President George W. Bush Speaks On The Brewing Student Loan Crisis

In his weekly radio address, President Bush spoke about the brewing
crisis in the student loan markets. WATCH VIDEO

In his address he mentioned the “Lender of Last Resort Program” for
student who cannot secure funding for college. He further mentioned
the need for the ability of the govenment to step in and buy the loans
when necesarry to provide liquidity to the system.

He also signaled to the Senate get something started, as the House of
has already passed the ”Insuring Continuing Accessing Student Loans
Act” and the Senate has yet to act on the issue.

The Presdent would need a bill on his desk, before June 1, 2008 to avoid
any major problems with loans for the September Semester.

Student Loan Debt Consolidation - How To Reduce The Burden Of Student Loan Debt

It’s not enough as a student earning good grades, graduating, and landing a job with a good salary. What makes it more difficult is the rising costs of education, in tuition fees, books and the cost of living during the years being in school. There is no question that the trends of college and university prices have rose steadily over that last decade. During the 2004-2005 academic year about $129 billion in financial aid was distributed to undergraduate and graduate students. In addition, these students borrowed almost $14 Billion dollars from non-federal sources to help finance their education according to the report Trends in Student Aid (2005) from the College Board association. With an adjustment to inflation the total financial aid given to undergraduate and graduate students has increased by almost 100% from 1994 to 2005.

Why have students been borrowing much more today?

There has been a widening gap between the cost of university and college tuition and aid in the form of grants causing students to borrow more. Many students look at taking students loans as a good investment because it allows them to complete their education with better odds of a getting a better job and life. Because Students are borrowing more and often taking out multiple student loans today, however, it could lead to financial burdens. This would delay things like buying a new home, car, getting married, and raising a family.

How can student loan consolidation help?

Also known as a federal consolidation loan, repays some or all of the outstanding eligible federal student loans and replaces the multiple payments that are made with one single payment. The payment terms can even be extended to make the payments more affordable. The interest rates are fixed rate for the entire term and is calculated as the weighted average interest rates of your consolidated loans rounded up to 1/8% not exceeding 8.25%.

Which student loans can be consolidated?

1. Federal and Federal Direct Stafford (subsidized and unsubsidized)
2. Federal and Federal Direct PLUS SLS (Supplementary Loans for Students)
3. Federal Perkins
4. Federal Nursing Student Loans (NSL)
5. Federal Health Education Assistance Loan (HEAL)
6. Federal Health Professional Student Loans (HPSL)
7. Health Professions Student Loans (HPSL) Loans for Disadvantaged Students (LDS)
8. Federal Insured Students Loans (FISL)

If a person has bad credit, can they still consolidate their student loans?

Under the federal student loan consolidation program, no credit checks are necessary, however, if any loans are in default, three consecutive payments must be made prior to consolidating the loans.

What lenders consolidate student loans?

The Internet is an excellent resource to compare student loan consolidation lenders rates and offers. It is just a matter to take some time and compare different incentives between lenders.

Lenders may offer added incentives to consolidate student loans. For example, depending on the balance of the current student loans, some lenders may offer a credit or an interest rate reduction if payments were made consecutively on time. Or, if a married couple has individual student loans and want to combine and consolidate their loans.

It should not be a strike against anyone requiring student loans to get through university or college nor having a delayed hardship when a person graduates and gets back into the work force.

Brad Jacobsen writes about student loan debt consolidation and you can read more articles, tips and helpful information including Free no obligation quotes at: www.ez-mortgage-quotes.com/consolidation+information+loan+student.htm http://www.ez-mortgage-quotes.com/consolidation+information+loan+student.htm

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Affordable Student Loans Need a Deferment Period

Going to college takes a bunch of money these days! Invariably, most students end up with an amount due after their graduation and this amount will be more than the original borrowed amount. This is due to the fact many student loan include a deferment period. After all, how affordable would a student loan be if the student had to come up with monthly payments while he was in college?

This article talks about the student loan deferments and how they affect the bottom line. Namely, how much the student will be liable for after his education.

What is a deferment period?

When student loans are made, the first payment will not be due until after graduation or until the student quits school. This means the student can spend 4 years in college, graduate, get a job and then start paying back the loan.

One aspect of this type of loan that cannot be overlooked is during the deferment period the loan is accumulating interest. This means a loan of $20,000 can become $30,000 by the time the student starts to pay it off. This is a dirty deal, but it comes under the heading, “there is no such thing as a free lunch.”

The difference between a straight loan and a deferred one

Let’s look at how this works. If a person takes out a regular loan for $20,000 at 7% for 7 years, or 84 payments, and he is going to start paying on the first month, his payment will be $301.85 each month.

If a person takes out a deferred student loan for $20,000 at 7% for 7 years, or 84 payments, but the first payment isn’t due for 4 years, the total amount owed will have become 2,6441.08 by the time the first payment is due and the monthly payment will be $399.07. So, this is another wrinkle the student has to contend with to get that ever-important sheepskin.

It is important to get an accurate idea what the payments will be after graduation, you have to use a student loan calculator that includes an entry for the deferment period or else you won’t be getting the actual amount owed or monthly payment due when the payback period begins.

