<p>Paying interest while in school sounds ridiculous. I'm trying to figure out whether to accept it or just get a private loan. How do they expect me to pay interest while in school? With the money I'm paying the interest on?! Sounds ridiculous. Why would the Minnesota Department of Education offer me something ridiculous? Can anyone explain?</p>
<p>While it's frustrating to have to pay interest while in school, you only have to pay it quarterly. There are a number of benefits to a SELF loan. First off, it offers a much lower interest rate than you'll likely obtain on any private loan. Also, the origination fees are less. While it sucks to pay the interest, doing so means the interest won't be compounded. Beyond that, when you graduate all you will owe is the principal balance and current interest charges. It's worth it.</p>