Student Loans in Massachusetts
Massachusetts offers the MASSGrant Plus (need-based) and the MEFA Loan — a state-backed education loan competitive with private lenders. Massachusetts has one of the nation's highest concentrations of private colleges (Harvard, MIT, BU, BC, Northeastern, Tufts) alongside strong public options (UMass). The in-state tuition advantage at UMass Amherst is significant versus comparable private institutions.
Massachusetts at a glance
Population
7.0M
U.S. Census Bureau, July 1, 2025 estimate
Editorial note — Massachusetts
Massachusetts students should compare the MEFA Loan against private lenders before choosing private — the state-backed structure sometimes offers advantages in rate or repayment. MASSGrant Plus is need-based; file FAFSA early. See mefa.org.
Massachusetts state student aid authority
The state higher-ed authority, state grants and scholarships, and federal-first guidance for Massachusetts students.
Primary regulator
Massachusetts Department of Higher Education (DHE) / MEFA
MEFA (Massachusetts Educational Financing Authority) is a state authority that administers the MEFA Loan — a state-backed education loan for Massachusetts students and families. DHE coordinates the MASSGrant Plus and other state grants.
State aid authority website ↗State aid authority scope
MEFA (Massachusetts Educational Financing Authority) is a state authority that administers the MEFA Loan — a state-backed education loan for Massachusetts students and families. DHE coordinates the MASSGrant Plus and other state grants.
Federal-first: Federal student aid (studentaid.gov) is the authoritative source for Pell Grants, federal subsidized and unsubsidized loans, PLUS loans, income-driven repayment, and loan forgiveness programs (PSLF, Teacher Loan Forgiveness). Exhaust all federal options before private loans. studentaid.gov
What to know before taking private student loans in Massachusetts
Private student loans should only be used after exhausting federal loans and state grants. These are the factors that determine total cost.
Federal loans first
Always apply for federal student loans at studentaid.gov before private. Federal loans offer income-driven repayment, deferment, forbearance, and forgiveness options (PSLF, Teacher Loan Forgiveness) that private loans never match.
State grants and scholarships
Massachusetts Department of Higher Education (DHE) / MEFA administers state-specific grants and scholarships. These are free money — exhaust them before any borrowing.
APR (variable vs. fixed)
Private student loan APRs can be fixed or variable. Variable rates may start lower but carry risk if rates rise during repayment. Fixed rates provide payment predictability across a 5–20 year term.
Cosigner requirement and release
Most private student loans require a creditworthy cosigner for undergraduate borrowers. Verify whether the lender offers cosigner release after a specified payment period — this matters for your cosigner's credit.
Deferment and forbearance options
Private lenders vary widely on in-school deferment, grace periods, and hardship forbearance. Federal loans provide much stronger protections — model your post-graduation income before choosing a private repayment term.
Total cost, not just monthly payment
A 20-year private loan term reduces monthly payments but substantially increases total interest paid. Compare total repayment cost across term options — a 10-year term typically costs far less overall.
Compare private student loan picks for Massachusetts students
Ranked by APR, cosigner release policy, and repayment flexibility. Federal loans first — always.
Student loans in Massachusetts — common questions
What state financial aid is available in Massachusetts? +
MASSGrant Plus (need-based) and the MEFA Loan (state-backed education loan) are primary programs. Visit mefa.org and dhe.mass.edu for current eligibility.
What is the MEFA Loan? +
The MEFA Loan is a state-backed education loan for Massachusetts students — worth comparing against private lenders before borrowing. See mefa.org for current rates and terms.
Should I take federal or private student loans in Massachusetts? +
Exhaust federal loans and MASSGrant before the MEFA Loan, then private if needed. Federal loans offer income-driven repayment and PSLF. Apply at studentaid.gov first.
Does Massachusetts have a student loan forgiveness program? +
Massachusetts does not have a broad state forgiveness program. Massachusetts public employees qualify for federal PSLF — see studentaid.gov.
How do I compare private student loans in Massachusetts? +
After federal, MASSGrant Plus, and MEFA Loan, compare private lenders on APR and repayment flexibility. MEFA at mefa.org is the authoritative state resource.
Need a private student loan in Massachusetts?
After exhausting federal loans and state grants, we rank private student loan lenders against our published methodology by APR, cosigner release, and repayment flexibility. Federal-first is non-negotiable — private loans forfeit income-driven repayment and PSLF eligibility.
Compare private student loan options →ClearValue Lending is an independent editorial platform. Some links are affiliate links — see disclosure below. Rankings are based on editorial criteria, not compensation. This page is not financial aid advice. Always exhaust federal student aid options at studentaid.gov before private loans.
Sources
- Massachusetts Department of Higher Education (DHE) / MEFA — Official Website ↗
- Federal Student Aid (studentaid.gov) ↗ — federal loan programs, Pell Grants, income-driven repayment, and forgiveness programs
- U.S. Census Bureau ↗ — July 1, 2025 population estimates
Editorial disclaimer: This page provides general educational information about student loans and state financial aid in Massachusetts. It is not financial aid advice. State aid program details were accurate as of May 22, 2026. Verify current state aid program terms directly with Massachusetts Department of Higher Education (DHE) / MEFA and federal aid options at studentaid.gov before borrowing. Scored against ClearValue's published methodology. Updated May 2026.
Some links on this page are affiliate links. ClearValue Lending may earn a commission at no cost to you. Rankings are based on editorial criteria, not compensation. See our full advertiser disclosure for details.