Another example

Let’s take another example. The student gets a loan for $35,000, which has a 10-year payoff period. The payments start after a 4 years and the interest rate is 7%. Here’s the way the numbers look for this loan. When the payments come due the total loan will have ballooned to $46,271.89 and the payment will be $537.26.

Now let’s complicate things a little more. The student may have to take a separate loan for each of the years he is in school. The lender may allow different deferment periods for each loan. So, he may end up with $20,000 deferred for 4 years, $20,000 deferred for 3 years, $20,000 deferred for 2 years and well, you get the idea.

In short, when dealing with student loans, don’t forget the deferment aspect to it. It can make a huge difference in the final numbers.

Affordable Student Loans Need a Deferment Period

Going to college takes a bunch of money these days! Invariably, most students end up with an amount due after their graduation and this amount will be more than the original borrowed amount. This is due to the fact many student loan include a deferment period. After all, how affordable would a student loan be if the student had to come up with monthly payments while he was in college?

This article talks about the student loan deferments and how they affect the bottom line. Namely, how much the student will be liable for after his education.

What is a deferment period?

When student loans are made, the first payment will not be due until after graduation or until the student quits school. This means the student can spend 4 years in college, graduate, get a job and then start paying back the loan.

One aspect of this type of loan that cannot be overlooked is during the deferment period the loan is accumulating interest. This means a loan of $20,000 can become $30,000 by the time the student starts to pay it off. This is a dirty deal, but it comes under the heading, “there is no such thing as a free lunch.”

The difference between a straight loan and a deferred one

Let’s look at how this works. If a person takes out a regular loan for $20,000 at 7% for 7 years, or 84 payments, and he is going to start paying on the first month, his payment will be $301.85 each month.

If a person takes out a deferred student loan for $20,000 at 7% for 7 years, or 84 payments, but the first payment isn’t due for 4 years, the total amount owed will have become 2,6441.08 by the time the first payment is due and the monthly payment will be $399.07. So, this is another wrinkle the student has to contend with to get that ever-important sheepskin.

It is important to get an accurate idea what the payments will be after graduation, you have to use a student loan calculator that includes an entry for the deferment period or else you won’t be getting the actual amount owed or monthly payment due when the payback period begins.

Another example

Let’s take another example. The student gets a loan for $35,000, which has a 10-year payoff period. The payments start after a 4 years and the interest rate is 7%. Here’s the way the numbers look for this loan. When the payments come due the total loan will have ballooned to $46,271.89 and the payment will be $537.26.

Now let’s complicate things a little more. The student may have to take a separate loan for each of the years he is in school. The lender may allow different deferment periods for each loan. So, he may end up with $20,000 deferred for 4 years, $20,000 deferred for 3 years, $20,000 deferred for 2 years and well, you get the idea.

In short, when dealing with student loans, don’t forget the deferment aspect to it. It can make a huge difference in the final numbers.

The Student Loan Market Hits the Wall

Student loans - those of us who have them would love to get rid of them, and now, those who want them apparently can’t get them.

The credit crunch has now started hitting the student loan markets, and what used to be a no-brainer prospect - financing your secondary education - is becoming as difficult a proposition as qualifying for a mortgage. The split in the analogy, though, is that while housing prices are cooling to the point where a perfectly qualified mortgage applicant can get a really nice deal on a home, tuition prices are as predictably high as ever.

When I was your age, student loan money grew on trees, and all you had to do was pick up a wheelbarrow and stand under one, and wait for a gentle breeze to blow loose those thick, ripe wads of tuition dollars onto the ground. We would laugh and play and cavort in piles of the stuff as the sun dipped below the horizon, then we would pack our harvest into our carriers and stroll off to our college campuses, our bellies filled with hopes and dreams.

Well, okay, so it wasn’t as easy as that. But compared to today’s circumstances, it certainly feels that way.

The root of the problem is this - so many student loan companies have left the industry, either by choice or by just going bankrupt, that the universe of options for financing your college education is much narrower than it was before. In fact, the only big player in the game is now Sallie Mae, which, by virtue of being big, survived the current crisis (brought on by the effects of the subprime collapse, the credit crunch, and a reduction in federal subsidies to student lenders) but is presently losing money on its loans, and is threatening to stop writing federally-backed loans altogether.

If you are to believe Sallie Mae, their loan demand is running at 3 billion dollars a month, and the company has access to only 1 billion dollars in high-cost funds. All of this points to a potential crisis in student loan availability this summer, as students prepare to enter college. There are some horror stories out there about people who are already well into college who had their loan checks bounce as the new semester began.

The implosion of the student loan market not only affects people just starting college and post graduate studies, it also affects people who have already graduated. One of the best things that you can do after graduation is student loan consolidation - it tidies up your loan payments and locks you into a lower interest rate. But now, most lenders, even Sallie Mae, have exited the federal student loan consolidation business, thus removing one of the most viable options for new graduates who are coping, many for the first time, with the demands of budgeting and money management.

I’m not sure how helpful I can be here, other than to wave the red flag and warn everyone who is planning on attending school in the fall and not thinking too heavily about loan availability. For most high school seniors, setting up financing is probably the last thing on their minds right now, and they’re probably relying on their parents to do a lot of the legwork for them. For parents, they may still be thinking that student loans are as easy to obtain as they were, oh, about 12 months ago, and don’t realize how badly impacted the student loan market has become.

