Loans are financial aid that must be repaid. Student loans are available at a low interest rate. These loans are backed by the federal government with repayment options that begin after the student graduates or drops to less than six (6) credit hours per semester. Loans are made through banks or lending agencies that participate in the student loan program. A list of participating institutions is available in the Financial Aid Office. To see if you are eligible to receive a student loan you must first complete a FAFSA.
Types of Loans
Federal Stafford (Subsidized) Student Loans: Subsidized loans are based on financial need. The principle is referred until six months after your last day of attendance at a half-time level. The federal government pays the interest on the loan while you are in school at least half-time, during your six months grace period, and during authorized period of deferment. Entrance Counseling
Federal Stafford (Unsubsidized) Student Loans: This loan is a non-need. The principle is deferred until six months after your last day of attendance at a half-time level, you are responsible for the interest that accrues from date of first disbursement forward. Interest can either be paid while you are in school or it can be postponed until you enter repayment. If you postpone paying interest once you enter repayment it will be capitalized or added to the principal, thereby increasing the outstanding balance on which interest accrues daily. Entrance Counseling
Federal Perkins Loan: Under the Perkins loan program, the school makes the loan to the student borrower. A Federal Perkins Loan is a low-interest loan for both undergraduate and graduate students with exceptional financial need. Nothern is your lender. The loan is made with government funds with a share contributed by the school. You must repay this loan to your school, or to the billing service engaged by your school as its agent to administer billing and collection functions.
Teachers Loan for Service: The purpose of the Teacher Loan-for-Service is to proactively address New Mexico’s teacher shortage by providing students with the financial resources to complete or enhance their post-secondary teacher preparation education.
As a condition of each loan, the student shall declare his/her intent to practice as a teacher in the New Mexico public school system. For every year of service, a portion of the loan will be forgiven. If the entire service agreement is fulfilled, 100% of the loan is eligible for forgiveness. Penalties may be assessed if the service agreement is not satisfied
Nursing Loan for Service: The purpose of the Nursing Loan-for-Service is to increase the number of nurses in areas of the state which have experienced shortages by making educational loans to students entering nursing programs.
As a condition of each loan, the student shall declare his/her intent to practice as a health professional in a designated shortage area. For every year of service, a portion of the loan will be forgiven. If the entire service agreement is fulfilled, 100% of the loan is eligible for forgiveness. Penalties may be assessed if the service agreement is not satisfied
Parent Loan Undergraduate Student (PLUS) Program
Parents of students may borrow under the PLUS Program annually the amount of the student's cost of education minus other aid for each child who is enrolled at least half time and is a dependent undergraduate student. The interest rate is 8.5% with the borrower beginning payments within 60 days of the loan disbursement.
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Welcome to Stafford Exit Counseling !
Exit counseling is a process that must be completed by undergraduate and graduate students. The requirements for completing an exit interview are graduation, withdrawal, or if you drop below half-time attendance. The counseling session provides information about how to manage your student loans after college.
- If you received a Federal Stafford Loan (subsidized or unsubsidized) click here. *
- If you received a Federal Perkins Loan click here.
NOTE: if you received both types of loans you MUST do both exits. The College may hold your transcripts and/or degree until we have received notification of your completed exit(s).