Private Education Loan Application and Solicitation Disclosure

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Loan Interest Rate & Fees Finance Authority of Maine (FAME)
PO Box 949
Augusta, ME 04332-0949

Your interest rate will be between


After the rate is set, your rate will be fixed.

Your Starting Interest Rate (upon approval)
The interest rate you pay is fixed and will range from 6.240% and 7.990%. The rate will be based on the repayment option that you select.

Your Interest Rate during the life of the loan
Your rate is fixed. This means that your rate will remain constant throughout the life of the loan. For more information on this rate, see the reference notes.

The interest rate is fixed. The maximum interest rate is determined by your repayment option choice and will remain constant.

Loan Fees
Late Charge: $10.00 or 5% of the amount that is late, whichever is less
Returned Payment Charge: $5.00

Loan Cost Examples
The total amount you will pay for this loan will vary depending upon when you start
to repay it. This example provides estimates based upon three (3) repayment
options available to you while enrolled in school.

Repayment Option
(while enrolled in school)
Amount Provided
(amount provided directly to you or your school)
Interest Rate
(highest possible starting rate)
Loan Term
(how long you have to pay off the loan)
Total Paid over 10/15 Years
(includes associated fees)
Make no payments while enrolled in school. Interest will accrue and unpaid accrued interest will be added to your principal balance when you enter repayment.
$10,000.00 7.990% 180 months starting after the deferment period $23,452.20
Make interest payments, but defer payments on the principal amount while enrolled in school.
$10,000.00 7.240% 180 months starting after your enrollment period. $19,748.52
Pay both the principal and interest amounts while enrolled in school.
$10,000.00 6.240% 120 months starting after the first disbursement $13,515.60

About this example
These repayment examples assume a fixed interest rate and set repayment term (120 months/180 months) based on the repayment option chosen, a loan amount of $10,000, and assumes that you remain in school for 48 months and have a 6 month grace period before beginning repayment if you did not elect immediate repayment. In the case of immediate repayment, payments of principal and interest begin immediately after first disbursement.


Private Education Loan Application and Solicitation Disclosure

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Federal Loan Alternatives
Loan Program Current Interest Rates by Program Type
for Students
5.500% fixed   Undergraduate Subsidized & Unsubsidized
7.050% fixed   Graduate and Professional Unsubsidized
for Parents and Graduate/ Professional Students
8.050% fixed Federal Direct Loan  
*Interest rates are subject to change each July 1, according to federal regulations.
You may qualify for Federal
education loans.
For additional information, contact your school's financial aid office or the U.S. Department of Education at:
Next Steps

  1. Find Out About Other Loan Options.
    Some schools have school-specific student loan benefits and terms not detailed on this form. Contact your school's financial aid office or visit the Department of Education's website at for more information about other loans.

  2. To Apply for this Loan, Complete the Application and Self-Certification Form.
    You may get the certification form from your school's financial aid office, or complete it online as part of the application process. If you are approved for this loan, the loan terms will be available for 30 days (terms will not change during this period, except as permitted by law).
Fixed Interest Rate
  • This loan has a fixed interest rate for the life of the loan.
  • The interest rate may be higher or lower than your Annual Percentage Rate (APR) because the APR considers certain fees you pay to obtain this loan and the interest rate.
  • Rates are not typically higher without a cosigner

Eligibility Criteria

  • At least one applicant must be a U.S. citizen or permanent resident.
  • Borrower and cosigner must be 18 years of age or the age of majority in your state of permanent residence.
  • Must be a Maine resident attending an approved school in the U.S. or Canada or a New England (New Hampshire, Massachusetts, Connecticut, Rhode Island, or Vermont) resident attending an approved school in Maine.
  • Must be enrolled at least half-time.
  • Requires sound credit history and ability to repay debt.
  • May be necessary for credit approval.

Bankruptcy Limitations
* If you file for bankruptcy you may still be required to pay back this loan.

More information about loan eligibility and repayment deferral or forbearance options is available in your application and promissory note.

Notice for students attending an institute of higher education in Virginia
Private education loans are one tool that students use to finance their education. Your lender and your institution's Financial Aid Office provide assistance with eligibility for the loans. For borrowers who have existing private education loans, Virginia has a Student Loan Advocate to assist borrowers who are struggling with repayment. You can contact the Student Loan Advocate at: State Council of Higher Education for Virginia, James Monroe Building, 10th Floor, 101 N. 14th Street, Richmond, VA 23219;; 804-786-2832. In addition, resources for prospective and current private education loan borrowers are available online at