Sallie Mae sets out student loan repayment plan for 2013-2014.
BANKING AND CREDIT NEWS-March 29, 2013-Sallie Mae sets out student loan repayment plan for 2013-2014(C)2013 M2 COMMUNICATIONS http://www.m2.com
29 March 2013 -- Sallie Mae (NASDAQ: SLM) said it will offer its customers greater budget flexibility during their after-graduation transition.
The Graduated Repayment Period will allow new college graduates in good standing to sign up for a one-year interest-only payment period, after the six-month grace period, instead of making full principal and interest payments at that time. The feature will be available for new Smart Option Student Loan applications on April 1 for undergraduate and graduate students who attend degree-granting institutions beginning in the fall semester.
The feature was designed to keep the total cost of the loan low. For example, a freshman borrower who elects in-school deferment on a USD10,000 loan with typical loan terms would pay USD144 per month for a 10-year repayment term. With the Graduated Repayment Option, the monthly payment would be USD89 the first year, then USD152 the second year, until it's paid off. The difference in the total cost is less than USD400, without extending the length of the loan. For more details, view the cost comparison chart.
Introduced in March 2009, Sallie Mae's Smart Option Student Loan was the first national loan product to help students save money by making interest payments while in school and reducing the repayment term. In June 2010, the company designed a USD25 repayment option to make it easier for families who understand the benefits of making in-school payments but want a standard, fixed monthly payment amount. In May 2012, Sallie Mae launched its fixed interest rate for customers who desire the stability of fixed payments for the life of the loan.
Sallie Mae has also introduced benefits such as on-time payment rewards, built-in tuition insurance, and faster cosigner release, as well as a death and disability loan forgiveness safeguard.
Additional eligibility requirements for the Graduated Repayment Period will be available at SallieMae.com.
Sallie Mae is the nation's No. 1 financial services company specializing in education. Commonly known as Sallie Mae, SLM Corp. and its subsidiaries are not sponsored by or agencies of the United States of America.
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|Publication:||M2 Banking & Credit News (BCN)|
|Date:||Mar 29, 2013|
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