Loans

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 1. New and renewal applications are available at FAME website.

Federal Perkins Loan

  • Selected 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

  • Selected 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 eligibility for federal aid and cannot have exceeded federal loan limits;
  • Requires satisfactory academic progress;
  • First-time borrowers must complete an entrance interview;
  • FAFSA required for application; promissory note required for disbursement.
  • Interest rate for 2014-15: 4.66% (fixed for life of loan)

Federal Unsubsidized Direct Loan Program

  • Matriculated undergraduate students who are at least half-time and do not demonstrate financial need or independent students;
  • Requires eligibility for federal aid and cannot have exceeded federal loan limits;
  • Requires satisfactory academic progress;
  • First-time borrowers must complete an entrance interview;
  • FAFSA required for application; promissory note required for disbursement
  • Interest rate for 2014-15: 4.66% (fixed for life of loan)

What are the interest rates for federal student loans?

The interest rate varies depending on the loan type and (for most types of federal student loans) the first disbursement date of the loan. The table below provides interest rates for Direct Loans first disbursed on or after July 1, 2013.

Perkins Loans (regardless of the first disbursement date) have a fixed interest rate of 5%.

What are the interest rates for federal student loans?

The interest rate varies depending on the loan type and (for most types of federal student loans) the first disbursement date of the loan. The table below provides interest rates for Direct Loans first disbursed on or after July 1, 2013.

Perkins Loans (regardless of the first disbursement date) have a fixed interest rate of 5%.

Interest Rates for Direct Loans

Loan Type

Borrower Type

Loans first disbursed on or after 7/1/14 and before 7/1/15

Direct Subsidized Loans

Undergraduate

4.66%

Direct Unsubsidized Loans

Undergraduate

4.66%

Direct Unsubsidized Loans

Graduate or Professional

6.21%

Direct PLUS Loans

Parents and Graduate or Professional Students

7.21%

All interest rates shown in the chart above are fixed rates for the life of the loan.

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.