Borrower Benefits

Financial Aid staff frequently get questions from students about selecting a lender for the Federal Stafford Loan Program. We have created this lender list to help students understand how some lenders might offer different incentives to their borrowers. All Federal Stafford Loans have the same interest rates and fees, but some lenders offer discounts that can reduce the cost of the loan. These incentives include interest rate reductions, full or partial origination fee rebates, and principal balance reductions. They reward the student for using automatic direct debit of monthly payments and/or for making on-time monthly payments. Student Financial Aid administration wants to make it clear that you are not required to select only lenders from this list. Borrowers are free to request any lender that participates in the Federal Stafford Loan Program. In developing this list, the Student Financial Aid staff requested information from numerous lenders and selected the following as examples of lenders with varying loan benefits. Student Financial Aid staff are not receiving financial or other benefits from any of these lenders for their placement on this list.

1. Please fill out your required online loan entrance counseling at www.mapping-your-future.org.
2. If you do not have a lender in mind, you may review the list of lenders below and select one that you feel will most appropriately suit your needs.
3. Once you have chosen your lender, please let our office know by filling out a loan request form.
4. Once your request form has been submitted, you will need to visit the website of the lender you have chosen and there you will find instructions how to complete the Master Promissory Note (MPN) for your loan.

If you plan to use a lender not listed below, please complete a loan request form which you may print off line or fill one out in the Student Financial Aid Office. Please indicate the lender on the form and submit it to the Student Financial Aid Office.

Mesa Vista Hall North
MSC06 3610
1 University of New Mexico
Albuquerque , NM 87131 – 0001
FAX: 505-277-6326

Bank of America

Loans

1.      Loans are not sold.

2.      Bank of America pays the origination fee on behalf of the borrower.

3.      Bank of America pays the default fee on behalf of the borrower when the guarantor does not offer this benefit.

Federal Stafford Loans

1.      0.25% interest rate reduction when auto debit.

2.      1% outstanding principal reduction after the first, second and third 12 months of on-time, consecutive payments.

3.      Missing a payment during one of the 12 month periods will not disqualify a borrower from receiving future benefits.

4.      Payments up to 15 days late are still considered on-time.

5.      0 .25% interest rate reduction to any Bank of America deposit account customer whose loan is serviced on a Bank of America Preferred Servicing Platform.

6.      Up to 3.00% in outstanding principal reductions (1.00% after the first, second and third 12 months of on-time, consecutive payments).

PLUS Loans

1.      0.25% interest rate reduction when auto debit.

2.      Up to 3.00% in outstanding principal reductions (1.00% after the first, second and third 12 months of on-time, consecutive payments)

3.      Missing a payment during one of the 12 month periods will not disqualify a borrower from receiving future benefits.

4.      Payments up to 15 days late are still considered on-time.

  Grad PLUS Loans

1.      Payments up to 15 days late are considered on-time.

2.      1.50% interest rate reduction with auto debit. payments are made.

3.      Students have automatic deferment when enrolled at least half-time.

You may access this lender’s online master promissory note by logging on to their website at
Bank of America Student Loans.

Citibank:

Federal Stafford, Grad PLUS and PLUS Loans

1.      0.25% interest rate reduction when a borrower signs up for our
auto-debit payment program and agrees to only receive statements
electronically.

2.      0.50% automatic interest rate reduction at repayment for all borrowers.

3.      Unlimited benefit recovery. The 0.50% interest rate reduction is reinstated when a delinquent borrower makes 24 consecutive on-time monthly payments.

4.      Federal Default Fees ranging from 0% to 1% depending on the guarantor. TG will continue to subsidize the 1.0% default fee through June 30, 2009.

You may access this lender’s online master promissory note by logging on to their website at www.studentloan.com.

New Mexico Student Loans (NMSL):

Federal Stafford Loans

1.      0.25% interest rate reduction with automatic payments from checking or savings account.

2.      5.00% principal reduction after 48 on-time monthly payments.

3.      0.00% interest loans for teachers, doctors and nurses who work fulltime in New Mexico.

4.      UNM Law School Students - NMSL will reduce the outstanding principal balance by 4.50% after 33 on-time monthly payments.

5.      NMSL pays the origination fee and guarantee/default fee on behalf of the borrower for all Stafford loans.

Grad PLUS Loans

1.      NMSL pays the guarantee/default fee on behalf of all PLUS borrowers.

2.      NMSL rebates the origination fee for all PLUS Loan borrowers.

3.      PLUS and Grad-PLUS Loans are limited to covering the cost of attendance minus other financial aid.

4.      NMSL pays the 1% default fee for all PLUS borrowers and rebates the 3% origination fee to the principal balance.

5.      Borrowers receive Pot of Gold 5% principal reduction after 48 monthly on-time payments.

PLUS Loans

1.      NMSL pays the guarantee/default fee on behalf of all PLUS borrowers.

2.      NMSL rebates the origination fee for all PLUS Loan borrowers.

You may access this lender’s online master promissory note by logging on to their website at www.nmstudentloans.org/.

Sallie Mae Educational Trust:

Federal Stafford Loans

1.      0.50% interest rate reduction after first on-time payment with benefit reinstatement opportunity.

2.      0.50% interest rate reduction for automatic debit.

3.      0.00% loan origination fee.

4.      0.00% default fee for Stafford Loans guaranteed by USA Funds 7/1/07-6/30/08.

5.      Upromise Loan LinkSM to help pay down student loan balance.

Grad PLUS Loan

1.      0.50% interest rate reduction for automatic debit.

2.      0.25% interest rate reduction at disbursement.

3.      1.00% loan credit after first 12 on-time payments

4.      1.00% interest rate reduction after first on-time payment with benefit reinstatement opportunity.

5.      3.00% GradPLUS origination fee paid by the borrower and will be deducted from the loan proceeds.

6.      0.00% default fee for GradPLUS Loans guaranteed by USA Funds 7/1/07-6/30/08.

PLUS Loan

1.      3.00% Parent PLUS Loan origination fee paid by the borrower and will be deducted from the loan proceeds.

2.      1.00% Parent PLUS Loan federal default fee paid by the borrower and will be deducted from the loan proceeds.

3.      0.50% interest rate reduction - with benefit reinstatement opportunity - after first on-time payment.

4.      0.75% interest rate reduction for automatic debit.

5.      3.00% GradPLUS origination fee paid by the borrower and will be deducted from the loan proceeds.

6.      Upromise Loan Link to help pay down student loan balance.

You may access this lender’s online master promissory note by logging on to their website at www.salliemae.com/unmapply.
Additional qualification requirements apply for each benefit listed above. Visit www.salliemae.com to learn how to earn these benefits.

Wells Fargo :

Federal Stafford Loans

1.      0% origination fee.

2.      0% Federal Default Fee.

PLUS Loans

1.      0% Federal Default Fee.

Grad PLUS

1.      0% origination fee.

2.      0% Federal Default Fee.

You may access this lender’s online master promissory note by logging on to their website at wfefs.wellsfargo.com/jump/nm/unm.html

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