Zero percent and reduced interest rates available for future educators and nurses

For your convenience, UNM now offers two loan programs:

Both programs offer Stafford Loans. The major difference between the programs is the source of the loan funds. Under the Direct Loan Program, the funds for your loan are lent directly from the U.S. government. Under the FFELP, the funds for your loan are lent to you from a lender, like New Mexico Student Loans, a nonprofit organization.

Another major difference is the type of programs offered to reduce the costs of paying back your loan. New Mexico Student Loans offers a 0% interest rate on Stafford loans through Teachers for Tomorrow and Nurses for New Mexico. As part of the student loan process, you will choose either the Direct Loan Program or the FFELP through New Mexico Student Loans.

Find out more information about:

• Stafford Loans  

• Teachers for Tomorrow

• Nurses for Tomorrow

• How do I choose New Mexico Student Loans

• Stafford Loan Entrance Counseling for New Mexico Student Loans

• Stafford Loan Exit Counseling for New Mexico Student Loans

• UNM Student Loan Guide for Future Educators and Nurses

The Basics about Stafford Loans

To get started, here’s information about Stafford Loans that applies to both Direct and FFELP Programs.

Subsidized Stafford Loans - This loan is awarded based on financial need. The U.S. government pays the interest while you are in school. It is a variable interest rate loan and will not exceed 8.25%. The interest rate changes on July 1 every year.  

Unsubsidized Stafford Loans - This loan is for all eligible students, regardless of income. You are charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accumulate, it will be capitalized. This means the interest is added to the principal amount of the loan and continues to accumulate.

Your loan eligibility is determined by the Financial Aid Office and will not exceed annual loan limits. The maximum amount you may borrow, not to exceed your budget is as follows:

• $6,625 for first-year students enrolled in a program of study that is at least a full academic year in length. Only $2,625 of this amount may be in subsidized loans.
   
• $7,500 for students who have completed their first year of study, and the remainder of the program of study is at least a full academic year in length. Only $3,500 of this amount may be in subsidized loans.
   
• $10,500 a year for students who have completed two years of study, and the remainder of the program of study is at least a full academic year in length. Only $5,500 of this amount may be in subsidized loans.

Grade levels for undergraduate students are determined by their total credits earned, as follows:

• $18,500 a year for graduate or professional students (Law, Medical, last two years of PharmD).  Only $8,500 of this amount may be in subsidized loans.

The total debt students may have outstanding from all Direct or FFELP loans combined is:

• $46,000 as an undergraduate student. Only $23,000 of this amount may be in subsidized loans.
   
• $138,500 as a graduate or professional student. Only $65,500 of this amount may be in subsidized loans.  The graduate debt limit includes all Direct or FFELP Loans received as an undergraduate.

Teachers for Tomorrow

New Mexico Student Loans offers zero percent and 1.25 percent interest rates through Teachers for Tomorrow. Here are the highlights of the programs.

Teachers for Tomorrow for Stafford Loans

• 0% interest is charged when your Stafford loan enters repayment and you teach full-time in New Mexico.
• You may teach any subject full-time or provide direct educational service related to classroom teaching (i.e. librarians, guidance counselors) in New Mexico in a public or non-profit elementary or secondary school.
• Your Stafford loans must be guaranteed & funded by New Mexico Student Loans on or after May 1, 2000
• When the Stafford loan enters repayment, file certification form annually – contact New Mexico Student Loans for dates and to request a certification form.
• Once the certification form is approved by New Mexico Student Loans, the existing interest rate on your Stafford loan will be adjusted to 0%
• The interest rate benefit will continue as long as you meet the program criteria and file the certification form annually.

Teachers for Tomorrow for Consolidation Loans

• Consolidate your loans with New Mexico Student Loans and teach full-time in New Mexico and your interest rate will be 1.25%.
• You may teach any subject full-time or provide direct educational service related to classroom teaching (i.e. librarians, guidance counselors) in New Mexico in a public or non-profit elementary or secondary school.
• The last date of attendance at your college is on or after May 1, 2000.
• When the Consolidation loan enters repayment, file certification form annually – contact New Mexico Student Loans for dates and to request a certification form.
• Once the certification form is approved by New Mexico Student Loans, the existing interest rate on your loan will be adjusted to 1.25%
• The interest rate benefit will continue as long as you meet the program criteria and file the certification form annually.

Please visit www.nmstudentloans.org for complete details and to calculate savings.

Nurses for New Mexico

New Mexico Student Loans offers zero percent and 1.25 percent interest rates through Nurses for New Mexico. Here are the highlights of the programs.

Nurses for New Mexico for Stafford Loans

• 0% interest is charged when your Stafford loan enters repayment and you work full-time as a nurse in New Mexico.
• Work full-time as a registered or licensed nurse in a New Mexico public or private health facility
• Loan guaranteed & funded by New Mexico Student Loans on or after May 1, 2000
• When the loan enters repayment, file certification form annually – contact New Mexico Student Loans for dates and to request a certification form
• Once the certification form is approved by New Mexico Student Loans, the existing interest rate on your Stafford loan will be adjusted to 0%
• The interest rate benefit will continue as long as you meet the program criteria and file the certification form annually.

Nurses for New Mexico for Consolidation Loans

• Consolidate your loans and work full-time as a nurse in New Mexico
• and your interest rate will be 1.25%.
• Work full-time as a registered or licensed nurse in a New Mexico public or private health facility
• Have a last date of college attendance on or after May 1, 2000
• File certification form annually – contact New Mexico Student Loans for dates and to request a certification form.
• Once the certification form is approved by New Mexico Student Loans, the existing interest rate on your loan will be adjusted to 1.25%
• The interest rate benefit will continue as long as you meet the program criteria and file the certification form annually.

Please visit www.nmstudentloans.org for complete details and to calculate savings.

How do I choose New Mexico Student Loans?

As a future educator or nurse, you will be offered a choice between Federal Direct Student Loan Program or FFELP through New Mexico Student Loans. You will complete the Loan Request for Teaching/Nursing Students and submit to the financial aid office for processing.

The next two steps are:

1. Entrance Counseling
2. Sign your Master Promissory Note

Note: If you are a first-time borrower at UNM, you must complete entrance counseling before your loan funds will be disbursed. If you are switching from a Direct Stafford loan to a FFELP Stafford loan through New Mexico Student Loans, you are not required to complete entrance counseling again.

A Master Promissory Note (MPN) is the application and promissory note for your Stafford student loan.

Complete the Promissory Note - If this is your first loan at UNM through New Mexico Student Loans or if you are changing from Direct Loans to New Mexico Student Loans, you are required to complete a new Master Promissory Note (MPN).

Sign your MPN - Once your loan is approved by the financial aid office, you will be notified by New Mexico Student Loans when the online MPN is available for your signature. To electronically sign your MPN, you will need your Free Application for Federal Student Aid (FAFSA) PIN. If you do not have a PIN, visit www.pin.ed.gov. You may also download and print the MPN, sign and return it to New Mexico Student Loans.

The MPN is valid for up to ten years and does not require a signature each year as long as you continue borrowing through New Mexico Student Loans. You will receive notification from New Mexico Student Loans each time you receive a loan guarantee. If your loan amount has been reduced or canceled, you will receive updated information.

If you do not know if you’ve completed a FFELP MPN, you may contact our office or New Mexico Student Loans at 505-345-8821 or 1-800-279-3070.