Federal and Private Funds for a Massachusetts Education
Mass Students: Choose Your Financial Weapons
So, where does an aspiring college student turn for information on Massachusetts state-funded loan programs? When every other lender is peddling loans with a dizzying array of features, knowing where to look is very important.
Massachusetts Board of Higher Education
Massachusetts residents should begin with the Massachusetts Department of Higher Education (MDHE). This agency is the premier information portal in relation to making high-quality college funding a reality. Students may receive advice on college financial planning, types of loans and scholarships, tips for conducting quality scholarship searches, advice on how to avoid being scammed, and information and resources for special populations and non-traditional students.
No-Interest Student Loans from the MBHE
Because of the nature of the MBHE, the agency provides more information than it does money management. However, a unique loan program sponsored by the state is the Massachusetts No Interest Loan Program, administered through the Office of Student Financial Assistance (OSFA).
Here’s how the No Interest Loan works:
The NIL loan is a hybrid of federal loan programs and alternative loans: it takes the best features of both and stirs. Applicants for the NIL loans do not have to qualify via credit check and are automatically considered by the state once they fill out the FAFSA. Another nice advantage is that borrowers may qualify to receive up to $4,000 each academic year. Depending on the value of the loan, borrowers can plan to work on repaying the loan for up to 10 years. Students must be permanent Mass residents and enrolled in a college or university in the state.
Massachusetts Educational Financing Authority Offers New Alternative Loans
Besides managing repayment for the Federal Family Education Loan Program student borrowers, MEFA puts its best foot forward with a new and attractive alternative loan aimed at undergraduates and graduates. The best features are the loan’s fixed interest rate and 15-year possible repayment terms.
Low-cost, affordable alternative education loans like these make it possible for more students to go to college and finish college, successfully.
Repaying Massachusetts Education Loans
Borrowers, whether students or parents, must remember that their credit scores can go right out the window due to late payments on student loans. When too many student loans begin mounting, it might be time to consider consolidating. Once upon a time, consolidation was a bad word; nowadays it’s an entirely new opportunity for a lender to offer a valuable loan product. Your federal loans may qualify under the Federal Consolidation Loan Program. And while MEFA does not offer a formal consolidation loan, the agency encourages borrowers to consult account managers if they have problems managing monthly payments of private loans.
Have questions about Massachusetts student loans? Visit MEFA or the OSFA.
