HEALTH AY 2014-15 The Smart Option Student Loan For Graduate Health Professions Students Let s talk about how your health professions students will pay for school. Sallie Mae would like to be part of the conversation. For more information, talk to your Sallie Mae representative or go to SallieMae.com/Schools FOR DEGREE-GRANTING INSTITUTIONS ONLY FOR SCHOOL USE ONLY NOT FOR DISTRIBUTION ACADEMIC YEAR 2014-15 (JUNE)
The Smart Option Student Loan for Health Professions Students The Sallie Mae Smart Option Student Loan is an attractive, alternative to federal student loans and other financing vehicles. 1 As your graduate health professions students consider their financing options, Sallie Mae would like to be part of the conversation. 4No origination fees 4Choice of fixed or variable interest rates and multiple repayment options 2 4Students can cover up to 100% of their school-certified cost of attendance (minimum $1,000) 3 4Eligibility includes U.S. students enrolled in a foreign institution or study abroad program, or international students studying in the U.S. 4Graduated Repayment Period Graduating students can request to make 12 interest only payments instead of full principal and interest payments after their separation period 4 The Smart Option Student Loan helps make it easier for health professions students to achieve their long-term financial and professional goals after graduation. Comparing Student Loan Options When evaluating student loans, there are important features of private and federal student loans that students pursuing a health professions degree should compare. That way, they can find the solution that best meets their unique needs. Features Smart Option Student Loan for Graduate Health Professions Students Variable interest rate LIBOR + 2% to LIBOR + 7.25% (2.25% to 7.03% APR). 2 N/A PLUS Loan for Graduate Students 5 Fixed interest rate 5.75% to 8.875% (5.74% to 8.36% APR). 2 7.21% for Academic Year 2014-15 loans. 6 Origination/ disbursement fee Repayment options while student is in school Minimum enrollment status Standard repayment period Residency or internship deferment Benefits Death and disability loan forgiveness Application process 0% 4.288% for loans first disbursed on or after December 1, 2013. Note: 4.292% for loans first disbursed on or after October 1, 2014 and before October 1, 2015. 7 Three repayment options 2 : Pay monthly interest Pay $25 per month 8 Defer payments Full time, half time, less than half time. 5-15 years 8 10-25 years Yes. A deferment is available in 12-month increments; limited to a total of 48 months. 9 Auto Debit Savings 0.25 percentage point interest rate reduction for automatic debit enrollment. 10 Smart Reward 2% cash back on scheduled payments made while in school. 11 Tuition Insurance Benefit Covers up to $2,500 per semester of tuition and other expenses lost due to a covered medical withdrawal. This exclusive benefit is provided at no cost to the consumer with loans that first disburse between July 1 and October 31, 2014. 12 Yes. If a student borrower dies or becomes permanently and totally disabled, Sallie Mae will waive all remaining payments on the loan. Student or cosigner can initiate the application process at SallieMae.com. It only takes about 15 minutes to apply online and get a credit result. Students are not required to complete the FAFSA unless it is the policy of the school. Immediate repayment of principal and interest. Students can request deferral of payments but interest will accrue on the loan during the deferment. Must be at least half time. A forbearance may be available if the student qualifies for one of the conditions listed on their original promissory note. 0.25 percentage point interest rate reduction for automatic debit enrollment. 13 Yes. If certain conditions are met, the primary borrower dies, or becomes permanently and totally disabled, the loan will be discharged. Student applies online with the Department of Education through the FAFSA process. In addition to the FAFSA, some states require additional forms or applications for aid.
