Sallie Mae Announces New Parent Loan: A Competitive and Responsible Option for Families

NEWARK, Del.--(BUSINESS WIRE)--

Sallie Mae, the nation's saving, planning, and paying for college company, today announced The Sallie Mae Parent Loan: a new, competitive choice for families looking to finance an undergraduate or graduate education. Available for parents or other creditworthy individuals, The Sallie Mae Parent Loan offers competitive interest rates, no origination fee, and a choice of repayment options, and it can cover up to 100 percent of the school-certified cost of attendance.

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According to "How America Pays for College 2015," the national study by Sallie Mae and Ipsos, parents cover approximately 40 percent the cost of college with a combination of savings, income and borrowed sources, and nearly one third of parents borrow to pay some of their child's college costs.

Specifically, The Sallie Mae Parent Loan offers:

• Expanded eligibility. The Sallie Mae Parent Loan is available not just to parents but to any creditworthy individual who wants to help fund a student's college education, and it can be used for undergraduate or graduate students who are enrolled full-time, half-time, or less than half-time. The Federal PLUS Loan for Parents is available only to parents of dependent undergraduate students who are enrolled at least half-time.
• Variable or fixed interest rates and no origination fee. The Sallie Mae Parent Loan currently offers variable rates starting from 4.00 to 10.37 percent APR, and fixed rates that range from 5.74 to 12.87 percent APR. In comparison, the Federal Direct PLUS Loan for Parents is offered only at a fixed rate, currently 6.84 percent, and it carries an origination fee of 4.272 percent.
• Multiple benefits. Sallie Mae Parent Loan customers who sign up to make monthly payments via auto-debit are eligible to receive a 0.25 percentage point interest rate reduction. Parent Loan customers will also receive free quarterly access to their FICO^® Credit Score. In addition, customers who are members of Upromise by Sallie Mae may use their cash-back rewards to pay down their loans.
• Two repayment options. Sallie Mae Parent Loan customers may choose the repayment option that best meets their needs:
  • The Interest Repayment Option: Customers make monthly interest payments while students are enrolled in school for up to 48 months, followed by monthly principal and interest payments.
  • The Principal and Interest Repayment Option: Customers make monthly principal and interest payments, including while students are enrolled in school.

With the Federal Direct PLUS Loan for Parents, fixed monthly payments of principal and interest begin immediately. Parents may contact their servicer to request a deferment; interest accrues while in deferment and is added to the loan's principal balance when beginning payment.

"There is no single way to pay for college, and for many, it is a shared responsibility," said Charlie Rocha, executive vice president, Sallie Mae. "Our research shows that nine in 10 parents are planning to help cover the cost of their child's college education. Our new Parent Loan along with our Smart Option Student Loan give families choices to do so with confidence from a proven market leader."

The Sallie Mae Parent Loan is the latest offering in the company's continued commitment to help students and families make college happen. The company already offers the Smart Option Student Loan for undergraduate and graduate students, along with products to help families save and plan for college. The company is also investing millions to enhance multiple aspects of the customer experience from application through repayment and has moved all private education loan customer service to the United States.

Learn more at SallieMae.com/ParentLoan and check out our comparison visual.

Sallie Mae SLM is the nation's saving, planning, and paying for college company. Whether college is a long way off or just around the corner, Sallie Mae offers products that promote responsible personal finance, including private education loans, Upromise rewards, scholarship search, college financial planning tools, and online retail banking. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.

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