Maine Education Loan Administration

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Maine State Education Loan Authority (MSELA)

The Maine State Education Loan Authority was established in 1998. MSELA helps students complete their education at any accredited postsecondary institution in the United States, including colleges, universities, community colleges, vocational schools,schools, and technical institutes. In addition, MSELA provides grants to help pay for tuition, fees, books, supplies, room and board, and other related expenses. A student does not have to use the loan authority to receive financial assistance while attending school.

Qualifications

To qualify for a loan, applicants must meet the following requirements:

bebe eligible to attend a qualifying school.school.

I haveI have been accepted by acollege or university. college or university.

I haveI have completed 24 credit hours of courses.courses.

enrolled full-time

bebe under 30 years old.old.

I doI do owe back taxes.taxes.

In addition, applicants must meet the minimum income guidelines set by state law.

Eligibility requirementsrequirements

Applicants who are borrowers do not need to apply for financing if they:

areare enrolled at least half-time toward completion of a degree program.program.

Maine Education Loan AdministrationMaine Education Loan Administration

Maine’s loan authority program was established in 1972 to assist the public education system of the state. This organization offers loans at competitive rates and grants for qualified students who are pursuing higher educational opportunities. The loans range from $1000 to $50,000 and are offered to undergraduate college students, graduate students, and parents providing financial assistance for their children’s higher education. The loan funds are distributed by the Maine State Higher Educational Assistance Authority (MHESA). The authority provides funding for tuition, fees, books, room and and board, and other costs related to higher education. Any student may receive a loan if they meet certain criteria. Applicants must have been enrolled in high school for three years and plan to continue their studies after graduation. Applicants must not hold a bachelor’sbachelor’s degree already and must have a minimum GPA of 2.0. Other requirements include a need-based application thatthat includes a certified copy of the applicant’s FAFSA. If applicants receive federal aid, they must provide documentation of eligibility along with proof of income. Students should apply as early as possible since applications must be submitted prior to the beginning of each semester of enrollment.

In addition to the loans, the Maine Education Loan Authority also provides scholarships to eligible students. These awards are based on merit. To qualify, applicants must submit both an essay and a portfolio of work. The essay is written to assess the applicant’s potential to succeed inhis or her his or her field of study. Portfolios of work must show a significant commitment to academics. The committee then selects those who best fit the scholarship’s qualifications. Scholarship recipients must maintain good grades, participate in community service projects, and complete some type of internship while attending classes. The goal of these programs is to encourage people to pursue a higher education, thus enhancing the economy and workforce of Maine.

The application procedure for the Maine Higher Education Student Assistance Program is simple and requires minimal paperwork. Applicants must fill out an online application. This same application forms the basis of the FAFSA. An online fee payment is also necessary before the application is processed. Once the application has been completed, applicants are provided with information about how to access additional documents needed by MHESA. The application deadline varies depending on the year and the school. For example, those interested in applying to the University of Maine are required to submit a completed application by March 1st. Applications are accepted throughout the year. However. However, individuals interested in receiving a scholarship are asked to submit an application as soon as possible.

Maine Education Loan AdministrationMaine Education Loan Administration

The MaineThe Maine Education Loan Authority (MEALA) was created in order to provide financing for students who need educational loans. MEALA is a nonprofit corporation incorporated under Maine law. All funds received from its activities are held in trust until disbursed to eligible borrowers.

MEALA uses its own credit rating system for student loan applicants to determine their eligibility. Applicants may have access to a variety of student loan products through MEALA.

MEALA’s sole mission is to provide financial assistance to low-income residents of Maine who wish to attend higher education institutions. Loans are administered by state agencies, not banks; therefore, MEALA does not charge any interest while borrowers are enrolled in school. After graduation, borrowers repay their loans at a lower rate than they would pay if they borrowed directly from a commercial bank. In addition, MEALA requires no collateral for the repayment of loans; borrowers only repay what they earn.

A borrower may use his/her MEALA loan to finance tuition and fees at any accredited postsecondary institution located in Maine. Borrowers are responsible for paying non-tuition expenses such as room and board, books, supplies, technology equipment, transportation costs, and necessary clothing.The amount of these The amount of these expenses isis determined based upon the amount of federal grants, scholarships, and need-based aid each student receives.

MEALA provides three types of loans: Direct Stafford Student Loans, Subsidized Stafford Student Loans, and Unsubsidized Stafford Student Loans. Students applying for these loans can receive approval immediately after submitting their FAFSA application to the Department of Education. Borrowers have two years to begin repaying their loans after leaving school. If they are unable to do so, lenders may require additional payments. Repayment of loans begins six months after the last payment is due.

Since its creation, MEALA has awarded over $1 billion in student loans to nearly 30,000 Maine residents. Today, MEALA has expanded beyond its original purpose and now offers many different types of loans, including private student loans.

