New Mexico — the Land of Enchantment — is renowned for its breathtaking scenery, national parks, and historic sites. However, it’s more than just beautiful landscapes. For families and young people, the state can be a great place to get an education and launch a career.
The state also has a robust financial aid program for residents, including grants, scholarships, and low-interest New Mexico student loans. You can get free money to pay for college or, if you have already graduated, the state might forgive some or all of your loans.
The state of New Mexico student loans
When it comes to affordability and education, New Mexico is hard to beat. A recent Student Loan Hero study found that at just $113 per college credit, the state’s public universities offer the cheapest prices per credit in the nation. You can get an excellent education at a fraction of the price you’d pay in other states, such as Vermont, where credits cost an average of $466.
Over half of all graduates from New Mexico schools have student loan debt, but they tend to have less debt than the national average.
According to the Institute for College Access and Success, New Mexico graduates have $21,373 in student loan debt, on average. Compare that to the national average of $37,172 and it’s clear that New Mexico residents come out ahead.
That cheaper education can result in big rewards. Earning a bachelor’s degree can dramatically improve your earning potential if you live and work in the state. According to the U.S. Census Bureau, high school graduates in New Mexico earn just $25,747 per year. Graduates with a four-year degree earn $43,257 per year, a 68 percent increase.
Helpful resources for borrowers with student loans in New Mexico
To make college more affordable, the New Mexico Higher Education Department operates several programs that offer loan repayment aid. Here’s a full list of programs that might help you.
Loan repayment assistance programs
Some fields, such as teaching, are notoriously underpaid. However, those roles are essential for the community’s well-being. To help residents afford an education and encourage students to work in certain fields, New Mexico has five student loan repayment assistance programs:
1. New Mexico Children, Youth, and Families Loan Repayment Program
If you’re a public service worker in a critical need position, you could qualify for loan repayment assistance. To be eligible, you must complete at least two years of service within the New Mexico Children, Youth, and Families Department. Your degree must be relevant to the department’s critical needs and you must be a U.S. citizen or permanent resident.
The loan repayment program opens on July 1 every year and closes on Aug. 15. When the program is open to applicants, you can complete the application online.
2. Health Professional Loan Repayment Program
Practicing health professionals who make a two-year service commitment in a high-need area can receive up to $25,000 per year to repay their student loans.
You must be a U.S. citizen or a permanent resident and you need to live in New Mexico for at least 12 months before you apply. You must be licensed or certified at the time and working full time.
The application period begins on March 15 and closes on May 1, but you can learn more about the program’s details now.
3. John R. Justice Loan Repayment Program
Prosecutors and public defenders in New Mexico can receive up to $8,300 per year through the John R. Justice Loan Repayment Program. Eligible recipients can receive the award for multiple years, but repayment assistance cannot exceed $60,000.
To be eligible, you must be a prosecutor or public defender for the state, tribal, or local government or a qualifying nonprofit organization. Prosecutors who work for the federal government are not eligible.
Only federal student loans qualify for this program. Applications are not yet available but can be found on the Higher Education Department website.
4. Public Service Law Loan Repayment Program
If you’re an attorney who works in public service and you make $55,000 or less per year, you might be eligible for up to $7,200 in student loan repayment assistance.
To qualify, you must be a licensed attorney in New Mexico and work for the state or local government or a qualifying nonprofit organization. You must serve at least three years and your loans cannot have been in default in the past. You also need to ensure you’ve exhausted school-offered repayment assistance programs before applying.
Applications are available on Oct. 1 and are due by Feb. 1.
5. Teacher Loan Repayment Program
Teachers working in high-risk positions in public schools can receive student loan repayment assistance in return for at least two years of service.
You must be a citizen of the U.S. and have lived in New Mexico for at least 12 months to qualify. You need to work for a public school that’s not meeting acceptable academic proficiency levels.
Applications are available on March 1 and must be submitted by May 1.
NM student loans and financial aid for current students
New Mexico residents who are current high school or college students can find many grant, scholarship, and loan-for-service programs that help make college more affordable.