Do someone a favor - if you know someone who is planning on going to college this year, or have a coworker whose son or daughter is in such a situation, let them know about the crisis in student loan availability, and tell them to get cracking on it earlier than they would have otherwise.

Determining EFC and Cost of Attendance

What is Cost of Attendance?

Your college or university will generally publish on its Web site or in its financial aid office the college's cost of attendance. This is an estimate of how much money will be required to attend school for one year at that college, including all reasonable expenses. Most people, when budgeting for college, look at the tuition and assume that tuition is more or less the "price tag" for that school, when the reality is that tuition may be as little as 50% of the overall budget. Here are some sample costs of attendance from a survey done by TheStreet.com:

* Prestige school (Ivy League or near-Ivy League):
o Tuition, $31,644;
o Room/board, $9,873;
o Books & supplies, $1,419;
o Plus similar costs for personal expenses and transportation.
o Total cost: an estimated $44,592 per year.
* Private four year university/school:
o Tuition, $16,086;
o Room/board, $6,540;
o Books & supplies, $920;
o Plus costs for personal expenses and transportation.
o Total cost: an estimated $26,226 per year.
* State university/Public school:
o Tuition, $8,670;
o Room/board $7,176;
o Books/supplies $950;
o Plus expenses and transportation.
o Total cost: an estimated $18,452 per year.

Incidentally, the fact that state and public universities are broken out into a separate category is an indication of price range, not quality. Some public universities are as well regarded or even more prestigious than their private university counterparts.
How does Cost of Attendance influence financial aid?

A school's financial aid office generally determines the programs and amounts of aid an applicant receives. This involves determining the cost of attending the college, calculating a student's Expected Family Contribution (EFC), and then awarding aid to meet the difference between the two - the calculated financial need.
What is the EFC?

The Expected Family Contribution (EFC) is the amount a family can be expected to contribute toward a student’s college costs. Financial aid administrators determine an applicant’s need for federal student aid from the U.S. Department of Education and other non-federal sources of assistance by subtracting the EFC from the student’s cost of attendance (COA).

The EFC formula is used to determine the EFC and ultimately determine the need for assistance from the following types of federal student financial assistance: Federal Pell Grants, subsidized Stafford Loans (though the William D. Ford Federal Direct Loan [DL] Program or through the Federal Family Education Loan Program [FFEL]), and assistance from the “campus-based” programs—Federal Supplemental Educational Opportunity Grants (FSEOG), Federal Perkins Loans, and Federal Work-Study (FWS).

The methodology for determining the EFC is found in Part F of Title IV of the Higher Education Act of 1965, as amended (HEA).

Financial aid administrators use the information from the Free Application for Federal Student Aid (FAFSA), including the EFC, to develop a financial aid package. This package specifies the types and amounts of assistance, including non-federal aid, a student will receive to cover his or her education-related expenses up to COA. However, because funds are limited, the amount awarded to a student may fall short of the amount of aid for which the student is eligible
What is the source of data used in EFC calculations?

All data used to calculate a student’s EFC come from the information the student provides on the FAFSA. A student may submit a FAFSA (1) through the Internet by using FAFSA on the Web, (2) by filing an application electronically through a school, or (3) by mailing a paper FAFSA to the Central Processing System (CPS).

Students who applied for federal student aid in the previous award year may be eligible to reapply by filing a Renewal FAFSA over the Internet or by submitting a paper renewal application. Applying for federal aid is free. However, to be considered for non-federal aid (such as institutional aid), a student may have to fill out additional forms and pay a processing fee.

We encourage applicants to complete the appropriate electronic version of the FAFSA rather than a paper FAFSA because the electronic versions contain additional instructions and help features, have built-in edits that reduce applicant error, and allow the Department to send application results to students and schools quicker.
What happens if awarded aid falls short of Cost of Attendance?

Then it's student loan time - alternative student loans, to be specific. Alternative private student loans bridge the gap between awarded aid and Cost of Attendance. For example, let's look at the Prestige School's Cost of Attendance again and some financial aid. Let's say that you are awarded the maximum amount of federal aid for Pell Grants, Perkins Loans, and Stafford Loans as a freshman. That means:

* Perkins Loan - maximum of $4,000
* Stafford Loan - maximum of $6,625 ($2,625 subsidized)
* FSEOG - maximum of $4,000
* Pell Grant - maximum of $4,050

That puts your federal financial aid package at $18,675. Let's also assume that you receive $2,000 in scholarships and an additional $5,000 in state and institutional financial aid. That puts your aid package at $25,675, which will almost cover tuition. You'll still have about $2,955 in tuition to cover, plus the remaining expenses, which totals $20,680.

Where can you get $20,680? From an alternative private student loan like the Act Private Student Loan from the Student Loan Network. It can give you up to $40,000 per academic year, which will finish off the costs of attending more expensive schools.

more on private student loan consolidation

More on Private Student Loan consolidation and possible hidden fees. (continued) by Kara Lilly
Do Your Homework. Do your research. Compare, compare compare.

