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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:
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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:
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Borrow
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Repayment
Period
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$1,000-$5,000
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5 years
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$5,001-$10,000
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10 years
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$10,001
and above
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15 years
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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?
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
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The student or cosigner have reported income.
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The student or cosigner must have
a minimum of two years of credit history.
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The student or cosigner must have
a minimum of three trade lines on their credit report.
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The student or cosigner must meet the minimum income requirement.
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The credit bureau report for the
student or cosigner must show the following:
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No record of a paid or unpaid
charge-off in the past 2 years.
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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.
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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.
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