Sallie Mae Smart Option Student LoanSM by USC Credit Union

 


Sallie Mae Smart Option Student Loan® by USC Credit Union helps you save money, build your credit, and pay off your the innovative student loan faster. It's an ideal education funding solution if you still need funds after maximizing grants, scholarships, and federal loans. Be sure to exhaust all federal loans options before borrowing a private student loan.

With the Smart Option Student Loan®, you can borrow up to the full cost of your education, less other aid received. Designed to help you graduate with less student loan debt and help you pay it off faster, the Smart Option Student Loan offers 3 different repayment options: Interest Repayment Option, Fixed Repayment Option, and Deferred Repayment Option.

The Smart Option Student Loan also has no origination or repayment fees, regardless of the applicant’s or cosigner’s credit. For all new loans, the interest rates will range from:

LIBOR + 2% to 9.875%

A creditworthy cosigner may also help you qualify and/or receive a lower interest rate.

NEW! Free Tuition Insurance Benefit. Students can now get the money they need, and the peace of mind they want—exclusively with the Smart Option Student Loan. Sallie Mae’s new Tuition Insurance Benefit covers up to $5,000 of tuition and other expenses lost due to a covered medical withdrawal. This new safeguard is free and it’s only available with loans first disbursed between July 1 and October 31, 2011.

USC Credit Union can help you find the student loan to meet your goals. Federal and private student loans are available to undergraduate, graduate, legal and medical school students. Contact Sallie Mae®, America's saving, planning and paying for college company, to talk to a student loan expert who can help you select the right loan for your needs.

Sallie Mae's 1-2-3 Approach to Paying for College

With Sallie Mae's 1-2-3 Approach to Paying for College, students and families will tap the most affordable education funds first and minimize education loan debt upon graduation.

Step 1: Use Free Money First. Students should fill out the FAFSA to access need-based grants and research and apply for scholarships. Students should consider supplementing grants and scholarships with current income and college savings.

Step 2: Explore Federal Loans. Available to both students and parents regardless of need, federal loans offer low, fixed interest rates and flexible repayment options.

Step 3: Fill Any Gap with Private Student Loans. After students have pursued free money and federal loans, private student loans may be available to cover the rest of their education costs.

Eligibility
  • You must attend an eligible school, be an undergraduate student or attending an eligible associate, graduate or technical/trade program at least half time. In some circumstances, the Smart Option Student Loan is available to less-than-half-time students and students enrolled in a continuing education program.
  • U.S. citizens enrolled in eligible study abroad programs or studying at medical schools outside the United States are also eligible.
  • International students are eligible with a creditworthy cosigner (who must be a U.S. citizen or permanent resident) and appropriate U.S. Citizenship and Immigration Service documentation.
  • You must meet current credit and other eligibility criteria.

Benefits

 

Competitive Interest Rates
  • Rates from LIBOR + 2.00% (2.25% APR) to LIBOR + 9.88% (9.37% APR)3
  • No origination fees and no prepayment penalties9
Choice Plus Savings
  • Interest Repayment Option. Pay interest while in school and have a shorter repayment period after school and you can save over 20% ($5,000) on your total loan cost compared to our deferred repayment option1
  • Fixed Repayment Option. Pay just $25 a month2 while in school and have a shorter repayment period after school and you can save over 10% ($2,000) on your total loan cost compared to our deferred repayment option1
  • Deferred Repayment Option. Make no payments while in school—or pay as much as you'd like—for maximum flexibility8
Rewards for paying on time
  • Get a 2% Smart Reward® in your Upromise® account when you make scheduled monthly payments on time while in school with Interest or Fixed Repayment Options4
  • Get a 0.25% percentage point interest rate reduction while enrolled to make scheduled monthly payments by automatic debit5
Get the money you need for school
  • Borrow up to 100% of your school-certified costs of education (minimum $1,000)
Features
  • It is easy to apply for and manage a Smart Option Student Loan. Gather just a few pieces of information and apply securely right here. You can even e-sign your application!
    Smart Option® customers enjoy:
  • Easy online application
  • 24/7 online account management
  • No prepayment penalty
Consider a cosigner
    Applying with a creditworthy cosigner could help you get approved for the loan and could substantially reduce your total loan cost. Choose a family member or friend with an excellent credit history and the ability to repay the loan if necessary. A creditworthy cosigner can:
  • Help you qualify for your loan
  • Provide the possibility of a lower interest rate
Cosigning for a student loan is a big responsibility, but it doesn't have to continue for the entire duration. You can apply for a cosigner release once you've completed your education and made 12 consecutive on-time principal and interest payments.6

Rates and terms

 

