Loan Repayment Plans

When it comes to repaying your federal student loans, you can choose from several repayment options to help make sure you can make monthly payment on time and focus on long-term repayment needs. You can change your federal student loan repayment schedule at any time. Some of the plans take into consideration your income, amount of debt, family size and can be forgiven after 25 years of qualifying payments are made. We are here to help you find the best way to manage your monthly loan payments.

Learn more about your federal student loan repayment options:

This is the plan you will automatically be enrolled under unless you apply for a different plan. Under the Standard Repayment Plan, payments of principal and interest are divided into equal monthly installments throughout the repayment period.

Is this plan for me? Everyone is automatically enrolled in this plan unless you apply for an alternative repayment option

Benefits: Lease expensive total loan repayment option.

Disadvantages: Monthly payments might be higher than other options.

Timeframe: Up to 10 years (or up to 30 years for Consolidated Loans)

No need to apply since you automatically start on this plan.

The Graduated Repayment Plan allows borrowers to make smaller payments at the beginning of the repayment term, which gradually increase over time. This allows for your payments to increase as your earnings increase after graduating.

Is this plan for me? If you need lower monthly payments after graduating but expect you will start earning more later this is a good plan to consider. Check the Repayment Estimator 

Benefits: Lower monthly payments at first and then they increase every 2 years.

Disadvantages: Over the entire time period of this plan the payments will eventually become much greater than standard repayment plan, plus you will end up paying more interest on this plan.

Timeframe: Up to 10 years (or up to 30 years for Consolidated Loans)

How to Apply

  • Complete, print and sign the Alternative Repayment Request (PDF) form.
  • Send the completed form to the following address or fax.
  • New Mexico Student Loans
    P.O. Box 27020
    Albuquerque, NM 87125-7020
  • Fax: (505) 345-7269 or (505) 341-9361

If you are a new borrower after October 7, 1998 and have accumulated more than $30,000 in student loan debt, the repayment period may be extended up to 25 years. The extended plan may be used along with the standard or graduated plans.

Is this plan for me? If you have a larger student loan debt (more than $30,0000) and need lower monthly payments and more time this plan might work. Check the Repayment Estimator 

Benefits: Pay less each month and have a longer time to repay the total loan.

Disadvantages: This is a more expensive option as you will end up repaying more interest over the longer timeframe.

Timeframe: Repayment period extended up to 25 years.

How to Apply

  • Complete, print and sign the Alternative Repayment Request (PDF) form.
  • Send the completed form to the following address or fax.
  • New Mexico Student Loans
    P.O. Box 27020
    Albuquerque, NM 87125-7020
  • Fax: (505) 345-7269 or (505) 341-9361

Under this plan, payments are based on the borrower's documented monthly income. The maximum repayment period is 10 years. Income sensitive schedules are valid for 12 months at a time and can be utilized five times during the life of the loan. Yearly, borrowers must certify their income to qualify for a continued 12 months of income sensitive payments.

Is this plan for me? If you need lower monthly payments based on how much money you are making this is an option. Check the Repayment Estimator 

Benefits: Pay less each month and have a longer time to repay the total loan.

Disadvantages: This is a more expensive option as you will end up repaying more interest.

Timeframe: Repayment period is extended up to 15 years.

How to Apply

  • Complete, print and sign the Alternative Repayment Request (PDF) form.
  • Send the completed form to the following address or fax.
  • New Mexico Student Loans
    P.O. Box 27020
    Albuquerque, NM 87125-7020
  • Fax: (505) 345-7269 or (505) 341-9361

These plans are designed to keep your payments affordable based on how much money you make. Income driven repayment plans are based on your earnings and family size and are evaluated and adjusted every year. You must certify your income each year to continue to qualify for these plans.

The different type of Income-Driven Repayment plans are:

  • Income-Based Repayment Plan (IBR)
  • Income Contingent Repayment Plan (ICR)
  • Pay As You Earn Repayment Plan (PAYE)
  • Revised Pay As You Earn Repayment Plan (REPAYE)

Is this plan for me? If you need to reduce your monthly payments and meet the qualifications. Check the Repayment Estimator 

Benefits: Affordable monthly payments are based on how much money your household earns.

Disadvantages: These plans may not cover the interest on your loan and you may end up paying more interest over the life of the loan. Also, you might have to pay income tax on any loan amount that is forgiven.

Timeframe: These plans vary in timeframe and after 25 years of making qualifying payments, you might be eligible for loan forgiveness on the remaining balance. If your income increases and you no longer qualify for this plan or you don’t re-certify annually then your monthly payment will increase to pay off the balance in 10 years.

How to Apply

  • Complete, print and sign the Alternative Repayment Request (PDF) form.
  • Send the completed form to the following address or fax.
  • New Mexico Student Loans
    P.O. Box 27020
    Albuquerque, NM 87125-7020
  • Fax: (505) 345-7269 or (505) 341-9361

If you’d like to learn about repayment options for your NMEAF Private Student Loans, please call us:


Toll Free: 1-800-279-5063
Local: 505-345-3371
TDD:TTY for Hearing Impaired: 505-761-2180
8am - 5pm Monday - Friday (MT)