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Stafford Loans:
The Number One Students' Choice for College
A Federal Stafford loan is a variable-interest loan
that allows you to borrow money from eligible private
lenders.
- The
interest rate on new undergraduate subsidized Stafford Loans
first disbursed
between July 1, 2009 and June 30, 2010 is
5.6% fixed for the life
of the loan.
- The
interest rate on new undergraduate and
graduate unsubsidized and graduate subsidized Stafford Loans
first disbursed
between July 1, 2009 - June 30, 2010 is 6.8% fixed for the life
of the loan.
Benefits for Stafford
Subsidized/Unsubsidized, PLUS and Grad-PLUS Loans
These benefits will be offered to borrowers on loans
first disbursed on/after 7/1/09 to New Mexico residents
and non-residents attending New Mexico postsecondary
institutions:
●
1% default fee
will be paid by New Mexico Student Loan Guarantee
Corporation
● 0.25% interest rate reduction for
electronic payment
- Stafford
Loans have a 1% default fee and a 0.50% origination
fee.
- Not based on credit.
- Repayment begins 6 months after
graduating, leaving school, or dropping below half-time
status
- Up to 10 years to repay.
- Flexible repayment options available.
- $50.00 minimum payment per month.
There are two types of Stafford loans: Subsidized and
Unsubsidized.
A Subsidized Stafford loan is available to undergraduate
and graduate students who demonstrate financial need.
Subsidized means the interest is paid for you by the
federal government while you are in school, during a
grace period or during a deferment.
An Unsubsidized Stafford loan is available to undergraduate
and graduate students who do not qualify for other financial
aid or for students who qualify for partial financial
aid, but require additional funds. You are responsible
for paying the interest monthly, quarterly, or it will
be capitalized (added to the total loan amount).
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Federal Stafford Loan Limits
Effective for loans first disbursed on or after July 1, 2008
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Academic Year |
Dependent Students
whose parents are eligible
for a PLUS loan |
Independent Students and
Dependent Students
whose parents
cannot borrow a PLUS loan |
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Subsidized
Loan Amount |
Unsubsidized Loan
Amount Effective
July 1, 2008 |
Total |
Subsidized Loan Amount |
Unsubsidized Loan Amount Effective July 1, 2008 |
Total |
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First Year |
$3,500 |
$2,000 |
$5,500 |
$3,500 |
$6,000 |
$9,500 |
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Second Year |
$4,500 |
$2,000 |
$6,500 |
$4,500 |
$6,000 |
$10,500 |
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Third & Remaining Years |
$5,500 |
$2,000 |
$7,500 |
$5,500 |
$7,000 |
$12,500 |
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Graduate/Professional |
---- |
---- |
--- |
$8,500 |
---- |
$20,500 |
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Aggregate Limits |
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Dependent Undergraduate |
---- |
---- |
$31,000 |
---- |
---- |
---- |
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Independent Undergraduate |
---- |
---- |
---- |
---- |
---- |
$57,500 |
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Graduate/Professional |
---- |
---- |
---- |
$65,500 |
---- |
$138,500 |
Students taking coursework for
state teaching accreditation have $7,000 annual loan
limit.
Annual PLUS (parent loans for undergraduate students)
Loan Limits
The total PLUS Loan amount borrowed
by one or more parents (including non-custodial parent)
may not exceed the student’s estimated cost of
attendance minus other financial aid awarded for the
period of enrollment.
Annual PLUS Loan Limits for Graduate Students
Graduate and
professional degree students are now eligible to borrow
PLUS loans. The amount borrowed may not exceed
the student’s estimated cost of attendance minus other
financial aid awarded for the period of enrollment.
They also must have
applied for their annual loan maximum eligibility under
the Federal Subsidized and Unsubsidized Stafford Loan
Program before applying for a Graduate/Professional PLUS
loan.
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Additional Loan Programs
New Mexico
Student Loans reserves the right to modify or
discontinue programs/benefits at any time. Some
restrictions may apply.
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