Massachusetts to offer low-cost student loans

08/27/2010
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Many consumers may be interested in attending college but unsure of how they might begin to pay for it. Now Massachusetts is offering its residents a way to fund their higher education.

According to the Massachusetts Educational Financing Authority, the state is granting families that need of money for the upcoming fall semester college loans with a 6.89 percent fixed interest rates. This follows on the heels of a study which found parents in the Bay State are only projected to meet 18 percent of their children's' college costs, down four points from last year's total of 22 percent.

MEFA said that the rate on the undergraduate loans it offers is one of the lowest of its kind, and is a full percentage point lower than similar federal loans. In addition, this year the state will offer three payment options: immediate, interest-only while in school, or deferred.

A recent study from the Department of Education found that 49 percent of people who left college in the last four years made no payments into the principal of their federal student loans last year.

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