For school use only | Not for distribution
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General
Who is eligible for
the Smart Option
Student Loan?
• Undergraduate U.S. citizens and U.S. permanent residents
• Students who meet current credit and other eligibility criteria
• Students attending school full-time, half-time, or less than half-time, or taking prerequisite classes
• Students taking a full class load, just a few classes, enrolled in a winter or summer term, or
studying abroad
• Students who still need funds after maximizing grants, scholarships, and federal student loans
• Students seeking a professional certiication or enrolled in a continuing education program
• Students taking courses that do not qualify for federal student loans
• Undergraduate non-U.S. citizen students (including DACA students) who reside in and attend school
in the U.S. are eligible with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent
resident) and are required to provide an unexpired government-issued photo ID to verify identity;
this can include an unexpired foreign passport, an unexpired student visa, an alien registration card,
or an employment authorization document.
How do students
apply?
• Students or cosigners can start an application online at salliemae.com. It’s fast and easy to apply.
• When applying, applicants will be able to choose a variable or ixed interest rate.
• After credit approval, applicants will be presented with their estimated monthly payment amounts,
interest rates, and total of payments to aid them in selectingeither in-school payments or deferring
payments until six months after school.
1
Are there any cost
saving features?
• Undergraduate students who select the interest repayment option instead of the deferred
repayment option and enroll and make payments by auto debit can reduce their rate by up to
1.25 percentage points.
• Undergraduate students who elect to make monthly interest payments while in school will typically
receive a rate that is one percentage point lower than those who choose to defer making payments.
This may result in savings for the borrower over the life of the loan.
• Auto debit savings: There is a 0.25 percentage point interest rate reduction for borrowers who enroll
in and make monthly payments by auto debit.
What is the
death and
disability feature?
If a student dies or becomes permanently and totally disabled, the current balance of the loan will
be waived.
How is the
Self-Certification
Form submitted?
• It’s completed as part of the online application process when a borrower applies for a Smart Option
Student Loan; however, one is available from us upon request. The form must be completed and
submitted prior to loan disbursement.
• You can help students complete the form by providing any cost of attendance amounts.
• We’ll supply applicants with private education loan disclosures, as required by the Higher Education
Opportunity Act (HEOA), during the application process.
Smart Option Student Loan
®
for Undergraduate Students
Frequently asked questions for schools
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Can the loan be
used for a prior
loan period?
Yes, school-certiied prior loan period requests must meet these conditions:
• No more than 365 days can pass from the loan period end date to the irst disbursement of the loan.
• At the time of request, the student must be enrolled, intending to enroll, or have graduated.
• The student must have been enrolled during the prior enrollment period for which the loan is
requested and must not have withdrawn with no intention of re-enrolling, as veriied by the school.
Are there any
loan limits?
• $1,000 minimum
• Maximum: Up to 100% of the school-certiied expenses—no aggregate loan limit
• Students can apply for the funds they need to cover all of their school-certiied expenses for the
entire school year including tuition, fees, books, supplies, housing, meals, travel, and even a laptop.
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 identiication requirements set forth by us
• Meet the applicable age of majority requirements
Is a cosigner
recommended?
• While not required for U.S. citizens or U.S. permanent residents, student borrowers are encouraged
to apply with a creditworthy cosigner, as it may increase the likelihood of the loan being approved.
• The cosigner must be a U.S. citizen or U.S. permanent resident.
Who makes a
goodcosigner?
• Very often, a student loan cosigner is a parent, but it doesn’t have to be. We ind that 27% of
Smart Option Student Loan cosigners are someone other than the parent. A relative, guardian,
friend, or spouse can all be a cosigner.
• Only one person can cosign for a private student loan. For instance, if two parents are willing to be
cosigners, only one will be able to do it.
• The cosigner is equally responsible for repayment of the full amount of the loan, not just part of it.
• The cosigner can live in a dierent state than the borrower.
• A cosigner should be someone the borrower knows and trusts, and who is willing to ill out the
application on their own.
How does a
borrower apply for
cosigner release?
• U.S. citizen or U.S. permanent resident borrowers with a Smart Option Student Loan may apply
to have their cosigner released from the loan. We oer the industry’s shortest cosigner release
qualiication period—borrowers can apply to release their cosigner from the loan after they
graduate, make 12 on-time principal and interest payments, and meet certain credit requirements.
