Click "HERE" to go Directly to the 4 Step - Stafford Loan Application Process

What is a Stafford loan?
Federal Stafford Loans are low-interest loans made to students attending school on at least a half-time basis. A student may be eligible for a Federal subsidized Stafford Loan and/or a Federal unsubsidized Stafford 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 Stafford 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 Stafford loan?
Variable interest rates are set each June by the U.S. Department of Education. To check the current interest rates 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 web site. 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 Stafford 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, 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 Stafford loan eligibility through the institution's award letter. Initial award letters are mailed to the student. Any changes to the initial award letter will be posted on MaineStreet. Award letters are subject to change. Changes to a student's award letter can have a direct effect on a student's bill. We recommend viewing/printing your award letter 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.maine.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. Stafford Loan borrowing limits vary depending if the student is a dependent or independent undergraduate and the student's class/grade level. Also, a student cannot borrow more than the cost of education. Lifetime aggregates also apply. Stafford Loan Limits

How do I request Stafford loan funds and what are the application requirements?
In order to receive a loan, there are 4 (four) things you need to do.

General Information:

1. If this is your first-time borrowing a Stafford loan at UMFK, complete the Entrance Counseling session (online) to learn about the loan.
2. Choose a lender. If this is not your first Stafford at UMFK, you might choose to stay with the same lender you used before.
3. If this is your first Stafford Loan from this lender you have selected, complete the Master Promissory Note (MPN).
4. Complete the Stafford Loan application with UMFK. This can be completed online, (on MaineStreet) or by completing the paper application sent to you with your award letter. UMFK must be informed of your lender choice, and the loan amount you are requesting.

Details and the application process are provided in the next section, "Application Requirements". All requirements must be completed before this office can proceed with your loan application.

Stafford Loan Application Requirements

Tips Before You Begin

• A financial aid award can be viewed, accepted/declined in MaineStreet;
• There are 4 Steps to the Stafford loan application process. Steps 1, 3, & 4 (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 4 Steps, make sure to return to UMFK's website to complete the remaining steps.

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.maine.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:

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 Stafford loan available and your rights and responsibilities as a loan borrower. Students are required by Federal law to complete the appropriate

session before they can borrow Stafford loan funds.  This is an automated process and you will be required to answer questions as you complete the process.

The Entrance and Continuing Students:

• If you have received Stafford 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.

The Entrance and First-time Stafford 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"

Additional "Entrance" Information

• UMFK will be notified by email when you have completed your Entrance Session successfully. If you complete your Entrance on a Web site other than in this section, UMFK will not be notified and you will need to provide us with written verification of completion.
• We recommend you complete the Entrance Counseling process at the same time you are returning your Award Letter and/or applying for your Stafford loan.
• This session must be completed before UMFK can process your request for a Stafford loan.

Step 2:

Choosing a Lender

The purpose of this section is to assist you with selecting a lender.

If you are chosing Direct Lending as your lender, skip this step.

What is a Lender?
A "lender" is the organization you want us to process your loan through. This is the place and the people you will be doing loan business with. This could be Direct Lending (i.e., the government), a bank or a credit union. UMFK does not recommend lenders.

The basic interest rate and repayment terms of the loan are the same, but some lenders do offer incentives to borrowers. These incentives come in two ways:

Front End and Back End benefits

   How to Choose and Evaluate Lenders

Choosing a Lender • Continuing Students:
If this is NOT your first Stafford Loan and you want to stay with the same lender you have borrowed with before, you will need to:

1. Check if your lender is still lending - go to: FAME - Education - Lender Codes & Programs. Direct Lending remains an available option. If your lender is still an active lender and you have completed a MPN already, proceed to Step 4.
2. If your prior lender is no longer lender, choose a lender below.

Choosing a Lender • First-Time Students:
If this IS your first Stafford Loan, (or if it is the first-time you borrow through a new lender), you will need to select a lender in the next paragraph.