It’s better to take your time. And don’t feel you’re alone if it seems like too much to deal with. If you are compelled to consider a low interest student loans consolidation offer that you’ve seen advertised, it is vitally important that you do your homework. You really need to research and analyze all aspects of the low interest private student loan consolidation itself. This should include considering all documentation presented by the lender — but also independent resources of information that you will be able to find both on the Internet and World Wide Web and in the brick and mortar world.

Double Check All Provisions in a Low Interest Debt Consolidation Loan Agreement

When it comes to a low interest Private School Loans Consolidation agreement, you really do have to read everything in the agreement … everything. Provisions regarding costs, fees and charges can be hidden away in the most unlikely of places within a low interest debt consolidation loan agreement.

In the end, by following the suggestions and pointers outlined in this two part article, you will be able to make intelligent and educated decisions pertaining to a low interest private student loan consolidation. And it goes without saying thaqt you should stop by your college financial aid office to speak with one of your school’s loan counselors before making a final decision.

Private Loan Consolidation : Hidden Charges

Applying for an Advertised Low Interest Private Student Loan Consolidation:
Beware of “Hidden” Costs, Fees and Charges

By Kara Lilly

Debts. Mounting Debts. Debts Out of Control. Flashing across the recesses of your own mind with regularity may be these phrases. If you are like many people in the world today, you are confronting — or trying to confront as best you can — ever mounting debt. In point of fact, you may be trying to get control over growing debt before it becomes a serious problem and before it really starts to have a negative impact on your overall credit history and credit score. One of the major debt problems that you may be having is with your private student loans.

With this in mind, one solution that you should include in your overall debt management mix and plan should be applying for private student loan consolidation, including low interest debt consolidation loan. Provided you make application for a low interest debt consolidation loan while your credit score is still in a fairly sound position, you will have a number of options available to you. However, you will need to keep in mind that oftentimes there are “hidden” fees, costs and charges that are associated with a low interest debt consolidation loan which you may have seen advertised.

The Element of Buyer Beware

When it comes to considering an advertisement for a low interest private student loan consolidation, you really do need to keep in mind the age old phrase of caveat emptor — buyer beware. With very few exceptions, a lender that is promoting a low interest debt consolidation loan through advertisements will not be fully open about all of the costs associated with that loan option. Rather, the lower interest rate necessarily (and naturally) will be prominently promoted. At best, in some very fine and nearly (if not completely) illegible print tucked away in the bottom corner of the ad will be some general information about the existence of other fees, charges and costs associated with the loan.

You need to keep in mind that no matter how closely you scrutinize the advertisement, the advertisement is not an appropriate source for you to obtain information about a low interest student consolidation loan. Speaking with the financial aid office at your school, compare on the internet and do your homework. You’ll end up with a better deal.impose a code of conduct upon educational institutions in regards to their dealings with their student body and lenders.

The house and the Congress have different versions of the bill so even though quick approval is expected in the House it may take some time to get both versions of the reform bill condensed and presentable.

At any rate student loan and student loan consolidation reform is desperately needed and I can't find anything wrong with this bill as of yet...looks like a move in the right direction.

Kiplingers recommends federal loans over private loans

Kiplinger’s had a recent article pointing out the benefits of federal loans like Stafford and PLUS over the private loans that have flooded the market. It also discusses how to deal with any private loans you may have. Here are some excerpts:

…

Outside the federal student-loan program, your options are limited. Federal Stafford loans offer more-favorable repayment terms than private loans, plus more opportunities to have loans forgiven.

…

your best bet is to shop around for the best terms you can find on a private-loan consolidation (compare programs at SimpleTuition.com and FinAid.org). If your credit score has improved significantly since you took out the loans, you may be able to get a better rate.

Consolidating also lets you stretch out the term of the loan, which may lower your monthly payments. You’ll pay more interest over time, but the breather could get you over a hump. And you can pay ahead on your loans as your income rises, as long as there are no prepayment penalties.

Some occupations forgive loans as a recruiting tool. And if you meet income requirements, you can deduct up to $2,500 per year in interest on any loans used for higher education.

Once you’ve arranged the best terms you can, you’ll just have to bite the bullet.

Leisa Aiken, a financial adviser in Chicago, recommends that clients with significant student-loan debt go on a crash program to pay off high-rate debt as soon as possible, even if it means continuing to live like a student. Move back home with Mom and Dad, get rid of the car, take a second job, and put the extra cash toward your most expensive loans. Low-interest loans can wait. “Paying $150 a month on a 4% loan isn’t all bad,” says Aiken. “It’s more of a nuisance.”

Need FAFSA Completed Fast

This morning, I chatted with a young woman who needed to have her FAFSA completed ASAP. She was told by financial aid that she could qualify for Stafford loan but needs this once piece of the puzzle completed in order for her to obtain any sort of financial aid. She called me because she needed advice on how to get the FAFSA completed ASAP. I explained to her that I felt the most efficient way is to complete the FAFSA online at www.fafsaonline.com. I know it’s scary stuff filling out such a lengthy document completely online. But I promise everyone, the Internet is our friend! Do the FAFSA online! Reason why is because the Government needs the FAFSA filled out just right. When you file online, the system will catch a lot of mistakes and send you back to fix them.Your on your own if you fill it out online. If you do certain things incorrectly, you’ll receive a bunch of paperwork that basically means denied!

