A Minnesota Student Loan Program
Table of Contents
About the Program Eligibility How to Apply Loan Size Loan Example Costs to the Borrower Loan Repayment Loan Servicer 1 1 3 4 5 5 6 9
This document can be made available in an alternative format to individuals with disabilities by calling (651) 642-0567. March 2008
About the Program
The Student Educational Loan Fund, or SELF Loan, can help you pay for your education beyond high school. The program is administered by the Minnesota Office of Higher Education and can be used only for educational purposes. It is a loan, not a scholarship, so it must be repaid.
An eligible student must: • be enrolled in an eligible school in Minnesota or be a Minnesota resident enrolled in an eligible school in another state or U.S. territory; a list of eligible institutions is available at www.selfloan.org; • be enrolled at least half time in a program leading to a certificate, associate, baccalaureate, graduate or education degree; • be making satisfactory academic progress as defined by the school; • not be in default of any student educational loan at the current or previous school; • not be currently delinquent in payment of interest or principal on an outstanding loan from the SELF Program, or on any other federal, state, private or institutional student loan program; and • have a credit-worthy co-signer.
SELF Loan 1
Co-signer: You must have a credit-worthy co-signer who is either a U.S. citizen or a permanent resident, and who resides in the United States. The co-signer is responsible for making loan payments (interest, principal and other charges) if you fail to make payments. The co-signer is relieved of this responsibility only in the event of death or total and permanent disability of the borrower. A credit-worthy co-signer is one who has no account balances discharged through bankruptcy; no garnishments, attachments, foreclosure, repossession or suit; no more than $300 combined total in unsatisfied credit or unsatisfied payment obligations; or no more than five percent of credit bureau balances past due. The co-signer must be at least 24 years old or 18 years old if a sibling (i.e., a brother or sister).
2 SELF Loan
How to Apply
Following are the steps to apply for a SELF Loan: • Meet with a financial aid administrator at your college to discuss your eligibility for a SELF Loan. The financial aid office will use one of four application procedures (online SELF application, the TeleSELF electronic application, paper application or the combination paper/electronic application). The financial aid office can direct you to the appropriate application. • The Office of Higher Education determines your eligibility and reviews the credit worthiness of your co-signer. If either the borrower or the co-signer are ineligible, they will be notified. • The approved loan is scheduled for disbursement. On the date of disbursement, you and your co-signer are sent copies of the loan disclosure, which describes the specific terms of the loan and the scheduled disbursement date(s). • Either a check is mailed to the school, or funds are electronically transmitted to the school, whichever the school prefers. Funds are disbursed by academic term. You should allow four weeks for the processing of the application and the disbursement of the funds.
SELF Loan 3
The financial aid administrator at the eligible school will determine the amount you can borrow. The loan amount cannot exceed the total cost of attendance, as defined by the institution, minus other financial aid that the student will receive. The minimum amount is $500. Maximum Loan Amounts The maximum loan is $7,500 for undergraduate levels and $9,000 for graduate levels provided that: • The loan amount shall not exceed the cost of attendance less all other financial aid. • You may borrow more than once during an academic year as long as you have not exceeded the...
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