Education nowadays is very costly, especially for college. To make the matter worse, it continues to increase. However, according to new reports, Sallie Mae is offering a more flexible and cheaper education loan for parents and graduate students.
What is Sallie Mae?
Sallie Mae is the largest private student lender. It offers saving, planning and paying programs for college companies. Sallie Mae is dedicated to helping American students and families achieve their dream of higher education.
For graduate students and parents who are struggling to pay college fees, Sallie Mae could be a big help. The company has already helped over 30 million Americans and has been in the industry for 40 years.
Sallie Mae Offers Cheaper And More Flexible Education Loans
The New York Times reported that Sallie Mae is offering a new parent loan that is more flexible and less expensive compared to the federal government's education loans known as Direct Plus loans. Sallie Mae's Parent Loans have potential benefits over the Direct Plus loans, check out below.
1. Expanded eligibility: this loan is not exclusive for parents. It supports any credit-worthy individuals including undergraduates and graduate students.
2. Variable or fixed interest rates without origination fee: Sallie Mae's parent loan has no upfront fee, unlike the federal government, which currently charges 4.272 percent for Plus loans. Aside from this, the company offers a variable-rate parent loan between four to 10.37 percent and a fixed rate from 5.74 percent to 12.87 percent. Meanwhile, the Federal Plus loans offer a fixed rate of 6.84 percent.
3. Multiple benefits: customers who sign up for monthly payments via auto-debit may receive 0.25 percentage point interest rate reduction. They will also receive quarterly access to their FICO credit score without charges. Meanwhile, Upromise by Sallie Mae members can use their cashback rewards to pay their loan.
4. Two repayment options: Sallie Mae offers two payment options: With interest repayment, customers will pay for monthly interest while the students are enrolled in schools for up to 48 months, followed by monthly principal and interest payments. Meanwhile, principal and interest repayment is where customers will pay the principal and interest monthly while students are enrolled.
Have you tried Sallie Mae's services in the past? Are you excited for their new parent loan? Share your thoughts below.
