SELF Loan Counseling
What are the repayment requirements for the SELF 7 Loan?
There are four different payment periods designed to make repayment manageable:
- School Period
- Transition Period
- Extension Period
- Repayment Period
School Period
The School Period is when:
- you are enrolled at least half-time in a qualifying SELF School
During the School Period, you are required to make a monthly payment of up to $25 per SELF 7 Loan as determined by the Office of Higher Education.
Any unpaid interest from your School and Transition Periods will be capitalized- added to the principal balance - at the end of the Transition Period.
Transition Period
The Transition Period begins:
- upon graduation,
- if your enrollment drops to below half-time, or
- if you transfer to a school which doesn’t qualify.
During the Transition Period (up to 12 months), you are required to make a monthly payment of up to $25 per SELF 7 Loan as determined by the Office of Higher Education.
Any unpaid interest from your School and Transition Periods will be capitalized- added to the principal balance - at the end of the Transition Period.
Extension Period
During the Extension Period (up to 24 months) you are required to make monthly payments of interest. The Extension Period is optional to select after the end of your Transition Period.
Repayment Period
The Repayment Period begins:
- at the end of the Transition or Extension Period
or - nine years after you took out the loan even if you are still in School, Transition or Extension.
During the Repayment Period you are required to make monthly payments of principal and interest.
Your loan repayment term depends on if you chose the 10, 15, or 20 year repayment term at the time of application.
What do I need to know about repaying the SELF Loan?
You are responsible for repaying your SELF Loan even if you don't complete your educational program, aren't satisfied with your education, or are unable to find a job. Your co-signer is responsible for making payments if you do not make them.
- You need to make minimum monthly payments of up to $25 per month per SELF 7 Loan while you are in the School and Transition Periods.
- You must start repaying your SELF Loan no later than nine years from when you received the money.
- There are no grace periods or deferment options.
- SELF Loans cannot be included in a federal government loan consolidation.
- There is no penalty for early payment.
- You and your co-signer will have consequences if the loan is past due or defaults.
- There is no co-signer release or changing of co-signers.
Do I need to apply for a new loan each year?
The SELF Loan promissory note is not a master promissory note. You need to complete a new application every year.