MEFA Undergraduate - PDF document

1 Your interest rate will be betw e
Your interest rate will be betw e en 4.50 % and 7.30 % MEFA Undergraduate Application and Solicitation Disclosure Page 1 of 2 Loan Interest Rate & Fees CREDITOR: MEFA 60 State Street, Suite 900 Boston, MA 0 2 109 Your FIXED Interest Rate (upon approval) The interest rate you pay is FIXED and will ra n ge fr o m 4 .50 % to 7.3 0 %. The rate will be based on the repayment opt i on(s) that you are elig ib le for and se l ect. Loan Fees Your Inter e st Rate during the life of the loan Your rate is FIXED. This means that your interest rate will alwa y s be the rate listed on this form and in the MEFA Loan Agree m ent for this ed u cat i on loan. Origination Fee: T he or ig ination fee t h at we c h ar g e on this e d u c a tion loan is a dded to the requ e sted l oa n amount a n d repa i d over t h e life of the loan. The fee can ra n ge fr o m 4% to 7% of the total loan amo u nt disb u rsed d i r e ctly to your school, d e p e nding o n w he ther you have a co - b orr o w e r on the appl i c ation. Loan Cost Examples The total amo u nt y ou w ill p a y f o r t his education loan w ill vary d epe n ding upon y our rep a y me n t hab i ts. This e x ample pr ovides an estim a te based upon the rep a yment o ption available to y ou f o r this loan product. Rep a yment Option A m ount Disbursed To y our sc hool Interest Ra t e (highest possible starting rate) Lo a n T e rm (h o w long you h a ve to p a y off the loan) Tot a l P a id (includes fees) 1. IMMED I A T E RE P A YM E NT ( 1 0 Year Ter m ) P a y both t he pri n cipal and interest amounts w hile e n rolled in school $10,000 4 .50 % chan g es to 5.40 % aft e r the I n - School Period 10 y e a rs starting after yo u r final disbursement $ 13,304.20 2. IMMED I A T E RE P A YM E NT ( 1 5 Year Ter m ) P a y both t he pri n cipal and interest amounts w hile e n rolled in school $10,000 4.80 % chan g es to 5.70 % aft e r the I n - School Period 15 y e a rs starting after yo u r final disbursement $ 15,304.13 3. INTERE S T O NLY RE P A Y M E NT Make Interest p a yments during th e In - School Period and defer p a yme nt s on the principal amount until the end of t h e In - School period. $10,000 6.40 % Int e rest Rate changes to 7.30 % aft e r the I n - School Period 15 y e a rs starting after yo u r final disbursement $ 18,012.06 4. DEFERRED R E P A YME N T Make no p a y m e n ts w hile in school. Interest w ill accrue and c apitalize once at the beginning of re pa y ment $10,000 6.70 % 15 y e a rs starting after yo u r final disbursement $ 18,865.75 5. STUDE N T D E FERRED RE P A Y MENT Make no p a y m ents w hile e n rolled in school. Interest w ill accrue and capitalize once at beginning of the rep a ymen t period. $10,000 7.20 % 15 y e a rs starting after yo u r final disbursement $ 19,640.90 Abo u t this e xample T he rep a y m ent examp l e ass u mes a $10, 0 0 0 in the first y e a r of school w ith t w o d isbur s e m ents, there is a co - bor r o w e r on the a pp l icat i on a n d that y o u rema i n in sc h ool for 4 years. Lo a n pr o gr a m Curr e nt Int e re s t R a tes by Progr a m T y pe S T A FFORD for Students 5.05 % Undergraduate subsidized & unsubsidized $5,500 - $12,500 annual maximum depending on grade level and dependency status. 6.60 % Graduate unsubsidized . $20,500 annual maximum PLUS for Parents a n d Graduate / Professi o nal S t ud e nts 7.60 % Federal Di r ect L o an Federal Loan Alternatives Page 2 of 2 You m a y q uali f y for F e deral e d u cati o n loans. For

2 additional in f ormation, c o nt ac
additional in f ormation, c o nt ac t y our sch o ol’s f i na n c i al aid o ffice or t he Depa rt me n t o f E duc a tion at: www.fed e ralstu d entaid.ed.gov Next Steps 1. Make sure this is the best loan for y ou. Some sch o o l s have sc h oo l - s p ecif i c stu d ent loan b e n e f i ts and ter m s not detailed on this form. Cont a c t your school ’ s fina n cial aid office or visit the D e partm e nt of Education ’ s Web site at www.fed e ra ls tudentaid. e d.gov for more i nformati o n a b out other lo an s . 2. To apply f o r this education loan, complete the application and the Self - Certif i cation Form. You may get the certif i c ation form from your sch o ol’s financ i al aid o ffice or from www.mefa. o rg. If you are approved for this loan, the loan ter m s wi l l be available for 30 days (ter m s will not ch a nge d uri n g this per i od, except a s permitted by law). REFERE NC E NOTES Fixed I ntere s t R ates • These loans ha ve a fixed interest r a t e for the life of t h e loan. Based o n the rep a yment opti o n y ou select the r e m a y be a cha n ge in the fixed ra t e after the in - school period. Term s : • In - School Period means the peri o d beginning on t h e Initial Disbursement Date of a n y adv a nce made und e r this Loan Agre e ment and ending on the follo w i ng date: (i) for disbursem e nts relating to the Student Bo r r o wer’s first year of enrol l ment at the Insti t ution (freshman yea r ), the calen d ar date that is the 4 - y e a r anniversa r y of the Final Disbursement Da t e; (ii) for disbursements r e lating to the Stu d ent Borr o wer’s second y e a r of enrollment at the Institution (sophomore yea r ), the calendar date t h at is the 3 - y ear anniver s ary of the F i nal Disbursement Date; (iii) for disbursements r e lating to the Stu d ent Borr o wer’s t h ird y e a r of e n rollment at the Institution (junior y e ar), t he calendar date t h at is the 2 - y e a r anniversa r y of th e Final Disbursement Date; o r (iv) for disbursem e nts relating to the S t udent Bo r r o w e r’s last y e ar of e nro l l ment at the Institution (senior y e ar), t he calendar date t h at is the 1 - y e a r a nniversa r y of t h e Final Disbursement D ate. Eligibili t y Criter i a Up to thr e e bo r r o w e rs are e ncou r aged to app l y: p a rent bo r r o w e r, s t udent borr o wer, a n d co - bor ro w e r . All borr o w ers have t h e same rights and responsibiliti e s on the loan, and an y b o rr o wer m a y make p a y ments. 1. The student b o r r ower must be en rolled at least half time in an accredited degr e e - granting pro g r a m at an eligible non - profit college or universi t y . 2. One of t h e foll o wing must be met: o The student lives in Massachuset t s OR o The student is at t ending a Massachu s etts college or universi t y OR o The prim ar y b or r ower an d /or co - b orr o wer live in Massachusetts 3. The student b o r r ower must main t ain satisfactory ac ademic progre s s as defined b y t hei r college or universi t y . 4. All applicants m u st be either a U . S. citizen or a U.S. permanent resident. 5. Applicants must meet MEFA's cu r rent credit ap p r o val standards. Bankr u pt c y L im itati o ns • If y ou file for b a nkrupt c y y ou m a y still be required to p a y b ack this loan. More inform a ti o n a b out r e p a y m ent, l oan el i gibi l i t y a n d the educ a ti o n lo a n i s a v a ilab l e in y o ur loan a p plicat i on a nd l o an agreem e nt