannot imagine loading up on even more debt for U Mass unless it is absolutely the only barely affordable option you have.
Please don’t post to old threads. People will respond to the OP who hasn’t been on CC for about a year.