The Daily Collegian

Issue date: 9/5/08 Section: News

Media Credit: Jennifer Lam/Collegian

Every year, students across the nation, including those at the University of Massachusetts, attempt to figure out how they will pay for college.

There are a multitude of options; their own personal savings, their parent or guardian's savings/income, scholarships, grants, financial aid and monetary gifts from family. But for many, if not most students, that is still not enough. Student loans typically bridge this gap for many costly school expenses. Of course, with these loans come interest rates, and the lower the better. In Massachusetts, the lowest student loan rates are available through the Massachusetts Educational Financing Authority [MEFA]. This year, MEFA is not an option.

MEFA announced on July 28, 2008 that they couldn't secure the funds for the loans that they have offered for over 26 years. This abrupt news sent over 40,000 Massachusetts students and their families scrambling to find other options.

MEFA's student loan program has offered over $2.3 billion in education loan bonds since its inception in 1982. The Massachusetts State Legislature founded the program in response to concerns about the growing cost of higher education.

MEFA offers loans, college savings programs and a Prepaid Tuition Program. They have assisted over 200,000 families in paying for college.

Here at UMass, about 10 percent of students depend on MEFA every year to pay their tuition and board bills.

"I may have to take this semester off if I can't get approved for a loan," said Shayna Murphy, days before the semester began. "I'll think of something. I may end up having to work two jobs."

Murphy, a UMass Junior, was counting on using a MEFA student loan for the 2008-2009 school year.

"This summer, I went to England, and I paid for that myself. I thought that MEFA would be around this fall to help out, but it's not," Murphy said.

MEFA's loans are private family loans that are available on a non-need basis. They are among the nation's lowest cost education loans. They allow students and families to borrow anywhere from $2,000 up to the full cost of education. MEFA accepts students from any state, as long as they attend one of over 70 participating Massachusetts colleges.

Some lenders only give the lowest rates to the most qualified, but MEFA provides the same low interest rate to all. Other lenders like Astrive and Wells Fargo offer private loan rates based directly on the individual's credit history, and other varying rates.

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