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 Welcome to the Maine Educational Loan Authority (MELA) web site!

Overview of the Maine Educational Loan Authority (MELA) Learn more about the leadership of the Maine Educational Loan Authority Learn more about The Maine Loan(R) and apply online Learn more about The Maine Medical Loan(SM) and apply online Apply online for The Maine Loan(R) or The Maine Medical Loan(SM) Latest press releases from the Maine Educational Loan Authority (MELA) Read the Maine Educational Loan Authority's annual report MELA Rules Links to other helpful online resources Frequently Asked Questions Go to MELA.net homepage
The Maine Loan New Fixed Rate

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 generous 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 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.

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.


*The APR is 8.33%. The APR, or Annual Percentage Rate, is the effective interest rate when the guarantee fee and all interest charges are included. This APR is based on a fixed interest rate of 7.75%, a loan amount of $10,000, a guarantee fee of 4% which is added to the principal balance at the time of disbursement, and a repayment term of 120 months, and assuming interest only payments for four and a half years.
 
131 Presumpscot Street
Portland, ME 04103
TOLL FREE:  800-922-6352
PTLD AREA: 207-791-3600
customerservice@mela.net