The Minnesota Office of Higher Education, a state agency, is the only lender for SELF Loans.
The SELF Loan is not a federal loan, but rather a state loan, unique to Minnesota. Taking on student loan debt is a big responsibility. Make sure you fully understand your responsibilities before applying for the SELF Loan or any other student loan.
Key points you need to know:
Finance your education with free money first. You don't have to repay grants, scholarships, or work-study. You are required to complete the Free Application for Federal Student Aid (FAFSA) to determine whether you qualify for federal or state grants unless you are a graduate student, international student or attending a school that does not participate in federal or state grant programs.
Check Out Your Federal Loan OptionsBefore you apply for the SELF Loan make sure you look into any federal education loans you may be eligible for. You should understand these benefits of federal loans:
Many of these benefits are unavailable for the SELF Loan.
Borrow Only What You Need
Finally, borrow as a last resort and only borrow what you need. You don't have to borrow the maximum amount you are eligible for. Using savings and earnings can reduce the amount you need to borrow.
The SELF Loan is money that needs to be paid back to the lender, the Office of Higher Education. It's not a scholarship or grant. In addition to paying back the loan you also need to pay interest in order to use the money. Your interest rate will depend on whether you choose a 10, 15, or 20 year repayment term and on whether you choose the fixed- or variable-rate SELF Loan. The variable interest rate can change quarterly (every three months) and can increase or decrease but it will not increase more than 3% during any 12-month period. The fixed interest rate remains the same over the life of the loan. Interest may be capitalized during various times during the life of the loan. Capitalization is when unpaid interest is added to the principal amount of your student loan.