The following questions are those most frequently asked concerning the SELF program.

If you don't understand some of the terminology on this page, open up our Loan Terminology page and reference it while you read.

1. What is the SELF Loan program?
2. Who may borrow in the program?
3. How much am I allowed to borrow?
4. What is the interest rate?
5. What have the interest rates been historically?
6. How do I apply for a SELF Loan?
7. Are there any application, processing, or guarantee fees deducted from my loan?
8. What are my repayment requirements?
9. Is there a choice of repayment plans?
10. Are there any "grace" periods or deferment options?
11. If I transfer to another school or go on to graduate school, can I still make interest only payments?
12. What is the maximum repayment period?
13. Can I capitalize my SELF interest instead of making quarterly payments?
14. How is my eligibility for a SELF Loan determined?
15. What is a credit-worthy co-signer?
16. Why is a credit-worthy co-signer or an in-school payment necessary?
17. Can my SELF Loan be included in a federal consolidation program?
18. Can I apply for a SELF Loan without applying for other federal or state financial aid?
19. Where can I obtain more information about the SELF program?
20. Where can I find out information on my existing SELF Loans?
21. What do I do if I have a question or problem with my SELF Loan?

1. What is the SELF Loan program? The SELF program is a long-term, low-interest educational loan provided by the Minnesota Office of Higher Education. The program is distinctive to Minnesota, and the Office of Higher Education is the only lender in the program.

2. Who may borrow in the program? Minnesota residents attending eligible postsecondary institutions in-state or out-of-state, and nonresidents attending eligible postsecondary institutions within Minnesota are eligible to apply. A SELF eligible school is one that has signed a participation contract with the Office of Higher Education. Students must be attending a SELF eligible school at least half-time and making satisfactory progress.

3. How much am I allowed to borrow?

• The minimum loan amount is $500.
• Undergraduate students may borrow up to $7,500 per year.
• Graduate students may borrow up to $9,000 per year.
• The cumulative SELF borrowing maximums are $37,500 for undergraduates and $55,500 for graduate students.

4. What is the interest rate?

The interest rate on the SELF Loan will vary quarterly throughout the life of the loan.

• The interest rate effective October 1, 2009 through December 31, 2009 is 2.5% for SELF II (margin of 2.0%) and 3.9% for SELF III and SELF IV (margin of 3.5%).
• The interest rate for SELF II is tied to the average quarterly sale price of the 13-week Treasury Bill. The interest rate for SELF III is tied to the average sale price of the three-month London Interbank Offered Rates (LIBOR).
• There is a cap on interest rate changes during any 12-month period of 2% (SELF II) and 3% (SELF III and SELF IV).

5. What have the interest rates been historically?

History of the SELF Loan Interest Rate

6. How do I apply for a SELF Loan?

1. Make sure the school you're attending participates in the SELF program. To find out if your school participates, contact the financial aid administrator at the school, or talk to staff at the Office of Higher Education. As of April 2009, 401 institutions participate in the program:
   • 167 Minnesota institutions (both state and private schools).
   • 234 out-of-state schools.

   Schools participating in the SELF-Loan program

2. Contact your school to find out how to apply.

7. Are there any application, processing, or guarantee fees deducted from my loan? No. There are no application, origination, guarantee or other processing fees deducted from your loan.

8. What are my repayment requirements? For SELF IV Loans, the loan must enter repayment no later than seven years from the disbursement date. You must begin quarterly payment (interest only) within 90 days after disbursement, and quarterly interest payments continue as long as you are properly enrolled at the school and have not entered a required repayment period. When you finish your study, unless already in a required repayment period you begin monthly (interest only) payments for up to 36 months.

9. Is there a choice of repayment plans? Yes, there are two repayment options once you finish school if you haven't entered a required repayment period:

• The Standard Plan requires monthly payment of interest for one year after you leave school and then monthly payments of principal and interest until the loan is paid in full.

• The Extended Interest Plan provides two more years of monthly interest only before starting principal repayment.

10. Are there any "grace" periods or deferment options? No, payments of interest are always required even while in school.

