Saturday, 2:15 PM
Governor: $300m available for student loans
By Globe Staff
The state will be able to offer $300 million in low, fixed-rate student loans to undergraduate and graduate students this fall, Governor Deval Patrick announced today at Braintree High School.
Governor Deval Patrick
The loans from the Massachusetts Educational Financing Authority will carry an interest rate as low as 7.75 percent, which is below the federal government's 8.5 percent rate on Plus loans for parents. The state financing authority had difficulty last year issuing bonds because of tight credit markets and turmoil in the student loan industry.
“The first step toward future success starts with education and securing opportunities for tomorrow’s workforce,” Patrick said in a prepared statement. “Through our continued partnership with MEFA, we are making a college education affordable and accessible for more Massachusetts students and that’s good news for all of us.”
Last year the authority's inability to offer the fixed-rate loans affected thousands of Massachusetts families who in the past relied on the borrowing. The year before, nearly 40,000 students took out state loans.
With the 7.75 percent interest rate, the state loans carry a monthly payment of $99.65 per $10,000 borrowed. The Patrick administration described the loans as attractive options for families who are seeking financial assistance beyond federal, state, and institutional programs.