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Paying for College
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Student Loan Options

Federal Stafford Loans

Student requirements necessary to qualify:

  • registered for at least 6 credits per term
  • currently enrolled and attending
  • satisfactory progress
  • loan application must be certified BEFORE the end of the loan period

There are two types of Stafford Loans:

  1. Subsidized Stafford Loan
    This is a need-based loan. The government pays all of the interest on the loan while the student is enrolled at least half time with no interest or principle payments required until six months after withdrawal from school, graduation, or dropping to less than half time status.
  2. Unsubsidized Stafford Loan
    This is a non-need-based loan. The student is responsible to pay all interest while in school but may choose to defer payment of that until repayment of the principle balance begins.

Interest Rates and Fees:

  1. The interest rate for Subsidized Stafford Loan is fixed at 4.53% and unsubsidized Stafford Loan is fixed at 4.53%.
  2. There may be fees which total 3-4%, depending on lender and guarantor, taken equally out of each disbursement. The guarantors and the Federal Government charge these fees.

Maximum Loan Amounts:

  1. Dependent student:
    1. Year 1: $3500 Subsidized and $2000 Unsubsidized
    2. Year 2: $4500 Subsidized and $2000 Unsubsidized
     
  2. Independent student:
    1. Year 1: $3500 Subsidized and $6000 Unsubsidized
    2. Year 2: $4500 Subsidized and $6000 Unsubsidized
     

Federal PLUS Loan Program:(Parent Loan for Undergraduate Students)

This program provides loans to parents of dependent students attending a post-secondary school.

  • аÄÃÅÁùºÏ²Ê¿ª½± requires our students of PLUS loan borrowers to process a FAFSA form and receive an award letter before certifying the PLUS loan application.
  • There are no annual or aggregate borrowing limits in this program. However, the yearly amount cannot exceed the student's cost of attendance less all other types of financial aid awarded.
  • There are guarantee and origination fees charged to the borrower which are deducted from the loan disbursement checks. These fees will vary depending upon the lender/guarantor but will not exceed a total of 4%.
  • The parent and the student must complete the PLUS Loan application. Copies are retained by each, and the original and all other copies are submitted to the Financial Aid Office.
  • A credit check is performed on the borrower by the guarantor/lender before approval.
  • There are deferments and forbearances available which may enable the borrower to temporarily suspend or reduce payments on their loan.

SELF Loan Program:(Student Educational Loan Fund)

The Minnesota Office of Higher Education administers this program. Students are required to apply for other sources of aid through federal, state, institutional and private funding before applying for the SELF Loan. MSC Southeast requires the students to process a FAFSA before certifying the SELF Loan application.

  • The student and a credit-worthy co-signer must complete the SELF Loan application. The signature MUST BE NOTARIZED. The application is submitted to the FAO.
  • The maximum loan amount is $7,500 for grade levels 1 and 2 and must not exceed the student's cost of attendance less all other types of financial aid awarded. The aggregate borrowing limits for SELF Loans are 1st year - $7,500, 2nd year - $15,000.
  • There are no guarantee, origination or processing fees charged.
  • There are no deferments available in the SELF program.