Loans and Lenders
To be considered for a student loan you must enroll at least half-time (6 credits), be in a degree program, not be in default or owe a repayment of educational funds and continue to make satisfactory academic progress. You must also complete a Free Application for Federal Student Aid (FAFSA) to be considered for a federal student loan.
Students who attend The University of Maine at Augusta have the benefit of multiple lending options. UMA participates in the William D. Ford Direct Loan program that allows students to borrow Federal Stafford Loan directly from the Department of Education. Students can also borrow Federal Stafford Loan through a private bank, credit union, or lending institution. We encourage students to explore the options available to them. Not every loan program is right for every student you should determine which one is right for you. If you have borrowed in the past it is you must continue to use the same lender throughout your education.
Two types of Federal Stafford Loans are available depending upon a student's need and their grade level.
Subsidized Stafford is need based. Payment of principle is deferred and interest is paid by the Federal government while the student is enrolled at least half-time.
Unsubsidized Stafford is non-need based. Payment of principle is deferred, but interest accrues or is paid by the student while in school.
Once you have complete the application process for Federal aid, you will receive an Award Letter estimating your eligibility for Stafford Loan. This estimate may be different than your actual eligibility. You may apply for your Stafford Loan by completing the request on the back of the Award Letter. Maine Lenders will send a pre-printed Master Promissory Note to all first-time borrowers. New Direct Loan borrowers will receive a Master Promissory Note from the Financial Aid Office.
All first-time borrowers are required to complete and Entrance Interview to review their rights and responsibilities. The Interview can be completed by phone, or in person at the Financial Aid Office in Augusta.
Annual Loan Limits:
Federal Regulations specify the maximum loan amount any student can borrow each academic year, depending upon grade level.
| Academic Status | Loan Type | Independent Student | Dependent Student |
|---|---|---|---|
| Freshman* | Sub. | $3500*** | $3500*** |
| Unsub. | $4000 | ||
| Sophomore** | Sub. | $4500*** | $4500*** |
| Unsub. | $4000 | ||
| Junior | Sub. | $5500 | $5500 |
| Unsub. | $5000 | ||
| Senior | Sub. | $5500 | $5500 |
| Unsub. | $5000 |
*Students in qualifying certificate programs will be considered at no higher than freshman level for loan eligibility.
**Students in associate degree programs will be considered at no higher than sophomore level for loan eligibility.
***Prior to July 1, 2007: The maximum freshman loan level is $2625 and the maximum sophomore loan level is $3500.
The total undergraduate maximum indebtedness (combined subsidized and unsubsidized) for dependent student is $23,000, for independent student is $46,000.
Opportunity Maine
Opportunity Maine is a State of Maine tax credit program for Maine residents that will help graduates of Maine colleges offset educational loan payments. Any Maine college graduate with student loan debt obtained for periods of attendance at any Maine college beginning January 1, 2008 and who live and work in Maine after graduation from either an associate or a bachelor degree program are eligible for the tax credit. (Note: loans taken for periods of enrollment prior to January 1, 2008 are not eligible for the credit.)
Here's What You Need to Do:
- To apply for Opportunity Maine you must open the following link and print a copy of the contract: www.opportunitymaine.com
- Once you have completed the contract submit both pages 1 and 2 of the contract to the UMA Financial Aid Office.
- The UMA Financial Aid Office will retain the contract until yougraduate.
- When you begin your last semester prior to graduation you must contact the UMA Financial Aid Office to inform us of your intent to graduate.
- Your contract will be returned to you upon certification of your graduation by the UMA Registrar's Office.
NOTICE: It is your responsibility to request the copy of your contract from the UMA Financial Aid Office during your last semester prior to graduation. You must finalize your contract and then submit it to the Maine Secretary of State for the eligibility to claim a tax credit.