Minnesota Student Educational Loan Fund (SELF Loan)

Terms

The SELF Loan is a low-cost, unsubsidized and non-need based loan available to student borrowers with an eligible co-signer. The SELF Loan has a variable interest rate which can change every 3 months throughout the life of the loan. The interest charged is based on the three-month London Interbank Offered Rates (LIBOR) rate plus a margin, which is currently 3%. The interest rate, which is currently 5.8%, cannot increase or decrease by more than 3 percent in any 12-month period. During the 2007- 2008 academic year, the interest rate on the SELF Loan varied between 6.0% and 7.4%.

Repayment

There are no deferments on the SELF Loan. Interest payments must be made while in school and during a “transition period” that can last for up to three years after you leave school. At the end of the transition period the you will enter repayment of principal and interest, generally over a 7-9 year period. If you decide to attend graduate or professional school before the transition period has expired, you may put your loan back into an “in-school” phase (i.e., interest payments only) if you are attending a SELF Loan participating school. However, if your three-year transition period has ended and you have entered repayment of principal and interest, you may NOT revert back to the in-school phase. During repayment, if you experience difficulty meeting the repayment terms, the lender does not have other options to offer, and payment reverts to the co-signer.

Source

The SELF Loan is available through the State of Minnesota.

Eligibility

All students who have remaining costs to cover after all other aid is considered and can secure a credit-worthy co-signer may apply for the SELF Loan. The SELF Loan is available to any student attending a Minnesota post-secondary institution, and to all Minnesota residents attending out-of-state institutions that participate in the SELF Loan program.

How to apply

You may apply online for a SELF loan using the Online Financial Aid Office.

Available funds

Students may borrow up to $7,500 per academic year. A student may not borrow more than the cost of attendance less any other financial aid received.

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