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SELF Loan Guidance Statement

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What to know about your SELF Loan

The Minnesota Office of Higher Education, a state agency, is the only lender for the Student Educational Loan Fund (SELF) Loan. The SELF Loan is not a scholarship or grant. It is a loan that needs to be paid back. The SELF Loan is also not a federal loan. It is a private education loan administered by the Minnesota Office of Higher Education.

Contact the SELF Loan team for any questions regarding the SELF Loan application process.

Key Points About Your Loan:

  • You must repay the amount you borrow, plus interest.
  • Your interest rate depends on whether you choose fixed or variable rate and the length of your repayment term.
  • The variable interest rate can change quarterly (every three months) and can increase or decrease. It will not increase more than 3% during any 12-month period.
  • The fixed interest rate remains the same for the life of the loan.
  • There is no penalty for early payment.
  • Interest may be capitalized (added to the principal balance) during various times during the life of the loan.

What to know about repaying your SELF Loan(s)

You are responsible for making monthly payments while you are In-School or in a Transition Period. You are also responsible for repaying your SELF Loan even if you do not complete your educational program, are not 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.

  • Minimum monthly payments of up to $25 per month are required for each SELF 7 Loan while you are in the In-School and Transition Periods.
  • Unlike Federal Loans, there are no grace periods, deferment options, or loan forgiveness programs with your SELF Loan.
  • SELF Loans cannot be included in a federal government loan consolidation.
  • There is no co-signer release or changing of co-signers.
  • You and your co-signer will have consequences if the loan is past due or defaults.

What to know if you don’t make your SELF Loan payments (even when In-School)

  • Your loan can become delinquent and/or default while you are In-School if you do not make your required monthly payment of up to $25 per SELF 7 Loan. This would prevent you from applying for additional SELF Loans.
  • Delinquency or default can make it difficult for you or your co-signer to borrow money to purchase a car, a home, or even obtain a credit card.
  • Any scheduled loan disbursements to your school will be cancelled if you are not making your required SELF Loan payments.
  • You may not be able to register for classes if you have outstanding bills to the school because of your disbursement being cancelled.
  • If you default on your SELF Loan, you may face various consequences like having your Minnesota State Grant funds withheld.
  • In most cases, student loans, including SELF Loans, are not discharged by filing bankruptcy.

Acknowledgement

The SELF Loan Guidance Statement is for informational purposes only. Specific terms within the SELF Loan documents supersede any statements made herein.

By typing your name and today’s date and clicking Continue, you confirm that you have read this information and agree to proceed with the loan application.