Loan Repayment and Loan Forgiveness Programs
Loan Repayment Plans
There are various loan repayment plans available for students who have borrowed through the Federal Direct Lending program. You may choose the plan that best meets your needs based on your financial goals and what you can afford to pay each month. Students will automatically be placed into the Standard Repayment plan, unless you select a different plan when you complete your Exit Counseling. Students may change their repayment plan if necessary.
Maximum Payment Period
Highest Initial Payment
Interest only payments initially
Fixed or tiered
Lowest initial payment without considering income
Payments must at least cover monthly accruing interest
Adjust annually based on:
Payment is 15% of disposable Income (portion of AGI that is 150% of HHS poverty guideline)
*Federal Direct Loan Program or Federal Family Educational Loan Program
** Federal Family Educational Loan Program only
*** Federal Direct Loan Program only
The Federal Public Service Loan Forgiveness program is available for graduates who go into public service employment. This program is available to borrowers who are employed full-time in certain public service jobs, have eligible loan type(s), make 120 qualifying payments under an eligible repayment plan and maintain a full-time employment status while working for a qualifying public service organization. For details on this program, go to www.MyFedLoan.org/PSLF.
In New Mexico, the following loan repayment assistance programs are offered to eligible borrowers:
- Public Service Law Loan Repayment Program
The Public Service Law Loan Repayment Program is available to borrowers whose annual salary may not exceed $55,000, student loans are not in default, and work for a qualifying organization. For more details on this program, go to http://www.hed.state.nm.us/students/publicservice_lrap.aspx.
- New Mexico John R. Justice Program
The New Mexico John R. Justice Program provides educational loan repayment benefits to eligible prosecutors and public defenders in New Mexico. For eligibility and application requirements, go to http://www.hed.state.nm.us/students/jrj_lrap.aspx.
For more information on loan repayment programs, consolidation information and debt management, go to www.studentloans.gov.