Private student loans are different than Federal Direct PLUS Loans for parents, graduates and professional students. For private loans, usually, the student is the borrower and will need a creditworthy co-signer such as a parent. Federal Direct PLUS Loans are in the parent’s name(s) or the graduate/professional student’s name.
Use this comparison chart to compare your own student loan options.
|Program||Origination or loan fee||Fixed rate||Variable rate||Repayment options||Term||Customer service||Loyalty discounts||Automatic payment discounts||Loan Resale||Application fee||Disbursement fee||Prepayment penalty|
|Lenders in the Maine Private Education Network||Various, 0 – 4%||No||All, based on FICO score||Immediate
|Up to 15 years||Originated by local Maine-lender||No||Yes, some lenders||No||No||No||No|
2.79% Fixed Immediate Repayment
3.79% Fixed Interest Only Payments during school
4.79% Fixed Full Deferment during school
|10 year for Immediate 15 year for other repayment options||Finance Authority of Maine (FAME)||No||Yes*||No||No||No||No|
|Federal Direct (Parent/ Grad) PLUS||4.228%
5.30% Fixed (7/1/20- 06/30/21)
(this is updated on July 1, each year)
|10 year –
Standard Repayment Plan
|Federal Loan service provider||No||No||No||No||No||No|
*An interest rate reduction of 0.25% is available to borrowers. To qualify, borrowers need to arrange with the loan servicer to have their payments automatically withdrawn from a checking or savings account. This interest rate reduction will remain on the account unless the loans are in a status which does not require payments, or automatic deduction is revoked by the borrower or suspended by the loan servicer according to the insufficient funds policy in effect when the agreement is signed. Upon request, FAME will provide a projection of the percentage of borrowers who are likely to benefit from this interest rate reduction.