11. If I transfer to another school or go on to graduate school, can I still make interest only payments? Yes, but ONLY if you transfer before the 12-36 month Transition Period elapses, have not entered a required repayment period, and ONLY if the school to which you transfer is an eligible one, and you continue to be enrolled on at least a half-time basis. Schools participating in the SELF-Loan program

12. What is the maximum repayment period? The maximum repayment period for SELF IV Loans is determined by the following variables:

• For SELF IV Loans, if the aggregate principal loan balances from all SELF phases are less than $18,750 the repayment term on the SELF IV Loans shall not exceed ten years from when you leave school. If the balances are $18,750 or greater the repayment term on the SELF IV Loans shall not exceed 15 years from when you leave school.
• SELF IV Loans shall enter repayment no later than seven years from the disbursement date on the loan.

13. Can I capitalize my SELF interest instead of making quarterly payments?

The SELF loan does not allow you to capitalize in-school interest like some other student loan programs do. Interest capitalization is the practice of adding unpaid interest to the principal balance of a loan, thereby increasing the size of the loan. Interest is then charged on the new balance. How often the interest is capitalized is determined by the lender--i.e. monthly, quarterly, annually or at repayment. The more frequent the capitalization, the more interest you will pay. Capitalizing interest increases your monthly payment and the amount of money you will eventually repay.

There are benefits of paying the interest while in school:

• The overall amount of interest you pay will be less.
• The quarterly bills will keep you aware of your loan balance and the associated interest cost of your loan.

See example of the benefits of paying interest while in school instead of capitalizing interest.

14. How is my eligibility for a SELF Loan determined? Eligibility is not based on a minimum income requirement or amount of financial need. It's determined by subtracting a student's available financial aid from the yearly price of attendance. Cumulative SELF loan debt is considered. Every applicant must have the SELF application certified by the financial aid administrator, and completed by a credit-worthy co-signer.

15. What is a credit-worthy co-signer? A credit-worthy co-signer is:

• A U.S. citizen or permanent resident 24 years of age or older, or 18 years if a sibling (i.e., a brother or sister) of the borrower.
• Someone with an address in the United States, who has no credit bureau balances discharged through bankruptcy, no garnishments, attachments, foreclosures, repossessions, or suits.
• Someone with no more than $300 combined total in unsatisfied credit or unsatisfied payment obligations.
• Someone with no more than 5 percent of credit bureau balances past due.

The Office of Higher Education performs the credit check on each co-signer for each application.

16. Why is a credit-worthy co-signer or an in-school payment necessary? The SELF program is not subsidized by the federal or state government. Therefore, SELF must pay for itself. A credit-worthy co-signer is needed to insure continuous repayment on the loan. By using co-signers and requiring that interest be paid while the borrower is in school, costs are kept to a minimum and, in turn, the loan may be offered to you at low interest.

17. Can my SELF Loan be included in a federal consolidation program? Since SELF Loans are not federal loans they can not be included in a federal loan consolidation.

18. Can I apply for a SELF Loan without applying for other federal or state financial aid? No, you can't. The SELF program wants to make certain that you do not qualify for a more desirable form of financial aid. We require your school to obtain enough financial information from you about your situation to make an evaluation of your family's likelihood of qualifying for other forms of financial aid before handing you a SELF application.

We call this the "Maximum Effort Test." Most schools will require you to complete a standard application for financial aid (FAFSA) in order to document and verify your family's financial information.

However, we have introduced a shortcut for families who have already gone through the need analysis once, were found to be "no-need" and have reason to believe the same thing will happen this year if they apply. Ask your financial aid administrator about the "Affidavit of No-Need and Request for Waiver of the Maximum Effort Test."

19. Where can I obtain more information about the SELF program? You can talk with the financial aid administrator at the eligible school, or you can contact the Office of Higher Education.

20. Where can I find out information on my existing SELF Loans? Information on existing SELF Loans is available on the Firstmark Services website at www.Firstmarkservices.com.

21. What do I do if I have a question or problem with my SELF Loan? Firstmark Services is the loan servicer for the SELF program. If you have a question about your SELF Loan, please contact Firstmark Services at the following address or phone number:

Borrower Customer Service	651-265-7666 or Toll-free 1-888-295-0713 (Automated 24 Hours)
Representatives are available:	Monday - Thursday 7:00am to 7:00pm Central Time Friday 7:00am to 5:00pm
Payment Address:	Firstmark Services PO Box 2977 Omaha, NE 68103-2977
Correspondence Address:	Firstmark Services Attn: Private Loans PO Box 25410 Woodbury, MN 55125-0410

If, after calling Firstmark Services, you still have concerns about your SELF Loan, you are encouraged to follow the formal Appeals Process for SELF Loans. Contact the Office of Higher Education at 1-800-657-3866 or 651-642-0567 for the Appeals Form.