Loan Programs

UNM participates in the Federal William D. Ford Direct Loan program (known as Direct or Stafford Loans). The lender is the U.S. Department of Education, rather than a bank or other financial institution. UNM also participates in the Federal Perkins Loan Program. Below are the types of loans you are considered for and possibly offered upon completing your FAFSA form and Financial Aid file.

Subsidized Loans

  • Need-based and do not have interest accruing while you are in school or in deferment.
  • Loan award is capped by a certain grade level.
  • Repayment begins 6 months after you graduate, drop below half time, or withdraw. Learn more about managing repayment of your student loans.
  • Subsidized loans disbursed on or after July 1, 2012, and before July 1, 2014 are not eligible for subsidized interest benefits during the 6-month grace period after a student graduates or falls below half-time enrollment.
  • Subsidized loans have a time limitation that affects the number of years a subsidized loan can be received.

Unsubsidized Loans

  • Are not based on financial need.
  • Loan origination fee is the same as the subsidized loans.
  • Interest accrues while you are in school or in deferment, unlike the subsidized loan.
  • Repayment begins 6 months after you graduate, drop below half time, or withdraw. Learn more about managing repayment of your student loans.

Perkins Loans

  • Are based on financial need and only offered to high-need, early applicants.
  • Maximum annual award is $2,000.
  • There is no separate application, only the FAFSA. Funding is extremely limited not every early high-need applicant can be offered a Perkins Loan.
  • Interest does not accrue while you are in school or in deferment.
  • There are no loan origination fees, the interest rate is a fixed 5.0% when the loan enters repayment.
  • The University of New Mexico is your lender for this loan, so once your loan enters repayment you will make payments back to the University.
  • Repayment begins 9 months after you graduate, drop below half-time or withdraw.

Interest Rates and Fees

  • Interest rates are fixed and locked in at the date of the first disbursement of the loan.
  • Click here for current interest rates and fees for each type of Federal Direct Loan (Subsidized or Unsubsidized).
  • Interest on a Perkins loan is fixed at 5% and there is no lender fee or other charges associated with this loan.