Let’s Begin
Congratulations on your decision to make the SELF Loan part of your total financial aid package. SELF, or the Student Educational Loan Fund, was first offered in 1985 and is administered by the Office of Higher Education. Before taking out the SELF loan or any other student loan, make sure you have applied for federal grants, state grants, and scholarships that do not need to be repaid.
Borrowing and repaying money is a big responsibility. It's important that you have a full understanding of the program.
About the SELF Loan
The SELF Program is a long-term, low-interest educational loan designed to help students and families fill the gap between the cost of attendance, savings, work, and other forms of financial aid such as grants and scholarships.
The SELF Loan is not a federal loan, but rather a state loan, unique to Minnesota. The Minnesota Office of Higher Education is the only lender in the program.
Are You Eligible?
To be eligible for the SELF Loan you must be enrolled at least half-time in a program leading to a certificate, associate, baccalaureate, graduate, or education degree and be making satisfactory academic progress as defined by the school.
For your protection, as well as that of the program, all SELF borrowers are required to have a credit-worthy co-signer. Even if you have exemplary credit, you must have a co-signer to be eligible. This enables SELF to keep costs down and interest rates low.
The amount of money you're eligible to borrow is based, in part, on the cost of attendance, minus existing educational loans and other financial aid, such as scholarships, grants, and work study.
How Much Can You Borrow?
Maximum Annual Loan Amounts
| Undergraduate Students | $7,500 |
| Graduate Students | $9,000 |
Maximum Cumulative SELF Loans
- Undergraduate Students
- Grade Level 1 $ 7,500
- Grade Level 2 $15,000
- Grade Level 3 $22,500
- Grade Level 4 $30,000
- Grade Level 5 $37,500
Graduate Students $55,500
Loan amounts are based on grade levels. The phrase "grade level" indicates the relative status of a student in a degree or certificate granting program. For example, if you are a student in the second year of a four-year program, you would be in grade level 2, even though you may have been in school for more than two years. Your grade level will be determined by your school.
You may borrow the maximum amount for each grade level providing the total cumulative amount, including all undergraduate SELF Loans, does not exceed $55,500. You do not have to borrow the maximum amounts.
How Much Does It Cost?
You are responsible for payment of the interest and principal on the loan.
With the SELF Loan, there are no guarantee, origination, or processing fees charged. That means the amount of money you borrow is exactly what you get.
The SELF Loan is a variable rate loan, which means the interest rate can change each calendar quarter throughout the life of the loan. SELF Loans are currently being made under Phase IV of the SELF Program.
Phase IV
As of October 1, 2009, the interest rate is 3.9%. The interest charged is the sum of the margin, which is currently 3.5%, added to the index, which is based on the average rounded to the nearest tenth of one percent of the three-month London Interbank Offered Rates (LIBOR) rate during the previous calendar quarter. The interest rate cannot increase or decrease by more than 3% in any 12-month period. The interest rate will vary quarterly throughout the life of the loan. The interest rate may increase or decrease depending upon changes in the index and margin.
How Will You Repay the SELF Loan?
The SELF Loan was designed to make repayment manageable, by dividing it into three phases
- the in-school period
- the transition period
- and the repayment period
