Skip to main content

With student loan debt an issue, MN offers new repayment option for graduates

  • Author:
  • Updated:
    Original:

Minnesota residents could be able to slash hundreds of dollars off their student loan repayments under a state-funded refinancing program revealed on Thursday.

The Minnesota Office of Higher Education-led initiative will give some graduates the option to change the terms of their student loans, possibly reducing their monthly payments by taking advantage of interest rates lower than when they originally borrowed, according to an email news release.

The program is called SELF Refi.You can check out if you're eligible for it here.

The refinancing for eligible borrowers is offered at 5-, 10- or 15-year terms, with interest rates from 3 to 6.95 percent depending on the length, the release says.

For someone currently paying off $40,000 worth of loans at 8 percent interest, refinancing through the new program could save them $200 a month – and reduce their total interest costs by $25,000 over the totality of the loan, according to the release.

Student loan debt in Minnesota

It was revealed last year that Minnesota ranks fifth in the country for having the largest student debts – with the average student owing $31,579 – according to a report by The Institute of College Access and Success.

MPR reports that as many as 500,000 Minnesotan graduates could be eligible for SELF Refi, which the state is funding through the sale of bonds and hopes will provide a boost to consumers and the wider economy.

"It makes it just so much more difficult for them to do so much more in our economy, whether it is buy a house or start a small business or buy a car." Lt. Governor Tina Smith, who announced the program, told the news organization.

To qualify, borrowers must prove that they:

  • Are a Minnesota resident.
  • Have completed at least one postsecondary credentialed program.
  • Have at least $10,000 in qualified student loans.
  • Are keeping up with their credit obligations (those with FICO credit scores higher than 720 are eligible, while those with 650-720 need a co-signer with a 720+ score).

Next Up

MissingMankatoWomanSideBySide

Body of missing Mankato woman believed to have been found

A canoer found the body in a swamp near Eagle Lake Friday.

kim crockett facebook sos

MN GOP endorses attorney general, secretary of state candidates

Kim Crockett was endorsed as the party's candidate for secretary of state, while Jim Schultz won the endorsement for attorney general.

FSmb9kkWAB0UBqk

Volunteer firefighter identified as man killed during Thursday storms

The Kandiyohi County Sheriff's Office confirmed that 63-year-old Ryan Erickson died when a grain bin fell on him.

Juan Ramos, standing outside of his Taco Chon Mexican Grill, in St. Cloud, Minnesota.

Firm takes on case defending Taco Chon against Taco John's lawsuit

The local Mexican restaurant is fighting a case presented by Taco John's over naming rights, among other things.

Screen Shot 2022-05-14 at 7.32.27 AM

Worker killed in skid loader accident was 23-year-old apprentice lineman

Minnesota Valley Electric Cooperative called the incident "the unthinkable."

Cascade River 1

Raging North Shore rivers overtake bridges, snap trees in half

Pedestrian bridges near the Lutsen Resort have been damaged by the vast river flow.

u.s. attorney's office

St. Paul man sentenced for 2021 robbery spree

Warren Dean, 27, admitted to robbing seven St. Paul businesses in a span of three days.

FSmfYf0WABgrNhI

Stevens County may have been hit the hardest by Thursday storms

The entire county was without power after the storms blew through Thursday evening.

State Patrol

3 killed, 1 critical after trio of crashes in Minnesota Thursday

One person also faces life-threatening injuries in a crash that happened in Olmsted County.

Screen Shot 2022-05-13 at 1.25.08 PM

Mora woman saves pelican caught in fishing line for days

A birthday fishing trip shapes into a heroic tale.

Related