HOME search
NM School Portal ONE CLICKS Money for College Borrowers About Us
 

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).

Federal Stafford Loan Limits
Effective for loans first disbursed on or after July 1, 2008

Academic Year

Dependent Students
whose parents are eligible
for a PLUS loan

Independent Students and
Dependent Students
whose parents
cannot borrow a PLUS loan
 

Subsidized
Loan Amount

Unsubsidized Loan
Amount Effective
July 1, 2008

   Total

Subsidized Loan Amount

Unsubsidized Loan   Amount Effective   July 1, 2008

Total

First Year

$3,500

$2,000

$5,500

$3,500

$6,000

$9,500

Second Year

$4,500

$2,000

$6,500

$4,500

$6,000

$10,500

Third & Remaining Years

$5,500

$2,000

$7,500

$5,500

$7,000

$12,500

Graduate/Professional

----

----

---

$8,500

----

$20,500

             
Aggregate Limits            
Dependent Undergraduate

----

----

$31,000

----

----

----

Independent Undergraduate

----

----

----

----

----

$57,500

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.


 

Additional Loan Programs

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

 
P.O. Box 27020 Albuquerque, NM 87125 | 505-345-3371 | 800-279-5063 | Contact Us