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The Sallie Mae Smart Option Student Loan®

For Undergraduate Students at Degree-Granting Institutions

Loan Servicer:

Sallie Mae

Interest Rates/Fees/Repayment Options-Term:

Variable interest rates — 2.25% APR to 9.37% APR1
Fixed interest rates — 5.74% APR to 11.85% APR1

No origination fees and no prepayment penalty.

Pay now or later — defer your payments until after school or choose an in-school repayment option that fits your needs.1

  • Pay monthly interest
  • Pay $25 per month2
  • Defer payments1

Repayment term of 5-15 years.2 Repayment term will vary based on loan amount and year in school.

Special Features/Benefits:

  • Auto Debit Savings — 0.25 percentage point interest rate reduction for automatic debit enrollment.3
  • Smart Reward® — 2% cash back on scheduled payments made on time while in school with the Interest or Fixed Repayment Options.4
  • Free quarterly FICO® Credit Score — Borrowers with an eligible loan my receive their FICO® Score quarterly.5
  • Graduated Repayment Period6 — Budget flexibility for graduating students.
  • Tuition Insurance Benefit — Covers up to $2,500 per semester of tuition lost due to a covered medical withdrawal.7 Available at no cost to you with loans that first disburse July 1 through October 31, 2015.
  • Death and disability loan forgiveness.9
  • Borrow up to 100% of your school-certified cost of attendance.9
  • Applying with a creditworthy cosigner may help you qualify and/or receive a lower interest rate. 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.10 Releasing the cosigner will not adversely impact the rate on your loan.

Eligibility/Application Process:

Available to students enrolled full time, half time, and less than half time.

Student or cosigner can initiate the application process at It only takes about 15 minutes to apply online and get a credit result.

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.

Terms and Conditions: Undergraduate Students Smart Option Student Loan®

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, income-based repayment and income-contingent 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.


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.

1 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.

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.

3 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.

4 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 to learn more. Upromise accounts are not FDIC insured, carry no bank guarantee and may lose value.

5 Available for loans that first disburse on or after June 30, 2014 to finance academic periods that begin on or after June 30, 2014. Borrowers will receive their FICO® Score quarterly after their student loan is fully disbursed. FICO® Scores are delivered only to borrowers who have an available score, are based on data from TransUnion and may be different from other credit scores. This benefit may change or end in the future. FICO® is a registered trademark of the Fair Isaac Corporation in the United States and other countries.

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 Tuition Insurance Benefit is tuition refund insurance that covers up to $2500 per semester ($5000 total per policy) and is available with loans that first disburse between 7/1/15 and 10/31/15. Terms and conditions of coverage limits may vary depending on the school’s academic calendar. Borrowers are automatically enrolled at the first loan disbursement. Benefit must be activated within four months of first disbursement to receive twelve months of coverage. If a withdrawal is due to a mental health issue, a 2-day hospitalization stay is required and the hospital stay must occur prior to date of withdrawal. To process the benefit, your information will be shared with Next Generation Insurance Group, LLC ("NGI"), a licensed insurance producer, their underwriters, and their providers. If the loan is cancelled, coverage terminates. Individuals may be enrolled in only one Tuition Insurance Benefit at a time. Benefit is offered by Sallie Mae Bank through a joint marketing relationship with NGI. Terms and conditions apply.  For insurance licensing information please  click here. Tuition Refund Insurance is underwritten by Markel Insurance Company, Deerfield, IL. Administrative office, Waukesha, WI.

8 If a student borrower dies or becomes permanently and totally disabled, Sallie Mae will waive all remaining payments on the loan.

9 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.

10 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.

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

Sallie Mae, Sallie Mae Smart Option Student Loan, Smart Reward, Sallie Mae Insurance Services, 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.