Contact: Sandy Connolly (651) 259-3902
St. Paul, MN - The Minnesota Office of Higher Education (OHE) is pleased to announce reduced interest rates on the Minnesota SELF Loan and the SELF Refi loan. Rate changes go into effect July 1, good timing for students and families who may need to consider a loan for fall semester.
“It is important for students and families to carefully consider not only whether to take out a loan to help pay for college, but also what loan is right for them,” said Commissioner Dennis Olson, Minnesota Office of Higher Education (OHE). “The MN SELF Loan remains one of the most trustworthy and competitive on the market.”
New rates are posted as follows:
SELF V Variable rate decreased to 4.5%
SELF V Fixed rate decreased to 5.75%
SELF Refi Variable 5, 10 and 15 year decreased to 4.8%, 5.45% and 6.15%
SELF Refi Fixed Rates 5, 10 and 15 year remain at 4.25%. 5.5% and 6.75%
For comparison, the federal Direct PLUS Loan for parents currently has an interest rate of 7.08%.
The SELF Loan, administered by OHE, is one of the least costly and most transparent loan options available to students. The SELF Loan offers both a fixed and variable interest rate which are the same for all applicants regardless of income or credit score. And unlike many other private loans, applicants know the interest rate they’ll pay prior to completing the application, and there are no application or origination fees.
The SELF Refi program, created in January 2016, allows student loan borrowers locked into higher rate private loans to refinance to a loan with a lower interest rate or change the length of their loan. Both 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.
An applicant for the SELF Loan must be enrolled in an eligible school in Minnesota or be a Minnesota resident enrolled in an eligible out-of-state school. The applicant must be enrolled at least half-time in a certificate, associate, bachelor’s or graduate degree program, have satisfactory academic standing and be current on any existing student loan obligations. To be eligible for the SELF Refi program, borrowers must be a Minnesota resident and have completed at least one postsecondary credentialed program and meet certain credit criteria.