Scholarships, Grants, and Federal Loans Not Enough? Consider a Responsible Private Student Loan from Sallie Mae to Cover Remaining Costs of College

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

Tassels are turned, college decisions made, and financial aid packages have landed in the inboxes of incoming freshmen and returning college students. For some, scholarships, grants, income and savings, and federal student loans may cover the bill, but many families are left with a gap to cover the remaining cost of college. With competitive pricing, no upfront fees, a choice of repayment options, and free quarterly access to FICO Scores, the Sallie Mae Smart Option Student Loan can be an affordable and responsible way to help families do just that.

Available to students attending degree-granting institutions, Sallie Mae's Smart Option Student Loan offers competitive fixed and variable interest rates and no origination fees or prepayment penalties. Variable rates for undergraduates start from 2.50 to 9.59 percent APR, and fixed rates for undergraduates range from 5.74 to 11.85 percent APR. Graduate students may qualify for variable rates starting from 2.50 to 7.51 percent APR or fixed rates of 5.74 to 8.56 percent APR.

In addition to no-cost access to quarterly FICO^® Scores, the Sallie Mae Smart Option Student Loan offers:

• Choice and Flexibility: Customers may select from three repayment options: monthly interest-only payments while in school; a fixed monthly payment while in school; or payments deferred until after school. A typical freshman borrower who makes interest-only payments on a Smart Option Student Loan while in school saves an average of 25 percent on total loan costs compared to students who defer payments until after school. Also, all Sallie Mae Smart Option Student Loans are certified by the school's financial aid office to help ensure customers borrow no more than the cost of attendance less other financial aid received.
• Reduced Interest Rates for Automatic Debit: Customers may reduce their interest rate by 0.25 percentage points by enrolling in the automatic debit option. Customers who sign up for Upromise^® — the free-to-join saving for college and rewards program — have access to Upromise Loan Link^®, which lets them use Upromise earnings to pay down eligible Sallie Mae student loans.
• Enhanced Customer Service: Over the past two years, Sallie Mae has invested millions of dollars to enhance multiple aspects of the customer experience, from application through repayment. Unlike other lenders who may rely on third parties, Sallie Mae is the servicer for its private student loans and those customer service employees are based in the United States.
• Graduated Repayment: The Smart Option Student Loan offers a Graduated Repayment feature, a transitional repayment plan that offers customers greater budget flexibility upon graduation. Students with an eligible loan who graduate and maintain their Sallie Mae loans in good standing may request to make 12 interest-only payments before transitioning into full principal and interest payments.
• Cosigner Release: After they graduate, and once they have made 12 on-time principal and interest payments and meet certain other credit requirements, borrowers may apply to have their cosigner released from the loan.

"Whether you are an incoming freshman, returning undergraduate, or a graduate student, Sallie Mae offers several options to bridge the college financing gap," said Charlie Rocha, executive vice president, Sallie Mae. "Our Smart Option Student Loan — along with our recently announced Parent Loan — not only help cover costs not met by income and savings or federal financial aid, but they also encourage responsible borrowing. In fact, more than half of our Smart Option Student loan customers choose an in-school payment option to help reduce overall costs."

Sallie Mae recommends students and families follow its 1-2-3 approach to paying for college: first, maximize money that does not need to be repaid, such as scholarships and grants; second, explore federal student loans; and, third, consider a responsible private education loan.

For more information on Sallie Mae's Smart Option Student Loan, or to apply, visit SallieMae.com/smartoption.

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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