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Student loan information for consumers

Student loans help students pay for college expenses such as tuition, books, and housing. There are two types of student loans: federal and private. The Division of Banks (DOB) regulates some types of private student loans.

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Student loan regulation in Massachusetts

  • The DOB has regulatory authority over state-chartered banks and credit unions providing student loans in Massachusetts.
  • Small lenders that have made student loans less than $6,000 with an Annual Percentage Rate (APR) above 12% to Massachusetts consumers are also subject to regulation by the DOB. These small lenders must have a small loan company license from the DOB.
  • The maximum interest rate for small lender student loans is 23% plus a $20 administrative fee.

Student loan repayment

Missing payments on a federal or private student loans is harmful your credit rating. Missing a single payment on a student loan can also 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 student loans. The interactive guide is a valuable tool for repaying student loans in all types of situations, even in default.

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