| Organization: | Office of the State Auditor |
|---|---|
| Date published: | November 26, 2025 |
Executive Summary
In accordance with Section 12 of Chapter 11 of the Massachusetts General Laws, the Office of the State Auditor has conducted a performance audit of certain activities of the Massachusetts Educational Financing Authority (MEFA) for the period July 1, 2022 through June 30, 2024.
The purpose of our audit was to determine the following:
- Did MEFA ensure that loan recipients met the established eligibility requirements in accordance with Section 5(e) of Chapter 15C of the General Laws and with Appendix XII of the MEFA Student Loan Operations Manual?
- Did MEFA provide the required loan disclosure information to approved applicants within the timeframes specified under Sections 32.46(4)(a)–(c) and 32.47(2)(a)–(c) of Title 209 of the Code of Massachusetts Regulations?
- To what extent did MEFA ensure that eligible students, coborrowers, and the general public were made aware of MEFA’s State-Supported Supplemental Education Loan Programs as required by Section 5C of Chapter 15C of the General Laws?
Below is a summary of our finding, the effect of that finding, and our recommendations, with hyperlinks to each page listed.
| Finding 1 | MEFA did not always provide borrowers with consistent loan term information. |
| Effect | The inconsistency between the initial loan agreement and the final disclosure may lead to borrower confusion regarding their repayment obligations, potentially affecting their financial planning and credit score. This situation could also result in reputational damage to MEFA as a lender. |
| Recommendations |
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Table of Contents
Downloads
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Open PDF file, 462.09 KB, Audit Report - Massachusetts Educational Financing Authority (English, PDF 462.09 KB)