Origination Fee Drop, Loan Limit Increases Could Mean Significant Cost
Savings to Borrowers
RESTON, Va., June 28 /PRNewswire-FirstCall/ -- As America's college
students look toward the new academic year, Sallie Mae, the nation's
leading saving- and paying-for-college company, advises them about two
important changes. First, thanks to legislation enacted last year, Federal
student loan limits are increasing by $875 per year for freshmen and $1,000
per year for sophomores.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a )
This change will assist students at the time when drop-outs are most
common -- the first two years of school -- by keeping them from relying on
more expensive financing to pay for education. The measure also increases
the annual loan limit for graduate and professional students by $2,000. The
total amount students' may borrow throughout school remains unchanged.
Increased loan limits are not the only benefit for college students
that will take effect on July 1. Congress has also authorized the eventual
elimination of the federally required origination fee students must pay to
take out federal Stafford loans. The origination fee dropped last July from
3 percent to 2 percent; it will drop again to 1.5 percent this Sunday and
will be phased out completely by 2010.
As part of Sallie Mae's ongoing "zero origination fee" commitment, the
company will continue to pay the balance of the origination fee -- 1.5
percent of the original loan amount -- on behalf of our customers, on all
unsubsidized and subsidized, graduate and undergraduate Stafford loans that
are originated by Sallie Mae's lending brands -- Academic Management
Services (AMS), Nellie Mae, Sallie Mae Education Trust, Southwest Student
Services, Student Loan Finance Association and Student Loan Funding. In
addition, we will continue to pay the 1-percent Federal Default Fee
required under law on Stafford loans issued by all lending brands and
guaranteed by USA Funds through June 30, 2008.
"Sallie Mae is proud to make the dream of attending college an
affordable reality for families across the United States," said Martha
Holler, spokesperson, Sallie Mae. "Sallie Mae's 'zero origination fee'
commitment on Stafford loans puts money in students' pockets at the time
they need it the most - when they are in school. This up-front benefit is
made without any strings attached, and is based on the full loan amount at
the time of disbursement."
Annual loan limits:
Before July 1, 2007 After July 1 2007
Freshman (dependent/independent) $2,625/$6,625 $3,500/$7,500
Sophomore (dependent/independent $3,500/$7,500 $4,500/$8,500
Junior (dependent/independent) $5,500/$10,500 (no change)
Senior (dependent/independent) $5,500/$10,500 (no change)
Graduate/professional student* $18,500 $20,500
*all graduate/professional students are considered independent
Lifetime loan limits:
Dependent undergraduate (no change) $23,000
Independent undergraduate (no change) $46,000
Graduate/professional student (no change)* $138,500
* The graduate debt limit includes loans received for undergraduate study
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 to help save for college with rewards
on purchases at nearly 70,000 places. 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
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
http://www.prnewswire.com/comp/827187.html/
CONTACT:
Beth Guerard, Sallie Mae, +1-703-984-5621,
beth.guerard@salliemae.com
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