Learn about student loans and save money on your education.
How much should you borrow?
Borrow only what you need. The more you borrow, the larger your monthly payments will be and/or the longer it will take to pay off your loan. Be realistic about what you’ll be able to pay once you enter your profession. Where you live and the number of openings in your field can affect what you earn. To compare job opportunities and state-to-national salary averages, go to America’s Career InfoNet at www.acinet.org. This chart shows monthly loan payments based on a 10-year payoff. If you extend repayment, your monthly payments will be smaller but you’ll pay more interest over the life of the loan. Loan calculators at www.nmstudentloans.org can help you determine payment amounts and interest costs for other periods and rates.
Managing Your Student Loans
Start a student loan file and use it to keep your loan documents together. Include copies of each promissory note and Notice-of-Guarantee disclosure, repayment schedules, loan sale/transfer notifications and related documents. Keep your lender(s) posted when you move. Send each lender your new address and phone number every time you move. Call before you’re in trouble. If you don’t think you’ll make a scheduled payment, call your lender immediately. Don’t wait until the payment is due or past due.
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Tips for Student Borrowers
If you borrow from the same lender each year, you’ll complete fewer forms, send out fewer address change notices, and you can avoid multiple monthly payments when your loans enter repayment. Track what you owe from year-to-year. You can access detailed information on your federal student loans at the U.S. Department of Education’s student aid database, www.nslds.ed.gov. Manage your money wisely while you’re in school. Live on a budget and borrow just what you need. If you owe less when you graduate, your monthly payments will be smaller and your loans can be paid off faster.
Remember, a student loan is a long-term commitment.
Ways to Save!
New Mexico Student Loans, a non-profit education lender, was created to make college more affordable and accessible. We assist our borrowers through fee and interest reductions. Ways to Repay NMSL offers a variety of repayment options. Borrowers can use Easy Pay to reduce their interest by .25% or pay on-line, by mail, by phone or at our offices, south of Paseo del Norte and west of Jefferson N.E. in Albuquerque. NMSL’s well-trained, friendly staff can answer your questions and help address your concerns. We offer a variety of repayment plans and can provide numerous solutions to help borrowers avoid defaulting on their loans. Failure to make student loan payments will impact your credit rating and ability to make future purchases, such as a car or home. Borrowers who find they cannot make their monthly payments should contact NMSL immediately. Ways to Save with NM Student Loans IMPORTANT NOTICE: As a result of the Ensuring Continued Access to Student Loans Act of 2008 that was passed on May 7, 2008, the Department of Education will only allow certain borrower benefits on FFELP educational loans that may be sold to them. Borrowers whose loans are sold or pledged as collateral to the Department of Education will qualify only for the following benefits: 0% default fee 0.25% interest rate reduction for electronic payment However, if New Mexico Student Loans holds the loans impacted by this notice at the time any borrower benefits are earned, the following money-saving borrower benefits for Stafford, PLUS and Grad-Plus loans will apply to those loans: 0% default fee to student 0.25% interest rate reduction for electronic payment 5% principal reduction after 48 monthly on-time payments Special incentives on loans for public school teachers, MDs and nurses who work in New Mexico.
New Mexico Student Loans reserves the right to modify or discontinue programs/benefits at any time. Some restrictions may apply.
2008-2009 Loan Repayment Chart
8/2008
Estimated Payments with 10-Year Repayment Period
$3,500 $4,500 $5,500 $6,500 $7,500 $8,500 $9,500 $10,500 $12,500 $15,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000
$50 $50 $61 $72 $83 $94 $105 $117 $139 $167 $222 $333 $444 $555 $666 $777 $888 $999 $1,110
$50 $52 $63 $75 $86 $98 $109 $121 $144 $173 $230 $345 $460 $575 $690 $806 $921 $1,036 $1,151
$50 $56 $68 $81 $93 $105 $118 $130 $155 $186 $248 $372 $496 $620 $744 $868 $992 $1,116 $1,240
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Lenders
To qualify for NMSL’s cost-saving programs, be sure you choose one of the lenders (and lender codes) listed below: New Mexico Student Loans Bank of the Rio Grande Bank of the West Citizens Bank of Clovis #822717 #833704 #833302 #816098
To Learn More ...
The NMSL website can help you make informed decisions about financial aid. Visit www.nmstudentloans.org for: Other sources of aid (grants & scholarships) Scholarship search engines Tax benefits for borrowers Borrowers’ rights & responsibilities Repaying your loans & repayment calculators Applications and forms 7400 Tiburon N.E. • P.O. Box 27020 Albuquerque, NM 87125-7020 1-800-279-5063 (Nationwide) or 505-345-3371 (Albuquerque area) E-mail: answers@nmstudentloans.org
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