Contact: Sandy Connolly, Director of Communications
Office of Higher Education
St. Paul, MN -- The Minnesota Office of Higher Education (OHE) is pleased to announce a reduced interest rate on the State of Minnesota SELF V fixed interest rate student loan.
Beginning August 1st, the fixed rate for new applications is 6%, down from the previous rate of 6.5%. The SELF Loan also carries a variable rate option at 3.4% through September 2016.
"We encourage students to borrow as little as possible when paying for college, but if borrowing is necessary, we hope they will carefully consider all the options," said Commissioner Larry Pogemiller, Office of Higher Education. "This reduction to the SELF interest rate makes it a more affordable option for students."
In 2016, OHE launched the SELF Refi program, a student loan refinancing program for borrowers who want to lower their monthly payments or overall student debt burden.
The competitive rates offered through the SELF Refi program can help some students locked into higher rate private loans reduce their monthly payments. Some borrowers may also see the SELF Refi program as a way to shorten the duration of their student loans, getting them out of debt earlier than previously expected.
The SELF and SELF Refi programs operate at no cost to the state, with funding provided by revenue bond proceeds and student loan repayments from borrowers. SELF Loans are available to Minnesota students attending eligible postsecondary institutions within or outside Minnesota and to non-residents attending eligible postsecondary institutions in Minnesota. There are no minimum or maximum income thresholds and no application fees for the SELF Loan program. Students pay only interest on their SELF Loan while in school.
To be eligible for the SELF Refi program, borrowers must be a Minnesota resident, have completed at least one postsecondary credentialed program, and either meet certain credit criteria or have a credit-worthy cosigner.
For information about the SELF Loan program, students can contact the financial aid office at the college they attend or are considering attending, or contact the Minnesota Office of Higher Education at (800) 657-3866 or (651) 642-0567, or visit www.selfloan.state.mn.us.
More information on the SELF Refi program is available at: www.selfrefi.state.mn.us.