Frequently Asked SELF Questions | Get Ready for College: Insiders Guide to College Degrees and Financial Aid

1. What is the SELF Loan Program? The Student Educational Loan Fund (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 post-secondary institutions in-state or out-of-state, and nonresidents attending eligible post-secondary 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.

3. How much am I allowed to borrow?

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.

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 January 1, 2006 through March 31, 2006 is 6.0% for SELF II (margin of 2.0%) and 7.5% for SELF III (margin of 3.2%).
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).
New loans are only made under SELF III.

5. How do I apply for a SELF loan?

Make sure the school you’re attending participates in the SELF Program.
Contact your school to find out how to apply.

6. 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.

7. What are my 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.

8. Is there a choice of repayment plans? Yes, there are two repayment options 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.

9. Are there any “grace” periods or deferment options? No.

10. 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, 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

11. What is the 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 the Office of Higher Education.

12. 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.

13. What is a 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 the Office of Higher Education performs the credit check on each co-signer for each application.

14. 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.

15. How many SELF eligible schools are there from which to choose? As of July 2005, 346 institutions had agreed to participate in the program:

154 Minnesota institutions (both state and private schools).
192 out-of-state schools.

Schools participating in the SELF-Loan program

16. How can I tell if a school is SELF eligible? You contact the financial aid administrator at the school, or talk to staff at the Office of Higher Education. Schools participating in the SELF-Loan program

17. 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.”

18. 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.

19. 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.

20. 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 1-888-538-7378 (Automated 24 Hours)

Representatives are available:	Monday – Thursday 7:00am to 7:00pm Central Time Friday 7:00am to 5:00pm
Payment Address:	Firstmark ServicesPO Box 2977 Omaha, NE 68103-2977

Correspondence Address:	Firstmark ServicesAttn: Private LoansPO Box 25410 Woodbury, MN 55125-0410

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