• Borrowers should download the application from salliemae.com/cosignerrelease or call us at
800-4-SALLIE (800-472-5543) to initiate therequest.
• Releasing the cosigner will not adversely impact the loan’s interest rate.
Are special
military benefits
available and where
can that information
be found?
Yes, as a member of the military, borrowers may qualify for special beneits. Our specialized
military customer service representatives are available at 855-534-2668, Monday to Thursday 8 a.m.
to 9 p.m. / Friday 8 a.m. to 8 p.m. ET. Additional information is available at salliemae.com/military.
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Process
While the loan is
being processed,
when can amounts
be changed? Who
can make them
and how will the
school/borrower
be notified?
• Loan amount changes can be requested by the borrower, cosigner, or school at various points in
the application process.
• The borrower or cosigner can contact us to request to increase the loan amount.
• If you initially certiied less than the borrower requested, you may increase the certiied amount up
to the borrower’s requested amount at any time prior to full disbursement. If the inal disbursement
has been made, you can increase the certiied amount up to the borrower’s requested amount
and add a disbursement to occur no later than the loan period end date. To increase your certiied
amount or add disbursements, please use your preferred process—OpenNet®, ELM, ScholarNet,
etc.—or call School Assist to make the update.
• Loan amount decreases may be made by borrowers, cosigners, and schools at any point prior to
the loan’s full disbursement. Borrowers or cosigners must call us to reduce the amount. You can use
our preferred process to submit a decrease online, such as ELM or OpenNet, or by CommonLine
change transaction ile. For decreases after the loan has been fully disbursed, you or the borrower
can simply return the unused funds to us.
• After a loan amount change has been processed, a CommonLine response ile will be sent to
your chosen service provider, such as ELM or ScholarNet. You may import this ile into a inancial
aid management system if desired. CommonLine iles are generated once daily; therefore, you’ll
be notiied of any loan amount changes within 24 hours. Additionally, OpenNet® will relect loan
amount changes in real-time.
• The borrower is notiied of any loan amount change either in real-time by a Sallie Mae customer
service representative or via email/mail.
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
• Certiied loan amount
• Disbursement amounts
• Requested date(s) of irst and any
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?
• Credit reports and risk scores obtained during the application process on all applicants and
cosigners will be valid for 365 days.
• Students and families will be able to apply up to 300 days prior to the loan period begin date.
• The loan will be terminated if the irst disbursement isn’t made within the credit validity period.
How are
disbursement
dates set?
• We accept the disbursement schedule provided by the school as part of the certiication.
• Due in part to compliance with the HEOA regulations and the borrower right to cancel period, the
earliest possible date to schedule the irst disbursement is on the eighth business day from the date
the certiication is received, but no sooner than 30 days before the loan period begin date.*
• Day one starts the day after the certiication is received and day eight is the irst 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.*
• Once you certify the loan, funds can be disbursed after the fourth or ifth business day
(depending on your disbursement provider) for borrowers or cosigners who choose to receive
disclosureselectronically.
*Applicable to customers who choose not to receive their disclosures electronically.
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Repayment
What if a borrower
is having difficulty
making payments?
If a customer is struggling to make loan payments, we’ll work directly with them one-on-one to assess
any options that may be available. We encourage borrowers to contact us directly to discuss what
options may be available.
Are forbearances
available?
• The borrower can contact us to determine if they’re eligible.
• If a loan has been placed in a forbearance, future disbursements will be suspended.
• Interest continues to accrue during forbearance and unpaid interest is added to the loan’s principal
amount at the end of a forbearance period, which will increase total loan cost.
What if loan funds
are returned?
• Full return: If loan funds are returned within 60 days of the irst disbursement date, no interest or
fees will accrue and the loan will be canceled. If loan funds are returned more than 60 days after the
irst disbursement date, the funds can be returned but the borrower and the cosigner, if applicable,
are responsible for paying all accrued interest and fees.
• Partial return: 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 irst disbursement. We will credit the return
to the loan as a payment.
How does a
borrower request
the Graduated
Repayment Period?6
• Borrowers will be notiied on their billing statement or in their online account that one or more loans
qualify for the Graduated Repayment Period. This message will direct them to contact us. At the
time of the Graduated Repayment Period request, the loan must be current (not past due).
