New Mexico State University participates in the William D. Ford Federal Direct Loan Program. Loans made through this program are referred to as Direct Loans. Eligible students and parents borrow directly from the U.S. Department of Education at participating schools. Direct Loans include Subsidized, Unsubsidized, and PLUS Loans. You repay these loans directly to the loan servicer assigned by the US Department of Education.
Student loans, unlike grants and work-study, are borrowed money that must be repaid, with interest. 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.
Subsidized Direct Loan Eligibility is Limited to 150% of an Academic Program
Effective for new Direct Loans for which the first disbursement is made on or after July 1, 2013: Subsidized Direct Loan eligibility is limited to a maximum of 150% of the student’s current academic program length.
- Borrowers may receive Subsidized Direct Loans for no more than 150% of the length of the current academic program (ex: 6 years for a 4 year degree)
- Once a borrower has received Subsidized Direct Loans for 150% of the length of their program, the borrower’s future Subsidized Loan eligibility will end.
- A student who has received Subsidized Direct Loans for 150% of the length of their program and continues enrollment beyond that point will lose all subsidies on previously received Subsidized Direct Loans and would be required to pay all accumulated interest.
This policy is in addition to, and not in place of, the lifetime aggregate loan limits currently in place.
For more information, please review the U.S. Department of Education Federal Student Aid announcement concerning this time limitation.
About your Direct Subsidized/Unsubsidized Loan
- Direct Loans (Subsidized and Unsubsidized) are made to students attending school at least half-time.
- The U.S. Department of Education is the lender, and you receive the loan money through your school.
- You may receive a Direct Subsidized Loan, a Direct Unsubsidized Loan, or both for the same academic year.
- A student qualifies for a Direct Subsidized Loan based on financial need, as determined under federal regulations.
- A student’s need is not a factor in determining eligibility for a Direct Unsubsidized Loan. Students may qualify for a Direct Unsubsidized Loan regardless of their financial need.
- Undergraduate students may receive both Subsidized and Unsubsidized Direct Loans for a single academic year, if eligible. Graduate students may only receive Unsubsidized Direct Loans.
About your Federal Direct Parent PLUS and Graduate PLUS Loans
Federal Direct Parent PLUS Loan
The Federal Direct Parent PLUS Loan is an Unsubsidized Direct Loan for parents of dependent students. A Federal Direct Parent PLUS Loan enables parents with good credit histories to borrow money. The Federal Direct Parent PLUS Loan does not require demonstrated financial need. Repayment begins 60 days after the last loan disbursement. To apply, parents must complete a separate Federal Direct Parent PLUS Loan Application provided on the Department of Education’s website.
Federal Direct Graduate PLUS Loan
Students pursuing a graduate or professional degree can borrow from the Federal Direct Graduate PLUS Loan Program. The terms and conditions applicable to Federal Direct Parent PLUS Loans (made to parents of dependent students) also apply to PLUS Loans made to graduate and professional degree students. Unlike Parent PLUS applicants, graduate and professional degree student PLUS applicants must file a Free Application for Federal Student Aid (FAFSA).