Sallie Mae Offers Education Loans
SLM Corp. or Sallie Mae offers education loans with variable interest rates higher than federal government student loans. After grants, federal loans and scholarships have been exhausted, private student loans are the last resort in paying for college. After families max out federal student loans limits, private loans can nevertheless help bridge the gap, Charlie Rocha a Sallie Mae executive said.
The interest rate Sallie Mae assigns loans varies depending on the type of repayment option selected and the borrower’s credit score. Students are given more favorable rates who pay interest charges on the loan. It is to lowers the cost of the loan over the long term and minimizes the impact of compound interest. Sallie Mae offers loans disbursed from July 1 to Oct. 1 will come with free tuition insurance for a year. If a student is forced to withdraw because of medical reasons, the insurance covers up to $5,000 in tuition , board, room and other fees.
The perk might not outweigh the safeguards that come with federal student loans for many families. The period of relief is also generally much shorter and lenders usually decide whether to grant deferment on a case-by-case basis with the private loans.