***Selecting a Lender:
There are several lenders available, which we will place in two different groups. The two links below will help you to select a lender. At the links provided, you will learn more about the variety of lenders available and the benefits they offer. Note: the links provided below are for informational purposes only. Do NOT begin your application process on either of the links below.

• Direct Lending - the U.S. Government is the lender. More information regarding Direct Lending is available at: http://www.ed.gov.
• Other Financial Institutions - includes banks, credit unions. To help you to make a lender selection, you can access several lenders links here and the benefits they provide: http://www.famemaine.com.

This is only a sampling of all the lenders available across the country. You may use any lender you choose.

Step 3:

Complete the Master Promissory Note (MPN)

If you are selecting Direct Lending, go to number 1 below (in this section)

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

MPN and Continuing Students:
If this is NOT your first Stafford Loan with the lender you selected and your lender continues to process loans, you may skip this step. However, some lenders who were available in the past are no longer processing loans. If this is so, you will need to select a new lender (Step 2) and complete new MPN (below) for this new lender. To check if your lender is still active, go to: www.famemaine.com. Here you will find a listing of active Maine lenders. Direct Lending (the government) continues to process loans.

MPN and First-Time Stafford loan borrowers:
If this IS your first Stafford Loan with this lender, you will need to complete a MPN by logging onto one of the links listed below. The MPN link you select below will depend on the lender you have selected under Step 2.

Note: The lender on your loan application must match the lender on your MPN.

***Complete Your MPN by clicking on appropriate link:

1. I have selected Direct Lending as my lender, click here: https://dlenote.ed.gov.
2. I have selected Nelnet as my lender, click here: http://www.nelnet.com. Click on E-sign Promissory Note.
3. For All "Other" lenders, go here: http://www.salliemae.com.  Here you will: start a loan application, select your lender in the drop down box. (Note: If you do not see your lender listed, choose the "other" category), and complete your MPN (for the lender you have selected in the application section). The lender you selected in the drop down box will be the lender that populates for the MPN.  We recommend that you e-sign your MPN.

Note:  The lender you select here needs to be the same lender that you told the UMFK Financial Aid Office.

Note:  The loan amount being requested on your loan application through Sallie Mae can be found on your UMFK Award Notice found on MaineStreet >Student Self Service >Student Center>Finances.

For Additional MPN information click here

Step 4:

Accepting Your Stafford Loan on your Award Notice

If you want a Stafford loan that was offered to you, you will need to affirm to the financial aid office that you want the loan. An "offered" loan on your award letter simply informs you of how much you are eligible to borrow. If you want loan funds, you must officially accept it and apply for it. This will be accomplished in this step. (Also, make sure to complete steps 1and 3 of the Stafford loan application process as required.)

You can apply for a Stafford 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 and loan request sheets mailed to you. Note: In addition to completing this Step (4), Steps 1 and 3 (above) must also be completed before a Stafford loan can be processed by the school and before loan funds can be applied to a student's school account.

Note: Loan applications that do not include a lender name and/or loan amount will not be processed.

                             ___________________________________

How can I determine the loan amount I am eligible to borrow?
This information will be available on MaineStreet where you can view your financial aid award. Simply add the Stafford loan fall and spring column amounts together for your total academic year loan eligibility. When applying for a loan, you apply for the two semesters at once, unless you are only planning to attend one semester. You may accept a smaller Stafford loan amount than the maximum eligibility amount we have offered to you on your award letter. Do not borrow more money than you need.

How do I determine how much loan money I need?
The award letter the school provides to the student provides estimated figures of how much funding the school anticipates will be available (at the time of review) to the student to help 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 you determine not only how much Stafford 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 letter 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 and when do I get my Stafford loan money?
Loan funds are not disbursed until the semester begins.

Stafford 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 Stafford Loan Entrance Counseling session is complete,
• the Master Promissory Note is complete,
• the Stafford loan application (indicating the loan amount being requested and then name of the lender) is provided to the school,
• the Stafford loan funds are received from the lender,
• the student is registered,
• 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 your money is applied to your student account to the time your 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 Stafford Loan funds have been received and applied to your UMFK student billing account, go to: www.umfk.maine.edu, click on Current Students, then click on Maine Street, then click on Log in with your UMS login and Password, then click on Student Self Service, from there you can go right into the Student Center or into the User Guide Demo.

