Aid Basics

Costs at Machias

Far too often, students do not pursue a college education because they do not know how to pay for it. The University of Maine at Machias is committed to helping you understand your educational expenses and assisting students and families in creating a plan for your financial aid, work earnings, and other income that will go toward these costs

2020-2021 Academic Year Costs * 

 

	Maine/Canadian Student ($245/credit)	Out-of-State Student/ International ($490/cred)	New England Regional Program*** ($392/credit)
Tuition*	$7,350	$14,700	$11,760
Fees*	$902	$902	$902
Room & Board**	$9,588	$9,588	$9,588
Academic Year Total	$17,840	$25,190	$22,250

*Tuition and fees costs based on 15 credits per semester for the Fall and Spring
** Room and Board based on standard double room and 19-meals per week meal plan
***New England Regional Program (NEBHE) eligble programs.

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Eligibility Requirements

In general, to receive aid from the Federal Student Aid Programs, a student must meet the following requirements:

• Be a U.S. citizen or eligible noncitizen;
• Have a valid Social Security Number (your name must be the same as on your Social Security card);
• Have a high school diploma or a General Educational Development (GED) certificate;
• Enroll in an eligible program as a regular student seeking a degree or certificate at the University of Maine at Machias;
• Be registered with Selective Service if required (in general, if you are a male age 18 through 25);
• Meet satisfactory academic progress toward a degree;
• Not be in default on a federal loan or owe money on a federal grant;

And, only if you have previously received federal student aid:

• Certify that you were not convicted for a drug offense that occurred while you were enrolled in school and receiving federal student aid.

Students who meet the above criteria are encouraged to apply for financial aid using the FAFSA.

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Completing the FAFSA

The only application needed to apply for financial aid at the University of Maine at Machias is the Free Application for Federal Student Aid (FAFSA).  Review the timeline below for important dates and information to be aware of when completing the FAFSA.

Additional Documentation

After completing the FAFSA, students and/or parents may be required to submit additional documentation.  This process, known as verification, is to ensure accuracy of the data that was put on the FAFSA. Information that could be requested includes, but is not limited to:

• IRS Data Retrieval
• Official Tax Returns (from student and/or parent)
• Dependent or Independent Verification Forms

Requests information will be done through the MaineStreet To Do List and will include additional information and links to any forms that must be completed.

Additional information must be submitted before any financial aid can be awarded/and or disbursed to the student account.

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Loan Requirements

Loan Agreement/Master Promissory Note (MPN)

The Loan Agreement/Master Promissory Note (MPN) is a legal document in which you promise to repay your loans(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s); for example, it will include information on how interest is calculated, when interest is charged, available repayment plans, and deferment and cancellation provisions.

To complete an Loan Agreement/MPN online you will need your FSA ID. You can complete your Direct Loan Agreement/Master Promissory Note at studentloans.gov.

Entrance/Exit Counseling

Entrance Counseling Students who are first time borrowers of subsidized or unsubsidized Federal Direct loans must receive entrance counseling at or before the date the school can release the first loan disbursement. Entrance counseling helps ensure that the borrower understands the terms and conditions of the loan as well as his or her rights and responsibilities, before receiving the loan proceeds.

During Entrance Counseling, you will learn about the following:

• What a loan is and the loan process works
• Managing your education expenses
• Other financial resources to consider to help pay for your education
• Your rights and responsibilities

To complete Entrance Counseling online you will need your FSA ID. You can complete your Direct Loan Entrance Counseling at studentloans.gov.

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Financial Literacy

The University of Maine at Machias is committed to providing financial literacy and money management tools and resources to our students.

Contact our office for more information on our Financial Literacy programming and resources!

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Special Circumstances

Please contact our office if you believe you have special circumstances that need to be brought to our attention, such as:

• changes in an independent student’s or dependent parent’s employment
• loss of a benefit or other type of income
• changes in marital status
• payment of large unreimbursed medical expenses
• or unexpected costs

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Types of Aid

Grants

Federal Pell Grant

A federal grant that is based on the information from the FAFSA.  The amount of your Federal Pell Grant depends on your EFC and enrollment status.  There is a maximum lifetime limit of 12 semesters or its equivalent for the Pell Grant.

Federal Supplemental Educational Opportunity Grants

Awarded to students who demonstrate exceptional need, generally as a companion award to the Pell Grant.  Amounts vary according to funding available, student need, and enrollment status.

State of Maine Grant

Institutional Grants

Financial support may be available through University of Maine at Machias institutional grants to help you with college costs. All you need to do is complete the Free Application for Federal Student Aid (FAFSA) and you will automatically be evaluated for eligibility for UMM Grants. A timely FAFSA application maximizes your financing options and March 1 is UMM’s priority funding deadline.

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Federal Work-Study

The Federal Work-Study Program provides students with the opportunity to work part-time and earn a bi-weekly paycheck.  Funds earned can be used to help pay education expenses. Work-study funds are not applied directly to the student’s bill.

• To qualify, students must file the FAFSA (and answer YES to the Federal Work-Study  question on the FAFSA) and meet certain need-based criteria

• The total amount of work-study awarded is what the student is eligible to earn for the academic year.  Work-study award amounts are listed as part of the financial aid award in MaineStreet.

For more information on Federal Work-Study, available jobs and the procedure for beginning work as well as for general assistance and guidance, please contact our office.

