Document Actions
Other Loan Options Available to Students and Parents
Page 4 of 5
SELF Loan (Student Educational Loan Fund)
SELF is an educational loan program administered by the Minnesota Office of Higher Education. All MLC students are eligible. A SELF loan is intended to be used as a supplemental loan. SELF loans are not included in the financial aid award letter like Perkins and Stafford loans.
-
The interest rate is variable and can change every three months. The interest rate for the fourth quarter of 2008 was 5.9%. The historical average is 7.06%. Interest payments must be made quarterly while in school.
-
Repayment of principal may be deferred until you are out of school. You may take up to 10 years to repay. Monthly payments on a $16,000 loan are approximately $185 per month.
-
A FAFSA must be completed. A credit worthy co-signer is required.
-
You may borrow up to $7,500 annually for grade levels 1 to 5. Loan amounts are further limited by an amount equal to the cost of attendance less financial aid including other loans.
-
Half of the loan is disbursed each semester. Funds are paid to your account as they are received.
-
No origination fees apply.
-
For more information go to MLC’s Financial Aid web site at www.mlc-wels.edu/go/finaid and click on: <Loan Information> <Self Loan> or contact the MLC Financial Aid Office.
PLUS (Parent Loan for Undergraduate Students)
The PLUS Loan program is a low interest educational loan provided by the Federal Government. The PLUS Loan was created to assist parents of dependent students in obtaining educational loan funding. The borrower of this loan is the parent. PLUS loans are not included in the financial aid award letter, but are available to parents up to the cost of attendance minus other financial aid.
-
The interest rate is 8.5%
-
Interest begins to accumulate at the time the first disbursement is made. Repayment generally begins within 60 days after the final loan disbursement for the period of enrollment for which you borrowed. Lenders normally allow delaying payment of principal and interest upon request for up to four years while the student is in school.
-
To be eligible for a PLUS loan at least one parent must meet minimum credit requirements.
-
The maximum amount that parents can borrow is equal to the cost of attendance less any other financial aid.
-
Half of the loan is disbursed each semester. Funds are paid to your student’s account as they are received.
-
Origination loan fees of 3% paid to the Department of Education are deducted from each disbursement. A 1% default fee may be deducted. Some lenders pay the default fee on behalf of the borrower.
-
For more information go to MLC’s web site at www.mlc-wels.edu/go/finaid and click on: <Loan Information> <PLUS Loan for Parents>.
OTHER ALTERNATE LOANS FOR STUDENT AND PARENTS
MLC’s Stafford loan lenders offer student loans in addition to Federal Stafford loans. Students normally will need credit-worthy co-signers. Origination fees and interest rates depend upon individual credit scores. Contact the Financial Aid Office for more information about these loans.