SELF Loan Program

The Student Educational Loan Fund (SELF) Program is a long-term, low-interest educational loan provided by the Minnesota Higher Education Services Office (MHESO). The program is distinctive to Minnesota, and MHESO is the only lender in the program.

How Much Can be Borrowed

• The minimum loan amount is $500.
• First- or second-year undergraduate students may borrow up to $4,500 per year.
• Third-, fourth-, and fifth-year undergraduates may borrow up to $6,000 per year.
• Graduate students may borrow up to $9,000 per year.
• The cumulative SELF borrowing maximums are $25,000 for undergraduates and $40,000 for graduate students.

Interest Rate

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

• 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).

Application, Processing, or Guarantee Fees

No application, origination, guarantee or other processing fees are deducted from your loan.

Repayment Requirements

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. When you finish your study, you begin monthly (interest only) payments for up to 36 months.

You have a choice of repayment plans once you finish school:

• The Standard Plan requires monthly payment of both principal and interest for up to nine years. These payments start 12 months after you leave school.
• The Extended Interest Plan provides two more years of monthly interest only, followed by up to seven years of monthly principal and interest payments.

Grace Periods or Deferment Options

There are no grace periods or deferment options.

Transfer to Another School or Graduate School

If you transfer to another school or go on to graduate school, you can make interest only payments , but ONLY if you transfer before the 12-36 month Transition Period elapses, 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.

Maximum Repayment Period

The length of the repayment period is determined by the following variables:

• 10 years from termination of study.
• 15 years from the date of the first loan disbursement on your first SELF loan.
• A shorter period arranged with MHESO.

Eligibility for a SELF Loan

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 be completed by a credit-worthy co-signer.

Credit-Worthy Co-signer

A credit-worthy co-signer is:

• A U.S. citizen or permanent resident 18 years of age or older.
• 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 delinquent or unsatisfied credit obligations.
• Someone with no more than 5 percent of credit bureau balances past due.

If the co-signer cannot be located in the credit bureau listings, a Personal Financial Statement provided by the co-signer will be evaluated. Using this method, the co-signer must have a net worth equal to ten (10) times the amount of the SELF loan requested. The MHESO performs the credit check on each co-signer for each application.

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.

Application for a SELF Loan

Your steps to applying are:

1. Make sure the school you're attending participates in the SELF Program.
2. Exhaust all your eligibility for other aid programs except FFEL and Direct loans both subsidized and unsubsidized, and work study.
3. Talk with the school's financial aid administrator about your loan requirements and responsibilities.
4. Secure a credit-worthy co-signer.
5. Initiate an application at your school.

You cannot apply for a SELF loan without applying for other federal or state financial aid. 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."

Obtain More Information About the SELF Program

You can talk with the financial aid administrator at the eligible school, or you can contact MHESO. Also, visit the Student Educational Loan Fund Web site.

Existing SELF Loans

Information on existing SELF loans is available on the Nelnet web site at www.unipac.com.

Questions or Problems With SELF Loans

Nelnet Loan Services, Inc. (Nelnet) services the loans for the SELF Program. If you have a question about your SELF loan, please contact Nelnet at the following address or phone number:

Nelnet
Attn: Private Loans
PO Box 64694
St. Paul, MN 55164-0694
651-265-7666
1-888-538-7378