Also, keep in mind that you have to update this paperwork every year you are in school. When you do it online, all of your forms will be saved from year to year so it can be completed pretty easily.

Trust me folks do it online! Soon enough the paper form will be extinct.

The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans

Sallie Mae Demands SUNY Colleges Turn Over Students' Personal Data

Loan Giant Attempts to Use State Open Record Laws to Help it Market Private Loans

Lenders that market private loans directly to students are increasingly using state open government laws to demand public colleges turn over personal data on their students.

Late last month, student loan giant Sallie Mae filed a New York Freedom of Information Law request asking community colleges in the State University of New York (SUNY) system to provide the company with the names, telephone numbers, and home mailing and e-mail addresses of "all admitted and enrolled students for academic year 2007-2008." The request, which came from the company's Direct Marketing division, also asked the schools to identify the age, graduating class, and major of each student listed.

Such requests from direct-to-consumer private student loan companies are raising alarms among college financial aid administrators, who worry that the companies are trying to lure their students to take on unnecessarily high levels of debt. They have also caught the attention of the Education Department. In a letter to college officials in September, Diane Auer Jones, the Department's Assistant Secretary for Postsecondary Education, warned them to be extremely careful about the types of information they release.

The Federal Family Education Rights and Privacy Act (FERPA) prohibits colleges from disclosing "personally identifiable information from a student's education records" without that student's written consent, with some limited exceptions. Schools, for instance, do not have to get a student's permission before releasing "directory information," which includes "the student's name, address, telephone listing, e-mail address, major field of study, and other information that generally would not be considered harmful or an invasion of privacy," Jones noted in her letter. Individual students, however, have the right to bar their colleges from releasing that type of information about them.

Some lenders have used open record requests to try to get colleges to provide them with lists of students who are in financial distress. One loan provider, for example, filed a particularly aggressive request with George Fox University in Oregon. In an e-mail message posted on an Internet discussion group for financial aid administrators, Robert A. Clarke, the university's Financial Aid Director, reported that the lender had specifically asked for lists of students and recent graduates with federal loans and those who were delinquent in repaying them. According to Jones' letter, colleges are prohibited from giving out information on "a student's financial aid status" without that student's authorization. In addition, "institutions are not required by FERPA," she wrote, "to actively seek such consent."

Sallie Mae appears to have carefully crafted its New York Freedom of Information Law request to ensure that the information it was seeking -- all of which could be classified as "directory information" -- was FERPA proof.

Nevertheless, SUNY officials are expected to reject Sallie Mae's request, arguing that the New York statute allows state agencies to deny access to lists of names and addresses that have been sought for commercial purposes, as no public purpose is served by such a disclosure. Should the university take this action, Sallie Mae will have 30 days to file an appeal, and if that fails, seek a judicial review of the case.

It is unclear how far Sallie Mae will push the issue. But one thing's for certain -- the loan giant is not one to duck a fight. We at Higher Ed Watch plan to track this battle closely because it could have major implications for students. We believe that if Sallie Mae succeeds in using state open record laws in New York or other states to gain customers, the floodgates will open and students will be sitting ducks, not just for loan providers but all sorts of other commercial enterprises, including credit card companies.

State open record laws were created to provide citizens with access to public records in order to hold government officials accountable for their actions. It is unconscionable that Sallie Mae and other private loan providers are trying to use open government laws to lure students into risky and expensive private loans.

Editor's Note, Oct. 12: A previous version of this post noted that "Sallie Mae and other private loan providers are trying to use open government laws to lure students into risky and expensive private loans before exhausting cheaper and safer federal loans." In fact, one in five private student loan borrowers does assume a private loan before they exhaust safer, cheaper federal loan options. However, we have been reminded that in wake of its original buyout agreement with JC Flowers and Company, Sallie Mae announced it would urge borrowers to exhaust federal loans first. We applaud this policy. How vigorous and successful the strategy has been for Sallie Mae is uncertain. Perhaps they'll tell us. Regardless, not all private loan providers have adopted similar 'encouragement' policies. New America has altered its original post to remove reference to federal loan exhaustion. But it continues to be a topic on which our future work will focus.

http://www.newamerica.net/blogs/education_policy/2007/10/news_scoop_sallie_mae_demands_suny_schools_turn_over_personal_data_their_students

salliemae Private student loan consolidation

Private student loan consolidation

Sallie Mae private student loan consolidation is a practical financial management tool that may give monthly payment relief, the convenience of a single payment, or interest rate savings for your private education loans. The Private Consolidation Loan provides $5,000–$275,000 (without a cosigner) for eligible borrowers to combine one or more existing private student loans into one new loan.

Eligibility

• You must be a U.S. citizen or eligible permanent resident.
• You must have good credit or apply with a creditworthy cosigner
• You must have reached the age of majority in your state of residence.
• Student for whom the loans will be consolidated must have completed or will complete his/her course of study within 30 days. (May be required to provide proof of graduation.)

Features

• Consolidate private education loans from $5,000 up to $275,000 (without a cosigner).
• Combined billing with one convenient monthly payment. (Sallie Mae customers can enjoy combined billing on any Sallie Mae-serviced loan.)
• Extended repayment terms—up to 30 years (depending on balance).
• Sallie Mae's Private Consolidation Loan offers flexible repayment terms including the option to defer payments if you return to school.
• There is no prepayment penalty.
• No application deadlines.

