Programs to Help Lower Student Loan Repayments from Sallie Mae
Experience Adds to Reputation
Sallie Mae Corporation (SLM) is without contest one of the largest student loan providers in the U.S. The company’s core products include student loans and associated products and services aimed at undergraduate and graduate college students. Originally SLM was a subsidiary of the federal government. Since 2004 it’s been an independent company drawing thousands of new borrowers each year.
Federal Consolidation Loans
The Sallie Mae Federal Consolidation Loans are a product of the Federal Family Education Loan Program (FFELP). The federal government sets the terms for the federal consolidation loans. Lenders may apply their own incentives and benefits to attract borrowers to their consolidation products:
- FFELP Consolidation Loans have a fixed interest rate, since July 1, 2006. The interest rate is calculated based on the “weighted average” of your federal loans as of the date of the consolidation application. The interest rate is capped at 8.25.
- Federal Consolidation Loans are excluded from credit checks.
Sallie Mae terms include a $5,000 minimum on federal loans. Borrowers with at least $10,000 may qualify for a 1.00% interest rate reduction after 36-on-time payments. Borrowers with at least $7,500 to consolidate may save .25% for setting up electronic debit payments.
Private Student Loan Consolidation
The Sallie Mae Private Student Consolidation Loan is a credit-based personal loan that affords eligible college grads the flexibility and financial muscle to take charge of potentially overwhelming monthly bills. Borrowers may roll all private student loans into this product to yield a lower interest, affordable payment. SLM loan terms include:
- Minimum of $5,000 required for loan consolidation.
- If you do not have good credit you are eligible to apply with a creditworthy co-borrower.
- Variable interest rates are “reset monthly.”
- Borrow with a co-borrower and you may borrow without a limit, a wise consolidation option for grad students especially those who may have borrowed on SLM’s Law, Med, Dental, or MBA Loans. Graduate student loans for degree programs like these can really add up.
- Once your loan is disbursed, payments commence within 30 days.
- No fees for early repayment.
Student Loan and Consolidation Information
Part of Sallie Mae’s mission is to turn out well-informed borrowers. The Planning for College section of the website provides comprehensive information on smart financial planning and college savings plans, another SLM financial service. After Graduation presents new grads with financial management tools, career advice, investment and wealth-building services and student loan consolidation checklists and products.
Consolidation loans with Sallie Mae are the after-graduation student loan product. SLM services the Federal Family Education Loan Program and the company also extends its own proprietary consolidation loan.
Last Word on Consolidation
Before you opt to consolidate with Sallie Mae, take the time to talk with an account manager for guidance and advice. Consolidation loans may serve you well in the short term, but in the long-term you will pay considerably more for your education and for an extended period of time—up to 30 years.
