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 have several lenders we do business with on a daily basis, but you may choose to borrow from a bank that you know. The loan form includes several choices. Expect that loans will 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 NMHU. 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 Advisor can help you understand the details of a Stafford Loan.
First-time borrowers at NMHU must complete an on-line loan entrance counseling session before their funds will be disbursed. Go to www.mapping-your-future.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 (after a period of ten years the note will expire).
You will receive Stafford loans 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 mid-term. 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 Stafford Loans, 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 also enrolled to attend the fall semester and must be enrolled for 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 Stafford Loans 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.
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