Sallie Mae Unveils Private Loan for Community College Students

Sallie Mae, the nation’s leading saving- and paying-for-college company, announced today that Sallie Mae’s private Signature Student Loan is now available to community college students enrolled at least half-time at Title IV eligible schools.

While the total cost of attendance at community colleges is often lower than the cost of attendance at four-year institutions, there may be certain circumstances where students need additional financial support. The Signature Student Loan features interest rates that reward good credit, with rates as low as Prime minus 0.50 percent and no fees. If students have less-than-ideal credit, they still may be eligible if they apply with a creditworthy cosigner. Even if students have good credit, a cosigner may help them qualify for lower rates and fees. The rates and fees are variable and reset monthly, and no payments are required as long as the student is enrolled at least half-time.

While Sallie Mae advises students and families first to apply for and pursue free money, such as grants and scholarships, to pay for college, there may be certain circumstances where students need additional financial support. When it comes to financing the cost of college, Sallie Mae recommends that students and families maximize their borrowing under the Federal Stafford Loan and PLUS Loan programs. If students still have remaining financial need, they could then consider applying for a private education loan, such as the Sallie Mae Signature Student Loan, to meet the total cost of attendance.

In addition, Sallie Mae recently announced Upromise Loan Link, a new benefit that enables customers to reduce their student loan debt by accelerating repayment as they use rewards earned via Upromise to pay down their student loans. Upromise’s popular rewards service allows members to earn cash rebates when they and their families shop online, buy gas or groceries, dine out, or purchase other goods and services from more than 500 participating companies. With Loan Link, these rebates can then be automatically transferred into the customer’s Sallie Mae student loan account.

Upromise Loan Link will help customers reduce their student loan debt by accelerating repayment, and could save more than $1,500 for a customer who has Signature Student Loans totaling $12,000 (assuming a rate of Prime minus 0.50 percent) and who earns $50 in Upromise rewards annually. Those savings represent 12 percent of the customer’s original loan balance and ten full months of repayment.