The Sallie Mae Smart Option Student Loan® provides you with an alternative to the PLUS Loan for Parents1, offering benefits like low interest rates, no disbursement or repayment fees, loan repayment options, rewards for paying on time, and much more. Compare the Smart Option Student Loan® to the federally offered PLUS Loan for Parents before making that important decision:
Smart Option Student Loan®
Plus Loan for Parents7
Parent can cosign to help the student potentially get a lower rate, improve the likelihood of approval and help make payments
Variable Interest Rate
LIBOR + 2.00% to LIBOR + 9.88%
(2.25% to 9.37% APR)2
Fixed Interest Rate
5.75% to 12.88%
(5.74% to 11.85% APR)2
6.41% for Academic Year 2013-14 loans.
Note: AY 2014-15 rates will be announced on or after June 1, 2014.
After graduating and then making 12 consecutive, on-time principal and interest payments, the student can apply to have the cosigner released.[[Footnote="To qualify borrower must be U.S. citizen ... request is processed"]]
Parent is responsible to repay the entire loan.
0.25 percentage point interest rate reduction for automatic debit enrollment5
2% Smart Reward® with Fixed and Interest Repayment Options6
0.25 percentage point interest rate reduction for automatic debit enrollment.9
Encouraging Responsible Borrowing
Sallie Mae has helped more than 30 million Americans pay for college since 1972. 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.