UNM participates in the PLUS (Parent Loan for Undergraduate Students) program.  PLUS is a credit-based, variable interest rate federal loan.  The interest rate changes every July 1 and is capped at 9%.  There may be up to 4% origination and guarantee fees charged, depending on the loan lender. Repayment begins 60 days after the last disbursement of the PLUS loan.  The minimum payment about is $50, but may be more depending on the amount borrowed.  This is good news for students whose parents are able to borrow to assist them in meeting their educational expenses.  It does, however, change the procedures students must follow if they are requesting unsubsidized loans.

According to federal regulations, dependent students may borrow up to the following amounts (per academic year) for their educational expenses (depending on eligibility):
 

Dependent students who wish to borrow more than the amounts listed above, may do so (depending on eligibility) only if their parents are unable to borrow under the PLUS  program. PLUS loans are credit based.  Under the PLUS program, parents of dependent students may borrow an amount not to exceed the student’s cost of education minus any financial aid received.

If you are a dependent student and you wish to borrow funds in addition to the amounts listed in the chart above, you may not do so unless your parent requests a PLUS loan, and is denied.  In that case, you will be allowed to borrow additional funds not to exceed the amounts listed in the chart below (depending on eligibility):
 

If your parents wish to request a PLUS loan, they may complete the Federal Plus Loan request form - which is available on our forms page located at http://www.unm.edu/~finaid/forms/index.html - and submit it to our office.  You may also complete the Master Promissory Note on-line through the following link:   https://secure.nmeaf.org/unm/

Please contact us if you have any questions or need additional information.


 

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