Loan terms

Loan limit

• The loans that you are consolidating must total at least $5,000 to qualify for this Private Consolidation Loan.
• There is no maximum loan amount if you have a creditworthy cosigner.
• If you do not have a cosigner, there is a maximum loan total of $275,000.

Interest rate

Interest rates are variable and reset monthly.

Fees

• A one-time disbursement fee is added to the loan amount at disbursement.
• There are no repayment fees.

Repayment

• You may take up to 30 years to repay, depending on your loan amount.
• You may choose to make regular payments of principal and interest through the life of your loan, or interest-only payments for the first 12 months, followed by regular payments of principal and interest.
• Repayment begins 30–45 days following disbursement.

salliemae K-12 Family Education Loan

K-12 Family Education Loan

Looking for a way to pay for private school? The K-12 Family Education Loan is available to parents or other creditworthy family members of children attending private K-12 schools.The application process is easy and provides fast decisions and superior customer service.

You can use our K-12 Family Education Loan to pay for private elementary, middle, or high school, including prep school, military school, Catholic school, Montessori school, boarding school, and more.

Eligibility

• You must be a U.S. citizen or permanent resident and have an established credit history.
• The institution your child is attending must be licensed or accredited by the department of education in the states in which they operate, if required by that state, or must be accredited by a recognized national education association.

Features

• The K-12 Family Education Loan can be used to fund past tuition balances.
• You may borrow for both tuition and other education-related expenses such as books, computers, and fees.
• The K-12 Family Education Loan has interest rates and fees that reward good credit.
• You can manage your account online 24/7.
• Apply with a cosigner and increase your chances of approval.
• Easy application process … have a copy of your tuition bill handy!
• Flexible repayment terms of up to 20 years are available.
• Borrow as little as $1,000 or up to the total cost of your child's education.
• You get life-of-loan servicing from Sallie Mae.
• You get the convenience of combined billing for all of your Sallie Mae-serviced loans.
• There is no prepayment penalty.

Loan terms

Loan limit

Flexible aggregate loan limits depending upon your situation.

Interest rate

The K-12 Family Education Loan has interest rates that reward good credit and are as low as Prime + 0% for borrowers with excellent credit. Interest rates are variable and reset monthly.

Fees

Loan fees are 0%–5%.

Repayment

You can take up to 20 years to repay the loan.

Another way to help pay down your loan

With Upromise Loan Link^SM student and parent borrowers who join Upromise^® can link their Sallie Mae loan account to their Upromise account and use their Upromise rewards to help pay down their eligible Sallie Mae-serviced student loans. Visit www.salliemae.com/upromise to learn more and enroll today.

Legal

• K-12 Family Education Loan is a service mark of SLM Financial Corporation.
• K-12 Family Education Loans are made by state or federally chartered financial institutions and are sold after full disbursement to a Sallie Mae company.
• The school and its financial aid office act on their own behalf and do not represent you or Sallie Mae. You should always contact Sallie Mae directly if you have questions about the terms under which K-12 Family Education Loans are made.
• The K-12 Family Education Loan is a private, credit-based loan and is not federally sponsored or guaranteed.
• Repayment begins at least 30 days, but no more than 60 days, after disbursement.
• The APR will increase if the Prime Rate increases.
• Minimum monthly payment is $30.
• Up to 60% of the tuition amount may be financed for other expenses, not to exceed $6,000. Terms may vary by school.

salliemae Continuing education loans

Continuing education loans

The Continuing Education Loan is a private, credit-based loan that provides financing for postsecondary students not seeking degrees and for part-time, degree-seeking students.

Eligibility

• You must be a U.S. citizen or permanent resident and have an established credit history.
• The institution you are attending must be licensed or accredited by the department of education in the states in which they do business.

Features

• The Continuing Education Loan has interest rates and fees that reward good credit.
• Repayment terms of up to 15 years are available.
• If you have less-than-ideal credit or no credit at all, you can still be eligible for the Continuing Education Loan by applying with a creditworthy cosigner.
• You may borrow for both tuition and other education-related expenses.
• You get the convenience of combined billing for all of your Sallie Mae-serviced loans.
• Creditworthy borrowers may request a cosigner release after making the first 24 consecutive, on-time monthly payments of principal and interest as initially scheduled.
• There is no prepayment penalty.
• You can manage your account online 24/7.
• You get life-of-loan servicing from Sallie Mae.
• Flexible repayment terms are available including the option to defer payments (or make interest-only payments) while you are in school. A minimum payment applies.

Loan terms

Loan limits

There is no aggregate loan limit.

Interest rates

The Continuing Education Loan has interest rates that reward good credit and are as low as Prime + 0% for borrowers with excellent credit. Interest rates are variable and reset monthly.

Fees

Loan fees are 0%–6.5%.

Repayment

• You may take up to 15 years to repay your loan.
• With the standard repayment option, you make level, monthly payments of principal and interest. The minimum monthly payment is $30.
• With the interest-only repayment option, you make interest-only payments while you are in school and begin standard repayment of principal and interest once school is completed.
• With the $10 deferred repayment option, you may defer payments for up to 12 months, not to exceed the anticipated graduation date on the application. You are required to make a $10 monthly payment during deferment. This $10 monthly payment will be applied toward the interest that accrues on the account during deferment.

