DIRECT STAFFORD LOANS

Direct Stafford Loans are the Department of Education’s major form of self-help aid. Direct Stafford Loans are available through the William D. Ford Federal Direct Loan (Direct Loan) Program. Under the Direct Loan program, the funds for students’ loans are sent to the University of New Mexico, to be credited to students’ accounts, directly by the US government.

Direct Loans are either subsidized or unsubsidized. A subsidized loan is awarded on the basis of financial need. Students are not charged any interest before repayment begins or during authorized periods of deferment. The federal government subsidizes the interest during those periods.

An unsubsidized loan is not awarded on the basis of need, but may be used to replace the Expected Family Contribution (EFC). Students are charged interest from the time the loan is disbursed until it is paid in full. If students allow the interest to accumulate, it will be capitalized – that is, the interest will be added to the principal amount of the loan, and additional interest will be based upon the higher amount.

The maximum amount students may borrow, not to exceed their budget is as follows:

$6,625 for first-year students enrolled in a program of study that is at least a full academic year in length. Only $2,625 of this amount may be in subsidized loans.

$7,500 for students who have completed their first year of study, and the remainder of the program of study is at least a full academic year in length. Only $3,500 of this amount may be in subsidized loans.

$10,500 a year for students who have completed two years of study, and the remainder of the program of study is at least a full academic year in length. Only $5,500 of this amount may be in subsidized loans. At UNM, the average Direct Loan indebtedness is $8,435. The average monthly payment is $108.

Grade levels for undergraduate students are determined by their total credits earned, as follows:
 

Freshman
0 – 25
Sophomore
26 – 59
Junior
60 – 92
Senior
93+
$18,500 a year for graduate or professional students (Law, Medical, last two years of PharmD).  Only $8,500 of this amount may be in subsidized loans.

The total debt students may have outstanding from all Direct Loans combined is:

Loan Counseling
All first-time borrowers at UNM must complete a Loan Counseling session before their Direct Loan funds may be disbursed to them. The good news is you do not have to come to the Financial Aid Office to complete Loan Counseling. Students are encouraged to complete their counseling session on the WEB. The address is http://www.ed.gov/DirectLoan/counsel

Students who do not have access to the WEB may attend an entrance counseling session in the Office of Student Financial Aid during the times listed below:

Monday
Tuesday
Wednesday
Thursday
3:00 PM
8:45 am and 4:00 pm
10:00 am
3:00 pm

To find out how much you owe to Direct Loans, visit their web site at: http://www.dlservicer.ed.gov

For more information about the Ford Federal Direct Loan Program, try their web page at:
WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

For more information on Direct Consolidation Loans, visit their web page at: http://www.ed.gov/offices/OPE/DirectLoan/consolid.html

For more information on  the IRS Student Loan Deduction, visit their web page at:
IRS Student Loan Deduction

To access the Direct Loan Program's Interactive Calculators, visit their web page at: http://www.ed.gov/offices/OPE/DirectLoan/calc.html

To access the Direct Loan Servicing System, visit their web site at: http://www.eduservices.com