Stafford Loan

Click "HERE" to go Directly to the Direct Loan Application Process

What is a Direct Loan?
Federal Direct Loans are low-interest loans made to students attending school on at least a half-time basis, (i.e., 6.0 credits or more per semester). A student may be eligible for a Federal subsidized Direct Loan and/or a Federal unsubsidized Direct Loan. The "subsidized" loan is need-based and the government pays the interest on the loan while the student is in school or in deferment. The "unsubsidized" loan is non-need based and the student is responsible for the interest while in school and during deferment and grace periods.

What is the first-step to the application procedure for a Direct Loan?
To be considered for this type of aid, a student must complete the Free Application for Federal Student Aid (FAFSA). A student's eligibility for other Federal aid (i.e. Pell Grant) must be determined before a loan can be processed.

What is the interest rate of a Direct Loan?
Variable interest rates are set each June by the U.S. Department of Education. Since UMFK is a Direct Lending school, your Direct Loan will be processed through the Department of Education. Current Direct Loan interest rates are available from the Department of Education Website.

To check interest rates from loans you may have taken out in the past, you may call FAME at 1-800-228-3734 or visit their web site at: www.famemaine.com. You may also contact your Servicer or visit their Website. You may also view a Mapping Your Future interest chart here:
https://mappingyourfuture.org/paying/staffordinterest.htm.

Other than interest, is there a charge to get a Direct Loan?
You'll pay a fee of up to 4 percent of the loan, deducted proportionately from each loan disbursement. (Part of the fee is for insurance used to pay off loan defaults; the rest reduces the cost of the loan to the government.) Because of this deduction for fees, you may receive slightly less than the amount you're borrowing.

How will I be notified of my eligibility?
A student is usually notified of his/her Direct Loan eligibility through the institution's Award Notice. The initial Award Notice is mailed to first-time UMFK students. Continuing UMFK students, once awarded will receive an email to go view their Award Notice on Mainestreet. Any changes to the initial Award Notice will be posted on MaineStreet. Award Notices are subject to change. Students will be notified by email to check changes to their Award Notice on MaineStreet. Changes to a student's Award Notice can have a direct effect on a student's bill. We recommend viewing/printing your Award Notice and bill periodically on MaineStreet so you will be aware of possible changes.

  • About MaineStreet
    MaineStreet (like DSIS) is computer processing system that allows students to view their personal campus information. Here you will find the classes you are registered for, your billing charges/payments, your "TO DO LIST" and "HOLDS", your financial aid award, your grades, etc. All this information is available for students to view (and take appropriate action) from one central location called the "Student Service Center".

  • Logging into MaineStreet
    A student can access MaineStreet from the campus web site, www.umfk.edu, go to "Current Students" (top toolbar) and select "MaineStreet" in the drop down box. To log into MaineStreet, the student will need their Campus Email LoginID and Password. If you do not have this information available or need assistance, please contact Nicki Ouellette at 207-834-7818, or Email: nickio@maine.edu.

  • Learning guide and instructions on how to use MaineStreet

How much can I borrow?
The student's borrowing limit will be determined by the school within the federal limits. Direct Loan borrowing limits vary depending if the student is a dependent or independent undergraduate and the student's class/grade level.  FMI go to Direct Loan Limits.  Also, a student cannot borrow more than the cost of education. Lifetime aggregates also apply.

How can I determine the loan amount I am eligible to borrow?
This information will be available on MaineStreet>Studnet Self Service>Student Center>Finances>Accept/Decline Awards) On MaineStreet a student can view their Financial Aid Award Notice by academic year or by semester. When applying for a loan, you are applying for loan money to cover the Academic year, (i.e., two semesters), unless you are only planning to attend one semester. The borrower may accept a smaller Direct Loan amount than the maximum eligibility amount that has been offered to the student by the school on the Award Notice. It is recommend that a student borrow only what is needed.

How do I determine how much loan money I need?
The award notice informs the student of how much funding (i.e., financial aid) that the school anticipates will be available (at the time of review) to help the student pay for school costs.

To determine how much funds will be needed, one also needs to know how much it will cost to attend. You will find UMFK's (estimated) "cost" figures here. Worksheets are also available, in this section, to help a student determine not only how much Direct Loan funds will (or will not be needed) but also if the student has sufficient or insufficient aid to pay for school.

If additional funding is necessary to help cover school costs that go above what the award notice offers, you may want to consider a Parent Plus loan (for the parents of a dependent student) and/or an Alternative loan. These are private loans based on credit. More information about these loans is available here.

How do I request Direct Loan funds and what are the application requirements?
In order to receive a loan, there are 3 (three) things you need to do.