New Mexico grants
Grants are a great form of financial aid you can receive. Unlike other forms of assistance, such as student loans, grants are usually “free money,” meaning you generally never have to pay them back. Grants can help reduce your education costs so you don’t need to rely on debt to pay your tuition and fees.
New Mexico has two state-sponsored grants:
1. College Affordability Grant
The College Affordability Grant is for students with financial need but who are ineligible for other state grants and scholarships. Eligible students can receive up to $1,000 per semester to attend school at a public New Mexico university or college or tribal college.
You must be enrolled at least half time and complete the Free Application for Federal Student Aid (FAFSA) to qualify. To apply for the grant, contact your school’s financial aid office.
2. Student Incentive Grant
Under the Student Incentive Grant, students with a significant financial need can receive up to $2,500 per year if they attend a public New Mexico college or university or tribal college.
To qualify, you must be enrolled at least half time. You can apply for the grant by contacting your school’s financial aid office.
New Mexico scholarships
Like grants, scholarships usually do not have to be repaid. You can apply for and receive several scholarships and combine the awards to pay for college.
Some are need based and require you to demonstrate financial hardship. Other awards are merit based, where the state awards scholarships based on your academic or athletic accomplishments.
The state offers eight scholarships:
1. Legislative Lottery Scholarship Program
This scholarship will pay a percentage of your tuition. There’s no need to apply; the college you attend will determine your eligibility and award. You could qualify for the scholarship if you meet the following criteria:
- You are pursuing an undergraduate degree
- You completed a high school degree or received an equivalent credential while being a New Mexico resident
- You enroll in school within 16 months of graduating or receiving an equivalent credential
- You enroll in and earn 15 credit hours per semester at a public four-year school, or 12 credit hours per semester at a public two-year school
- You maintain at least a 2.5 GPA
Note that students with disabilities might qualify for reduced requirements.
2. New Mexico Scholars
The New Mexico Scholars Scholarship covers the cost of tuition, books, and fees for up to four years.
To be eligible for this scholarship, you are required to meet the following criteria:
- You must be a resident of New Mexico
- You must have graduated in the top 5 percent of your high school class or obtained scores of at least 1140 on the SAT or 25 on the ACT
- You must attend an eligible public or private university
- You are pursuing an undergraduate degree and are enrolled full time
- Your family makes $60,000 per year or less
To apply, contact your school’s financial aid office.
3. Athletic Scholarship
If you’re a student athlete, you might be eligible for a scholarship that covers tuition and fees. Athletic scholarships are available to both New Mexico residents and non-residents.
To qualify, you must attend one of the following schools:
- Eastern New Mexico University
- New Mexico Highlands University
- New Mexico Junior College
- New Mexico State University
- University of New Mexico
- Western New Mexico University
Contact the school’s financial aid office or athletic department for details.
4. The Bridge Scholarship
The Bridge Scholarship award can range in value; in some cases, it may cover the full cost of tuition and fees. To qualify, students must be a resident of New Mexico and have graduated from a public, accredited high school.
Contact your school’s financial aid office for details and to apply.
5. Competitive Scholarship
Although the Competitive Scholarship can be small in value, non-resident and non-citizen recipients who receive at least $100 from it are eligible for New Mexico resident tuition and fee rates. This can help students save thousands by avoiding out-of-state tuition costs.
To qualify, you must be a non-citizen or non-resident and attend a public, four-year school in New Mexico full time. Contact your school’s financial aid office for more information.
6. Graduate Scholarship
Students from underrepresented groups in graduate education can receive up to $7,200 per year through the Graduate Scholarship program. If you’re pursuing your master’s degree, you can receive the scholarship for up to two years.
- You must be a member of an underrepresented group and have a financial need
- You must be a U.S. citizen or permanent resident
- You must be willing to take on an unpaid internship or assistantship
Your school’s financial aid office determines additional eligibility requirements and awards, so contact them for more information.
7. Vietnam Veterans’ Scholarship
If you served in the military during the Vietnam War, you might be eligible for the Vietnam Veterans’ Scholarship, which covers the cost of tuition, fees, and books.
Eligible students must be a resident of the state and certified as a Vietnam veteran by the New Mexico Veterans’ Service Center. You must have been honorably discharged and either a resident of the state when you enlisted or have been living in the state for at least 10 years.