• Qualiied borrowers can request this beneit by calling us and must do so during the six billing
periods before and the 12 billing periods immediately after the loan irst enters principal and
interest repayment.
• As part of the process, borrowers will be provided with a comparison of the estimates of their
monthly payments for the Graduated Repayment Period and for standard repayment during that
same time period, as well as the impact to total loan cost.
• If approved for the Graduated Repayment Period, the monthly principal and interest payments after
the year of graduated repayment will be higher and the total loan cost will increase. Graduated
Repayment Period does not extend the term of the loan.
What if a borrower
returns to school
after the loan
has entered the
principal and interest
repayment period?
Borrowers who return to school at least half-time will be given the same repayment option terms that
applied to the loan during the initial in-school period, limited to 48 months. Unpaid interest is added
to the loan’s principal amount at the end of the deferment period, which will increase the total loan
cost. Students can access the deferment request form via their onlineaccount.
What if a borrower
enrolls in a residency
or internship during
the principal and
interest repayment
period?
To apply for this deferment, customers and an oicial from the internship, clerkship, fellowship, or
residency program must complete and submit a deferment form. If approved, the loan will revert
back to the same repayment option that applied during the in-school period for up to 12 months.
Customers can apply for and receive a maximum of ive 12-month deferment periods. Interest is
charged during the deferment period and Unpaid Interest may be added to the Current Principal at
the end of each deferment period, which will increase the Total Loan Cost.
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Borrow Responsibly
We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the
student expects to earn in the future, before considering a private student loan.
This information is for undergraduate students attending participating degree-granting schools. Borrowers must be U.S. citizens or U.S. permanent residents if the school is located outside of the United States. Non-U.S.
citizen borrowers who reside in the U.S. are eligible with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident) and are required to provide an unexpired government-issued photo ID to verify identity.
Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.
1
Interest is charged starting at disbursement, during school and the separation/grace period, and until the loan is paid in full. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest
Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/separation period depending on the repayment option
selected. Variable rates may increase over the life of the loan.
2
Borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or
Designated Amount is successfully withdrawn from the authorized bank account each month and may be suspended during periods of forbearance or deferment, if available for the loan.
3
Loan amount cannot exceed the cost of attendance less financial aid received as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount. Miscellaneous personal
expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half time.
4
Based on a rolling 12-month period from October 1, 2017 through September 30, 2018.
5
Only the borrower may apply for cosigner release. Borrowers who meet the age of majority in their state may apply for cosigner release by providing proof of graduation (or completion of certification program), income, and U.S.
citizenship or permanent residency (if your status has changed since you applied). In the last 12 months, the borrower must be current on all Sallie Mae serviced loans (including no hardship forbearances or modified repayment
programs) and have paid ahead or made 12 on-time principal and interest payments on each loan requested for release. When the cosigner release application is processed, the borrower must demonstrate the ability to assume
full responsibility of the loan(s) individually, and pass a credit review that demonstrates a satisfactory credit history including but not limited to no: open bankruptcy, open foreclosure, student loan(s) in default or 90 day
delinquencies in the last 24 months. Requirements are subject to change. Shortest qualification period based on a November 22, 2019 review of national private loan programs offered by publicly-traded competitors.
6
Available for loans used to pay qualified higher education expenses at a degree-granting institution. Graduated Repayment Period (GRP) allows interest-only payments for 12 billing periods after principal and interest repayment
begins. At the time of GRP request, the loan must be current (not past due). Customers may request GRP during the six billing periods before and the 12 billing periods immediately after the loan first enters principal and
interest repayment. GRP does not extend the loan term. GRP increases the Total Loan Cost and monthly payments after the GRP will be higher than they would have been without it.
SALLIE MAE RESERVES 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.
© 2020 Sallie Mae Bank. All rights reserved. Information advertised valid as of November 25, 2019. Sallie Mae loans are made by Sallie Mae Bank or a lender partner. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names
and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners. SLM Corporation and its subsidiaries, including Sallie
Mae Bank, are not sponsored by or agencies of the United States of America. SMSCH MKT14617 0120
To learn more
Schools: 844-8-ASSIST (844-827-7478)
Students: 800-4-SALLIE (800-472-5543)
We put customers first
We are committed to making sure that you—and your
students—have a superior service experience. Your account
representative and our U.S.-based call centers are dedicated
to resolving problems and answering questions eectively
and eiciently each time you contact us.