salliemae Tuition Answer loan

Tuition Answer loan

The Tuition Answer loan is a practical, private student loan that allows creditworthy students or those with a creditworthy cosigner to borrow $1,500–$40,000 per year to cover absolutely any qualified college-related expense.*

A Tuition Answer loan^® is a great way to bridge your education financing gap after federal student loans and traditional financial aid have been considered.

Eligibility

• Both the borrower and the student must have Social Security numbers and be U.S. citizens or permanent residents.
• The borrower must have good credit.
• Applicants must be able to provide proof that the student is enrolled (full or half time) at an eligible college, graduate, trade, or technical school. This may be any document that displays the student's name, enrollment period, and the name of the school, such as a tuition bill or a printout of an online class schedule.

Features

• You may borrow $1,500–$40,000 per year for any qualified college-related expense.
• The interest on the Tuition Answer loan may be tax-deductible (for qualified taxpayers).
• There are no application deadlines.
• There are no federal forms to complete.
• No collateral is required.
• There is no prepayment penalty.
• Choose your repayment option. You may even defer payment until after graduation or choose from other flexible repayment options.
• The loan check is mailed directly to you—the borrower, not the school.
• You get the convenience of combined billing for all of your Sallie Mae loans.
• 0.50 percentage point interest rate reduction benefit. To qualify for the interest rate reduction, sign up for Manage Your Loans within 60 days of the first payment due date and make the first 24 payments as initially scheduled. Prepayment will not accelerate the benefit award.
• Borrowers must continue to pay on time to receive the benefit.
• Borrowers will not lose benefit for extended repayment.
• Interest rate reduction is available only during periods of active repayment.

Loan terms

Loan limit

The minimum loan amount is $1,500, with an annual maximum of $40,000. The aggregate maximum available per borrower is $130,000.

Interest rate

The Tuition Answer loan has interest rates that reward good credit and are as low as Prime + 1.0% for borrowers with excellent credit. Interest rates are variable and reset monthly.

Fees

A one-time supplemental fee is assessed at disbursement. This fee is determined by the borrower's credit history at the time of application and the repayment option chosen (begin payments at disbursement or defer payments) and credit rating.

Repayment

• Deferring payments until after graduation will result in higher fees and increase overall loan costs. Deferment ends the earlier of four-and-a-half years after the disbursement date or six months after the student graduates.
• The repayment period may be up to 30 years, depending on the amount borrowed and the repayment option chosen.
• Under the standard repayment option, you make regular payments of principal and interest each month.
• You may choose to pay interest only while the student is in school.
• You may defer all payments (principal and interest) while the student is enrolled at least half time.

Benefits of a cosigner

• Many undergraduate students will not meet minimum credit requirements and are encouraged to apply with an eligible cosigner who does. A cosigner can be a parent or any other eligible adult sponsor—such as another relative or spouse. The cosigner is subject to the same eligibility requirements and will be required to authorize a credit check to be approved.
• A cosigner (usually a parent or spouse) is needed if you are unable to meet the eligibility requirements. The cosigner is subject to the same eligibility requirements and will be required to authorize a credit check to be approved.

*If you choose to borrow only through Tuition Answer to pay for your education expenses this year, you may borrow up to $40,000, or the cost of attendance at your school, whichever is less. If you will be using Tuition Answer in addition to other student loan programs, the total of all your loan proceeds may not exceed the cost of attendance at your school.