Student Educational Loan Fund, Inc.

A Minnesota Student contribute Program www. selfloanword. org Table of Contents intimately(predicate) the Program Eligibility How to Apply l decease Size Loan Example live to the Borrower Loan refund Loan Servicer 1 1 3 4 5 5 6 9 This document prat be made available in an alternative format to individuals with disabilities by vocation (651) 642-0567. March 2008 About the Program The Student cultureal Loan Fund, or ego Loan, can help you pay for your education beyond l maintenance-back naturalise.The chopine is administered by the Minnesota social function of higher(prenominal) Education and can be used only for educational purposes. It is a loan, non a scholarship, so it must(prenominal) be repaid. Eligibility An suitable student must be enrolled in an eligible school in Minnesota or be a Minnesota resident enrolled in an eligible school in a nonher state or U. S. territory a list of eligible institutions is available at www. selfloan. rg be enrolled at least half eon in a program leading to a certificate, associate, baccalaureate, have or education degree be making satisfactory donnish procession as defined by the school non be in default of any student educational loan at the live or previous school not be currently neglectful in payment of engagement or mavin on an keen loan from the self Program, or on any other federal, state, personal or institutional student loan program and have a credit-worthy co-signer. SELF Loan 1 Co-signer You must have a credit-worthy co-signer who is either a U. S. itizen or a permanent resident, and who resides in the United provinces. The co-signer is accountable for making loan payments ( sidelineingness, principal and other charges) if you fail to make payments. The co-signer is palliate of this responsibility only in the event of death or perfect and permanent disability of the borrower. A credit-worthy co-signer is one who has no account balances fired through bankruptcy no garnishm ents, attachments, foreclosure, repossession or suit no more(prenominal) than $300 combined total in unsatisfied credit or unsatisfied payment obligations or no more than five pct of credit bureau balances past due.The co-signer must be at least 24 years ageing or 18 years old if a sibling (i. e. , a brother or sister). 2 SELF Loan How to Apply Following be the steps to apply for a SELF Loan Meet with a fiscal aid administrator at your college to discuss your eligibility for a SELF Loan. The monetary aid major power ordain use one of four application procedures (online SELF application, the TeleSELF electronic application, paper application or the combination paper/electronic application). The financial aid office can direct you to the appropriate application. The Office of higher(prenominal) Education determines your eligibility and reviews the credit worthiness of your co-signer. If either the borrower or the co-signer are ineligible, they will be notified. The approved loan is scheduled for disbursement. On the involvement of disbursement, you and your co-signer are sent copies of the loan disclosure, which describes the specific terms of the loan and the scheduled disbursement date(s). Either a check is mailed to the school, or funds are electronically transmitted to the school, whichever the school prefers. Funds are disbursed by academic term.You should allow four weeks for the processing of the application and the disbursement of the funds. SELF Loan 3 Loan Size The financial aid administrator at the eligible school will determine the summate you can borrow. The loan amount cannot exceed the total cost of attendance, as defined by the institution, minus other financial aid that the student will receive. The token(prenominal) amount is $500. Maximum Loan Amounts The maximum loan is $7,500 for undergraduate aims and $9,000 for graduate levels provided that The loan amount shall not exceed the cost of attendance less(prenominal) all other financial aid. You may borrow more than at one term during an academic year as long as you have not exceeded the grade-level borrowing limits, your request is for at least $500 and adequate eon remains to process the application. Cumulative Borrowing Limits The cumulative SELF Loan debt shall not exceed the following grade level limits $ 7,500 cast train 1 $15,000 Grade Level 2 $22,500 Grade Level 3 $30,000 Grade Level 4 $37,500 Grade Level 5 $55,500 Grade Levels 6 to 9 (includes all undergraduate and graduate debt) Grade level is determined by the school based on the number of attribute earned. SELF Loan Loan Example Here is an type of how a SELF Loan can help you offset the total cost of attendance. Cost of attendance Less available financial aid federal official grants State grants Institutional assistance Private assistance Total incite Total student obligation Maximum SELF Loan amount (based on grade level) $1,500 0 500 500 $2,500 $7,500 $7,500 $10,000 Costs to the Bo rrower You must pay interest and principal on the loan. There are no guarantee, origination or processing fees charged.Interest Rate The interest charged to you may change every quarter. The current SELF interest arrange is available at www. selfloan. org. Borrowers pay an interest prescribe comprised of a fortune (the margin) that is added to the variable interest rate of the source of money (the power). As the index or margin increases or decreases everyplace time, the interest charged will increase or decrease. The index rate is