The Sallie Mae Smart Option Student Loan^SM is an ideal solution for students who still need funds after they have maximized grants, scholarships, and federal loans. With this school-certified loan, students can borrow up to the full cost of their education, less other aid received.¹

Eligibility

• Effective for applications initiated on or after May 1, 2009. Funds will disburse on or after June 1, 2009.
• You must attend an eligible community college, four- or five-year college or university, or eligible graduate program at least half time and be working toward your degree. In some circumstances, the Smart Option Student Loan is available to less than half-time graduate business students pursuing a degree. Contact your financial aid office for more information.
• You must meet current credit and other eligibility criteria.

Benefits

• Pricing that rewards creditworthy borrowers.
• Applying with a creditworthy cosigner may help you qualify and/or receive a lower interest rate.
• Borrowers may apply for a cosigner release after successful completion of their education.²
• A 0.25 percentage point interest rate reduction is available for automatic debit.³
• A 0.25 percentage point interest rate reduction is available if the borrower provides a valid e-mail address and elects to receive all servicing communications via email.⁴

Features

• Easy online application with fast credit decision and electronic signature ("eSign") available.
• 24/7 online account management.
• Combined billing is available for Sallie Mae-serviced student loans.
• No prepayment penalty.
• You may be able to deduct the interest you pay on a qualified student loan.⁵
• Available for U.S. citizens enrolled in eligible study abroad programs or studying at medical schools outside the U.S.
• International students are eligible with a creditworthy cosigner (who must be a U.S. citizen or permanent resident) and U.S. Citizenship & Immigration Service (USCIS) documents.

Loan terms

Loan limits

• $1,000 minimum loan amount.
• Borrow as much as you need to pay for your education, up to the cost of attendance as certified by your school and confirmed by Sallie Mae, less other financial aid received.¹

Interest rate

• Applying with a creditworthy cosigner may help you qualify and/or receive a lower interest rate.
• The Sallie Mae Smart Option Student Loan has interest rates that reward good credit. Interest rates are variable and are reset monthly based on the one-month LIBOR Index.

Fees

• Disbursement fees range from 0% to 5%.
• No repayment fee.

Repayment

• Monthly interest-only payments are required during the in school period and during the six-month separation period; by doing so you'll avoid capitalized interest and reduce your total loan cost.
• Consider making principal and interest payments while in school to lower the amount you must pay back.
• Principal and interest payments begin following the six-month separation period.
• Prepay your loan at any time without penalty.

Join Upromise^® and you can earn rewards on your everyday purchases. Those earnings can be automatically transferred to your student loan account, as long as your loans are serviced by Sallie Mae, to help pay down your eligible Sallie Mae-serviced student loans through Upromise Loan Link^®. Not all loans are eligible and you must be a U.S. citizen or reside in the United States or its territories. To learn if your loan is eligible for Upromise Loan Link, or to register, visit Upromise.com.⁶

1 Borrow as much as you need to pay for your education, up to the cost of attendance as certified by your school and confirmed by Sallie Mae, less other financial aid received. Sallie Mae reserves the right to approve a lower loan amount than what the school has certified.

2 The release of a cosigner is at the sole discretion of Sallie Mae. The borrower must have a satisfactory history of making principal and interest payments and meet underwriting guidelines when the request for cosigner release is processed. The borrower’s account must remain current until the request for release is processed and the borrower must be a U.S. citizen or permanent resident at the time the cosigner release is processed.

3 The automatic debit benefit is available for as long as the borrower's monthly payment amount is successfully deducted from the borrower’s bank account. Borrowers can elect to make payments via automatic debit through Sallie Mae’s online account management system. This benefit lowers the borrower's interest rate but does not change the amount of the monthly payment. This benefit is suspended during periods of forbearance and certain deferments.

4 The borrower must elect to receive electronic communications through Sallie Mae's online account management system and provide a valid email address within 90 days of the first payment due date. The electronic communications benefit is available for as long as the borrower maintains a valid e-mail address, continues to consent to receive all servicing communications concerning his or her student loan(s) via email and makes on-time payments of amounts scheduled with no interruption. This benefit lowers the borrower's interest rate but does not change the amount of the monthly payment.

5 Consult your financial advisor for more information or visit www.irs.gov/pub/irs-pdf/p970.pdf.

6 To view whether or not a loan is eligible to participate in the Upromise Loan Link program, please visit Upromise.com/LoanLink. Access to Upromise is not limited to Sallie Mae customers.

Sallie Mae Smart Option Student Loans are made by Sallie Mae Bank or a Sallie Mae lender partner.