Summary: General Information:

  1. Accept all (or a reduced amount) of the Direct Loan offered to you on your Award Notice in MaineStreet. (MaineStreet can be accessed from the campus website, login using campus email ID and password). Loans can also be accepted on the paper Award Notice by completing the loan question and returning your Award Notice to UMFK. All or part of your Direct Loan must be accepted by you before UMFK can process your loan request.
  2. If this is your first-time borrowing a Direct Lloan at UMFK, complete the Entrance Counseling session (online) to learn about the loan and your rights and responsibilities as a loan borrower.
  3. If this is your first Direct Loan you will need to complete a Direct Loan Master Promissory Note (MPN).

Loan details and the loan application process are provided below. All 3 step requirements must be completed before this office can proceed with your loan application.

Direct Loan Application Process - Complete Steps 1 to 3

Tips Before You Begin

  • Direct Loans at UMFK are processed through Direct Lending. The Department of Education will be your the lender. More information regarding Direct Lending is available at:
  • About Direct Student Loans from Ed.gov
  • DIRECT LOAN OVERVIEW
  • A financial aid award can be viewed, accepted/declined in MaineStreet;
  • There are 3 Steps to the Direct Loan application process. Steps 1, 2 and 3 (below) must be completed before your loan request can be processed by the school.
  • You will be leaving UMFK's website as you complete the 3 Steps, make sure to return to UMFK's website to complete the remaining steps. If Steps remain incomplete, loan requests will not be processed.

For more information:

  • About MaineStreet
    MaineStreet (like DSIS) is computer processing system that allows students to view their personal campus information. Here you will find the classes you are registered for, your billing charges/payments, your "TO DO LIST" and "HOLDS", your financial aid award, your grades, etc. All this information is available for students to view (and take appropriate action) from one central location called the "Student Service Center".

  • Logging into MaineStreet
    A student can access MaineStreet from the campus website, www.umfk.edu, go to "Current Students" (top toolbar) and select "MaineStreet" in the drop down box. To log into MaineStreet, the student will need their Campus Email LoginID and Password. If you do not have this information available or need assistance, please contact Nicki Ouellette at 207-834-7818, or Email: nickio@maine.edu.

  • Learning guide and instructions on how to use MaineStreet

Step 1:

Accepting Your Direct Loan Offer

If you want a Direct Loan that was offered to you on your Award Notice, you will need to affirm to the financial aid office that you want all or part of the "offered" loan. An "offered" loan on your Award Notice informs you of how much you are eligible to borrow. If you want loan funds, you must officially accept all (or part) of the "offered" Direct Loan(s) on Maine Street. This will be accomplished in this step.

You can apply for a Direct Loan in one of two ways:

  1. Online from MaineStreet. (To learn more about how to accepting your financial aid and loans on MaineStreet.)
  2. By paper: complete, sign and return (to UMFK) the (paper) Award Notice mailed to you. Make sure to complete both sides of the form.

Note: Steps 1-3 of the Direct Loan application process must be completed before a Direct Loan request from the student can be processed by the school and before loan funds can be applied to a student's school account.

Note: Once loan funds are applied to a student school account, the school bill will be reduced by the amount of the loan payment. Payments applied to a student's University bill can be viewed in detail in MaineStreet, under the Student Center, under the Finance section. It is recommend that a student's bill be viewed periodically.

Step 2:

Complete the Entrance Counseling Session

About the Entrance Session: The Entrance Counseling Session is an online presentation that provides the student with information about the different types of Direct Loans (i.e., subsidized and unsubsidized) available and your rights and responsibilities as a loan borrower. Students are required by Federal law to complete this session before they can borrow Direct Loan funds. This is an automated process and you will be required to answer questions as you complete the process.

The Entrance and first-time Direct Loan borrowers at UMFK:

  • Federal law reqires all first-time borrowers to complete an Entrance Counseling session.
  • There will be a quiz after the on-line presentation, so please listen and read instructions carefully.
  • After you have successfully completed this session, you do not need to complete it again while at UMFK.

***Complete your Entrance Counseling Session by Clicking - Here***

***Note: The Entrance Counseling link listed above is the same link as the MPN link listed in Step 3 (below).  The Entrance session and the MPN can both be completed from the same link.

The Entrance and continuing UMFK students:

  • If you have received Direct Loan funds through UMFK before, then you have already completed this Entrance session and can skip this step.
  • If you are not sure if you completed this process, complete it again.

Note: You will be leaving UMFK's Website. Please return to our Web site to continue with the completion of Step 3 below.

Additional "Entrance" Information

Step 3:

Complete the Direct Loan Master Promissory Note (MPN)

What is a Direct Loan MPN?
The MPN is an agreement signed by you verifying that you promise to pay back the Direct Loan according to the terms of the note.

