Who is eligible for the Smart Option StudentLoan?
• Students enrolled, accepted for enrollment, or previously enrolled at
an eligible degree-granting institution within the last365 days.
• Students who are U.S. citizens or permanent residents and with proper
evidence of eligibility.
• U.S. citizens enrolled in eligible study abroad programs or studying at
select schools outside the U.S. 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.
• Students attending school full time, half time or less than
half time, or taking prerequisite classes.
• Students attending summer classes or continuing educationclasses.
How does one apply?
• Students or cosigners can start an application by visiting SallieMae
online at SallieMae.com.
• When applying for a Smart Option Student Loan, applicants will have the
ability to view both variable and fixed interest rate pricing.
• Aer credit approval, they’ll be presented with monthly payment
amounts, interest rates, and total loan costs to aid them in
selectingeither in-school payments, or to defer payments until
aerseparation.
• Encourage them to apply and compare the rates on the Smart Option
Student Loan to the rate oered on the PLUS Loan—they can then
choose whether or not to proceed with the application.
How is the Self-Certification Form submitted?
• As part of the Higher Education Opportunity Act (HEOA), students must
complete the Self-Certification Form as part of the application process.
The form must be completed and submitted prior to loandisbursement.
• Schools can assist students in completing this form by providing any
cost of attendance figures.
• The Self-Certification Form will be completed as part of the application
process when a student applies for a Smart Option Student Loan;
however, one is available from Sallie Mae uponrequest.
Can it be used for a prior loan period?
• Students must be currently enrolled, accepted for enrollment, or
previously enrolled for a prior loan period at an eligible school.
• Prior loan period loan requests must meet the following conditions:
- Less than 365 days have passed or will pass from the loan
perioddate to the first disbursement of the loan.
- At the time of the request, the borrower is enrolled, intends to enroll,
or has graduated.
- The borrower was enrolled during the prior enrollment period for
which the loan is requested and did not withdraw with no intention
of re-enrolling, as verified by the school.
Are there any loan limits?
• $1,000 minimum.
• Maximum is the school-certified cost of attendance, less other aid
received, as certified by the school.
What must applicants do to obtain the loan?
• Satisfy credit requirements.
• Execute an application, promissory note, and any other documents
without alteration.
• Meet other customer identification requirements set forth by SallieMae.
• Foreign citizen student borrowers must have a cosigner with U.S.
citizenship or permanent residency.
What is the Death & Disability feature?
Upon verification that the student borrower is deceased or permanently
and totally disabled, Sallie Mae will waive financial responsibility for the
loan and all future disbursements will becanceled.
Why is a cosigner recommended?
• While not required for U.S. citizens or permanent residents, student
borrowers are encouraged to apply with a creditworthy cosigner as
it may increase the likelihood of the loan being approved and it may
help them obtain a lower interest rate. It may be wise for students to
consider creditworthy family members and other individuals who are
willing to help them achieve their education goals. Cosigners must be
U.S. citizens orpermanentresidents.
• On average during a twelve-month period from December 1, 2013
through November 30, 2014, our undergraduate student borrowers
received a rate more than 0.70 percentage points lower by adding a
creditworthy cosigner.
How does a borrower apply for cosigner release?
• The release of a cosigner is at the sole discretion of Sallie Mae. Only the
borrower may apply for cosigner release. The borrower must provide
proof of graduation or successful completion of certification program,
not be delinquent and have made 12 consecutive on-time payments
of principal and interest immediately before applying, provide proof
of income, pass a credit review that demonstrates a satisfactory credit
history and the ability to assume full responsibility of the loan(s)
individually, have no student loan(s) in default, must not be reported
as 90+ days delinquent in the past 24 months, must not be in hardship
forbearance and/or in a modified repayment program, be a U.S. citizen
or permanent resident, and meet the age of majority in their state.
Requirements are as of October 13, 2014, and are subject to change.
• Borrowers should download the application from SallieMae.com/
CosignerRelease or call Sallie Mae at 1-800-4-SALLIE (1-800-472-5543)
to initiate therequest.
• Releasing the cosigner will not adversely impact the interest rate on
theloan.
Can applicants change the loan amount?
• Loan amount can be increased before the right-to-cancel period listed
on the Final Disclosure as long as the amount doesn’t exceed the
originally approved amount provided on the Loan ApprovalDisclosure.
• Loan amounts can be decreased as long as funds haven’t been fully
disbursed to the school/student. If the funds have been disbursed, the
school should return the loan funds to Sallie Mae and request the loan
be issued for a lesser amount.
Smart Option Student Loan®
Frequently Asked Questions For Schools (February 2015)
FOR DEGREE-GRANTING INSTITUTIONS ONLY | FOR SCHOOL USE ONLY — NOT FOR DISTRIBUTION
SMART OPTION
AY 2015-16
Repayment
What if a borrower is having difficulty makingpayments?
