When Federal Student Loans Don’t Get the Job Done

Minnesota’s Alternative Loan is the Next Best Option

If you’re like millions of other American college students one of your biggest concerns is how you’re going to cover the full cost for your college education when your federal student loans fail to do the job. Minnesota student residents and those from out of state looking to enroll in the state should consider the alternative available: the SELF Loan from the Minnesota Office of Higher Education (MOHE).

Every year millions of students nationwide apply for federal student loans. And every year regardless of how widely available those loans are, many simply fail to cover the true cost of a college education. This is where states like Minnesota have stepped in to assist citizens with another layer of financial aid in the SELF Loan, the Student Educational Loan Fund.

Federal Loans are First Priority

In many cases you only qualify for auxiliary loans and alternative loans once you’ve exhausted your federal loans. So make sure the federal application, the FAFSA, is a first priority. Most students are qualified to receive some federal aid:

  • Stafford Loans are among the most popular loans in existence and come in need-based and non-need-based versions.
  • Parent PLUS Loans give parents of undergrads the extra financial muscle they need to cover the remaining balance of their child’s education. However all other federal loans, scholarships and grants must be paid out before parents may qualify for an award.
  • If you’re a graduate student facing an uphill battle with your education costs, then consider the next layer of federal aid, the Grad PLUS Loan also for professionals. You may qualify only when you’ve met your lifetime limit on Stafford Loans. But it could beat out the cost of alternative loans.

The Low-Cost Minnesota Alternative Loan

The SELF Loan is awarded to many thousands of Minnesota students each year and its intention is to help affordably meet the growing demands of education costs. Your campus financial aid administrator determines your eligibility and you may only apply and be qualified once your federal awards are paid out. Another reason to make sure you complete and file the FAFSA on time.

For more information on the SELF Loan as well as some crucial college planning tools, visit the MOHE website.