Sallie Mae Student Loans
There are many different Sallie Mae student
loan options to choose from when planning for
college. Here’s a look at Sallie Mae student
Sallie Mae, whose formal name is the Student Loan Marketing Association, is the largest student loan
provider in the United States. Not only does Sallie Mae originate its own loans, the company also
purchases student loans from other lenders in the secondary market. The secondary market is where
investors buy investment products from other investors, while the primary market is the place that the
investment product originates.
Private Student Loans for College Students
The Smart Option Student Loan is Sallie Mae’s private student loan for students who are working toward
a college degree at a college, university, or community college. Students studying abroad can also
qualify for the loan. You can borrow up to 100% of your certified cost of school.
The Smart Option Student Loan has three repayment choices. The interest repayment option lets
students pay interest while they’re in school, which results in a overall post-graduation repayment period.
The fixed repayment option allows the student to pay just $25 a month while in school and also allows a
shorter repayment period after graduation. Finally, with the deferred repayment option students aren’t
required to make any payments while they’re in school, but this means a longer repayment period after
There are no origination fees or prepayment penalties for these Sallie Mae student loans. Rates on
these loans will range between 2.00% and 9.88% + LIBOR. Timely payments are eligible to earn 2%
rewards that can be credited to a Upromise account.
Student Loan Option for Trade School Students
Sallie Mae also has a student loan for students enrolled
in trade schools, online courses, or continuing education
classes. When you take out a Career Training Smart
Option Student Loan, you can borrow up to 100% of your
school-certified education costs at a rate between
LIBOR + 7.75 and LIBOR + 12.50%.
This loan has just two repayment options – the interest
repayment option and fixed repayment options which are
both similar to the options available with the Smart
Option Student Loan. Note that you don’t have the option
of deferring your Sallie Mae student loan payments with
the Career Training Smart Option Student Loan which
means you’ll be required to pay at least something while
you’re in school. No matter which option you choose, you’ll be required to make full loan payments
starting six months after you leave school.
While there are no repayment fees on the Career Training Loan, disbursement fees with this type of loan
may be up to 5%. There are no prepayment penalties.
Loans to Help Pay for K-12 and Tutoring Expenses
The K-12 Family Education Loan helps cover education expenses for grade school students. To get the
loan, you’ll have to provide proof that the school is enrolled in a qualified school. Loan terms are between
one and three years. You can borrow up to 100% of the cost of education. There’s no application fee, but
you’ll be assessed a 3% disbursement fee. You must begin paying principle and interest within 30 days
of the first loan disbursement. The interest rate is variable starting at LIBOR + 7.00% and going up to
LIBOR + 11.50%.
To pay for the cost of enrolling your child in a tutoring or learning center, you might take out a Tutorial
Financing loan which you can repay over one to ten years. Like the K-12 Family Education Loan, you
must provide proof that your child is enrolled in an eligible tutoring or learning center. Rates vary from
LIBOR + 7.00% to LIBOR + 13.50%. Disbursement fees range from 0% to 5%. You must begin making
payments toward principle and interest beginning 30 days after the first loan disbursement.
Sallie Mae Student Loans for Grad Student Expenses
Sallie Mae offers loans for medical students in their final year to help cover residency and relocation
costs. These loans allow you to borrow between $1,000 and $15,000 for a rate between LIBOR + 3%
and LIBOR + 11.88%. No payments are required while you’re in school and you can begin paying your
loan three years after graduation or nine months after you leave school or drop below half-time.
Bar Study Loans can help cover expenses related to the taking the bar and even cover some living
expenses. You can borrow between $1,000 and $15,000 and make interest-only payments for the first
two or four years. You don’t have to make any payments on this Sallie Mae student loan until nine months
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