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Loans

There are a variety of loan programs available to help finance your college education. Before applying for any loan, evaluate each loan program carefully to choose the loan program that best suits the needs of you and/or your family paying special attention to repayment terms. Some loans defer repayment until after the student leaves school and some enter repayment immediately.

Federal Direct Loans

Federal Direct Subsidized Loans are need-based loans. The government pays the interest on the loan while the student is enrolled at least half-time and during other authorized periods called deferments. The amount of loan offered is based on academic grade-level.  Students borrowing Federal Direct loans on or after July 1, 2012 but before July 1, 2014 do not receive this subsidy during the 6-month grace period due to sequestration.   Loans disbursing on or after July 1, 2014 will receive the subsidy during the 6-month grace period. Once the grace period has been used, generally interest begins accruing on the principle as soon as the student is no longer enrolled or has dropped below half-time enrollment.

Federal Direct Unsubsidized Loans are available to students in addition to Direct Subsidized Loans and are not need-based. Also, all students are offered $2,000 in Direct Unsubsidized Loans for the academic year. The government does not pay the interest; the student can choose to either pay the interest while in school or have the interest added to the loan principal to be repaid later.

Interest Rates & Fees

The origination fee for a Direct Loan is 1.057% for loans originated on or after October 1, 2020 and before October 1, 2021.

The interest rates for Direct Loans with a first disbursement date on or after July 1, 2020 and before July 1, 2021 are:

• 2.75% on Subsidized & Unsubsidized Undergraduate Direct Loans
• 4.30% on Unsubsidized Graduate Direct Loan

PLUS Loans with a first disbursement date on or after July 1, 2020 and before July 1, 2021 will have an interest rate of 5.30%.

PLUS Loans with a first disbursement date on or after July 1, 2019 and before July 1, 2020 will have an interest rate of 7.08%.

The origination fee for a Federal Direct PLUS Loan is 4.236% on or after October 1, 2019 and before October 1, 2020.

 

Alternative Loans

Private organizations provide alternative educational loans to students as either a supplement to other types of educational loans or to provide an additional source of loan funds. Most are credit-based loans, and some will require periodic payments of principal and interest once disbursed. Interest rates vary, and a separate application is usually sent directly to the lender which is then forwarded to our office for certification of the student’s status.

Parent Loans

Federal Direct PLUS Loans are fixed-rate loans provided by the Department of Education to graduate students and parents of dependent undergraduate students. The lender must perform a minimal check of the borrower’s credit history. There is a 10-year repayment schedule and deferment options are available. For graduate students, payments are automatically deferred while in school.  All Undergraduate and Graduate students MUST file a FAFSA in order for their eligibility to be determined.

How to Apply

Parent Borrowers:

1. Go to https://studentaid.gov and log in using the parent’s name, SSN, Date of Birth, and FSA ID.
2. Choose option Request a PLUS Loan (the Request a PLUS Loan process will determine whether you are approved or denied)
3. If you are approved, you must choose the option Complete Master Promissory Note (new borrowers and borrowers who use an endorser need to complete the MPN)

Entrance Counseling

Entrance counseling is required ONLY for the Grad-PLUS Loan. Parents of undergraduate dependent students do not need to complete entrance counseling.

• Complete on-line Direct PLUS Entrance Counseling (to be completed the first time you borrow)

Federal Direct PLUS Loan – Endorser Process

If denied for the Federal Direct Parent PLUS Loan or Graduate PLUS Loan, a borrower can obtain an endorser for the Federal Direct PLUS Loan. An endorser is someone who agrees to endorse a PLUS Loan, similar to a co-signer, and will repay the PLUS Loan if the borrower is unable to do so. The student cannot serve as an endorser for their parent for a Federal Direct Parent PLUS Loan. Upon credit denial, an application ID number will be provided to the borrower (parent or graduate student). The endorser will need the PLUS Application ID number of the borrower’s credit denial in order to endorse the PLUS Loan.

Endorser Process

1. The endorser must obtain the application ID number of the borrower’s credit denial.
2. The endorser needs to create a Federal Student Aid ID (username and password) at www.studentaid.gov
3. The endorser signs into www.studentaid.gov and selects, “Endorse a PLUS Loan” under “Apply for Aid” to complete the process or click here.

Borrower Process

1. The borrower (NOT THE ENDORSER) will need to complete a PLUS Master Promissory Note.  Though MPNs allow for multiple year borrowing under the same terms, when an endorser is used, the MPN is used for that loan only.  Therefore, a borrower who has previously received a PLUS Loan with or without an endorser will need to complete a new PLUS MPN for this endorsed loan.

When the borrower is initially denied and then approved with an endorser, the borrower must complete the PLUS Counseling before the PLUS Loan can be disbursed.  This counseling is a review of loan and repayment obligations, and is available at www.studentaid.gov

Parent PLUS Loan Denial

(for parents of undergraduate dependent students)

If a parent is denied a Parent Direct PLUS Loan, the student may be eligible for an additional Unsubsidized Direct Loan up to $4,000 as a freshman and sophomore, and $5,000 as a junior and senior.  Additional Unsubsidized Direct Loan eligibility will be posted to the student’s award letter when we get confirmation of the denial

Interest Rates & Fees

PLUS Loans with a first disbursement date on or after July 1, 2020 and before July 1, 2021 will have an interest rate of 5.30%.

PLUS Loans with a first disbursement date on or after July 1, 2019 and before July 1, 2020 will have an interest rate of 7.08%.

The origination fee for a Federal Direct PLUS Loan is 4.236% on or after October 1, 2019 and before October 1, 2020.