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Minnesota Office of Higher Education

Suite 350
1450 Energy Park Drive
St. Paul, MN 55108-5227
Phone: (651) 259-3901
Toll-Free: (800) 657-3866
Fax: (651) 627-3529
TTY: (800) 642-0597
Website: http://www.ohe.state.mn.us/

The University of Minnesota, Minnesota State University Moorhead, Gustavus Adolphus College, Bemidji State and 15 other Minnesota colleges participate in the Direct Federal Student Loan program.

All others use the Federal Family Education Loan Program (FFELP). Minnesota recently lost two of the state guarantors for this program: TCF Education Financing and NorthStar Education Finance. The state does not offer any added benefits for students who use the FFELP.

Minnesota offers its own state private student loans called the Minnesota Student Educational Loan Fund (SELF) Program. This is a long-term, low-interest educational loan financed through the sale of revenue bonds.

Requirements include:

Minnesota residents attending school in or out of state or non-residents attending Minnesota schools

enrolled at least half-time and making satisfactory progress

must seek other sources of federal, state, institutional, and private aid for eligibility

a creditworthy co-signer

Loan features:

limits are $500-$7,500 per year for undergrads; $500-$9,000 per year for graduate

interest rate is the LIBOR + 3% (now 3.48%)

repayment is 7 to 15 years depending on the size of the debt

interest payments are required quarterly while in school- monthly after leaving school

no fees are required

This loan is unusual for a private loan because there is no deferment period.

Minnesota participates in a large number of college loan forgiveness programs. Some are strictly state programs, while others are federal student loan forgiveness programs.

These health professions are eligible for college loan forgiveness:

Physician
Primary care nurse practitioner
Primary care physician assistant
Certified nurse-midwife
Dentist
Dental hygienist
Mental or behavioral health professional
Pharmacist
Health care instructors

These professionals may also qualify for college loan forgiveness:

Teachers
Librarians
Early childhood educators
Child welfare workers
Speech language pathologists
National Service participants
School counselors
Public sector employees

Minnesota helps its students avoid crushing loan debt when they get out of school by offering an alternative loan that does not allow interest to build up by being deferred. Their forgiveness options also help reduce debt.

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