Loans

New Direct Loan Borrowers need to do the following:

Direct Loan Entrance Counseling

Direct Loan Promissory Note (MPN)

 

How Much Do Our Students Borrow?

The following chart  provides student loan debt information for our traditional and on line program students.

% of students graduating w/debt  
Undergraduates 69%
Graduates 23%
Average student loan debt for students who graduated in 2010
  
Undergraduates $40,806
Graduates $30,376

 

Finance Authority of Maine (FAME) has many useful tools for college students. To determine what your acceptable debt to salary ratio is, click here.
To access budgeting and other helpful money management tools, click here.

Educators for Maine Program

  • ME residents who are matriculated full-time undergraduate students planning to teach in the State of Maine;
  • $3,000 per year; up to $12,000 for 4 years; loan forgiveness available to qualified borrowers;
  • Up to four years of full-time study; requires satisfactory academic progress and at least a 2.5 CGPA (HS). Current college students may apply with at least a 3.0 CGPA;
  • FAFSA required by May 1. FAME application required by May 15. New and renewal applications are available at FAME website.

Federal Perkins Loan

  • Full- or part-time matriculated undergraduate students who demonstrate need;
  • Generally ranges from $500 to $2,000; has a 5% interest rate and a 9 month grace period;
  • Usually restricted to first- and second-year students and requires satisfactory academic progress;
  • FAFSA required by priority deadline for full consideration. First-time borrowers must complete a reference form and entrance interview.

Nursing Student Loan

  • Full- or part-time matriculated undergraduate nursing students who demonstrate need;
  • Generally ranges from $500 to $2,000. Has a 5% interest rate and a 9 month grace period;
  • Usually restricted to first- and second-year nursing students and requires satisfactory academic progress. Must remain a nursing student to qualify for deferment of payment;
  • FAFSA required by priority deadline for full consideration. First-time borrowers must complete a reference form and entrance interview.

Federal Subsidized Direct Loan Program

  • Matriculated undergraduate students who are at least half-time and demonstrate financial need;
  • Requires satisfactory academic progress;
  • First-time borrowers must complete an entrance interview;
  • FAFSA required for application; promissory note required for disbursement.

Federal Unsubsidized Direct Loan Program

  • Matriculated undergraduate students who are at least half-time and do not demonstrate financial need or independent students;
  • Requires satisfactory academic progress;
  • First-time borrowers must complete an entrance interview;
  • FAFSA required for application; promissory note required for disbursement

Maximum Annual Direct Loan amounts

Dependent Students

Year in School (by credits earned)

Total Base Sub or Unsub Loan Additional Unsub. Loan Total Loan
First (0-27) $3,500 $2,000 $5,500
Second (28-59) $4,500 $2,000 $6,500
Third & Fourth (60 plus) $5,500 $2,000 $7,500

 

Independent Students

Borrower’s Year
in School
(# credits earned)
 Base Amount
Subsidized or
Unsubsidized
 Additional
Unsubsidized Amount
 Total
Amount
First Year
(0 to 27) 		$3,500 $6,000 $9,500
Second Year
(28 to 59) 		$4,500 $6,000 $10,500
Third & Fourth
Year (60 plus)		 $5,500 $7,000 $12,500

Total maximum outstanding debt allowable:
$31,000 for dependent undergraduates
$57,500 for independent undergraduates

A dependent student whose parent is denied a Federal Direct Parent Loan may borrow the additional Unsubsidized Direct Loan up to $4,000 for first and second years and $5,000 for third and fourth years.

For more information on federal programs, go to http://www.ed.gov/prog_info/SFA/Student Guide
or call 1-800-4FEDAID.

A sample loan repayment schedule is available at http://studentaid.ed.gov.