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Student Financial Aid

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Loans - Changes to Federal Direct Loans

Starting with the 2013-2014 academic year, students who borrow a Federal Direct Subsidized Stafford loan for the  first-time will only be able to borrow up to 150% of the published length of the program of study.  For a 4-year bachelor’s degree program, the maximum period of subsidized loan eligibility is 6 years. For additional  information on the 150% Federal Direct Subsidized Loan Limit

NEW Interest Rates 
Federal Direct Stafford Loans disbursed on or after July 1, 2013 are:

Undergraduate Subsidized and Unsubsidized Loans  3.86%
Graduate Unsubsidized Loans  5.41%
PLUS Loans  6.41%

The interest rates are detemined each June for new loans being made for the upcoming award year. Each loan will have a fixed interest rate for the life of the loan.

Loans disbursed on or after December 1, 2013 a 1.072% origination fee will be deducted proportionately from each Stafford Loan disbursement and a 4.288% origination fee from Plus Loans.


Changes effective July 1, 2012
Students borrowing Federal Direct Subsidized Stafford loans will no longer have a subsidized 6-month grace period.
  Loans processed after this date will still have a 6-month grace period, however interest will immediately begin accruing on the principle as soon as the student is no longer enrolled or has dropped below half-time enrollment.

Graduate Student Loan Borrowers:

Undergraduate and Graduate Student Loan Borrowers:

For more information on Subsidized versus Unsubsidized Loans, visit:

Click here to view the Budget Control Act of 2011. See Title V, Sections 502 and 503 for specific references to the Federal Direct Loan Program.

We also recommend that students monitor their Federal loan history online at:

Click here for more information on your Capitalization of Interest and your Direct Loan interest payment options .


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Contact Information

Student Financial Aid
5781 Wingate Hall
Orono, Maine 04469
Phone: (207) 581-1324 | Fax: (207) 581-3261E-mail:
The University of Maine
Orono, Maine 04469