RESTON, Va., August 1, 2007—As back-to-school approaches, families may wonder whether time has run out to find last-minute payment solutions. Sallie Mae—the nation’s leading saving-and-paying-for-college company—has several affordable financing options available in time to meet the cost of higher education.

Sallie Mae counsels families to adopt a “1-2-3 approach” to paying for college. First, students and families should look for financial aid that does not have to be repaid, such as grants and scholarships. Second, they should maximize their borrowing under the federal student loan programs, which provide the most consumer-friendly loan rates, benefits, and repayment options for students and parents. Third, if students still need money after they have exhausted all options for federal funding, they may consider applying for a private education loan to meet the total cost of attendance.

“Many families wrongly assume they have to take costly measures, such as dipping into retirement savings or using credit cards to meet the cost of today’s rising tuition,” said Martha Holler, spokeswoman, Sallie Mae. “Fortunately, the Federal Stafford Loan is not the end of the road in terms of affordable financing for education.”

Sallie Mae advises families to consider several affordable ways to bridge the college financing gap:

Tuition Payment Plans
Many schools offer families the opportunity to make monthly tuition payments over the course of the school year as an alternative to a large, lump-sum payment due at the start of the term. Sallie Mae’s TuitionPay is an interest-free, debt-free way to spread tuition payments over a number of months. The TuitionPay plan is not a loan, so there are no interest payments, just a nominal yearly enrollment fee. TuitionPay can help families reduce or even eliminate the amount they need to borrow to pay for college in the fall, by spreading out payments. For more information, visit www.tuitionpay.com or call 800-635-0120 to speak with a TuitionPay consultant.

Sallie Mae PLUS Loan
Federal PLUS Loans allow eligible borrowers to finance their unmet financial need. Parents of dependent undergraduates, as well as graduate/professional students, can borrow up to the total cost of attendance (less other financial aid received) for expenses such as tuition, room, board, books, supplies and even travel. PLUS Loans are one-size-fits-all: Customers who qualify receive the same interest rate and fee structure regardless of their credit history, income, assets or collateral. Parent PLUS loans offer flexible repayment choices, the option for those experiencing financial hardship to postpone repayment while the student is in school or after the student graduates, and an interest-rate reduction of up to 0.75 percent when parents make their payments using automatic debit. Graduate PLUS loans also provide flexible repayment options and allow students to automatically postpone repayment while they are enrolled at least half-time. When you borrow from a Sallie Mae lender, Graduate PLUS also offers, among other money-saving benefits, a 0.50 percent interest-rate reduction for making payments via automatic debit. In addition, Sallie Mae assists parents and graduate/professional students who do not immediately qualify for a PLUS Loan in resolving outstanding or erroneous credit issues. More information is available on www.SallieMae.com.

Sallie Mae Signature Student Loan^®
For students with additional unmet need who have exhausted all funding available through the federal loan programs, the Sallie Mae Signature Student Loan is the next best option. Sallie Mae’s Signature Student Loan is a private education loan for qualified undergraduate, graduate and health profession students. Interest rates and fees are based on credit history; the better the student’s or co-signer’s credit, the lower the interest rates and fees. Sallie Mae’s Signature Student Loan offers interest rates as low as Prime Rate minus 1 percent, with zero fees. Also new this year: Signature Student Loan customers can lower their interest rate in repayment by 0.50 percent when they make their student loan payments using automatic debit. By logging onto www.SallieMae.com/Signature, students can learn more about the Signature Student Loan, use the online pre-approval feature to receive credit results in seconds and complete the entire application online using the e-signature process.

Sallie Mae encourages consumers to be savvy shoppers when it comes to selecting a lender. Students and parents have a wide range of choices and should not hesitate to ask college financing providers questions about borrower benefits, customer service, repayment options and experience.

“If you anticipate that you may need student loans to help bridge your education financing gap, select a reputable lender that provides a single point of service for both federal and private loan options,” said Holler. “Make sure you understand your rights as well as your responsibilities, and borrow only what you need to cover the cost of your education.”

Some additional questions to ask potential lenders include:

• Is the lender a well known, reputable company?
• What is the lender’s track record in the industry? Does the lender offer competitive rates and pricing including interest rate reductions and rebates?
• How easy is it to earn and keep rate reductions and rebates?
• Does the lender offer to pay fees on the student’s behalf?
• Does the lender recommend that students maximize their use of free aid and federal loans before taking a private loan?
• Does the lender educate and counsel students about effective debt management?
• Does the lender provide a variety of federal and private loan repayment solutions?
• Does the lender require repayment while in school?
• How convenient are the lenders call center hours and can students access and manage their accounts online, 24/7?

For more information contact:
Beth Guerard (703) 984-5621