Sep 16, 2008 10:15 pm US/Eastern
Students Relieved About MEFA Securing $400M
BOSTON (WBZ) ―
When the
Massachusetts Educational Financing Authority abruptly announced in July it had no funds for student loans it was a huge shock. But Tuesday's news that MEFA had secured $400 million for loans was also up there on the Richter scale.
Just one day after two Wall Street giants fell, MEFA officials signed a deal with more than 10 lenders to provide money for thousands of Massachusetts students.
"We are very happy," said Thomas Graf, Executive Director of MEFA. "It allows us to get back to what our core mission is helping parents and students."
MEFA officials worried through the weekend, as news swirled of the downfalls of Lehman Brothers and Merrill Lynch. They were concerned one or all of their investors would back out by today's closing on the deal.
But not one did. Graf says it's because MEFA has been in business for almost 30 years, and more than 99 percent of MEFA borrowers make good on their repayments.
"Ultimately when investors got a chance to look at our program and our loans, they saw that people do pay back even in difficult times," Graf said.
Boston College senior Amaany Clarke remembers learning in July she wouldn't be getting her MEFA loan.
"I was pretty worried, not sure I was going to be able to get the money," she said.
She did find another lender in time but said she is glad other students won't have to go through that, at least not this year.
The MEFA loans are for the 2008-2009 school year. The term is 15 years at a fixed rate of 7.75 percent. To apply, just go to the
MEFA Web site, or your college financial aid office.
Read: USA Funds Prevents $20 Billion in Loan Defaults
Blog: Student Loan Information For Parents Blog: The Student Loan Guru
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