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You can choose from two different repayment options: begin regular payments immediately or defer the principal and interest while you are in school (enrolled at least half time at a degree granting school). 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 in the United States and Canada, and to out-of-state students attending approved schools in Maine. The loan will be in the student's name. There is no application fee and the guarantee fee is added to the loan balance at the time the loan enters repayment.
Do you qualify for
The Maine Loan? 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%? Is your debt-to-income ratio
greater than 50%? 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 must be
currently employed. 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 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. NEW!
Before you apply, print and complete the Credit
Eligibility Worksheet to determine your loan eligibility. *6.35%
variable rate effective until 5/31/08, adjusted
annually. 6.177% APR is the effective interest rate when the guarantee fee and all interest charges are included. This APR is based on a loan amount of $10,000, a guarantee fee of 3% which is added to the principal balance at the time of repayment, and a repayment term of 120 months,
excluding any interest rate reductions, and assuming deferment of principal and interest for four and a half years. **For loans disbursed on/after 6/1/04, to qualify for on-time discounts
or the co-borrower release, the required number of initial, consecutive
payments must be received by the due date shown on your billing statement.
MELA reserves the right to change or remove the grace period or interest
rate discounts at any time, for any reason, and without prior notice.
Savings are applied to loan principal, resulting in faster repayment.
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A low variable interest rate (currently
6.35%*, based on tax-exempt bond rates for the given year), that is adjusted annually
131 Presumpscot Street
Portland, ME 04103
TOLL FREE: 800-922-6352
PTLD AREA: 207-791-3600
customerservice@mela.net