New Mexico Higher Education Department

New Mexico Higher Education Department

New Mexico focuses on their state college and student loan information rather than on the federal programs.

The state spends $60 million per year on financial aid for colleges on programs like:

• The Legislative Lottery Scholarship (8 semesters of tuition paid for at a public college in New Mexico)

• The Competitive Scholarship
• The Education Trust Board Pathways Scholarship
• The Legislative Endowment Scholarship
• The New Mexico Scholars
• NM Veterans Education & Training Programs
• The Vietnam Veterans Scholarship
• The Richard T. Knowles Legislative Scholarship
• The Daniels Fund Scholarship Program

New Mexico also has a number of educational loan forgiveness programs (forgiven at the rate of 1 year of service for 1 year of loans):

• Teacher Loan-For-Service- teacher forgiveness loans of $4,000 per year
• Nursing Loan-for-Service- nursing student loan forgiveness- $12,000 per year
• Medical Loan-for-Service- medical school loan forgiveness- $25,000 per year
• Allied Health Loan-for Service- health fields forgiveness loans- $12,000 per year
• Minority Doctoral Loan-for-Service- graduate school forgiveness loans- $15,000 per year
• Nurse Educator Loan-for-Service- nursing faculty forgiveness loans, $5,000 per year
• WICHE Loan-for-Service- allows students in graduate or professional programs to receive residential or reduced tuition rates in out of state schools- must agree to return to New Mexico to work- programs available for:
• Dentistry
• Graduate Library Studies
• Optometry
• Veterinary Medicine
• Osteopathic Medicine

School Loans...Repayment

1. The Health Professional Loan Repayment Program
• for repayment of outstanding student loans of practicing health professionals
• must make a two year service commitment to practice full-time in a designated medical shortage area in New Mexico
• eligible professionals are: allopathic physician, osteopathic physician and physician assistants, advanced practice nurses, allied health care providers, podiatrists, optometrists, and dentists
• award is $25,000 per year or $35,000 per year for those working in a federal Health Professional Shortage Area (HPSA)
2. The Public Service Law Loan Repayment Assistance Program
• provides legal educational loan repayment assistance to individuals providing public service in state or local government or the non-profit sector in New Mexico to low income or underserved residents.
• requires a 3 year commitment to work in Public Service Law
• eligible employers are: organizations that provide for the care and maintenance of indigent persons in New Mexico through civil legal services; the Public Defender’s Department; or a New Mexico district attorney's office
• award is $7,200 per year

Federal Loans for College

As a result of the Ensuring Continued Access to Student Loans Act of 2008, any loans that are pledged as collateral to the U.S. Department of Education are only eligible for these benefits: a 0% default fee and 0.25% interest rate reduction for electronic payment.

But if the loan is not pledged, these additional benefits may be earned: 5% principal reduction after 48 monthly on-time payments and special incentives on loans for public school teachers, MDs and nurses who work in New Mexico.