A Cosigner Can be Beneficial While graduate students are three times more likely than undergraduates to be approved on their own for a Smart Option Student Loan, applying with a creditworthy cosigner can give them a better chance of approval. 14 4It s important to note that a cosigner doesn t have to be a parent. 30% of the cosigners on the Smart Option Student Loan are an individual other than a parent. 14 So it may be wise for students to consider creditworthy family and other individuals who are willing to help them achieve their education goals. 4Cosigners can be released. After graduating and making 12 consecutive, on-time principal and interest payments, the student can apply to have the cosigner released. The student needs to be creditworthy and have the ability to make payments. 15 Releasing the cosigner will not adversely impact the interest rate on the loan. It s Time to Talk About How Your Health Professions Students Will Finance Their Education Sallie Mae would like to be part of the conversation. At Sallie Mae, we understand that graduate health professions students have a number of options available to them when it comes to financing their degree. They are smart, savvy consumers who take time to educate themselves about their options. We strongly encourage students to carefully weigh all available financing options, keeping in mind long-term professional and financial goals and the flexibility needed beyond graduation to achieve those goals. 4The best choice for financing a graduate education may be a combination of affordable financing options, such as federal and private student loans. 4Highly qualified applicants, who expect to enter the workforce immediately after their residency or internship and repay their student loans quickly, may be better served by exploring a Smart Option Student Loan which may offer a lower rate than other private and some federal student loans. 1 4Choosing a private student loan that provides graduate students the option to make interest payments while in school can help them save money and avoid interest capitalization, resulting in a reduction in the total cost of the loan. 4Credit cards may seem like they offer quick access to funds to pay for a graduate education. However, they re not designed specifically for education financing and are often the more expensive and less flexible option compared to a student loan. The Sallie Mae Residency and Relocation Loan As Your Students Consider Their Next Step Sallie Mae is there for your students in their final year of medical, dental, or veterinary school when they transition from being a student to a professional. The Sallie Mae Residency and Relocation Loan finances expenses associated with finding a residency, including travel to interviews and relocation costs, which are not covered by federal student loan programs. The Residency and Relocation Loan can also assist dental students with board examination expenses. 16 These features are designed to help students more easily transition to the residency of their choice: 4Competitive, variable interest rates from 1-Month LIBOR + 3% to LIBOR + 9.75% (3.21% to 9.62% APR) 17 4No origination fees 436-month grace period after graduation 17 4Deferment in 12-month increments; limited to a total of 48 months 9 40.25 percentage point interest rate reduction for automatic debit enrollment 10 4 Available to U.S. students enrolled in a foreign institution or study abroad program, or international students studying in the U.S. 4International students must be attending a U.S. medical, dental, or veterinary school Sallie Mae is Happy to Provide On-Campus Presentations for Both Students and Your Staff. Be sure to reach out to your Sallie Mae representative for more information.
Encouraging Responsible Borrowing Sallie Mae has helped more than 30 million Americans pay for college since 1972. We encourage students and families to supplement their savings by exploring grants, scholarships, federal and state student loans, and to consider the anticipated monthly payments on their total student loan debt and their expected future earnings before considering a private education loan. For more information, talk to your Sallie Mae representative, go to SallieMae.com/Schools or call 1-888-272-4665. This information is for degree-granting institutions only. Credit criteria and eligibility requirements apply. To participate in the Sallie Mae Residency and Relocation Loan program, veterinary medical schools are required to be accredited by the American Veterinary Medical Association, medical schools are required to be accredited by the Liaison Committee on Medical Education or the American Osteopathic Association s Commission on Osteopathic College Accreditation, and dental schools are required to be accredited by the American Dental Association. Sallie Mae Residency and Relocation Loans are intended to cover expenses not included in your school s cost of attendance. Smart Option Student Loans and Residency and Relocation Loans are made by Sallie Mae Bank or a lender partner. 