Top Federal Grants and Loans for University Students in New Mexico

Pursuing higher education is an exciting but often expensive endeavor, especially for students in New Mexico. Luckily, there are numerous University Federal Grants and Loan programs available to help alleviate some of the financial burden.

1. Pell Grant

One of the most well-known and widely available federal financial aid programs is the Federal Pell Grant for students. The Pell Grant is designed to assist undergraduate students from low-income households who have not yet earned a bachelor's or professional degree. Unlike loans, the Pell Grant does not need to be repaid.

For the 2024–2025 academic year, the maximum award for the Pell Grant is $7,395. The actual amount awarded depends on several factors, including the student's financial need, cost of attendance, and enrollment status (full-time or part-time).

2. Federal Supplemental Educational Opportunity Grant (FSEOG)

The Federal Supplemental Educational Opportunity Grant (FSEOG) is another New Mexico grants for students. Like the Pell Grant, FSEOG does not require repayment, but it is more limited in availability since it is awarded on a first-come, first-served basis by individual schools.

The award amounts for FSEOG range from $100 to $4,000 per year, depending on financial need and the school’s availability of funds. To be considered, students must first fill out the Free Application for Federal Student Aid (FAFSA) and demonstrate eligibility for the Pell Grant. This makes FSEOG particularly valuable for students with significant financial need in New Mexico.

3. TEACH Grant

For students in New Mexico who are pursuing a career in teaching, the Teacher Education Assistance for College and Higher Education (TEACH) Grant is an excellent option. The TEACH Grant provides up to $4,000 per year to students who are enrolled in eligible teaching programs and agree to teach in a high-need field at a low-income school for at least four years within eight years of completing their degree.

While this grant is extremely helpful for future educators, it comes with a significant caveat: if the recipient does not fulfill the teaching requirement, the grant converts into a loan that must be repaid with interest. Therefore, students considering the TEACH Grant should be committed to teaching in underserved areas of New Mexico or other parts of the U.S.

4. Federal Work-Study (FWS) Program

The Federal Work-Study (FWS) Program provides students with part-time employment opportunities to help cover educational expenses. While not technically a grant or loan, the FWS program is an excellent option for students who want to earn money while attending school. FWS jobs are often on-campus and related to the student’s field of study, providing valuable work experience alongside financial assistance.

Students must demonstrate financial need to qualify for work-study, and the availability of jobs depends on the university. New Mexico students can find work-study positions at institutions such as the University of New Mexico, New Mexico State University, and other participating colleges.

5. Direct Subsidized Loans

When grants are not enough to cover the full cost of education, students often turn to federal loans. Direct Subsidized Loans are one of the best loan options for undergraduate students who demonstrate financial need. The U.S. Department of Education pays the interest on these loans while the student is enrolled at least half-time, during the grace period, and during deferment periods, which helps reduce the total cost of borrowing.

For the 2024–2025 academic year, the maximum amount a student can borrow through a Direct Subsidized Loan ranges from $3,500 to $5,500 per year, depending on the student’s year in school and financial need.

6. Direct Unsubsidized Loans

Unlike subsidized loans, Direct Unsubsidized Loans are available to both undergraduate and graduate students, and they do not require students to demonstrate financial need. However, the key difference is that interest begins accruing immediately upon disbursement, even while the student is still in school.

The maximum loan amount for Direct Unsubsidized Loans depends on the student’s year in school and dependency status, ranging from $5,500 to $20,500 per year. These loans offer flexible repayment options, making them a viable choice for New Mexico students who need additional funding to cover educational expenses.

7. PLUS Loans for Parents and Graduate Students

Direct PLUS Loans are available for parents of dependent undergraduate students and for graduate or professional students. These loans can be used to cover the total cost of attendance, minus any other financial aid received. PLUS Loans require a credit check, and parents or graduate students who are approved are responsible for all interest that accrues from the time of disbursement.

While the interest rate for PLUS Loans is higher than that of subsidized and unsubsidized loans, it still offers lower rates than many private loans, making it a worthwhile consideration for families in New Mexico looking to finance their education.

Conclusion

The first step to accessing these grants and loans is completing the Free Application for Federal Student Aid (FAFSA), which opens the door to a range of financial aid opportunities. To easily apply all these grants, visit our site usagrantapplication.org today!