Sallie Mae Counsels Students to Call Their Lender to Discuss Their Student
Loans
RESTON, Va., May 25 /PRNewswire/ -- As students graduate college this
spring and transition into the workplace, now is an opportune time to
assess personal finances and weigh repayment options. Until recently,
federal law permitted most students to enter repayment on their Stafford
Loans while they were still enrolled, thereby making them eligible for
student loan consolidation. By electing to enter repayment early, those
students sacrificed their six-month, post-graduation grace period and will
be required to make their first student loan payment within 60 days after
they leave school.
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Sallie Mae, the nation's leading saving- and paying-for-college
company, reminds these students that there are a variety of options
available to them if they are concerned about making those payments right
out of the gate.
"The idea of paying student loan bills may seem daunting, but don't let
it stress you out. There are many options available to help you manage your
payments," said Michele Colson, executive vice president, Sallie Mae Campus
Programs. "The first thing you should do is 'phone home' by calling your
current student loan provider. Sallie Mae has experienced customer service
representatives on hand to counsel you on your options, based on your
personal financial situation."
Students in early repayment may need additional time to transition from
college to the workplace and begin repaying their student loans. Here are
some helpful tips:
* Get organized and plan for repayment. Students graduating from college
may use a deferment, if eligible, or forbearance option to create a de
facto grace period. In most cases, the deferment option should be
explored first because the federal government pays the interest on
subsidized loans during deferment. Graduates may qualify for an economic
hardship deferment or unemployment deferment. Using deferment or
forbearance will not negatively impact a student's credit rating-but
missing a monthly payment can!
* Get the facts. Before selecting a repayment option, students should
gather information about their existing loans. Find out which lender
owns or services your loans, as well as the balance, benefits, and
interest rate. Then, do the necessary homework. Graduates should think
carefully about why they may need student loan consolidation. Is it to
obtain the lowest monthly payment possible, to simplify the monthly
payment process, or to save money by taking advantage of borrower
benefits?
* Ask for advice. There is no one-size-fits-all approach to student loan
repayment. For instance, many students may want to retire their debt as
quickly as possible to minimize interest costs. Others may want to take
advantage of the lower payments provided by student loan consolidation
to quickly pay off other, more costly debt, such as credit cards. First,
determine whether you'll need to postpone payments after graduation, and
for how long. Then find a repayment plan that fits your individual
financial situation. Your lender should be able to provide advice on the
best options.
* Follow a budget. Immediately following graduation, set aside some time
to meet with a financial advisor for help in budgeting and setting
financial goals. If you find a job, ask if your employer sponsors
seminars with financial planners. Students also can use Sallie Mae's
Repayment Optimizer tool to determine how much their monthly payments
and interest could be under different repayment plans.
Student loan consolidation can help customers manage repayment by
combining each of their eligible loans into a single, new, federally
guaranteed consolidation loan with the convenience of one monthly bill. In
addition to simplifying record-keeping and check-writing chores, student
loan consolidation can reduce monthly payments up to 53 percent by
stretching out the repayment period over time.
More information about student loan consolidation is available at
http://www.salliemae.com/consolidation. Additionally, customer service
representatives are available at 800/448-3533 from 8 a.m. to 11 p.m. EST
Monday-Friday and 8 a.m. to 5 p.m. EST on Saturday.
SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, is the
nation's leading provider of saving- and paying-for-college programs. The
company manages $150 billion in education loans and serves nearly 10
million student and parent customers. Through its Upromise affiliates, the
company also manages $17 billion in 529 college savings plans, and over 7.5
million members have joined Upromise (http://www.upromise.com) to help save for
college with rewards on qualified purchases at nearly 70,000 businesses.
Sallie Mae and its subsidiaries offer debt management services as well as
business and technical products to a range of business clients, including
higher education institutions, student loan guarantors and state and
federal agencies. More information is available at http://www.salliemae.com. SLM
Corporation and its subsidiaries are not sponsored by or agencies of the
United States of America.
SOURCE Sallie Mae
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Related links:
http://www.salliemae.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a
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CONTACT:
Beth Guerard of Sallie Mae, +1-703-984-5621,
beth.guerard@salliemae.com
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