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Loan Comparisons

Weigh Your Options

The Sallie Mae Smart Option Student Loan® provides you with an alternative to the PLUS Loan for Parents1, offering benefits like competitive 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:

Key Considerations

Sallie Mae Smart Option Student Loan

Plus Loan for Parents7

Loan Holder

Student
Parent can cosign to help the student potentially get a lower rate, improve the likelihood of approval and help make payments

Parent

Variable Interest Rate

LIBOR + 2.00% to LIBOR + 9.88%
(2.25% to 9.37% APR)2

N/A

Fixed Interest Rate

5.75% to 12.88%
(5.74% to 11.85% APR)2

6.84% for Academic Year 2015-16 loans.8

Disbursement Fees

None.

4.292%(9)

Cosigner/Parent
Release Application

Yes
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.3

N/A
Parent is responsible to repay the entire loan.

Repayment Term

5 - 15 Years 4

10 - 25 Years

Benefits

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. 10

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.

 
 

This information is for borrowers attending degree-granting institutions only. You must attend a participating school or have attended one in an eligible prior enrollment period. You must be a U.S. citizen or a permanent resident or a Non-U.S. citizen borrower who is attending or has attended a school located in the U.S. applying with a creditworthy cosigner (who must be a U.S. citizen or permanent resident) and required U.S. Citizenship and Immigration Service (USCIS) documentation. U.S. citizens and permanent residents enrolled in eligible study abroad programs or who are attending or have attended schools located outside the U.S. are also eligible. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.

1 Explore federal loans and compare to ensure you understand the terms and features. Smart Option Student Loans that have variable rates can go up after consummation. Federal student loans are required by law to provide a range of flexible repayment options, including, but not limited to, Graduated Repayment and Extended Repayment plans, and loan forgiveness and deferment benefits, which other student loans are not required to provide. Federal loans generally have origination fees, but are available to students regardless of income.

2 Interest rates for the Fixed and Deferred Repayment Options are higher than for loans with the Interest Repayment Option. Variable rates may increase after consummation. Interest is charged while you are in school and during the 6-month separation period. Any interest that remains unpaid when you enter full repayment will be added to your loan balance.

3 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.

4 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. Variable rates may increase after consummation.

5 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.

6 Primary borrower must enroll in Upromise to be eligible to 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.

7 This information about federal student loans was gathered on May 27, 2015 from http://studentaid.ed.gov; check this page for the most up-to-date information about federal student loans. Rates, fees and availability of federal loan products are subject to change by the Federal Government.

8 This information was gathered on May 27, 2015 from http://www.ifap.ed.gov/eannouncements/051514IntRatesForDLFirstDisbBtwnJuly12014June302015.html.

9 This information was gathered on May 27, 2015 from http://www.ifap.ed.gov/dpcletters/GEN1410.html.

10 This information was gathered on May 27, 2015 from http://www.direct.ed.gov/parentrepay.html

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

Information advertised valid as of 8/25/2015.

WE RESERVE THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION.

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 and the Upromise logo are registered service marks of Upromise, Inc.