Another way to help pay down your loan

With Upromise Loan Link^SM student and parent borrowers who join Upromise^® can link their Sallie Mae loan account to their Upromise account and use their Upromise rewards to help pay down their eligible Sallie Mae-serviced student loans. Visit www.salliemae.com/upromise to learn more and enroll today.

Legal

• Continuing Education Loan is a service mark of SLM Financial Corporation.
• Continuing Education Loans are made by state or federally chartered financial institutions and are sold after full disbursement to a Sallie Mae company.
• The school and its financial aid office act on their own behalf and do not represent you or Sallie Mae. You should always contact Sallie Mae directly if you have questions about the terms under which Continuing Education Loans are made.
• The Continuing Education Loan is a private, credit-based loan and is not federally sponsored or guaranteed.
• Minimum monthly payment is $10 per month under the $10 deferred repayment option.
• Up to 60% of the tuition amount may be financed for other expenses, not to exceed $6,000. Terms may vary by school.
• SLM Financial Corporation is a registered service mark of SLM Financial Corporation.
• Repayment begins at least 30 days, but no more than 60 days, after disbursement.
• The APR will increase if the Prime rate increases.
• There is a $30 fee for each cosigner.

salliemae Career training loans

Career training loans

The Career Training Loan is a private, credit-based student loan for technical training or trade school, online courses, and other continuing education programs.

Eligibility

• You must be a U.S. citizen or permanent resident and have an established credit history.
• The institution you are attending must be licensed or accredited by the department of education in the states in which they do business.

Features

• The Career Training Loan has interest rates and fees that reward good credit.
• Repayment terms of up to 15 years are available.
• If you have less-than-ideal credit or no credit at all, you can still be eligible for the Career Training Loan by applying with a creditworthy cosigner.
• You may borrow for both tuition and other education-related expenses.
• You get the convenience of combined billing for all of your Sallie Mae-serviced loans.
  
• Creditworthy borrowers may request a cosigner release after making the first 24 consecutive, on-time monthly payments of principal and interest as initially scheduled.
• There is no prepayment penalty.

Loan terms

Loan limits

There is no aggregate loan limit.

Interest rate

The Career Training Loan has interest rates that reward good credit and are as low as Prime + 0% for borrowers with excellent credit. Interest rates are variable and reset monthly.

Fees

Loan fees are 0%–6.5%.

Repayment

• You may take up to 15 years to repay your loan.
• With the standard repayment option, you make level, monthly payments of principal and interest. The minimum monthly payment is $30.
• With the interest-only repayment option, you make interest-only payments while you are in school and begin standard repayment of principal and interest once school is completed.
• With the $10 deferred repayment option, you may defer payments for up to 12 months, not to exceed the anticipated graduation date on the application. You are required to make a $10 monthly payment during deferment. This $10 payment will be applied toward the interest that accrues on the account during deferment. After deferment, you will begin standard repayment of principal and interest.

Another way to help pay down your loan

With Upromise Loan Link^SM student and parent borrowers who join Upromise^® can link their Sallie Mae loan account to their Upromise account and use their Upromise rewards to help pay down their eligible Sallie Mae-serviced student loans.

Upromise members can turn everyday spending into savings for education by shopping with participating companies who will contribute a portion of their qualified spending into their Upromise account. Once borrowers become Upromise members, they can invite family and friends to join and contribute their rewards to the borrower's Upromise account to increase savings. Enroll today at www.salliemae.com/upromise.

Legal

• Career Training Loan is a service mark of SLM Financial Corporation.
• Career Training Loans are made by state or federally chartered financial institutions and are sold after full disbursement to a Sallie Mae company.
• The school and its financial aid office act on their own behalf and do not represent you or Sallie Mae. You should always contact Sallie Mae directly if you have questions about the terms under which Career Training Loans are made.
• The Career Training Loan is a private, credit-based loan and is not federally sponsored or guaranteed.
• Minimum monthly payment is $30 under the interest-only repayment option; $10 per month under the $10 deferred repayment option.
• Up to 60% of the tuition amount may be financed for other expenses, not to exceed $6,000. Terms may vary by school.
• Repayment begins at least 30 days, but no more than 60 days, after disbursement.
• The APR will increase if the Prime Rate increases.
• There is a $30 fee for each cosigner.

salliemae Career training loans

Career training loans

The Career Training Loan is a private, credit-based student loan for technical training or trade school, online courses, and other continuing education programs.

Eligibility

• You must be a U.S. citizen or permanent resident and have an established credit history.
• The institution you are attending must be licensed or accredited by the department of education in the states in which they do business.

Features

• The Career Training Loan has interest rates and fees that reward good credit.
• Repayment terms of up to 15 years are available.
• If you have less-than-ideal credit or no credit at all, you can still be eligible for the Career Training Loan by applying with a creditworthy cosigner.
• You may borrow for both tuition and other education-related expenses.
• You get the convenience of combined billing for all of your Sallie Mae-serviced loans.
  
