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Nonprofit & State-Based Education Loans
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Preserve & Expand Access to Low-Cost Nonprofit & State-Based Education Loans

EFC Members – while considered part of the private loan market – are distinct from traditional commercial financial institutions that make and service student loans. As state-based, nonprofit entities, EFC Members are driven by a public purpose mission to expand borrowers’ financial knowledge, prevent over borrowing, and promote positive repayment behavior.

EFC's Education Loan Advocacy Priorities 

Preserve Tax-Exempt Bond Financing (Private Activity Bonds) for Student Loans
+ Expand Refinancing Authority of Nonprofit and State-Based Organizations 
+ Amend the Preferred Lender List Statute 
Update “Qualified Scholarship Funding Corporation” Rules

2018-19 Nonprofit & State-Based Education Loan Handbook

Read the 2018-19 Nonprofit & State-Based Education Loan Handbook here.

The organizations listed in this booklet represent 23 active nonprofit and state-based higher education finance organizations who offer low-cost education and refinancing loans. The booklet also features one university that issues tax-exempt bonds to fund low-cost loans for its students. 

These state-based and nonprofit programs offer low interest rates, low or no origination fees, and lower monthly payments and lower total debt than many other education loan options, including the Federal PLUS loan.

Additionally, 16 nonprofit and state-based organizations offer education refinancing loans. Refinancing allows a borrower to consolidate high-interest rate education loans into a single loan, reducing their monthly payments and, in many cases, their overall debt burden.

A key feature of each education loan provided by nonprofit and state-based organizations is that they offer a fixed interest rate option and a variable rate option

The fixed interest rates offered by these programs vary from zero percent to six percent. The majority of these loan programs require a credit-worthy borrower or co-signer, resulting in extremely low default rates (often less than one percent). Many programs also include borrower benefits, such as income-based repayment, interest rate reduction options, and benefits for graduates that work in a critical field in the organization’s state.