There are now two types of PLUS Loans – Parent Loans for Undergraduate Students (the original PLUS Loan) and Grad-PLUS Loans for Graduate Students, which first became available July 1, 2006.

• The interest rate on new PLUS and Grad-PLUS Loans disbursed July 1, 2006-June 30, 2009 is 8.5% fixed for the life of the loan.
• PLUS and Grad-PLUS Loans have a 3% origination fee and 1% default fee. NMSL pays the 1% default fee on behalf on its borrowers.
• Repayment of each Grad-PLUS Loan begins 60 days after its last disbursement. Graduate students may receive an in-school deferment and pay interest only or allow the interest to capitalize.
• For PLUS loans, disbursed on/after July 1, 2008, a borrower can request another repayment option that will allow payments to be deferred until six months after the date the student ceases to be enrolled at least half time. Accruing interest could either be paid by the parent borrower monthly or quarterly, or be capitalized quarterly.

PLUS & Grad-PLUS Loan Amounts

• The loans are limited to covering the difference between the student’s cost of attendance (each term) minus any other financial aid he or she receives.
• Borrowers have no annual or lifetime caps on loan amounts.

Loan Eligibility

• The loans are available only to parents of college undergraduate students and directly to graduate/professional students.
• To qualify, the student must be enrolled at least half-time in an eligible school and eligible program of study.
• Eligibility does not depend on a parent’s or student’s income or assets.
• There are no collateral requirements.
• Loan borrowers must have reasonably good credit or an acceptable cosigner.

Repayment

• There is a $50 per month minimum payment.
• Flexible repayment options are available.
• Borrowers may take up to 10 years to repay PLUS and Grad-PLUS Loans, excluding eligible deferment periods.

NMSL Cost-Saving Programs

Borrowers whose loans are sold or pledged as collateral to the Department of Education will qualify only for the following benefits:

     ●  0% default fee
     ●  0.25% interest rate reduction for electronic payment

However, if New Mexico Student Loans holds the loans impacted by this notice at the time any borrower benefits are earned, the following money-saving borrower benefits will apply to those loans:

    ● 0% default fee to student
    ● 0.25% interest rate reduction for electronic payment
    ● 5% principal reduction after 48 monthly on-time payments
    ● 0% interest on Grad-PLUS loans during repayment for public school teachers,
        MDs and nurses who work fulltime in New Mexico after graduation. 

For information on other NMSL loan programs, go to Loan Programs.

New Mexico Student Loans reserves the right to modify or discontinue programs/benefits at any time. Some restrictions may apply.