1 Students and families should explore federal loans and compare to ensure they understand the terms and features. Smart Option Student Loans that have variable rates can go up after consummation. Federal student loans are required by law to provide a range of flexible repayment options, including, but not limited to, income-based repayment and income-contingent repayment plans, and loan forgiveness and deferment benefits, which other student loans are not required to provide. Federal loans generally have origination fees, but are available to students regardless of income. 2 Interest rates for the Fixed and Deferred Repayment Options are higher than for loans with the Interest Repayment Option. Graduate student pricing on the Smart Option Student Loan is limited to students enrolling in a Masters/Doctorate level degree program. Graduate Certificate/Continuing Education course work is not eligible for graduate student pricing. Variable rates may increase after consummation. Interest is charged while in school and during the 6 month separation period. Any interest that remains unpaid when the borrower enters full repayment will be added to their loan balance. 3 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. Requested amounts exceeding $99,999 may require multiple loans. 4 Available for loans that first disburse on or after July 1, 2013 to finance academic periods that begin on or after July 1, 2013 at a degree-granting institution. Graduated Repayment Period (GRP) requires interest payments for the initial 12 month period of repayment when borrowers would normally begin making full principal and interest payments (which typically begins six months after graduation) or during the 12 month period after borrower s request is granted, whichever is later. At the time the borrower requests GRP, they must have graduated with no interruption in enrollment, be current on payments, and not be more than 30 days late on payments on any student loan. Borrowers may request GRP only during the two billing cycles immediately preceding and the two billing cycles immediately after their loan would normally begin requiring full principal and interest payments. GRP does not extend the term of the loan. If approved for GRP, principal and interest payments will be higher than if GRP did not apply, and the borrower s total loan cost will increase. 5 Federal student loan information was gathered on June 25, 2014 from http://studentaid.ed.gov; check this page for the most up-to-date information about federal student loans. Rates, fees, and availability of federal student loans are subject to change by the Federal Government. 6 This information was gathered on June 25, 2014 from http://www.ifap.ed.gov/eannouncements/051514intratesfordlfirstdisbbtwnjuly12014june302015.html. 7 This information was gathered on June 25, 2014 from http://ifap.ed.gov/dpcletters/gen1410.html. 8 This informational repayment example uses typical loan terms available to a graduate health professions borrower who elects the Fixed Repayment Option and has a $10,000 loan with two disbursements, a 30-month deferment during residency and a 6.06% variable APR: 81 payments of $25 per month, 59 payments of $240.56 per month, and one payment of $227.18, for a total amount paid of $16,445.22. 9 If at any time during the Repayment Period the borrower enters an approved residency or internship program, the borrower may contact Sallie Mae to request the Residency/Internship Deferment. During the Deferment Period, the borrower will still be required to make payments on the same terms as the repayment option that applied to the loan during the in-school period. Residency/Internship Deferment is issued in 12-month increments and is available for up to 48 months. Interest is charged during the Deferment Period and any interest that remains unpaid at the end of the Deferment Period, and every 12-month increment within the Deferment Period, will be added to the loan balance. 10 Borrower or cosigner must enroll in auto debit through Sallie Mae. The rate reduction benefit applies only during active repayment for as long as the borrower s monthly payment amount is successfully deducted from the designated bank account and is suspended during forbearances and certain deferments. For multi-party loans, only one party may enroll in auto debit. 11 Primary borrower can earn a reward into his or her active Upromise account of 2% of the scheduled loan payment amount for each on-time payment during the in-school and separation periods. Loan payments must remain current to be eligible for the reward. The Smart Reward benefit and Upromise membership are subject to the terms and conditions of the Upromise service, as may be amended from time to time. Upromise accounts are not FDIC insured, carry no bank guarantee and may lose value. Terms and conditions apply to the Upromise service. Participating companies, contribution levels and terms and conditions are subject to change at any time without notice. Go to Upromise.com to learn more. 12 The Tuition Insurance Benefit is tuition refund insurance that covers up to $2500 per semester ($5000 total per policy) and is available with loans that first disburse between 7/1/14 and 10/31/14. Terms and conditions of coverage limits may vary dependent on school s academic calendar. Borrowers are automatically enrolled at the first loan disbursement. Benefit must be activated within four months of first disbursement to receive