If a customer is struggling to make their monthly student loan payments,
Sallie Mae will work directly with the student/customer one-on-one to
assess repayment options. We encourage students to contact us directly
to discuss what options may be available.
What if loan money is returned?
• A full return: If loan funds are returned within 60 days of the first
disbursement date, no interest or fees will accrue, and the loan will
be canceled. If loan funds are returned more than 60 days aer the
first disbursement date, the funds can be returned, but the student is
responsible for paying all accrued interest and fees. However, if the
student borrower hasn’t endorsed the disbursement paper check, the
student borrower is not responsible for any accrued interest or fees.
• A partial return of loan funds will be treated as a payment and can be made
regardless of the number of days that have passed since first disbursement.
Sallie Mae will credit the return to the loan balance.
How does a borrower apply for the Graduated RepaymentPeriod?
• Borrowers will be notified on their billing statement that one or more
loans qualify for the Graduated Repayment Period. This message will
direct them to contact the Servicing Call Center. (Borrower must have
graduated with no interruption in enrollment, be current on payments,
and not be more than 30 days late on payments on any student loan.)
• Borrowers can apply by calling the Servicing Call Center and must do
so during the two billing cycles immediately preceding full principal
and interest repayment or before the close of the second principal and
interest billing cycle.
• As part of the process, borrowers will be provided with estimates of
their monthly payments for both the Graduated Repayment Period and
Standard Repayment, as well as the impact to total loan cost.
• If approved for the Graduated Repayment Period, the principal and
interest payments aer the year of Graduated Repayment will be
higher and total loan cost will increase. Graduated Repayment Period
does not extend the term of the loan.
Are forbearances available?
The borrower can contact Sallie Mae to determine if they are eligible.
What if a borrower returns to school after entering the
principal and interest repaymentperiod?
Borrowers who return to school at least half time will be provided the
same repayment option terms that applied to the loan during the initial
in-school period, limited to 48 months. Interest is capitalized at the end
of the deferment period. Students can access the Deferment request
form via their Sallie Mae onlineaccount.
What if a borrower enrolls in a Residency or Internship during
the principal and interest repayment period?
If at any time during the Repayment Period borrowers enter an
approved residency or internship program, they may contact us to
request the Residency/Internship Deferment. To apply for the Residency
or Internship Deferment, borrowers must submit a form completed by
themselves and an oicial from the residency or internship program
to us for consideration. During the deferment period, borrowers will
be required to make payments on the same terms as the repayment
option that applied to their loan during the in-school period. Deferment
periods are issued in up to 12-month increments. Borrowers can receive
a maximum of five 12-month deferment periods (60-month maximum).
Interest is charged during the deferment period and any interest that
remains unpaid at the end of each deferment period will be added to the
borrower’s loan balance.
Full disclosures and requirements can be found at SallieMae.com/SmartOption.
WE RESERVE THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION.
Smart Option Student Loans are made by Sallie Mae Bank or a lender partner. The Sallie Mae logo, Sallie Mae, and Smart Option Student Loan are service marks or registered service marks of Sallie Mae Bank or its subsidiaries.
SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America. ©2015 Sallie Mae Bank. All rights reserved. SMSCH MKT10360B 0215
To Learn More:
• Schools: 1-844-8-ASSIST
(1-844-827-7478 or 1-302-451-4912)
• Students: 1-800-4-SALLIE (1-800-472-5543)
What does Sallie Mae need for school certification?
• School name
• Eight-digit Department of Education code or school code
• Enrollment period
• Enrollment status
• Student borrower course of study/major
• Grade level
• Anticipated date of graduation
• Certified loan amount
• Disbursement amounts
• Requested date(s) of first/subsequent disbursements
What are Sallie Mae’s CommonLine codes?
• Program Code: 091 – Smart Option Student Loan
• Guarantor Code: 924 – SM
How long is the credit validity period?
• There is a 180-day credit validity period during which the first
disbursement must occur.
• Loan will be terminated if first disbursement isn’t within the credit
validityperiod.
How are disbursement dates set?
• Due in part to comply with the HEOA regulations and the borrower
right to cancel period, the earliest possible date to schedule the first
disbursement is on the ninth business day from the date the certification
is received but no sooner than 30 days before the Loan Period Begin
Date.
• Day one starts the day aer the certification is received and day nine is
the first day the loan can disburse. This timeframe includes the three
day HEOA right to cancel period, mailing time, and time to set the
disbursement in our systems.
Where can borrowers in the military access information
about special benefits?
We’re pleased to oer our borrowers in the military special benefits for
their Sallie Mae-serviced private student loans. Our specialized military
customer service representatives are available at 1-855-534-2668,
Monday to Thursday 8 a.m. to 9 p.m. / Friday 8 a.m. to 8 p.m. ET and
additional information is available at SallieMae.com/Military.
FOR DEGREE-GRANTING INSTITUTIONS ONLY | FOR SCHOOL USE ONLY — NOT FOR DISTRIBUTION