Navigating the borrowing process
Loans are a reality for most students, and we will help you navigate the borrowing process from application to repayment. We encourage you to be a responsible consumer and to borrow only what is necessary. We urge you to seek advice from our Student Financial Services team whenever needed.
Keep in mind that with loans, lenders often deduct loan fees before monies are disbursed, which can impact the amount you need to borrow. You should calculate loan fees prior to finalizing loan requests. Please see for more information.
Repaying Your Loans
Be sure to stay in touch with your at all times throughout your years of borrowing. It is even wise to pay interest while you're in school, if at all possible, on any loans that are accruing interest (i.e. every loan except the Direct Subsidized Loan). Once you're ready to leave school, we recommend using the to determine which is the best loan repayment option for you. Note: You may switch plans as your income situation changes. Just realize this — the longer you take to repay your loans, the more they will cost you.
Federal Direct Subsidized and Unsubsidized Loans
Loan Updates
Recent federal legislation has introduced major changes to the Federal Direct Loan program, impacting how ³ÉÈËÖ±²¥ students and families finance their education. For details on what’s changed, who’s affected, and when updates take effect, visit our dedicated page on federal loan updates. We’ll keep this resource current as new information is released by the U.S. Department of Education.
The U.S. Department of Education offers low-interest loans to eligible students to help cover the cost of college. are available depending upon your financial need and enrollment status. For both types of loans, ³ÉÈËÖ±²¥ will determine the amount you can borrow based on your Cost of Attendance and annual limits. Visit the Federal Student Aid website for and on the .
Direct Subsidized Loan
The U.S. Department of Education pays the interest on the Direct Subsidized Loan while you are in school, as well as during your grace period or elected deferment period. This loan is available to students demonstrating financial need.
Direct Unsubsidized Loan
The Direct Unsubsidized Loan is available to all students regardless of need. Interest accrues from the date of disbursement.
To apply for Federal Direct Loans you must . As a first-time federal direct loan borrower, you will need to sign a Master Promissory Note (MPN)and Complete Entrance Counseling which will provide information about terms of borrowing, interest accrual, and repayment options. These requirements can all be completed . For all Federal Loans, you will also need to complete when you are no longer enrolled at least half-time.
All pertinent information regarding Title IV, HEA federal loans, including Direct Loans, will be submitted to NSLDS and accessible by authorized agencies, lenders, and institutions.
Educators for Maine Program
Federal Parent PLUS Loan
The is a credit-based loan, subject to credit approval by the lender, for parents who wish to contribute to their dependent child’s college education. PLUS loans help pay for expenses up to the Cost of Attendance (COA) minus all other financial assistance. The application is available online and parents will need the FAFSA ID to apply. If you wish for the PLUS Loan to cover origination fees, please let us know so we can adjust the COA accordingly.
If credit is denied for the PLUS Loan, your parents can pursue an endorser, appeal the denial, or request additional unsubsidized funding of up to $4,000 or $5,000 based on your year in school. The request for this additional funding must be sent in an email to the Financial Aid Office or parents can select this option via the online application.
Private Loans
Private education loans, or alternative loans, are credit-based loans offered by private lenders and are not issued by the federal government. These loans can help bridge the gap between any other financial aid a student may receive and the total cost of their college education.
Students are strongly encouraged to complete the and utilize all federal and state aid options before pursuing a private loan. It is up to each student to determine the financing option that best meets their needs.
Eligibility for private loans is based on the lender’s credit review and specific terms and conditions. These loans are typically issued in the student’s name and often require a creditworthy cosigner. When exploring private loan options, borrowers should carefully compare interest rates, repayment plans, cosigner release policies, and available deferment or forbearance options, as these can vary from lender to lender.
If you are new to borrowing a private loan, we recommend familiarizing yourself with the application process before making a selection.