MEALA is governed by nine members elected by the citizens of Maine. There is also a Board of Directors composed of representatives from various community colleges throughout Maine. Members serve four-yearfour-year terms.

Maine Education Loan AdministrationMaine Education Loan Administration

Maine’s Educational Loan Authority was established by Public Law (P.L.) No. 83-814, effective October 1, 1983. The authority was created pursuant to  IV of P. L. 83-814. In addition to providing the means by which loans may be obtained, the authority serves as a repository for state educational loan funds held by the Department of Treasury and as a conduit for disbursement of those funds.

As of September 30, 2013, the principal amount outstanding under the authority was $53 million. The federal government provided approximately $28 million; the State General Fund provided $16 million; the State Special Revenue Fund provided $10 million; the State Highway Fund provided $2 million; the State School Building Fund provided $1 million; and the State Housing Trust Fund provided $400 thousand.The federal government provided approximately $28 million; the State General Fund provided $16 million; the State Special Revenue Fund provided $10 million; the State Highway Fund provided $2 million; the State School Building Fund provided $1 million; and the State Housing Trust Fund provided $400 thousand.Since its inception, the authority has granted over $300 million in student loans and currently holds about $40 million in cash reserves.

The authority provides students eligible for financial assistance under the Higher Education Act of 1965, as amended by the Higher Education Opportunity Act of 2008, with access to a variety of private lenders at competitive rates. Students are able to borrow based upon their demonstrated ability to repay, the cost of attendance, and the need for financing. Private lenders use several different methods to assess repayment capacity, including credit scores, income information, and a review of a borrower’s current assets and liabilities. Each lender sets interest rates separately,separately, and borrowers have the option of using any combination of these lenders to obtain financing.

Interest payments on loans are not included in the calculation of the average monthly payment. Payments are calculated each month, beginning after the first two semesters following enrollment. Repayments begin as soon as possible after graduation. Borrowers are given the opportunity to defer payments for up to three years for undergraduate programs and six years for graduate programs.

At least 90% of students who receive a letter of approval are expected to complete their program of study.At least 90% of students who receive a letter of approval are expected to complete their program of study.Approximately 10% of applicants are denied because they do not meet the minimum requirements outlined in the legislation authorizing the authority.Approximately 10% of applicants are denied because they do not meet the minimum requirements outlined in the legislation authorizing the authority.If a borrower defaults, the unpaid balance becomes immediately due and payable. While defaults occur infrequently, the default rate varies among lenders.

The authority charges interest on loans at variable rates determined by market conditions, and the interest charged is subject to changes in the Consumer Price Index. The maximum annual percentage rate for undergraduate loans is 6.875%%. Undergraduate borrowers with a total adjusted gross family income of more than $80,000 per year pay 8.25 percent, while graduate borrowers with a family income of less than $55,000 pay 8.25 percent.Undergraduate borrowers with a total adjusted gross family income of more than $80,000 per year pay 8.25 percent, while graduate borrowers with a family income of less than $55,000 pay 8.25 percent.Graduate borrowers whose family income exceeds $55,000 per year are charged a 9 percent interest rate.Graduate borrowers whose family income exceeds $55,000 per year are charged a 9 percent interest rate.When the borrower’s family income is between $45,000 and $55,000 annually, the interest rates for undergraduates and graduates combined range from 5.75 to 6.25 percent. Borrowers with a family income of less than $45,000 pay an average interest rate of 4.5 percent.Borrowers with a family income of less than $45,000 pay an average interest rate of 4.5 percent.Any additional fees associated with the loan, including origination, application processing, collection, and servicing costs, are added to the loan.

Maine Education Loan AdministrationMaine Education Loan Administration

The MaineThe Maine Education Loan Authority (MELA) was created in 1989  under the Maine Constitution. Its purpose is to provide low-interest loans to eligible students attending postsecondary educational institutions in Maine. MELA may issue loans only to Maine residents who meet certain criteria.

Eligibility requirementsrequirements

To be eligible for student loan assistance from MELA, you need to demonstrate financial hardship by meeting one of these requirements:

You have exhausted all federal aid options..

Your family’sfamily’s income is less than $50,000 per year;

You cannot afford to pay for out-of-state tuition at a private or public college..

You attended a Maine high school for four years and plan to attend an accredited college or university in Maine upon graduation..

You are enrolled full time in an approved program at an accredited postsecondary institution.

Borrowing Limits

MELA limits the amount of money students can borrow each semester based on their class load and whether they are taking online courses.

First-YearFirst-Year Students Taking Three Credit Hours Per SessionSession

Students in their second and third years taking four credit hours per semesterStudents in their second and third years taking four credit hours per semester

Students in their fourth and fifth years taking five credit hours per semesterStudents in their fourth and fifth years taking five credit hours per semester

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