Sallie Mae Smart Option Loan & Sallie Mae Residency and Relocation Loan

Who Is the Borrower?With some loans the parent borrows on behalf of the student. With other loans the student is the primary borrower, usually with a credit-worthy co-borrower who may or may not be the parent, depending on program restrictions.
Eligible graduate, post-graduate, or professional program students, usually with a creditworthy co-borrower.
Is this loan available for International Students?Some lenders will not allow international students to borrow, others will, but will often require a credit-worthy US citizen co-borrower. Check program restrictions.
Yes, when borrowing with a U.S. citizen or permanent resident co-borrower.
Interest Rates and FeesLoans may be offered with interest rates that are fixed for the life of the loan, or they may be variable and indexed to the prime or LIBOR rate. Fixed and variable rates may be tiered which means that the rate you are offered is determined by the strength of your credit. Most, but not all lenders charge no fees. Check program restrictions.
Interest rates are tiered and both fixed and variable rate options are available. Fixed rates range from 5.75% to 8.88%. Variable rates are indexed to the 1-month LIBOR and range from 1-month LIBOR plus 2.0% to 1-month LIBOR plus 7.25%.Rates are capped by applicable state law only and are reset monthly. There are no origination, disbursement, repayment or default/insurance fees.
Average Rate BU Borrowers got Last YearThe rate you are offered may be higher or lower than the average rate offered to BU borrowers for this loan in the past.
5.99%
Credit CriteriaSome lenders evaluate the strength of your credit based on your credit score, others consider your credit history, others use a combination of both, and some include an assessment scale that is at least in part proprietary. In most cases, a credit-worthy co-borrower is encouraged.
Approval and interest rates are based on the student borrower’s and/or co-borrower’s creditworthiness as determined by Sallie Mae.
Minimum and MaximumWhile the maximum amount a student could borrow in a credit-based educational loan is the annual cost of education (as determined by BU) minus any financial aid, including any Federal Stafford Loan, some lenders impose minimum and maximum limits that are more restrictive.
Loans are approved from $1,000 up to the total cost of education minus any financial aid, including any Federal Stafford Student Loan. There is no aggregate borrowing limit.
Repayment TermsRepayment terms are set by the lender and may include the length of the repayment term, minimum monthly payment amounts, and whether principal and/or interest payments are due while the student is enrolled. Most lenders have no prepayment penalties.
The repayment term generally ranges from 5 – 15 years and is based on the cumulative outstanding Sallie Mae-serviced private student loan balances, the repayment option selected, and the student’s grade level. No prepayment penalties.
Enrollment StatusMany but not all lenders require that the student be enrolled at least half time and be in a degree program to be approved for the loan. Check program restrictions.
Students must be enrolled at least part time in a graduate degree program.
Deferment OptionsMany lenders offer borrowers the option to pay principal and interest while the student is enrolled or to pay interest only or make no payments while enrolled. Deferring repayment may increase the overall cost of borrowing. Check program restrictions.
Interest only and deferred repayment options are available with fixed and variable interest rate options. Rates range up and down depending on credit. Deferment, forbearance options are available for active duty military personnel.
Can Loan be Sold?Some lenders retain ownership of the loans they originate while others bundle and sell their loans to a third party. Check each lender’s stated practice if this is a determining factor for you.
Sallie Mae states that it does not sell Sallie Mae Smart Option loans to other lenders.
Other Borrower BenefitsSome lenders offer benefits such as interest rate reductions to borrowers who, for example have a prior customer relationship with the lender, agree to make payments electronically, graduate with good grades. Check borrower benefits offered by each lender you are considering.
Interest rate reduction of 0.25 % is available for automatic debit. A 2% reward each month in the borrower’s Upromise account for making scheduled monthly pament on time while in school (not available with deferred repayment option). Loan forgiveness is granted upon death or total permanent disability of the borrower.
Loans Offered for Residency, Relocation or other Expenses?
The Sallie Mae Residency and Relocation Loan is available and offers loans from $1,000 to $20,000.
Medical Residency & Relocation Loan:
https://www.salliemae.com/medical
Dental Residency & Relocation Loan:
https://www.salliemae.com/dental
Lender Website and More InformationMore detailed information about loan products is available on each lenders website or by contacting the customer service department of the lender.
Get more information at: https://www.salliemae.com/smartoptionCall Sallie Mae at: 877-279-7172
How to ApplyMost loans are applied for electronically via the lender’s website.
Apply online at: https://www.salliemae.com/smartoption
This information is based on information provided by lenders identified in response to a Request for Information issued by Boston University. The terms and conditions of any loan may vary depending on, among other things, market conditions and your credit score. Proposed terms may have changed since lenders provided information to Boston University. You should contact the lender to obtain current terms and information. You should review any proposed terms and obligations carefully.