fasten to the three-month London Interbank Offered Rates (LIBOR). SELF Loan 5 Loan quittancePayment of Interest You must pay interest quarterly tour in school. This is called the in-school geological effect Interest payments will start . approximately 90 days from the disbursement of the loan. During the first 12 months later graduation or if registration drops below half time, the borrower will be converted to a monthly interest refund sc hedule. This 12-month period is called the transition period . repayment of Principal and Interest The period in which monthly principal and interest are paid is called the repayment period Near the end of . he 12-month transition period, you can choose between deuce repayment jut outs as long as a required repayment period has not started The Standard Plan requires the monthly payment of principal and interest scratch line on the 13th month after graduation or when enrollment drops below half time. The Extended Interest Plan provides two redundant years of monthly interest-only payments. Monthly payment of principal and interest with this plan begins on the 37th month after graduation or upshot of study. While the Extended Interest Plan extends the transition period, it shortens the repayment period by the same two years.For SELF Loans from phases commencement with SELF IV, if the entirety principal balances of all SELF Loans is less than $18,750, the maximum repayment peri od will be 10 years from the end of the in-school status. For SELF Loans from phases starting with SELF IV, if the aggregate principal balances of all SELF Loans is $18,750 or greater, the maximum repayment period will be 15 years from the end of the in-school status. All SELF IV Loans will enter repayment no later than seven years after the first disbursement date on the loan. 6 SELF LoanAdditional Loan repayment Information There are no deferment categories in the SELF Program. SELF Loans cannot be included in federal consolidation programs. Eligibility for repayment of SELF Loans under any student loan repayment program, much(prenominal) as a military program or AmeriCorps, is based on the criteria established by those programs for repayment of non-federal student loans. A borrower may convey back and forth between the in-school and transition periods, but once a transition period has been exhausted and the repayment period entered, the borrower may non leave the repayment period. The total amount borrowed will determine the borrowers monthly payment however, the minimum monthly payment of principal and interest is $50. There is no penalty for prepaying SELF Loans. Transferring Schools If you transfer to some other school or pursue a higher degree at another institution, you must enroll before the 12- to 36-month transition period elapses, enroll in a school that is a member of the SELF Program, and have time remaining before the seven-year mandatory repayment starts. If the school is not a member of the SELF Program, you will no longer be considered to be in the in-school status. SELF Loan 7SELF Loan Repayment Examples Amount Borrowed Annual percentage rate during principal repayment period Interest rate applied to principal balance Quarterly interest payments while enrolled Monthly interest payments during transition period Monthly payments of principal and interest $7,500 $7,500 7. 00% 8. 00% 7. 00% 8. 00% $131. 25 $150. 00 $43. 75 $50. 00 108 payments of $93. 80 108 payments of $97. 64 The interest rate varies throughout the life of the loan and may increase or decrease. The example illustrates the repayment schedule for a $7,500 SELF Loan at two different interest rates and assumes that the stated rates do not change.It also assumes that payments of principal and interest will be made over a nine-year term, following interest-only payments during a four-year in-school period and for one year after school. 8 SELF Loan Loan Servicer A Servicer schedules and disburses your loan, sends bills, and keeps track of your loan payments and your current loan status. The Servicer for the SELF Program is Firstmark Services. Contact Firstmark Services for questions about your bill, payments or to make address or enrollment changes Firstmark Services P. O. box seat 25410 Woodbury, MN 55125-0410 Tel (651) 265-7666 (888) 295-0713 toll freeVisit www. firstmarkservices. com to check the status of unfinished applications and disbursemen ts along with your payment and balance information. Minnesota Office of high Education SELF Loan is a program of the Minnesota Office of Higher Education, a state agency providing students with a range of financial aid programs and information to help them gain access to postsecondary education. The agency manages the Minnesota State Grant program, which is a needbased grant program for eligible students who submit the exculpate Application for Student Aid (FAFSA).The agency also oversees tuition reciprocality programs, Minnesotas 529 college savings program, institutional licensing, a college awareness program for youth and serves as the states clearinghouse for data on postsecondary enrollment, financial aid, finance and trends. SELF Loan 9 Minnesota Office of Higher Education 1450 Energy Park Drive, Suite 350 Saint Paul, MN 55108-5227 Tel 651. 642. 0567 or 800. 657. 3866 TTY Relay 800. 627. 3529 Fax 651. 642. 0570 E-mail emailprotected state. mn. us www. selfloan. org www. ohe. state. mn. us 2008 Minnesota Office of Higher Education Printed on recycled paper.