For more information, contact your school’s financial aid department.
8. Firefighters and Peace Officers Scholarship
If a family member was a firefighter or peace officer and passed away in the line of duty, you might be eligible for the Firefighters and Peace Officers Scholarship. It covers the cost of tuition at a public university.
Both you and the deceased loved one must have been residents of New Mexico at the time of death. If your child served and died, they must have been at least 21 when they passed away.
To request an application, send an email to firstname.lastname@example.org.
New Mexico loans for service
Advanced degrees, such as graduate or doctoral degrees, can be prohibitively expensive. The high cost of education can deter some people from pursuing certain fields, such as health care. To help make higher education more affordable, New Mexico offers incentives to those entering certain fields.
New Mexico has seven student loans for service programs. The state distributes low-interest loans and, if you’re willing to work in the state in a high-need area, they will even forgive some or all of your loan balance after you graduate.
The following careers can qualify:
- Physician assistant
- Nurse Educator
Depending on your field, you could receive up to $25,000 per year in a loan and have 100 percent of your loan forgiven once you complete your service term.
Statute of limitations on NM student loans
If it’s been years since you graduated and you’ve fallen behind on your payments, look into statute of limitation laws for New Mexico student loans.
When it comes to debt, “statute of limitations” is a legal phrase that means debt collectors can’t come after you for defaulted or delinquent student loans after a certain period of time. Student loans are written contracts, so under New Mexico law, debt collectors can’t sue you after six years.
It’s important to know that federal student loans don’t fall under the statute of limitations for debt; only private student loans are eligible. Plus, if you make a payment on your loans in default, the statute of limitations timeline starts over.
To learn more about what New Mexico’s statute of limitations means for you, check out this article.
Pursuing your goals when you have student loans
Paying for college and repaying your student loans can be a serious challenge. However, there are a surprising number of programs available that can help reduce your education costs or debt.
Doing your homework and seeing if you qualify for any assistance could help you save thousands.
If you need help managing your New Mexico student loans, we can help you tackle your debt and identify repayment options for free.
Interested in refinancing student loans?Here are the top 8 lenders of 2020!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.20% APR (with Auto Pay) to 6.99% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 6.89% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of December 13, 2019, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 12/13/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at email@example.com, or call 888-601-2801 for more information on our student loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for SoFi.
3 Important Disclosures for Figure.
Figure’s Student Refinance Loan is a private loan. If you refinance federal loans, you forfeit certain flexible repayment options associated with those loans. If you expect to incur financial hardship that would impact your ability to repay, you should consider federal consolidation alternatives.
4 Important Disclosures for College Ave.
College Ave Disclosures
College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1College Ave Refi Education loans are not currently available to residents of Maine.
2All rates shown include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
3$5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees.
4This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 1/1/2020. Variable interest rates may increase after consummation.
5 Important Disclosures for Laurel Road.
Laurel Road Disclosures
Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. Mortgage lending is not offered in Puerto Rico. All loans are provided by KeyBank National Association.
ANNUAL PERCENTAGE RATE (“APR”)
There are no origination fees or prepayment penalties associated with the loan. Lender may assess a late fee if any part of a payment is not received within 15 days of the payment due date. Any late fee assessed shall not exceed 5% of the late payment or $28, whichever is less. A borrower may be charged $20 for any payment (including a check or an electronic payment) that is returned unpaid due to non-sufficient funds (NSF) or a closed account.
For bachelor’s degrees and higher, up to 100% of outstanding private and federal student loans (minimum $5,000) are eligible for refinancing. If you are refinancing greater than $300,000 in student loan debt, Lender may refinance the loans into 2 or more new loans.
ELIGIBILITY & ELIGIBLE LOANS
Borrower, and Co-signer if applicable, must be a U.S. Citizen or Permanent Resident with a valid I-551 card (which must show a minimum of 10 years between “Resident Since” date and “Card Expires” date or has no expiration date); state that they are of at least borrowing age in the state of residence at the time of application; and meet Lender underwriting criteria (including, for example, employment, debt-to-income, disposable income, and credit history requirements).
