Loans
Federal Perkins Loan
Qualifications: Undergraduate and graduate students; need based.
Annual Amount: Up to $3,000 undergraduates; up to $5,000 graduates.
Deadlines & Application: March 1st, Free Application for Federal Student Aid (FAFSA) and complete file by April 15th.
Description: The Perkins Loan is given to undergraduates and graduates, in state and out of state students, with financial need as determined by the FAFSA as the Expected Family Contribution (EFC). Be sure to indicate your interest in receiving loans on the FAFSA form. Students pursuing a second bachelor’s degree or educational/professional licensure are also eligible for the Perkins Loan.
To be considered for the Perkins Loan, fill out the FAFSA. Funds for the Perkins Loan come from previous borrowers in repayment and are limited. Make sure your FAFSA is submitted by March 1, and your file complete by April 15 for award consideration.
The Perkins Loan is repaid by you to the university through a third party loan servicer, New Mexico Student Loan. Interest of five percent, and payments, are deferred until nine months after graduation, after you leave school, or drop below six hours (called a grace period). The repayments of previous loan recipients create the money for current ones. The university, thus, has a revolving account of loan repayments that are then redisbursed to current students. In certain circumstances, your Perkins Loan repayments may be deferred, postponed, or cancelled. Some of these circumstances include becoming a teacher, nurse or health care professional, law enforcement officer, Peace Corps volunteer, or member of the Armed Forces. For more information on these options, go on-line to
federalstudentaid.ed.gov/students.html
The Perkins Loan is part of your Financial Aid Package. Each academic year, you will sign a promissory note due to the university. At the beginning of the semester, the loan amount is applied to what you owe in your student account.
First time borrowers must complete an online loan counseling session before their funds will be disbursed. Go to
www.mappingyourfuture.org and select Perkins Loan.
Stafford Loans
Student loans, unlike grants and work study, are borrowed money that must be repaid, with interest. Loans are legal obligations, so before you take out a student loan, think about the amount you’ll have to repay over the years, as well as the kind of job you will be pursuing to be able to afford repayment.
New Mexico Highlands participates in the FFELP Stafford Loan Program that is offered through various lenders. We also participate in direct lending with the Department of Education (limited to active borrowers).
We do business with several lenders on a daily basis, but you may choose to borrow from a bank that you know. The loan form includes several choices. Expect loans to take up to eight weeks to fully process and the process largely depends on you. Once the loan is certified in our office, you must sign your master promissory note before loan money is sent to Highlands. It is best to turn in your Loan Data Form when you submit your FAFSA. Otherwise, you can choose to wait for your award letter in late May or early June to determine how much more, in addition to what your current awards are, that you may require.
The maximum amount of what you may borrow using a Stafford Loan depends on other aid you may have in your Financial Aid Package. It also depends on your student classification and the cost of attendance at Highlands. Loans based on financial need and dependency status are subsidized which means that interest will not be charged until you graduate or
leave school and begin repayment.
Interest on Stafford Loans will not exceed 8.25% and will vary according to economic conditions. It is important to understand that you determine the maximum amount you wish to borrow. You do not want to borrow any more than you need. So that although you may have, for instance, $3,500 available to you, you may choose to borrow only $200. Remember also that the loan annual maximum amount is the total available to you in a year: summer through the spring semester. You will need to budget yourself a certain amount from this total to cover each semester.
A Financial Aid adviser can help you understand the details of a Stafford Loan.
First time borrowers at Highlands must complete an online loan entrance counseling session before their funds will be disbursed. Go to
www.mappingyourfuture.org. After your loan is certified by the university; approved by the lender, and guaranteed, you will sign a master promissory note (MPN). One MPN will allow you to continue to borrow with the same lender through your entire undergraduate or graduate education, if you attend continuously for a maximum of ten years (the note will expire after a period of ten years).
You will receive the Stafford Loan in two disbursements. For a two semester loan, you will receive the first credit to your Student Account Receivables (SAR) at the beginning of the fall semester and the second at the beginning of the spring semester. Loan amounts that exceed your charges will be reimbursed to you on the Friday before classes begin each semester. For a one semester loan, you will be credited with the first payment at the beginning of the term, and the second around midterm. Freshmen and first time borrowers will not receive their first disbursement until 30 days after classes have begun.
Federal Subsidized Stafford Loan
Qualifications: Undergraduate and graduate students; need based.
Annual Amount: Up to $3,500 to $20,500, depending on grade level.
Deadlines & Application: Free Application for Federal Student Aid (FAFSA) & Loan Data Form.
Deadline: No later than three weeks prior to the end of semester.
Description: To be eligible for the Stafford Loan, as well as other federal financial aid, fill out the FAFSA application or Renewal FAFSA. Also complete
a Loan Data Form at the Office of Financial Aid or on-line (download & print) .
You may only apply for summer loans if you are enrolled to attend the fall semester and must be enrolled a minimum of six credit hours in each.
Federal Unsubsidized Stafford Loan
Qualifications: Undergraduate and graduate students.
Annual Amount: Up to $3,500 to $20,500, depending on grade level.
Deadlines & Application: Free Application for Federal Student Aid (FAFSA); Loan Data Form.
Deadline: No later than three weeks prior to the end of semester.
Description: To be eligible for the Stafford Loan, as well as other federal financial aid, fill out the FAFSA application or Renewal FAFSA. Also complete
a Loan Data Form at the Office of Financial Aid or on-line (download & print) .
You may only apply for summer loans if you are enrolled to attend the fall semester and must be enrolled a minimum of six credit hours in each.
Federal PLUS Loan
Qualifications: Available to parents of dependent undergraduate and graduate students.
Annual Amount: Cost of attendance minus any other financial aid received.
Deadlines & Application: Free Application for Federal Student Aid (FAFSA); PLUS Loan Application prescreening form. Deadline – No later than three weeks prior to the end of semester.
Description: This is a parent loan; eligibility is based on credit worthiness and approval from a lending agency. Repayment is required.