  • MPN and first-time Direct Loan Borrowers:
    If this IS your first Direct Loan, you will need to complete a Direct Loan MPN.

*** Complete your Direct Loan MPN by Clicking Here: Studentloans.gov ***

(Your FAFSA pin number is required to log in to this website. You may apply for a FAFSA Pin Number at: www.pin.ed.gov. )

  • MPN and Continuing Students with prior Direct Loans:
    If this is NOT your first Direct Loan and you have already completed a Direct Loan MPN, then you may skip this step.

For Additional MPN information click here

If you do not complete the required MPN online, once the school certifies your loan, your lender/servicer may contact you by mail requesting that you complete the required MPN. The preferred method of completion is online. If a paper MPN is provided, complete it and immediately forward it to the address indicated. A MPN must be completed and returned to the lender/servicer before any loan funds will be disbursed to the student's school.

Note: When you sign a promissory note and receive loan funds, you are agreeing to repay the loan according to the terms of the note. Except in cases where the loan is discharged (for instance in the death of the student) the loan must be repaid with interest, even if the student does not complete the program, does not like the program, or is unable to procure employment after completing the program.

___________________________________

How and when do I get my Direct Loan money?
Loan funds are not disbursed until the semester begins.

Direct Loan funds are usually credited to a student's University account in two equal disbursements, half of the total amount each semester. Funds are credited to the student's account only when:

  • the student's financial aid file is complete,
  • the student has accepted his/her Direct Loan amount online on MaineStreet or on paper and the school has been informed.
  • the Direct Loan Entrance Counseling session is complete,
  • the required Master Promissory Note is complete,
  • the Direct Loan funds are received from the Department of Education
  • student is registered for 6.0 credits or more
  • the semester has begun,
  • the student remains eligible for the loan

Once the loan is applied to a student's account, the student will receive a refund for any semester amount which exceeds indebtedness to the University.

Note: About Availability of Refund Checks: Refund checks will be issued according to the Business Office check writing schedule. This process takes 4-7 additional days from the time the loan money is applied to a student's account to the time the student's refund check becomes available. The schedule varies depending on the actual day funds are received on your account at the Business Office. For more information contact the Business Office.

How will I know if my loan funds have been applied to my student account/bill?
To check if your Direct Loan funds have been received and applied to your UMFK student billing account, go to: www.umfk.edu, go to: Current Students, in the drop down box, click on Maine Street (MS). Log into MS with your University of Maine System (UMS) Login ID and Password, then click on Student Self Service, Student Center and go to the Finances section.

Note: Need help to navagate in MaineStreet? Click on the "User Guide Demo" available in MaineStreet.

If "Subsidized Loan" and/or "Unsubsidized Loan" is listed as a "Payment" on your bill in MaineStreet, then the amount posted has been received and deducted from your bill. Review the amounts for accuracy. If your UMFK bill is paid in full and any balance remains, that balance will be refunded to you. Contact the UMFK Business Office at 207-834-7552 if you have questions.

What you need to know about paying back your Direct Loan?
Direct Loans require repayment. After a student graduates, leaves school or drops below half-time (i.e., less than 6.0 credits), a student has a six month grace period before repayment begins. If a student has a subsidized Direct Loan, neither the interest nor the principal needs to be paid during the grace period. If a student has an unsubsidized Direct Loan, the student will be responsible for the interest from the time the loan was disbursed until the time that the loan is paid in full. More information about deferments and/or forbearance etc., is available below at:

What are my borrower responsibilities after I graduate, withdraw or drop below half-time?

A student is required to:

  • keep in touch with their lender(s) of address and telephone changes.
  • Direct and/or Perkins Loan borrowers who withdrawn from school, leave school, dropped to less than 6 credits hours or graduate are required to complete the appropriate Exit Counseling session(s). Students who have not met these requirements will have appropriate Direct (and Perkins) Loan "Hold(s)" placed on his/her UMFK account until these obligation(s) have been met.

Note: A "Hold" on a student's account (i.e., school records) will prevent a student from obtaining their diploma and official academic transcript, as well as, prevent a student from registering for classes at any of the University of Maine campuses.

To remove/release Direct and/or Perkins Loan "Exit Hold(s)" the student will need to complete the appropriate (i.e., Direct /Perkins Loan) Exit Counseling session(s). Once Exit session(s) are completed successfully, (i.e., from the links available from the campus website) appropriate office(s) will be notified electronically and the "Exit Hold" will be removed. To resolve an "Exit Hold" issue, contact the office/department who has placed the Hold on your account. Complete appropriate Exit session(s) here.

