Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Legislative News and Views - Rep. Yvonne Selcer (DFL)

Back to profile

Special E-Update: College Loan Refinancing

Wednesday, January 20, 2016

College Debt Relief Through Refinancing: New Minnesota Program

Dear Neighbors,

 

As I knock on doors to find out what issues are important to our community members, crushing student debt is a big issue I hear about with unfortunate frequency. This issue continues to heavily impact many Minnesotans, not just current college students and graduates, but parents and high school students looking to plan for post-secondary education.

 

A new resource is here, however, for a significant number of graduates carrying large debt loads. Last week, the Minnesota Office of Higher Education unveiled the “SELF Refi” program, made possible by a bill I supported which fortunately passed during the 2014 legislative session. This bill allows college graduates residing in Minnesota to refinance their loans. This can significantly lower interest rates for students if they meet certain criteria including: debt ranging between $10,000-$70,000, a FICO credit score of 720 or higher (650 for those with a co-signer higher than 720), a debt-to-income ratio 45 percent or lower, and completion of a certificate, diploma, associate, bachelor’s, or master’s degree.

 

Graduates can find out more information about the program atOHE’s website here. Further, I invite you to share this information with any friends or family members who you may think benefit from this program.

 

Prior to the “Great Recession,” college was by most measures affordable for everyone. Students used to have an unwritten promise that they would be able to work through college and graduate nearly debt free. The numbers show that due to disinvestments in our state higher education systems and state grant aid available, this is regrettably no longer the case.

 

We still have significant work ahead of us to make college more affordable, and ensure that our young working adults can move forward in their lives without crippling debt. This loan refinancing program is a single, yet important, step to that end.

As always, I invite your thoughts on this or any other issue of importance to you. It is an honor to serve you.

 

Best Regards,

Yvonne Selcer

State Representative