Interest Rate
  • Rates from LIBOR + 2.00% (2.25% APR) to LIBOR + 9.88% (9.37% APR)3
  • 0.25 percentage point interest rate reduction while enrolled to make scheduled monthly payments automatic debit5
Apply with a creditworthy cosigner and you may receive a lower rate
Loan limits
  • Borrow up to 100% of your school certified costs of education (minimum $1,000)
Fees
  • No origination fees for degree-granting institutions3
  • No repayment fees
Repayment Terms
  • Choose the repayment option that works for you while you are in school - defer all payments, pay just $25 a month, or pay interest
  • Full principal and interest payments begin six months after you leave school for all repayment plans
  • No prepayment penalty, regardless of the repayment plan you choose
Who is eligible?
  • You must attend an eligible school and be enrolled in an eligible program. U.S. citizens enrolled in eligible study abroad programs or studying at medical schools outside the United States are also eligible.
  • International students are eligible with a creditworthy cosigner (who must be a U.S. citizen or permanent resident) and appropriate U.S. Citizenship and Immigration Service documentation.
  • You must meet current credit and other eligibility criteria.
Rewards
Join Upromise® for free and earn rewards when you shop online, eat out, buy gas, and more...
  • Choose our Interest or Fixed Repayment Option, and earn a 2% Smart Reward® in your Upromise account when you make scheduled monthly payments on time while in school4
  • Invite family and friends to join Upromise and help you earn even more
You can use your Upromise earnings several ways
  • Help pay down eligible Sallie Mae student loans
  • Transfer them to your High-Yield Savings Account by Sallie Mae®7
  • Request a check to pay for college or other expenses like books, food and more

With Upromise by Sallie Mae you can earn rewards to help pay down your student loan from everyday things — like eating out, filling your gas tank, and more! Plus, as a Upromise member, you can earn a 2% Smart RewardSM for every on-time payment you make to your student loan.5 Look for information on how to join Upromise when you are applying for your Smart Option Student Loan.

Build your credit
  • With the Smart Option Student Loan, you'll build credit by making monthly $25 payments while in school.
  • You'll save even more if you or your cosigner makes principal and interest payments while you're in school.
  • The more you lower the amount that must be paid back, the more you save. You can prepay your loan at any time, without penalty. Principal and interest payments begin after a six-month separation period.

 

 

1 Savings based on typical loan to a freshman borrower attending a degree granting institution.

2 The following repayment example is for informational purposes only and is an example of available loan terms of the Smart Option Student with the Fixed Repayment Option made to a freshman borrower at a degree-granting institution: A $10,000.00 loan with two disbursements, and no grace, a disbursement fee of 0% and a 7.33% APR. APR is variable and may increase after consummation. Repayment consists of 51 fixed $25/month payments during the in school and separation period, followed by 119 payments of $141.66 per month and one payment of $114.67, for a total amount paid of $18,247.21.

3Rates and fees shown are available for the Smart Option Student Loan and are available for borrowers attending degree-granting institutions only. Interest rates on loans with the Fixed and Deferred Repayment Options are higher than rates on loans with the Interest Repayment Option. APRs for borrowers attending non-degree-granting institutions range from 8.13% to 13.88% with an origination fee up to 5.00%. Origination fees mean application or disbursement fees. Interest rates are variable and may increase after consummation.

4While a Upromise member, primary borrower (must be of age of majority - typically 18 years old) can earn a reward into his or her Upromise account of 2% of the scheduled loan payment amount for each on time payment during the in school and separation periods. After two consecutive past due payments, the loan is no longer eligible for the reward. Benefit subject to the terms and conditions of the Upromise service (as may be amended from time to time), including without limitation, restrictions on conversion, transfer and redemption of rewards, reward denomination, including whether and under what circumstances the rewards have independent cash value, and terms relating to fees and/or the forfeiture of rewards. Upromise Accounts are not FDIC insured, carry no bank guarantee and may lose value.

5 Recurring automatic monthly payment must be successfully deducted from designated bank account for rate reduction to apply. Benefit suspended during periods of forbearance and certain deferments.

6To qualify for cosigner release, borrower must meet age of majority requirements, be a U.S. citizen or permanent resident and meet the underwriting requirements when the release request is processed.

7 Subject to $10 minimum monthly transfer amount.

8The deferred repayment option is only available for degree-granting institutions. Unpaid interest will capitalize when your loan enters principal and interest repayment.

Terms and conditions apply to the Upromise service. Participating company, contribution levels and terms and conditions are subject to change at any time without notice. Go to upromise.com to learn more.
Sallie Mae Smart Option Student Loans are made by Sallie Mae Bank or a lender partner.
Information advertised valid as of 12/27/2011.
SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK THE SALLIE MAE WEBSITE (www.salliemae.com) TO OBTAIN THE MOST UP-TO-DATE PRODUCT INFORMATION.
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The Sallie Mae logo is a service mark of, and Sallie Mae, Sallie Mae Bank, Smart Reward and Smart Option Student Loan are registered service marks of Sallie Mae, Inc.
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