When you want to help pay for your child’s education, you have a choice. The Smart Option Student Loan offers an alternative to the Federal PLUS Loan for Parents. It offers competitive interest rates and benefits like no origination or disbursement fees, an opportunity to release the cosigner, and more. And, highly qualified applicants could receive a rate lower than with the Federal PLUS Loan for Parents. Compare your options before making this important decision.

  Smart Option Student Loan® for Undergraduate Students Federal PLUS Loan for Parents

Your role

You cosign the loan and share the responsibility of paying it back with your student You take the loan out in your own name and are responsible for paying it back

Primary borrower

Your student You, the parent

School enrollment status

Enrolled full-time, half-time, or less than half-time in an eligible school Enrolled at least half-time in a participating school

Interest rates

Variable
LIBOR + 2.00% to LIBOR + 9.88%
(2.62% to 9.69% APR)

Fixed
5.75% to 12.88%
(5.74% to 11.85% APR)
Variable
N/A

Fixed
6.31% for Academic Year 2016-17
(6.50% or 7.23% APR based on repayment option selected)

Origination/disbursement fees

None 4.276% for loans first disbursed on or after October 1, 2016, and before October 1, 2017

Principal and interest repayment term

5 – 15 years 10 – 25 years

Cosigner release

Yes
Your student may apply to have you released from the loan after they graduate, make 12 on-time principal and interest payments, and meet certain credit requirements
No
You and any endorser are responsible to repay the entire loan

Benefits

0.25 percentage point interest rate reduction for automatic debit enrollment 0.25 percentage point interest rate reduction for automatic debit enrollment

Ready to apply?

Smart Option Student Loan

For bachelor's and associate's degrees or a certificate at a degree-granting school.

Apply for this loan

Learn more about the Smart Option Student Loan


Questions on which is the right loan for you?

Call us at 877-279-7172

Encouraging Responsible Borrowing
Sallie Mae has helped more than 34 million Americans pay for college since 1972. We encourage students and families to supplement their savings by exploring grants, scholarships, and 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 be attending or have attended a participating school located in the U.S. during an eligible prior enrollment period. You must be a U.S. citizen or a permanent resident or a Non-U.S. citizen borrower 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.

Explore federal loans and compare to ensure you understand the terms and features. Smart Option Student Loans that have variable rates can go up over the life of the loan. Federal student loans are required by law to provide a range of flexible repayment options, including, but not limited to, income-based repayment and income-contingent repayment plans, 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.

Only the borrower may apply for cosigner release. Borrowers who meet the age of majority in their state may apply for cosigner release by providing proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if your status has changed since you applied). In the last 12 months, the borrower must be current on all Sallie Mae serviced loans (including no hardship forbearances or modified repayment programs) and have paid ahead or made 12 on-time principal and interest payments on each loan requested for release. When the cosigner release application is processed, the borrower must demonstrate the ability to assume full responsibility of the loan(s) individually, and pass a credit review that demonstrates a satisfactory credit history including but not limited to no: open bankruptcy, open foreclosure, student loan(s) in default or 90 day delinquencies in the last 24 months. Requirements are subject to change.

Rates, fees and availability of federal loan products are subject to change by the Federal Government. Check http://studentaid.ed.gov/ for the most up-to-date information about federal loan products.

Interest rates for Fixed and Deferred Repayment Options are higher than interest rates for the Interest Repayment Option. You're charged interest starting at disbursement, while in school and during your six-month separation or grace period. When you enter principal and interest repayment, Unpaid Interest will be added to your loan's Current Principal. Variable rates may increase over the life of the loan. Advertised APRs assume a $10,000 loan to a freshman with no other Sallie Mae loans. Graduate student pricing for this loan is limited to students enrolling in a Masters/Doctorate level degree program. Graduate Certificate/Continuing Education course work is not eligible. LIBOR is the 1-month London Interbank Offered Rate rounded up to the nearest one-eighth of one percent.

The PLUS APR is calculated using a Sallie Mae internal financial model and is provided for comparison purposes only. Assumptions for the PLUS Loan APRs: $10,000 loan with two disbursements, four year in-school period, 4.272% Disbursement fee, six-month Grace period, and standard 10-year repayment term. The 6.50% PLUS Loan APR assumes the borrower defers payments during school and grace and the 7.23% PLUS Loan APR assumes the borrower makes payments during school and grace. Rates, fees and availability of federal loan products are subject to change by the Federal Government. Check http://studentaid.ed.gov/ for the most up-to-date information about federal loan products.

This repayment example is based on a typical loan to a freshman borrower who chooses a variable rate and the Fixed Repayment Option for a $10,000 loan, with two disbursements and a 7.55% APR. It works out to 51 payments of $25.00, 119 payments of $144.47, and one payment of $115.69, for a Total Loan Cost of $18,582.62. Variable rates may increase over the life of the loan.

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 Current Amount Due is successfully deducted from the designated bank account each month and is suspended during forbearances and certain deferments.

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

Information advertised valid as of 10/25/2016.

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.