Education Loan Programs

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A New Mexico Student Loan is a fixed-rate supplemental education loan for graduate and undergraduate students enrolled at least half-time. The New Mexico Educational Assistance Foundation encourages prospective customers to exhaust their federal financial aid, scholarship and grant options before applying for a private student loan.

Loan Eligibility
Credit Approval
Key Terms & Benefits
Loan Amounts
Repayment Options & Interest Rates
Important Information for Co-Borrowers


Loan Eligibility

You are eligible to apply for a New Mexico Student Loan if:

  • You are a U.S. Citizen; and
  • You are enrolled at least half-time at your college or university; and
  • You are a New Mexico resident attending a college or university in New Mexico or attending a college or university located in any other state in the U.S.;

    or
     
  • You are a resident of another state attending a college or university located in New Mexico.


Credit Approval

You must meet credit score, annual income, and debt-to-income requirements to be approved for a New Mexico Student Loan. Most borrowers must have a co-borrower such as a spouse, parent, grandparent, or other credit-worthy person. A co-borrower is equally responsible with you for repaying the loan.


Key Terms & Benefits

  • No Origination Fees
  • No Prepayment Penalties
  • Fixed interest Rates
  • Choice of 3 repayment options
  • Loan Serviced in New Mexico
  • Interest rate reductions for graduation and on-time payment
  • Co-Borrower released after 24 on-time payments and contemporary borrower credit qualification
  • Co-Borrower released if student borrower dies
  • Ability to request temporary postponement of payments during periods of economic hardship


Loan Amounts

Your school will be required to certify the amount of the loan you are eligible to receive. The school will calculate your eligibility by deducting the amount of all other aid you will receive from the annual cost of attendance (a number based on several factors determined by your enrollment and your school). The result of this calculation is the loan amount you are eligible to receive from New Mexico Student Loans. Even if you request a larger loan amount, New Mexico Student Loans can only approve a loan up to the amount certified by your school.

Annual maximum loan amount: $20,000
Annual minimum loan amount: $ 2,000
Aggregate loan maximum amount: $100,000


Repayment Options & Interest Rates

Choose one of the following repayment options.

CHOOSE VERY CAREFULLY BECAUSE YOU CANNOT CHANGE TO A DIFFERENT PLAN AFTER YOUR LOAN IS DISBURSED! ALSO, PLEASE NOTE YOUR SELECTION WILL AFFECT THE REPAYMENT OBLIGATIONS OF YOUR CO-BORROWER.

  • Immediate repayment of principal and interest while the student is enrolled. The first monthly payment is due approximately 45 days after the final disbursement of the loan to the school. This is the LEAST EXPENSIVE option over the life of the loan.

        Current Interest Rate: 5.48%
     
  • Interest-only payments while the student is enrolled at least half time. The first monthly payment of interest is due approximately 45 days after the final disbursement of the loan to the school.

        Current Interest Rate: 6.23%
     
  • Defer repayment of interest and principal while the student is enrolled at least half time. The first monthly payment of principal and interest is due approximately 45 days after the student graduates, leaves school without completing a degree, or drops below half-time enrollment. This is the MOST EXPENSIVE option over the life of the loan.

        Current Interest Rate: 6.98%
     


Important Information for Co-Borrowers

A Co-Borrower:

  • Must be a U.S. Citizen.
  • Must pass a credit check consisting of a credit score requirement, annual income requirement, and debt-to-income calculation.
  • Will receive the same monthly billing statements and other information and communications that the student borrower receives.
  • Will be expected to make monthly payments, including all applicable late fees or other costs, if the borrower fails to pay.
  • Will have the credit history of the loan reported to all major, national credit bureaus just the same as the student borrower.
  • Will be released from further obligation upon the death of the student borrower.
  • Can be released from further obligation after the on-time payment of 24 monthly payments, subject to the student borrower passing a credit check at the time the co-borrower requests the release.

 

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