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MEFA Review

Tuesday, January 25th

2022 Student Loan Refinance Company Reviews

MEFA Review 2.5 Star Rating

MEFA

2.5 Star Rating
  • Refinance rates a bit higher than other lenders
  • Variable- and fixed-rate loans available
  • Repayment terms of 7, 10, or 15 years
  • Minimum refinance amount: $10,000
  • Can refinance even if you didn't finish your degree

MEFA stands for the "Massachusetts Educational Financing Authority" . It was created by the MA state legislature in 1982 as a way to make college more affordable for students statewide. Despite its origins, MEFA now offers private student loans and loan refinancing nationwide, not federal or state funding.

No surprises in the prequalification process

Like most of the lenders we reviewed, MEFA makes it easy to find out if you qualify for refinancing on your student loans, with no impact to your credit score unless you decide to submit a full application for approval. You'll start by creating an account and then entering your information, like gross monthly income, school attended, and how much you'd like to refinance. You'll be told right away if you prequalified for a MEFA refinancing loan (and, if not, you'll be given the specifics of why you were declined).

Interest rates and loan terms aren't very competitive

If you qualify to refinance your student loan with MEFA, you can expect interest rates a bit higher than other lenders in our review. MEFA has a higher-than-average required minimum for student loan refinancing: $10,000. You'll also find slightly fewer repayment terms here too: 7, 10, or 15, with no options for 5- or 20-year loans. On the plus side, this is one of the few lenders that will refinance your student loans even if you didn't finish your degree.

Refinancing takes a while

You shouldn't expect your refinancing to happen lightning-fast with MEFA. Once you complete the full application and submit all of your documents, it can take up to two weeks for the final review to be completed. When your new loan has been approved and you e-sign your documents, the funds should be disbursed within five days.

Best Student Loan Refinance Companies

Limited feedback from borrowers

It's hard to say what clients think about MEFA: there's just not a ton of feedback. We didn't find a BBB listing, and most of the other comments we encountered were related to MEFA's financial presentations and not to their student loans or refinancing.

No forbearance or deferment programs

Another issue is that MEFA doesn't seem to have any kind of deferment or forbearance options for borrowers who encounter temporary financial difficulties. That puts this lender far below their rivals who have clearly-defined ways of helping borrowers in times of need.

Not the best for student loan refinancing

While we didn't find anything alarming about MEFA's student loan refinancing, we also didn't come away convinced that this lender is worth much thought when choosing a service. Their interest rates are just okay, and their loan terms tend to be less generous than competing financial institutions'. You'll likely find better options elsewhere.

Where Can You Find the Best Options for Student Loan Refinancing?

If you got your student loans back when interest rates were high, you're smart to think it might be a good idea to refinance when rates have dropped. Whether you get a lower rate or take years off your loan (or both!), your savings could be in the tens of thousands of dollars.

You can typically qualify to refinance your student loans if your outstanding balance is at least $5,000, though some lenders have higher minimums. You'll often need to be in good standing and up to date on your current loan payments, have steady income and a credit score of 660 or higher. Otherwise, your refinancing may require a cosigner.

The Best Student Loan Refinance Companies Compare Student Loan Refinance Companies Compare Student Loan Refinance Company Reviews What are the best Student Loan Refinance Companies Best Student Loan Refinance Company Reviews

Student Loan Refinance Company FAQ

Refinancing your student loans essentially means that you're taking your current education debt and replacing it with a new loan. This can be done with both federal and private loans.
If interest rates have dropped significantly since you first got your loans, that's a great time to see if a new loan could save you money. And, if you're able to shorten the length of your loan at the same time - like going from having 15 years left on a 20-year term to a 10-year term - you'll save even more.
The qualifications for student loan refinancing are probably different from the ones you had to meet to get your original funding. Most lenders require a minimum refinanced amount of $5,000, though some have higher thresholds of $10-$15k. You'll also need a credit score in the upper 600s or more and a steady income - or a cosigner who meets those criteria. Finally, many financial institutions will only refinance your student loans if you completed your degree.
Be very careful when deciding to refinance federal student loans. You'll lose the perks that are only available with those loans, like income-driven repayment plans and loan forgiveness programs. And, of course, refinancing isn't a good idea if it doesn't help you in some way: lowering your interest rate, making your monthly payments more manageable, or saving you in interest over the timeframe of the loan.
Yes! It's the simplest way to get the best rates and terms too. Most providers will ask you some basic questions about your current situation, including your income and the amount of educational debt you're hoping to refinance, and they'll do a soft pull on your credit report (your score won't be affected). They'll use that information to tell you if you tentatively qualify for one of their refinancing loans. Once you decide to complete the full application, a hard pull will be done and if you're offered a loan, all that's left is for you to accept the terms and submit any required documentation. All of that can easily be done online!
It's a subtle distinction, and it can depend on who you ask. If you have multiple student loans (federal and private) and you combine all of that debt into a single new private loan, you're consolidating and refinancing your loans. But, there's also a governmental Direct Consolidation Loan program that is just for federal student loans: it makes it easier to manage your payments and preserves the benefits specific to federal loans, but it doesn't include any private loans you have and doesn't save you any money.
It shouldn't. Most lenders will happily tell you that they charge no fees for applying, originating loans, or really anything else (besides the loan itself, of course). Just remember that the process will usually include a soft pull of your credit during prequalification and then a hard pull when you decide to officially apply; the latter will temporarily impact your credit report.
That varies by lender. You can find out in just a few minutes if you prequalify, and another few minutes to get formally approved if you decide to complete the full application. From there, you'll probably be asked to submit documentation on your current loan, proof of income and other paperwork. Most lenders will tell you to expect it to take up to 45 days for your current loans to be paid off and for your new loan to be finalized.
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Continued from above...

But, be careful if you're considering refinancing your federal student loans into a private loan. There are some benefits offered with government student loans that don't carry over into privately-funded ones. Do your research before you sign on the dotted line and make sure that the benefits you'd gain outweigh the perks you'd lose.

So, you've determined that it's the right time to refinance your student loan. What should you look for in a lender? Here are some factors to guide your decision-making:

  • Referral service or loan originator. Some platforms let you compare loan possibilities with multiple lenders using a single prequalifying application. This one-stop "shopping" can save you some time and hassle, but ultimately you'll still have to complete a full application with the lender you choose. Other refinancing sites belong to the lenders themselves and that can make the process more streamlined.
  • Loan minimums and other eligibility requirements. While most lenders let you refinance student loan balances as low as $5,000, some will only approve loans of $10,000 or $15,000 and up. Not all lenders will refinance your student loans if you didn't finish your degree, either.
  • Customer service. Consider what borrowers have to say about their experience with the lender or referral service - not just during the application and approval process, but also while making payments. Choose a lender that has a good reputation for helping customers both before and after the refinancing is complete.

To help you determine the best way to refinance your student loan, TopConsumerReviews.com has evaluated and ranked today's top lenders. We're confident that with this information, you'll easily find the right rate and term on your loan refinancing!

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