Student Loan Types

Learn about the types of student loans available to borrowers.

The Federal Direct Subsidized and Unsubsidized Loans, Nursing Student Loans for Service and Federal PLUS loans all require separate applications.

Learn more about each type of student loan:

Federal Direct Loans


Federal Subsidized Direct Loans are need-based; therefore, students must demonstrate financial need to be eligible. That need is indicated on the Student Aid Report (SAR), which is the result of applying for financial aid.

These loans are called "subsidized" because the government pays the interest while you are in school. If you take out one of these loans, the federal government pays the interest while you are either in school or in any other declared deferment status.


Federal Unsubsidized Direct Loans are available to help you meet your cost of education.

As these are not need-based loans, students are responsible for paying the interest while attending school and during any other declared deferment periods. The interest is compounded quarterly.

Loan Cancellation

One of the greatest advantages of the Federal Perkins Loan program is the cancellation option. A borrower may have all or part of the loan (including interest) canceled or forgiven for engaging in public service such as teaching Special Education, serving in an underserved or low-income area, volunteering with the Peace Corps or ACTION, serving in the military, or being employed as a Medical Technician, Nurse, Law Enforcement or Corrections Officer.

Contact the New Mexico Student Loans online for current cancellation option information.

Federal Parent Loans for Undergraduate Students (PLUS)

Federal Parent Loans for Undergraduate Students (PLUS) is for parents of dependent students and is meant to help parents pay for their children's education. All PLUS recipients receive their loan amount in two or more installments.

The parents of PLUS applicants must prove their creditworthiness; the PLUS applicant must complete a credit application from the lender.

The interest rate for PLUS varies. Check with your lender or financial aid officer for current rates. Repayment on PLUS loans begins 60 days after the lender disburses the check. The minimum payment varies with the amount of the loan.

You should first apply for a Pell Grant and have your Direct Loan eligibility determined before applying for a PLUS.

Disbursement Information

Your parents can borrow up to the total cost of attendance less any financial aid every 12-month period.

PLUS funds received by CNM are mailed to the parent borrower. For those parents who submitted a loan application after the regular disbursement date, a check will arrive six weeks after you submit your loan application.

Nursing Student Loan-for-Service

The purpose of this program is to increase the number of nurses in underserved rural areas in New Mexico. Loans are provided to nursing students with the understanding that the loans will be paid back with service in a medically under-served area upon completion of a nursing education. If all requirements are not met, loans must be repaid. (Make sure you read all terms and conditions of this loan.)

This is a loan-for-service program and is available for nursing students only.

For further information on the New Mexico Nursing Student Loan contact the New Mexico Higher Education Department online or call (800) 279-9777.

Private Student Loans