Your Guide to Student Loan Forgiveness in New Mexico

Student loan debt is a burden regardless of how much you owe. New Mexico borrowers on average carry less student loan debt than individuals living in other states, but they aren't immune to the stress and financial implications of carrying educational debt.

According to The Institute for College Access and Success, 45% of New Mexico students graduate with an average of $20,868 in student loan debt.

Related: Average student loan repayment amount by state

The New Mexico state government has created several loan forgiveness and repayment programs to help local borrowers tackle their loan debt. Here’s what you need to know about loan forgiveness programs in New Mexico.

Student loan forgiveness in New Mexico

New Mexico residents with student loan debt may qualify for one of several state-specific loan forgiveness programs. Most programs require employment within a specific career field and a time commitment to working within the state.

Health Professional Loan Repayment Program

The New Mexico Health Professional Loan Repayment Program (HPLRP) provides student loan repayment for qualified practicing health professionals living in the state. Acceptance into the program requires a two-year, full-time service commitment at a designated medical shortage area in New Mexico.

To qualify for HPLRP, you must be:

• A U.S. Citizen or permanent resident alien.
• A New Mexico Resident for at least 12 consecutive months.
• Licensed or certified in the state of New Mexico when funding begins (July 1st).
• Employed full-time (40 hours a week).

The program gives preference to graduates of New Mexico public post-secondary institutions and applicants working in designated areas of the greatest need.

Public Service Law Loan Repayment Program

The New Mexico Public Service Law Loan Repayment Assistance Program (LRAP) provides loan repayment for qualified New Mexico attorneys. To qualify, you must provide legal services to low income or underserved residents of New Mexico.

LRAP offers a $7,200 maximum annual award. In exchange, it requires a three-year service commitment working in Public Service Law. Program requirements include:

• Work for an eligible New Mexico employer, including the New Mexico Public Defender’s Department, the New Mexico District Attorney's Office or qualified non-profit organizations.
• Annual salary may not exceed $75,000.
• Licensed to practice in New Mexico as an attorney and shall declare intent to practice. as an attorney in public service employment in New Mexico.
• Have student loans that were obtained for legal education expenses that aren’t in default (past or present).
• Must have applied to all available legal educational loan repayment programs offered by the applicant’s law school for which the applicant qualifies.
• Must be employed as an attorney at an eligible employment site (Note: individuals with an official job offer may apply).

Teacher Loan Repayment Program

The Teacher Loan Repayment Program (TLRP) provides educational loan repayment to qualified New Mexico teachers working in designated high-need teaching positions in public schools in the state.

To qualify for TLRP, you must work in one of the following high-need positions:

• Bilingual education (with an endorsement).
• Childhood education or special education (with an endorsement).
• Science, technology, engineering, mathematics or career technical education courses (with an endorsement).
• Teaching in a low-performing school which serves a high percentage of economically disadvantaged students.

General requirements for loan repayment through the program include:

• A citizen of the United States.
• A New Mexico resident (for at least 12 consecutive months).
• A licensed New Mexico teacher.
• Have taught for at least three years in New Mexico.

The program gives preference to graduates of New Mexico public post-secondary institutions and minority teachers filling a high-need position.

New Mexico Children, Youth & Families Worker Loan Repayment Program

The New Mexico Children, Youth and Families Worker Loan Repayment Program provides loan repayment assistance to qualified employees of the New Mexico Children, Youth and Families Department.

To be eligible for the loan repayment program, you must:

• Have satisfactorily completed two years of service with the Children, Youth and Families Department as a Public Service Worker.
• Must have completed a bachelor's or master's degree in a critical field.
• Be a citizen of the United States or a permanent resident alien.
• Must work directly with children and families in a critical need position within the New Mexico Children, Youth and Families Department in either the Protective Services Division or the Juvenile Justice Division of CYFD.

The program gives preference to New Mexico residents, graduates of New Mexico public post-secondary institutions, and other select individuals in priority professions and positions.

Minority Doctoral Loan Repayment Program

The Minority Doctoral Loan Repayment Assistance Program provides loan repayment assistance to eligible faculty employed within New Mexico’s public colleges and universities.

To qualify for assistance through the program, you must:

• Be a US citizen.
• Have completed a doctoral degree in an eligible doctoral field of study.
• Be hired by a public post-secondary educational institution in New Mexico for a full-time, tenure-track faculty position.

Preference is given to program applicants who received a post-secondary degree from one of the following institutions:

• Eastern New Mexico University
• New Mexico Highlands University
• New Mexico Institute of Mining and Technology
• New Mexico Military Institute
• New Mexico State University
• University of New Mexico
• Western New Mexico University

Program prepayment awards vary, with a maximum of $25,000 annually.

Federal student loan forgiveness for New Mexico residents

Regardless of where you live, you can always consider federal forgiveness programs if you have federal debt. The most common ones are:

You may also qualify for federal student loan forgiveness programs. The three primary options are:

• Public Service Loan Forgiveness (PSLF)
• Income-driven repayment (IDR) forgiveness
• Teacher Loan Forgiveness Program

Each federal program has its own requirements and application process. Loan forgiveness through federal programs can take between five and 25 years to qualify for while meeting employment or other requirements. Depending on your situation and needs, these programs might forgive more of your debt balance than state programs. State programs, though, may allow you to pay off student loans in a shorter time frame.

Private student loans are ineligible for federal student loan forgiveness programs. Instead, you could refinance your student loans to a lower rate. Refinancing can significantly save you money on interest over your loan term. However, you must meet lender credit and other requirements to qualify for refinancing and score a low rate.

Pursue student loan forgiveness in New Mexico

With several options to choose from, it's difficult to know which forgiveness programs you qualify for and which offers the best path to debt payoff. Student Loan Planner is here to help you choose the right student loan forgiveness program.

Book a consult today to walk through the options available to determine the best choice for loan repayment.