PORTLAND – The Maine Educational Loan Authority has announced several program enhancements to The Maine Loan effective June 1, 2004, making it one of the lowest-cost alternative student-loan options for Maine families.

While maintaining The Maine Loan’s historically low interest rate, The Maine Loan enhancements will allow for instant preapproval, a fast and easy application process, higher approval rate, incentive interest savings, and lower fees for most borrowers.

The online application process with electronic signature, available June 1, will make it one of the easiest alternative education loans to apply for, and one of the most streamlined processes for colleges.

The Maine Loan is available to both Maine students and out-of-state students attending Maine colleges and universities.

MELA’s interest rates are fixed annually so they cannot be increased by sudden changes in the prime rate. Along with its low variable interest rate (currently 3.99 percent), The Maine Loan offers the option to defer both principal and interest while in school, a wide range of flexible repayments terms, and no aggregate borrowing limit.

Established by Maine legislation in 1988, MELA’s mission is to assist Maine students and their families in achieving their higher-education goals by providing an alternative student loan program.

MELA’s student loan programs exist to bridge the gap between the full cost of a higher education and traditional financial aid resources. For more information, call toll-free (800) 922-6352, or to apply online, visit www.mela.net.