If "Subsidized Loan" and/or "Unsubsidized Loan" is listed as a "Payment" the amount shown 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 Stafford loan?
Stafford Loans require repayment. After a student graduates, leaves school or drops below half-time, a student has a six month grace period before beginning repayment. If a student has a subsidized Stafford Loan, neither the interest nor the principal needs to be paid during the grace period. If a student has an unsubsidized Stafford Loan, the student will be responsible for the interest from the time the loan is disbursed until the loan is paid in full. More information about deferments and/or forbearance etc. is available at:

• Funding Your Education Beyond High School (BK)
• http://mappingyourfuture.org/money/studentdebt.htm
• http://www.studentaid.ed.gov
• Finaidfacts.org

What are my borrower responsibilities after I leave school?

A student is required to:

• keep in touch with their lender(s) of address and telephone changes.

• Stafford 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 had appropriate Stafford/Perkins "Hold(s)" placed on his/her UMFK account until these obligation(s) have been met.

Note: A "Hold" on a student's account will prevent a student's official academic transcript and diploma from being released and will prevent a student from registering for classes at any of the University of Maine campuses. To remove a "Hold", the student will need to resolve the hold with the office/department that has placed the hold on your account.

To release a Stafford/Perkins "Hold" you will need to complete the appropriate (i.e., Stafford/Perkins) 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 "hold" will be removed. 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 and how can I contact them?
LoanLocator is the National Student Loan Clearinghouse's newest web site service, designed specifically to help students track their education loans. Available through www.nslc.org, LoanLocator delivers to students an up-to-date list of loan providers and means for contacting them via telephone or Internet.

Lender/Servicer Contact Information
Note: You should know the name of your servicer before making contact with them. If you are unsure about who your lender/servicer or guarantor is, how much you borrowed, when you borrowed, etc., you may contact the Finance Authority of Maine (FAME). FAME can be reached at 1-800-228-3734 (in-state) or (207) 623-3263; Fax: (207) 623-0095; E-mail: info@famemaine.com; Web site; www.famemaine.com.

Where can I find more information regarding Stafford loan Repayment, Consolidation and Deferments?
A good place to begin looking for answers to your questions is with your lender/servicer. The majority of UMFK's Stafford loans are processed through either Sallie Mae, Nelnet or Direct Lending. Call your lender or go to YOUR lender/servicer's website and search for information by entering key words.

• Consolidation Information
• Direct Lending Website:www.ed.gov/directloan
• Making Sense of Loan Consolidation Web Cast
• More Loan Information
• Nelnet's Website: www.nelnet.net
• Repaying Your Loan
• Sallie Mae's Website: www.salliemae.com
• Direct Lending: www.ed.gov/directloan
• Financial Aid Facts: Finaidfacts.org

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 information?

• nslds.ed.gov - find your loans here
• Department of Ed. - Repayment Information - what you need to know
• Direct Lending (call toll free) at 1-800-848-0979
• FAME
• 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)
• Financial Aid Facts
• Loan Locator
• IBR Information - IBRinfo.org - repayment breaks, loan calculator
• Educationquest.org - has loan calculator
• Mapping Your Future
• National Student Clearinghouse
• Student Loan Borrower Assistance
• Borrower Information (section of the Student Guide)
• The Student Guide (Book)
• The Student Guide 09-10 - Loan Repayment Section
• The Student Guide 09-10 - Consolidation Section
• The Student Guide 09-10 - Postponing Loan Repayment
• The Student Guide 09-10 - Loan Discharge or Cancellation and Forgiveness
• Grads to get a break on loan repayments- Fastweb
• Education Quest
• FinAid.org - loan calculator available
• Opportunity Maine
• Opportunity Maine (UMS website)
• IRS Recovery

(Last updated 5/19/09, 06/09/09, 07/23/09)