New Features Help Sallie Mae’s Smart Option Student Loan Customers Save More Than Ever

Sallie Mae, the nation’s leading saving, planning, and paying for college company, today announced new enhancements to its Smart Option Student Loan that make it even more rewarding for students to pay a little now to save a lot later. Sallie Mae is leading the market to cut interest rates on its Smart Option Student Loans. Starting May 10, rates on new Smart Option Student Loans will range between 2.88 percent and 10.25 percent, based on today’s LIBOR index. In addition, Sallie Mae will eliminate disbursement fees.

“Sallie Mae’s Smart Option Loan is a favorable option for families who need to fill the gap in their college funding,” says Scott M. Kahan, Certified Financial Planner practitioner and president of the wealth management firm Financial Asset Management Corp. in New York City. “By paying the interest while in school, families can save a lot of money and pay off their debt much sooner. This goes a long way in managing your finances responsibly.”

With Sallie Mae’s Smart Option Student Loan, students pay interest while in school, graduate with less debt, and pay off their loans faster, saving more than 50 percent in finance charges over the life of their loan. A typical freshman borrowing $10,000 makes payments of principal and interest for only seven years after graduation rather than 15 years. The customer saves approximately $8,800—compared to other private student loan alternatives in which no payments are made until after graduation.

“Keeping up with interest on my student loans out of pocket may not seem like much, but every bit counts and will save me money after graduation,” says Felicia Corcoran, a sophomore from Middleboro, Mass., who attends the Massachusetts College of Pharmacy. “I’m also participating in the Upromise program through Sallie Mae. This program is basically a free way to earn more money for college. What’s not to love?”