Loan Programs
- Other Loan Programs

Federal Parent Loans for Undergraduate Students

PLUS is for parents of dependent students and is meant to help parents pay for their children's education. All PLUS recipients receive their loan amount in one or two installments.

The parents of PLUS applicants must prove their credit worthiness; the PLUS applicant must complete a credit application from the lender.

The interest rate for PLUS varies. Check with your lender or financial aid officer for current rates. Repayment on PLUS loans begins 60 days after the lender disburses the check. The minimum payment varies with the amount of the loan.

• How do I apply for student financial aid?
  
  You should first apply for a Pell Grant and have your Stafford Loan eligibility determined before applying for a PLUS. Applications for the PLUS Loan can be completed on studentloans.gov.
  
  
• How much will I get?
  
  Your parents can borrow up to the total cost of attendance less any financial aid every 12-month period.
  
  
• Where and when will I be paid?
  
  There are two distribution options:
  
  
  1. PLUS distributions are transferred via Electronic Fund Transfer to WNMU.
  2. Paper checks made co-payable to WNMU and parent are mailed to WNMU; checks are then mailed to parent for endorsement together with an agency check form containing instructions for completion.

Nursing Student Loan-for-Service

The purpose of this program is to increase the number of nurses in underserved rural areas in New Mexico. Loans are provided to nursing students with the understanding that the loans will be paid back with service in a medically under served area upon completion of a nursing education. This is a loan-for-service program and is available for nursing students only. Three years of service will forgive the total loan. If you do not fulfill this condition, you must repay the loan at an 18 percent interest rate.

For further information on the New Mexico Nursing Student Loan contact the New Mexico Higher Education Department at 1-800-279-9777.

Federal Perkins Loan Program

Students must complete the FAFSA to be eligible. Students who demonstrate exceptional financial need may be eligible for the program. The maximum award is limited to $5,500 per student/yr.

One of the greatest advantages of the Federal Perkins Loan program is the cancellation option. A borrower may have all or part of the loan (including interest) cancelled/forgiven for engaging in public service such as teaching Special Education and handicapped children, service in the education component of a Head Start program, service in the Peace Corps or ACTION, service in underserved or low-income areas, service as a Medical Technician, Nurse, Law Enforcement or Corrections Officer, or service in the military.

Interest rate: 5% fixed

Grace period: 9 months after you graduate, leave school, or drop below half time status before interest begins to accrue and you must begin repaying your loan.

Monthly payment: Minimum $40/month is required once loan enters repayment. Must be repaid within 10 years from the date it enters repayment. Amortized over 10 years.

The maximum amount an eligible student may borrow is $5,500 per award year for a student who has not successfully completed a program of undergraduate education or $8,000 per award year for a graduate or professional student.

The maximum aggregate amount an eligible student may borrow is: (1) $27,500 for an undergraduate student who has completed two academic years and is pursuing a bachelor’s degree; (2) $60,000 for a graduate or professional student, including loans borrowed as an undergraduate student; and (3) $11,000 for any student who has not completed two academic years of undergraduate work.

The borrower is eligible to have up to 100% of the loan canceled for qualifying services, mentioned above. The cancellation rate per completed academic year is:

• 15% of the original principal amount, plus interest accrued during the year — for each of the first and second years;


• 20% of the original principal loan amount, plus interest accrued during the year — for each of the third and fourth years; and


• 30% of the original principal amount, plus interest accrued during the year — for the fifth year.

A 'Closed-end' or 'Limited' promissory note is utilized. This note is valid for not more than 12 months and usually covers one award year or academic year. It may also be used for one academic term. Students can get up to date account information at 303-221-5626

<< Previous Page     Back to top     << Back to Loan Programs