Loan limits and interest rates are the same as the subsidized federal Stafford Loan, but interest must be paid by the student while in school. The purpose of this loan is to assist parents by providing a source of loan funds for the college education of their dependent children. Parents may borrow up to the full cost of education less any other financial aid the student receives. Repayment of the loan begins within 60 days of disbursement. Eligibility for this loan is not based on financial need.
Money is borrowed directly from the state of Minnesota at a variable interest rate.
Interest must be paid on a quarterly basis while a student is in school. Interest payments will start within 90 days of the disbursement of the loan check. Payment of principal and interest will be monthly starting the 13th month after graduation. Students demonstrating financial need often receive funds from several of the types of aid described above. It is common for applicants to receive a scholarship or grant, student employment and a loan.