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The Sallie Mae® Smart Option Student Loan®

The Sallie Mae Smart Option Student Loan® For Degree-Granting Institutions

With college costs growing fast, it’s time to borrow smarter. The Smart Option Student Loan offers multiple repayment options and competitive interest rates to help you pay for college expenses not covered by scholarships and federal loans.

Benefits

  • Variable interest rates — 2.25% APR to 9.37% APR.1
  • Competitive fixed interest rates — 5.74% APR to 11.85% APR.1
  • Lower rates for graduate students — Variable interest rates range from 2.25% APR to 7.27% APR.1 Competitive fixed interest rates are 5.74% APR to 8.56% APR.1
  • Three repayment options1: Pay monthly interest or $25 per month2 while in school or defer payments until after you graduate.
  • No origination fees and no prepayment penalty.
  • Borrow up to 100% of your school-certified cost of attendance.3
  • Receive a 0.25 percentage point interest rate reduction while enrolled to make scheduled payments by automatic debit.4
  • Smart Reward® – Cash Back on In-school Payments — Students who become Upromise® members (which is free to join) and choose the Interest or Fixed Repayment option can get a Smart Reward in their Upromise account of 2% of their scheduled monthly payments that are made on time while in school.5 NOTE: This benefit is NOT available for the deferred payment option of Smart Option Student Loan.
  • Loan forgiveness in the event of a student's death or permanent and total disability.
  • Graduated Repayment Period6 — Budget flexibility for graduating students.
  • After graduation, a borrower may apply for their cosigner to be released from the loan once they have made 12 consecutive, on-time principal and interest payments and meet certain credit requirements.7 Releasing the cosigner will not adversely impact the rate on your loan.

Encouraging Responsible Borrowing

We encourage students and families to supplement their savings by exploring grants, scholarships, federal and state student loans, and to consider the anticipated monthly payments on their total student loan debt and their expected future earnings before considering a private education loan.

 
 

This information is for borrowers attending degree-granting institutions only. Applications are subject to a requested minimum loan amount of $1,000. Credit criteria and eligibility requirements apply.

You must attend an eligible school and be enrolled in an eligible program. U.S. citizens enrolled in eligible study abroad programs or studying at medical schools outside the United States are also eligible. International students attending a school located in the U.S. are eligible with a creditworthy cosigner (who must be a U.S. citizen or permanent resident) and appropriate U.S. Citizenship and Immigration Service documentation. Applications are subject to a requested minimum loan amount of $1,000. You must meet current credit and other eligibility criteria.

1 Interest rates for the Fixed and Deferred Repayment Options are higher than for loans with the Interest Repayment Option. Graduate student pricing on the Smart Option Student Loan is limited to students enrolling in a Masters/Doctorate level degree program. Graduate Certificate/Continuing Education course work is not eligible for graduate student pricing. Interest is charged while you are in school and during the 6-month separation period. Variable rates may increase after consummation. Any interest that remains unpaid when you enter full repayment will be added to your loan balance.

2 This informational repayment example uses typical loan terms available to a freshman borrower who elects the fixed repayment option and has a $10,000.00 loan with two disbursements and a 7.21% variable APR: 51 payments of $25, 119 payments of $140.28 and one payment of $114.17, for a total paid of $18,082.49.

This informational repayment example uses typical loan terms available to a graduate borrower who elects the Fixed Repayment Option and has a $10,000.00 loan with two disbursements and a 6.16% variable APR: 27 payments of $25, 59 payments of $207.17, and one payment of $194.41, for a total paid of $13,092.44.

3 As certified by your school and confirmed by Sallie Mae, less other financial aid received. Sallie Mae reserves the right to approve a lower loan amount than what the school has certified. Requested amounts exceeding $99,999 may require multiple loans.

4 Either the borrower or cosigner (not both) must enroll in auto debit through Sallie Mae. The rate reduction benefit applies only during active repayment for as long as the borrower's monthly payment amount is successfully deducted from the designated bank account and is suspended during forbearances and certain deferments.

5 Primary borrower can earn a reward into his or her active Upromise account of 2% of the scheduled loan payment amount for each on-time payment during the in-school and separation periods. Loan payments must remain current to be eligible for the reward. The Smart Reward Benefit and Upromise membership are subject to the terms and conditions of the Upromise service, as may be amended from time to time. Terms and conditions apply to the Upromise service. Participating companies, contribution levels and terms and conditions are subject to change at any time without notice. Go to upromise.com to learn more. Upromise accounts are not FDIC insured, carry no bank guarantee and may lose value.

6 Available for loans that first disburse on or after July 1, 2013 to finance academic periods that begin on or after July 1, 2013 at a degree-granting institution. Graduated Repayment Period (GRP) requires interest payments for the initial 12 month period of repayment when you would normally begin making full principal and interest payments (which typically begins six months after graduation) or during the 12 month period after your request is granted, whichever is later. At the time you request GRP, you must have graduated with no interruption in enrollment, be current on payments, and not be more than 30 days late on payments on any student loan. You may request GRP only during the two billing cycles immediately preceding and the two billing cycles immediately after your loan would normally begin requiring full principal and interest payments. GRP does not extend the term of the loan. If you are approved for GRP, your principal and interest payments will be higher than if GRP did not apply, and your total loan cost will increase.

7 The release of a cosigner is at the sole discretion of Sallie Mae. Only the borrower may apply for cosigner release. The borrower must provide proof of graduation or successful completion of certification program, not be delinquent and have made 12 consecutive on-time payments of principal and interest immediately before applying, provide proof of income, pass a credit review that demonstrates a satisfactory credit history and the ability to assume full responsibility of the loan(s) individually, have no student loan(s) in default, must not be reported as 90+ days delinquent in the past 24 months, must not be in hardship forbearance and/or in a modified repayment program, be a U.S. citizen or permanent resident, and meet the age of majority in their state. Requirements are as of October 13, 2014, and are subject to change.

Information advertised valid as of 3/6/2015.

Sallie Mae, Smart Option Student Loan, Smart Reward, and the Sallie Mae logo are service marks or registered service marks of Sallie Mae Bank or its subsidiaries.

Upromise is a registered service mark of Upromise, Inc.

Smart Option Student Loans are made by Sallie Mae Bank or a lender partner.

*The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.

WE RESERVE THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.