Graduates may refinance any unsubsidized or subsidized Federal or private student loan that was used exclusively for qualified higher education expenses (as defined in 26 USC Section 221) at an accredited U.S. undergraduate or graduate school. Any federal loans refinanced with Lender are private loans and do not have the same repayment options that federal loan program offers such as Income Based Repayment or Income Contingent Repayment.
All loans must be in grace or repayment status and cannot be in default. Borrower must have graduated or be enrolled in good standing in the final term preceding graduation from an accredited Title IV U.S. school and must be employed, or have an eligible offer of employment. Parents looking to refinance loans taken out on behalf of a child should refer to https://www.laurelroad.com/refinance-student-loans/refinance-parent-plus-loans/ for applicable terms and conditions.
For Associates Degrees: Only associates degrees earned in one of the following are eligible for refinancing: Cardiovascular Technologist (CVT); Dental Hygiene; Diagnostic Medical Sonography; EMT/Paramedics; Nuclear Technician; Nursing; Occupational Therapy Assistant; Pharmacy Technician; Physical Therapy Assistant; Radiation Therapy; Radiologic/MRI Technologist; Respiratory Therapy; or Surgical Technologist. To refinance an Associates degree, a borrower must also either be currently enrolled and in the final term of an associate degree program at a Title IV eligible school with an offer of employment in the same field in which they will receive an eligible associate degree OR have graduated from a school that is Title IV eligible with an eligible associate and have been employed, for a minimum of 12 months, in the same field of study of the associate degree earned.
The interest rate you are offered will depend on your credit profile, income, and total debt payments as well as your choice of fixed or variable and choice of term. For applicants who are currently medical or dental residents, your rate offer may also vary depending on whether you have secured employment for after residency.
The repayment of any refinanced student loan will commence (1) immediately after disbursement by us, or (2) after any grace or in-school deferment period, existing prior to refinancing and/or consolidation with us, has expired.
POSTPONING OR REDUCING PAYMENTS
After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship.
We may agree under certain circumstances to allow a borrower to make $100/month payments for a period of time immediately after loan disbursement if the borrower is employed full-time as an intern, resident, or similar postgraduate trainee at the time of loan disbursement. These payments may not be enough to cover all of the interest that accrues on the loan. Unpaid accrued interest will be added to your loan and monthly payments of principal and interest will begin when the post-graduate training program ends.
We may agree under certain circumstances to allow postponement (deferral) of monthly payments of principal and interest for a period of time immediately following loan disbursement (not to exceed 6 months after the borrower’s graduation with an eligible degree), if the borrower is an eligible student in the borrower’s final term at the time of loan disbursement or graduated less than 6 months before loan disbursement, and has accepted an offer of (or has already begun) full-time employment.
If Lender agrees (in its sole discretion) to postpone or reduce any monthly payment(s) for a period of time, interest on the loan will continue to accrue for each day principal is owed. Although the borrower might not be required to make payments during such a period, the borrower may continue to make payments during such a period. Making payments, or paying some of the interest, will reduce the total amount that will be required to be paid over the life of the loan. Interest not paid during any period when Lender has agreed to postpone or reduce any monthly payment will be added to the principal balance through capitalization (compounding) at the end of such a period, one month before the borrower is required to resume making regular monthly payments.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of November 8, 2019 and is subject to change.
6 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers.
7 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 1.76% effective November 10, 2019.
8 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of 5 years and is reserved for applicants with FICO scores of at least 810.
As of 12/019/2019 student loan refinancing rates range from 1.90% to 8.59% Variable APR with AutoPay and 3.49% to 7.75% Fixed APR with AutoPay.
|1.99% – 6.89%1||Undergrad & Graduate|
|2.31% – 7.36%2||Undergrad & Graduate|
|2.06% – 6.81%3||Undergrad & Graduate|
|2.62% – 6.12%4||Undergrad & Graduate|
|1.99% – 6.65%5||Undergrad & Graduate|
|1.99% – 7.06%6||Undergrad & Graduate|
|1.85% – 6.13%7||Undergrad & Graduate|
|1.90% – 8.59%8||Undergrad & Graduate|