Student Loan Information for Massachusetts Consumers
Student loans are available for eligible borrowers to assist students when paying for college expenses such as tuition, books, and housing. There are two categories of student loans: federal and private. Federal loans are available for both students and parents, and have uniform rates and requirements. Schools who have been approved by the U.S. Department of Education (USDE) are eligible to apply for both federal and state loans. Schools which have not received approval from the USDE may apply for private loans. Private student loans are borrowed from lending agencies, with credit requirements, interest rates, and repayment schedules set by the lenders. The Division of Banks has regulatory authority over some types of private student loans.
- What Consumers Should Know About Student Loans in Massachusetts
- Tips for Consumers with Student Loans in Massachusetts
- Relevant Statutes & Regulations for Student Loans
- Additional Student Loan Resources for Consumers
What Consumers Should Know About Student Loans in Massachusetts
- The Division has jurisdiction over state-chartered banks and credit unions providing student loans in Massachusetts.
- Small lenders that have made student loans in the amount of $6,000 or less with an Annual Percentage Rate (APR) above 12% to Massachusetts consumers are also subject to regulation by the Division. These small lenders are required to be licensed by the Division as a small loan company.
- The maximum interest rate for small lender student loans is 23% plus a $20 administrative fee.
Tips for Consumers with Student Loans in Massachusetts
- Missing payments on a federal or private student loans is harmful to a consumer's credit rating. Missing a single payment on a student loan can result in late fees, additional interest charges, and can increase the cost of repayment.
- If you have questions about repaying student loans, visit the Consumer Financial Protection Bureau's Repay Student Debt Guide for tips and tools on optimizing how consumers are able to pay off their student loans. The interactive guide is a valuable tool for all consumers repaying student loans in all types of situations, even consumers in default.
Relevant Statutes & Regulations for Student Loans
- Massachusetts General Laws Chapter 140 § 96: Small Loan Business
- 209 CMR 26.00: Small Loans Regulatory Board
- Age Discrimination Act of 1975 §§ 6101 - 6107
Additional Student Loan Resources for Consumers
- National Student Loan Data System
- BankRate's Student Loan Calculator
- Consumer Financial Protection Bureau (CFPB) Complaint Center
- CFPB Paying for College Center
- CFPB Repay Student Debt Guide
- U.S. Department of Education
- Federal Student Aid: An Office of the U.S. Department of Education
- Federal Direct Consolidation Loans
- Request a Free Credit Report
- Glossary of Student Loan Terms
- American Student Assistance: More Knowledge for College-and Beyond