Financial Aid: Loans

FAFSA SCHOOL CODE: E00876

Find out more about the Federal Direct Loan Program here

Student loans, unlike grants and work-study, are borrowed money that must be repaid, with interest, just like car loans and home mortgages. You cannot have these loans canceled because you didn't like the education you received, didn't get a job in your field of study or because you're having financial difficulty. Loans are legal obligations, so before you take out a student loan, think about the amount you'll have to repay over the years and review your borrower rights and responsibilities.

To learn more about federal student loans and how to manage your debt, visit the Federal Student Aid Gateway.

Loan Basics

Accept a Loan
Entrance Counseling
NSLDS- The National Student Loan Data System (NSLDS) is the U.S. Department of Education's central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Deparment of Ed programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.
Exit Counseling

Available Loans

FEDERAL PERKINS LOAN is a 5%, simple interest loan provided to students with exceptional need. Loan repayment begins nine months after you graduate or drop below half-time enrollment (less than five credits). First-time borrowers must attend an Entrance Counseling Session.

SUBSIDIZED STAFFORD LOANS are interest free until repayment begins.

UNSUBSIDIZED STAFFORD LOANS require payment of interest (but not principal) during enrollment or capitalization of accruing interest if you defer interest payments.

FEDERAL PLUS LOAN is a variable interest loan that enables parents with good credit histories to borrow money from eligible lenders (banks or credit unions) to assist with their dependent student's college expenses. The PLUS loan may require a FAFSA (check with the Financial Aid Office) but does not require demonstrated financial need. Repayment begins 60 days after the last loan disbursement. To apply, parents complete a PLUS loan application provided by the lending institution or the Financial Aid Office

PRIVATE LOANS/ALTERNATIVE LOANS Exhaust all federal grant and loans available to you before considering a private (alternative) loan. You may qualify for loans or other assistance under title IV of the HEA (Pell Grants, Direct Loan, Perkins, FSEOG Grants, Direct Parent PLUS loans) and the terms and conditions of title IV, HEA program loans may be more favorable that the provisions of private education loans. Click here for additional information on private loans.

Debt Management

Entrance Counseling

Parents cannot complete this step for their student! All first time borrowers are required to complete a loan counseling session prior to receiving loan funds.

Entrance Counseling is a federal requirement for all students who are entering NMSU/DACC for the first time and/or who may wish to seek a federal student loan for the first time.

This session shows you how to manage your student loans, both during and after college. The session will inform you of your rights and responsibilities as a student loan borrower.

You can do the counseling in about 35-45 minutes right from this page by clicking on the link below. Once you have successfully completed the entrance counseling requirement, you will be required to take a test. After you pass the test, a confirmation will be sent to the email address you provided during registration.

Exit Counseling

Students that received federal student loans (and/or TEACH Grants) and are now planning to:

Graduate
Leave school OR
Drop below half-time must complete exit counseling.

Depending on the type(s) of federal aid you have, you may be required to complete THREE exit counseling sessions: Federal Direct Loan(s); Federal Perkins Loan(s); and one for the Federal TEACH Grant. Listed below is more information regarding the aforementioned types of exit counseling sessions and loan consolidation information.

Federal Loan Exit Counseling
If you have a Federal Stafford Subsidized loan, Federal Stafford Unsubsidized loan, Federal Stafford Graduate PLUS Loan, Federal Direct Subsidized Loan, Federal Direct Unsubsidized, and/ or Federal Direct Graduate PLUS loan, you must complete the loan exit counseling session via studentloans.gov

Federal Perkins Loan Exit Counseling
If you have a Federal Perkins Loan, you are required to complete another loan exit counseling session. You may complete this loan exit counseling session online at studentloans.gov

Federal TEACH Grant Exit Counseling
If you were awarded a Federal TEACH Grant, you are required to complete another exit counseling session. You may complete this exit counseling session online at studentloans.gov

Loan Consolidation Questions?
In order to get lower monthly payments on your student loans, you may want to consider consolidating them. For more information, we suggest that you visit the US Department of Education Direct Servicing Consolidation Web Page. If all of your loans are not with the same company, you can use the National Student Loan Data System to determine who services or holds your student loans.