Student Loans: The Maine Loan ^®

The Maine Loan^® is available to eligible undergraduate and graduate students to borrow funds up to the full cost of education less other financial aid. This loan program exists to bridge the gap between the full cost of college and traditional financial aid resources. The Maine Loan is Maine's low-cost, high quality alternative education loan.

The Maine Loan offers the following features:

• A fixed interest rate of 7.75%
• Same interest rate is offered to all approved borrowers, regardless of credit history or if there are co-borrowers.
• 4% guarantee fee, added to the principal balance, at the time of loan disbursement
• The option to defer principal while in school and during the 6 month grace period. NOTE: Interest payments are required.
• Six (6) month grace period
• A low minimum loan amount of $1,000
• No annual or aggregate borrowing limits
• No pre-payment penalty
• Three (3) disbursements per academic year
• A range of flexible repayment terms up to fifteen (15) years
• High quality, personalized customer service based in Maine

Learn more and apply online or print out a hard copy of the application

If you are finding that the Federal student loan program is not meeting your full needs, The Maine Loan may be the perfect loan for you. Borrow as little as $1,000, or borrow up to the full cost of your education (less any other financial aid) as determined by your school. You will also enjoy a range of repayment terms:

Borrow	Repayment Period
$1,000-$5,000	5 years
$5,001-$10,000	10 years
$10,001 and above	15 years

You can choose from two different repayment options: begin regular payments immediately or defer the principal while you are in school (enrolled at least half time at a degree granting school). Interest payments are required during the student's in school and grace period statuses. Beginning regular payments immediately will save you a substantial amount of interest over the life of your loan.

The Maine Loan is available to credit-worthy Maine residents attending approved schools at least half-time in the United States and Canada, and to out-of-state students attending approved schools at least half-time in Maine. The loan will be in the student's name.

There is no application fee and a 4% guarantee fee is added to the loan balance at the time of disbursement.

Do you qualify for The Maine Loan?

To be eligible for The Maine Loan, one individual on the loan application must meet all eligibility criteria, which require a sound credit history and an ability to repay the debt. Upon the receipt of an application, a formal credit evaluation will be performed.

One of the credit criterions for The Maine Loan is that the student or cosigner must have a debt-to-income ratio of less than 50%. If you are uncertain of your debt-to-income ratio, the Credit Eligibility Worksheet will assist you in calculating it.

Is your debt-to-income ratio between 0% and 50%?

If yes, then you may qualify for The Maine Loan, depending on satisfaction of additional credit criteria listed below.

Is your debt-to-income ratio greater than 50%?

If yes, then it is likely that you do not qualify for The Maine Loan. The student applicant will need to obtain a cosigner who has a debt-to-income ratio of 50% or less and who satisfies the additional credit criteria. Please note the suggestions for reducing your debt-to-income ratio listed below.

How can I reduce my debt-to-income ratio?

• Pay off credit card balances.
• Include all sources of income.

Make sure you include all sources of income, including any rental, interest or dividend income. (Alimony, child support or separate maintenance income need not be revealed if you do not wish to have it considered as a basis for repaying the loan.)

Additional Credit Criteria Considerations

• The student or cosigner have reported income.
• The student or cosigner must have a minimum of two years of credit history.
• The student or cosigner must have a minimum of three trade lines on their credit report.
• The student or cosigner must meet the minimum income requirement.
• The credit bureau report for the student or cosigner must show the following:
  • No record of a paid or unpaid charge-off in the past 2 years.
  • No record of foreclosure, repossession, open judgment or suit, unpaid tax lien, unpaid prior education loan default, or other negative public record items in the past seven years.
  • No record of a bankruptcy in the past seven years.

Before you apply, print and complete the Credit Eligibility Worksheet to determine your loan eligibility.

Application

Learn more and apply online now or you can click the following link to request that a paper version of this application be mailed to you. In addition, you can print out a hard copy of the application.