twelve months of coverage. If a withdrawal is due to a mental health issue, a 2-day hospitalization stay is required; and the hospital stay must occur prior to date of withdrawal. To process the benefit, your information will be shared with Next Generation Insurance Group, LLC ( NGI ), a licensed insurance producer, their underwriters, and their providers. If the loan is cancelled, coverage terminates. Individuals may be enrolled in only one Tuition Insurance Benefit at a time. Benefit is offered by Sallie Mae Bank through a joint marketing relationship with NGI. Terms and conditions apply. For insurance licensing information please visit: https://salliemaeinsurance.com/licensing-information. Tuition Refund Insurance is underwritten by Markel Insurance Company, Deerfield, IL. Administrative office, Waukesha, WI. 13 This information was gathered on June 25, 2014 from http://www.direct.ed.gov/inrepayment.html 14 Based on a rolling twelve month period from November 1, 2012 through October 31, 2013. 15 Only the borrower may apply for cosigner release. The borrower must provide proof of successful completion of school, be a U.S. citizen or permanent resident, be current and have made 12 consecutive on-time payments of principal and interest immediately before applying, provide proof of income and pass a credit check when the release request is processed. 16 Borrower must be a U.S. citizen or permanent resident or a foreign borrower applying with a creditworthy cosigner who is a U.S. citizen or permanent resident and present U.S. Citizenship and Immigration Service (USCIS) documents. Borrower must be enrolled in the final year of study at an allopathic, osteopathic, dental or veterinary medicine school. Borrower must expect to be awarded the M.D., D.O., D.D.S., D.V.M or V.M.D degree during the same academic program year he is applying for the Residency & Relocation Loan. Borrower must meet current credit and other eligibility criteria. 17 Variable rates may increase after consummation. Interest is charged while in school and during the applicable separation period of either 36 months after graduation or 9 months after withdrawal from school or attendance falling below half-time status. Any interest that remains unpaid when the borrower enters full repayment will be added to their loan balance. WE RESERVE THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION. Information advertised valid as of June 25, 2014. The Sallie Mae logo, Sallie Mae, Smart Option Student Loan, Smart Reward, and Residency and Relocation Loan are service marks or registered service marks of Sallie Mae Bank or its subsidiaries. Upromise is a registered service mark of Upromise, Inc. SLM Corporation and its subsidiaries, including Sallie Mae Bank and Upromise, Inc., are not sponsored by or agencies of the United States of America. 2014 Sallie Mae Bank. All rights reserved. SMSCH MKT9526 0614
What graduate students need to know in AY 14-15 Effective May 22, 2014 Smart Option Student Loan Online Application Process Choosing the graduate loan type Simple: Designed for ease-of-use Flexible: Either student or cosigner can initiate Fast: Complete in about 15 minutes Responsive: Receive immediate credit results Transparent: Details are shown after credit approval SallieMae.com Please Note: The rates, and fees shown in the repayment examples are for illustrative purposes only and are based on LIBOR as of April 25, 2014. Examples shown assumes a $10,000 loan with two disbursements made to a first year graduate student who is attending a two year graduate program with a typical rate and no origination fee. Encouraging Responsible Borrowing Sallie Mae has helped more than 30 million Americans pay for college since 1972. We encourage students and families to supplement their savings by exploring grants, scholarships, federal and state student loans, and to consider the anticipated monthly payments on their total student loan debt and their expected future earnings before considering a private education loan. This flyer is for borrowers attending degree-granting institutions only. Credit criteria and eligibility requirements apply. Interest rates for the Fixed and Deferred Repayment Options are higher than loans with the Interest Repayment Option. Variables rates may increase after consummation. Interest is charged while in school and during the 6 month separation period. Any interest that remains unpaid when the borrower enters full repayment will be added to their loan balance. Graduate student pricing on the Smart Option Student Loan is limited to students enrolling in a Masters/Doctorate degree level program. Graduate Certificate/Continuing Education course work is not eligible for graduate student pricing. WE RESERVE THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION. Smart Option Student Loans are made by Sallie Mae Bank or a lender partner. Sallie Mae, Smart Option Student Loan, and the Sallie Mae logo are service marks or registered service marks of Sallie Mae Bank or its subsidiaries. SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America. 2014 Sallie Mae Bank. All rights reserved. SMSOSL MKT8734B 0614 FOR DEGREE-GRANTING INSTITUTIONS ONLY FOR SCHOOL USE ONLY - NOT FOR DISTRIBUTION ACADEMIC YEAR 2014-15 (MAY)