Private Loan Consolidation: A Practical Financial Management Option for Graduates Entering Repayment

Private Loan Consolidation: A Practical Financial Management Option for Graduates Entering RepaymentWednesday November 15, 11:51 am ET


Newest Debt Management Tool Now Features Zero Fees for Customers Who Secure a Cosigner
RESTON, Va., Nov. 15 /PRNewswire/ -- As last spring's college graduates near the end of their six-month grace period, many will begin looking for ways to manage the repayment of their student loans. The addition this spring of the Private Consolidation Loan product brings a practical financial management tool to Sallie Mae's portfolio of repayment options.


Sallie Mae's Private Consolidation Loan allows holders of private education loans -- either from Sallie Mae or another lender -- to manage repayment by combining their eligible loans into a new loan and possibly lowering their monthly payment with an extended repayment term of up to 30 years, depending on the loan amount. Interest rates are variable and based on the customer's credit history or the credit history of the cosigner, if the customer secures a cosigner. Interest rates as low as Prime Rate plus 0 percent are available.
In addition, Sallie Mae's Private Consolidation Loan now offers an even more attractive benefit to customers who can secure a creditworthy cosigner: Sallie Mae will waive the 1 percent disbursement fee for all cosigned Private Consolidation Loans.
"Having a cosigner on your loan can only help you," said Paul Garrard, director of education loan product development, Sallie Mae. "If you have less- than-ideal credit or have not yet established credit, you may still be eligible by applying with a creditworthy cosigner. And even if you have good credit, a creditworthy cosigner may also help you qualify for lower rates and fees."
In addition, current Sallie Mae customers may also qualify for special loyalty pricing for opting to consolidate their eligible private loans through Sallie Mae. To determine qualification for special loyalty pricing, existing customers with one or more private education loans can call 866/380-5005.
Private education loans -- credit-based education loans that provide financing to students who need funds beyond the federal loan program -- continue to grow relative to federal loans, according to the College Board's 2006 "Trends in Student Aid" report. Private student loans now total more than $17 billion, having grown at an average annual rate of about 27 percent between 2000-01 and 2005-06.
"The amount students can currently borrow under the federal student loan program are often not enough to cover the gap between financial aid awarded and the actual cost of college," said Karla Lawson, Private Consolidation Loan product manager, Sallie Mae. "Private education loans are an important and growing choice for millions of undergraduate, graduate and health profession students."
SLM Corporation (NYSE: SLM - News), commonly known as Sallie Mae, is the nation's leading provider of saving- and paying-for-college programs. The company manages $137 billion in education loans and serves nearly 10 million student and parent customers. Through its Upromise affiliates, the company also manages more than $11 billion in 529 college-savings plans, and assists more than 7 million members with automatic savings through rebates on everyday purchases. Sallie Mae and its subsidiaries offer debt management services as well as business and technical products to a range of business clients, including higher education institutions, student loan guarantors and state and federal agencies. More information is available at http://www.salliemae.com. SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.