Type of Loan

Federally sponsored loan available to parents of undergraduate students enrolled at least half-time at an eligible school. 

Borrower Eligibility

Requires a basic credit check. Is not dependent on income or assets. Collateral and/or co-borrower is not required

Loan Limits

Borrow up to the total cost of education, minus financial aid received.

Interest Rates

For loans issued beginning 7/1/2006, the interest rate is fixed at 8.5%.

Fees

A 3% origination fee and 1% default fee are deducted from your loan disbursement.

Disbursement Timing

Multiple disbursements are made directly to the school. Disbursement schedules typically align with school terms or semesters.

Repayment Start Date

Repayment typically begins 60 days after the final disbursement to the school. For loans first disbursed beginning 7/1/08, parents may choose to defer payments while the beneficiary student is enrolled and for up to six months afterward. Interest accrues during this period and will be capitalized, increasing your overall loan costs.

Repayment Term

Monthly payments are scheduled over a 10 year period, with a $50 minimum payment. Loans may be prepaid without penalty.

Repayment Options

Multiple, flexible repayment options are available including standard repayment, graduated repayment, income-sensitive repayment and extended repayment.

Borrower Benefits

0.25 percentage point interest rate reduction for automatic debit.*

Additional Information

Access 24 x 7 online account management at www.SallieMae.com/Repayment