Assessing the Feasibility of Creating a SELF Loan Refinancing Program

Autor/inn/en	Kosir, Marilyn; Danette, Jerry; Li, Peter; Sanford, Thomas
Institution	Minnesota Office of Higher Education
Titel	Assessing the Feasibility of Creating a SELF Loan Refinancing Program
Quelle	(2015), (21 Seiten) PDF als Volltext kostenfreie Datei Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Monographie
Schlagwörter	Quantitative Daten; Student Loan Programs; College Students; State Programs; State Aid; Higher Education; Paying for College; Costs; Student Financial Aid; Eligibility; Program Implementation; Barriers; Minnesota + Suchen Sie Ihr Suchwort? Collegestudent; Regierungsprogramm; Hochschulbildung; Hochschulsystem; Hochschulwesen; Studienfinanzierung; Cost; Kosten; Finanzielle Beihilfe; Studienförderung; Eignung
Abstract	Since the Student Education Loan Fund (SELF) Loan program's inception in 1984, over 250,000 students have received more than $2 billion in SELF Loans to pursue their postsecondary education (Minnesota Office of Higher Education, 2014a). The SELF Loan program provides undergraduate and graduate students with long-term, low-interest educational loans. Unlike most private lenders, SELF Loan interest rates are universal for all students regardless of credit score. As the costs of higher education have increased for students and their families over the past three decades, SELF Loans have played an increasingly important role in providing students with the financial resources needed to pay for their education; however, the SELF program loan limits have failed to keep pace with the cost of college potentially forcing students to choose higher-priced alternatives. Nationally, there appears to be growing demand for student loan refinancing programs, as evidenced by the number of state and private programs that have emerged in recent years. Inherently, a borrower's decision to refinance their student loans signals that their current loans are inadequately serving their needs or there are more favorable options. While student loan refinancing programs can play an important role in improving the financial position of borrowers, it is in the student's best interest to obtain low cost financing while they are enrolled in school rather than waiting to refinance after graduating. This report presents a framework for establishing a SELF Loan Refinancing program and outlines strategic modifications to the existing SELF Loan program to better meet the needs of students and reduce their need to refinance. Specifically, the report presents an overview of other state's loan refinancing programs, outlines characteristics of a proposed Minnesota pilot refinancing program, and discusses challenges to implementing a SELF Loan Refinancing program. Additionally, it provides a summary of the current SELF Loan program and outlines strategies to strengthen the program to more effectively meet student needs. Suggested Changes to the Federal Preferred Lender Law are provided in the appendix. (As Provided).
Anmerkungen	Minnesota Office of Higher Education. 1450 Energy Park Drive Suite 350, St. Paul, MN 55108-5227. Tel: 800-657-3866; Tel: 651-642-0567; Fax: 651-642-0675; Web site: http://www.ohe.state.mn.us
Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2020/1/01