If you are not able to complete an online Exit session, please contact the financial aid office at 207-834-7605, or email the office at: umfkaid@maine.edu to request a (paper) packet, which will be mailed to you. Make sure to provide us with: your name, social security number, address and telephone number.

What lender(s) did I borrow from (in the past) and how can I contact them?

Prior to the 2010-11 school year, students may have borrowered from the FFELP Student Loan program. At that time students where obtaining student loans from banks and/or credit unions. Begining with the 2010-11 year, FFELP loans were discontinued and Direct Loans became the new student loan. Direct Loans are processed through Direct Lending, with the Department of Education as the lender.

Even if you borrowed from lenders other than from the Department of Education, the Department of Education may have bought all or part of your past loans from your (bank and/or credit union) lender. Even if you have never borrowered from Direct Lending, it is possible that you will make your payments through the Department of Education anyway.

To check where your federal loans are and who to contact, go to:

www.nslds.ed.gov. Click on the available hyperlinks for additional information. (Note: Your FAFSA PIN number is required to log in to NSLDS. (Apply for your PIN number at: www.pin.ed.gov)

Attention Loan Borrowers who took loans out prior to 2010-11 !

The U.S. Department of Education has recently been buying loans back from lenders. Your original lender may no longer have your loan(s). All or part of your loans may have been sold to the Department of Education. The Department of Education is now your new lender. Servicers - serivce the loan. The Servicers collect the loan payments for the Department of Education. Your loan(s) can be with different Servicers. To locate your federal loans, go to NSLDS to check where your loans are and who are servicing your loans. Then refer to the chart below on how to contact your Servicer(s).

Attention All Loan Borrowers:

Students who borrowed student loans from the past or current years, now all have the Department of Education as their lender. The Servicers listed below collect the loan payments and service the loans for the Department of Education. Your student loans can be with any of the following Servicers. To check the location of all your Federal loans, go to: www.nslds.ed.gov. Contact the appropriate Services to make payment arrangements using the information listed in the chart below.

If you have borrowed from several different lenders, you may have to repay several different lenders monthly. Or, you may select to combine all your loans together to make one loan payment to one lender. For more information on how to consolidate your loans, research "Consolidation" below.

Servicer Telephone Number for Borrowers Website Address

Phone Number for

Borrowers

Direct Loan Serving

Center (ACS)

1-800-848-0979 www.dl.ed.gov 1-800-848-0979

FedLoan

Servicing

 1-800-699-2908 www.myfedloan.org 1-800-699-2908
Great Lakes 1-800-236-4300 www.mygreatlakes.org 1-800-236-4300
Nelnet 1-888-486-4722 www.nelnet.com 1-888-486-4722
Sallie Mae 1-888-722-1300

www.salliemae.com

 1-800-722-1300

Where can I find more information regarding Direct Loan Repayment, Consolidation and Deferments?


For Direct Lending borrowers, below is contact information for the

Department of Education:

OSFA Ombudsman Information
The SFA Ombudsman is working with student loan borrowers to informally resolve loan disputes and problems. They help borrowers having problems with the following federal loans:

  • Direct Loans - Subsidized and Unsubsidized Direct Student Loans, Direct PLUS Loans (for parents), and Direct Consolidation Loans
  • Federal Family Education Loans - Subsidized and Unsubsidized Stafford Loans, FFEL, PLUS Loans (for parents), and FFEL Consolidation Loans
  • Guaranteed Student Loans, SLS Loans
  • Perkins Loans

Ombudsman Contact Information


Website: http://ombudsman.ed.gov/

Mail:
U.S. Department of Education
FSA Ombudsman
830 First Street, NE
Fourth Floor
Washington, DC 20202-5144

Customer Service Line (Toll Free): 1-877-557-2575
Fax Number: (202) 275-2549

Where Can I Find More Loan Information?

The links provide below are for students who have borrowered through the FFLEP Student Stafford Loan pProgram and/or from lenders other than

Direct Lending (DL).

  • NSLDS - FAFSA PIN nubmer required to login
  • FAME
  • FAME Links
  • FAME Loan Information
  • FAME 1-800-228-3734 or 207-623-3263
  • Federal Student Aid Information Center (call toll-free) at 1-800-4-FED AID or (1-800-433-3243)

Where are all my Federal Loans?

Who do I contact for my Direct Loans (DL)?

General Information About Student Loans:

Loan Calculators and Interest Rates:

Loan Cancellations:

Loan Consolidation:

Loan Repayment

Deferment and Forbearance:

Public Service Forgiveness (PSLF)

Loan Consolidation and Cancellation:

Tax Benefits:

(Last updated 5/19/09, 06/09/09, 07/23/09 12/31/09, 02/23/10, 03/24/10, 03/31/2011, 09/14/11, 09/21/11, 10/29/11)