MEFA, the Massachusetts Education Financing Authority, announced yesterday that it is once again offering private education loans to families. MEFA has secured $400 million in funds through the sale of bonds.The press release states that with this sale of bonds, MEFA has "completed the most significant private student loan transaction made without state credit support since September of 2007. Disruptions in the capital markets, linked to the sub prime mortgage crisis, delayed lenders nationwide in announcing 2008-2009 academic year education loan availability."
MEFA is offering loans for the current Fall semester, as well as forth upcoming Spring semester.
In a July 28th press release, Executive Director Thomas Graf, announced that MEFA at that ime was unable to offer private education loans, as MEFA had failed to secure financing for the 2008-2009 academic year. Graf stated that MEFA would continue to pursue financing. He explained, " Though the unprecedented and continuing disruptions in the capital markets are creating new and significant challenges for us, we continue to work tirelessly and diligently to raise the financing necessary to offer low-cost education loans."
On April 15th of this year, MEFA announced that it was suspending its participation in the FFELP loan program (Stafford, PLUS and GRADPLUS loans) effective July 1, 2008 and would immediately stop accepting FFELP Consolidation loans. MEFA has not resumed offering FFELP loans.