SLM corporation is a public trading corporation that provides consumer banking which is based in the United States. The corporation was a government sponsored enterprise which provided federal loans to the students but later on it changed to provide private education loans. The primary business of the company, Sallie Mae student loan is to create, serve and collect private student loans.
What is Sallie Mae?
SLM corporation or the sallie Mae is formally known as Student Loan Marketing Association. The company was founded in 1972. Jonathan Witter is the CEO of the company and the headquarters is based in Newark, Delaware, USA. At the beginning, the company was based on government sponsorship, which provided federal loans but later in 1997,it was changed to provide private student loans. The company provides loans to the students and the families, which is not secured by any government entity. The total assets of the company is $30.77 billions.
what is Sallie Mae student loan?
The company provides private student loans to all kinds of students i.e undergraduate, graduate or Career training students.
Sallie Mae student loan for Undergraduate students
The corporation provides the undergraduate loans on the basis of the information provided by the students. It also includes the subjects, their cost and other factors. The interest rate can be fixed as well as variable. Fixed rates range from 3.5% to 12.6 % whereas the variable rate changes according to the market condition i.e 1.13% to 11.13%.
The student can pay back their loans in three forms.
- Pay later- full payment after leaving school
- Pay a little and save- By making monthly $25 payment in school
- Pay interest and save even more- By paying the interest rate every month
Sallie Mae student loan for Graduate students
Total 77% of the total graduate students of America hold federal or private loans. The corporation provides the graduate loan to the students on the basis of their study. The loan differs according to the subject of their graduation. Medical and dental degrees require residence whereas other degrees do not require. The loan is provided from minimum $1000 and upto the total cost of their tuition fees, books, rooms etc.
.@dietz_meredith explains why prospective students and families should fill out the #FAFSA as soon as possible. More in @lifehacker: https://t.co/57ImoyisZC #SallieMakesSense
— Sallie Mae (@SallieMae) October 21, 2021
The loan is provided on a Credit- basis. Understanding how often and timely they pay the credit to the banks. Good credit helps to achieve good and fast loans.The interest rate varies from the course of the students. They have both the fixed and variable rate of interest. The rates fluctuate according to the course the students have chosen.
Read more: International student loans for African students
Sallie Mae student loan for Career Training students
It refers to non-degree -granting schools. Career training loans are provided to the students on the basis of their skill development choice. The chances of loan being approved is high if if they come with their parents, relatives or elders.
The Interest rate varies from fixed to variable. FIxed interest rates range from 6.62% to 13.83% while the variable rates are from 4.12 to 11.52%.
Students can pay back their loans in two modes.
- Pay a little and save- By making monthly $25 payment in school
- Pay interest and save even more- By paying the interest rate every month
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