• Creditworthy borrowers may request a cosigner release after making the first 24 consecutive, on-time monthly payments of principal and interest as initially scheduled.
• There is no prepayment penalty.

Loan terms

Loan limits

There is no aggregate loan limit.

Interest rate

The Career Training Loan has interest rates that reward good credit and are as low as Prime + 0% for borrowers with excellent credit. Interest rates are variable and reset monthly.

Fees

Loan fees are 0%–6.5%.

Repayment

• You may take up to 15 years to repay your loan.
• With the standard repayment option, you make level, monthly payments of principal and interest. The minimum monthly payment is $30.
• With the interest-only repayment option, you make interest-only payments while you are in school and begin standard repayment of principal and interest once school is completed.
• With the $10 deferred repayment option, you may defer payments for up to 12 months, not to exceed the anticipated graduation date on the application. You are required to make a $10 monthly payment during deferment. This $10 payment will be applied toward the interest that accrues on the account during deferment. After deferment, you will begin standard repayment of principal and interest.

Another way to help pay down your loan

With Upromise Loan Link^SM student and parent borrowers who join Upromise^® can link their Sallie Mae loan account to their Upromise account and use their Upromise rewards to help pay down their eligible Sallie Mae-serviced student loans.

Upromise members can turn everyday spending into savings for education by shopping with participating companies who will contribute a portion of their qualified spending into their Upromise account. Once borrowers become Upromise members, they can invite family and friends to join and contribute their rewards to the borrower's Upromise account to increase savings. Enroll today at www.salliemae.com/upromise.

Legal

• Career Training Loan is a service mark of SLM Financial Corporation.
• Career Training Loans are made by state or federally chartered financial institutions and are sold after full disbursement to a Sallie Mae company.
• The school and its financial aid office act on their own behalf and do not represent you or Sallie Mae. You should always contact Sallie Mae directly if you have questions about the terms under which Career Training Loans are made.
• The Career Training Loan is a private, credit-based loan and is not federally sponsored or guaranteed.
• Minimum monthly payment is $30 under the interest-only repayment option; $10 per month under the $10 deferred repayment option.
• Up to 60% of the tuition amount may be financed for other expenses, not to exceed $6,000. Terms may vary by school.
• Repayment begins at least 30 days, but no more than 60 days, after disbursement.
• The APR will increase if the Prime Rate increases.
• There is a $30 fee for each cosigner.

salliemae Medical school loans

Medical school loans

The path to a lifetime of healing begins in medical school, but paying for your education should not get in the way of completing it. Sallie Mae has the right medical school loans to help.

Sallie Mae offers medical school loan solutions—MEDLOANS and the Global Health Education Loan Program. Each offers unique advantages.

Learn which medical school loan package is best for you:

• MEDLOANS
• GHELP (if you are studying abroad)

salliemae Law school loans

Law school loans

The LAWLOANS program lets you finance the entire cost of your law school education offering a combination of LAWLOANS Stafford, Graduate PLUS, and private loans.

When you combine LAWLOANS federal and private loans, you get the convenience of one combined monthly payment, life-of-loan servicing, and 24/7 online account management. Additionally, with LAWLOANS, you can focus on your studies and not have to worry about repaying your loans while you are in school. Unpaid interest that accrues while you are in school will be capitalized at repayment.

Sallie Mae’s streamlined application process lets you get LAWLOANS Stafford, Grad PLUS, and Private loans quickly and easily. You are encouraged to start with a LAWLOANS Stafford Loan and then a Graduate PLUS loan.

• LAWLOANS Stafford Loan
• LAWLOAN Graduate PLUS Loan

If you need additional funding or are ineligible for a federal loan, apply for LAWLOANS Private Loan. Stafford Loans have lower interest rates than Grad PLUS loans, and both generally have lower rates than private loans.

• LAWLOANS Private Loan

If you need to finance expenses associated with taking bar exam, the Bar Study Loan can help. The loan is available to you if you are enrolled at least half-time in your final year of study at an ABA-accredited law school, or have graduated from such a school within the last 12 months. You must take bar exam no later than 12 months after graduation.

• Bar Study Loan

salliemae Business school loans

Business school loans

The MBA LOANS program lets you finance the entire cost of your graduate business school by offering a combination of MBA LOANS Stafford, Graduate PLUS, and private loans.

MBA LOANS is the only loan program endorsed by the Graduate Management Admission Council^® , the people behind the GMAT^®.

When you combine MBA LOANS' federal and private loans, you get the convenience of one combined monthly payment, life-of-loan servicing, and 24/7 online account management. Additionally, with MBA LOANS, you can focus on your studies and not have to worry about repaying your loans while you are in school. Unpaid interest that accrues while you are in school will be capitalized at repayment.

Sallie Mae’s streamlined application process lets you get our MBA LOANS Stafford, Graduate PLUS, and Private loans quickly and easily. You are encouraged to start with an MBA LOANS Stafford Loan and then a Grad PLUS loan.

• MBA LOANS Stafford Loan
• MBA LOANS Graduate PLUS Loan

If you need additional funding, or are ineligible for a federal loan, apply for MBA LOANS Private Loan. Stafford loans have lower interest rates than Grad PLUS loans, and both generally have lower rates than private loans.

• MBA LOANS Private Loan

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.