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SLM Financial Corporation, a Sallie Mae Company, has
created a loan program to grow with a family's education needs. SLM Financial's
K-12 Family Education Loan helps families send their children to private
primary and secondary schools. It is available to parents or other creditworthy
family members of children attending private K-12 schools. SLM Financial
provides fast decisions and superior customer service.
The K-12 Family Education Loan covers education-related expenses, such
as tuition, room and board, books, computers, musical instruments, music
lessons, sports and theater, and other extracurricular activities that
enrich a child's learning experience.
Borrower eligibility:
Borrowers must be a U.S. citizen or permanent resident and must be creditworthy.
Borrowers with no credit, or with a poor credit history, may still qualify
for a loan by applying with a creditworthy co-borrower.
Apply
with a co-borrower and save:
If your credit is less than ideal, you may still qualify for a loan
by applying with a creditworthy co-borrower. That�s because when you
have a creditworthy co-borrower with a credit rating that is better
than yours, it can lower your interest rates and fees.
And after you make 24 consecutive,
on-time payments of principal and interest, you may request to have your
co-borrower removed from the loan. SLM Financial will then review your
creditworthiness, and, if you are approved, the co-borrower will be removed.
Call 888/2-SALLIE (272-5543) to apply or receive more information.
Loan
limits:
The minimum loan amount is $1,000 and you can borrow up to the total cost
of your child�s education, less other aid received, for tuition and education-related
expenses. Up to 60% of the tuition amount is allowable for expenses, not
to exceed $6,000. A portion of the tuition must be financed to be eligible
to apply for expenses.
Interest
rates and fees:
Interest rates, which vary monthly, are based on the Prime Rate plus a
spread. Each interest rate spread is determined by the credit history
of the borrower and co-borrower (if the borrower uses a co-borrower).
Interest rates start at Prime +1% with fees as low as 2% for borrowers
with excellent credit (see APR examples).
Repayment
term:
Repayment begins 30 days after disbursement. With our 15-year repayment
option, you can keep your monthly payments low and affordable. You can
also prepay your loan, either in part or in full, at any time to lower
your total loan cost, with no prepayment penalty. Minimum monthly payment
is $30 (see APR examples).
APR
example for borrower with good credit:
If you borrow $9,975, which includes your 5% loan fee of $475, and if
the variable rate on your loan remains at 9.25% during repayment, then
you would make 180 payments of $102.66, and your APR would be 10.10%.
This example uses an interest rate of 9.25% based on a Prime Rate of
4.75% as of October 2004, plus a margin of 4.5%. It assumes the APR
does not change, but the APR on your loan may vary if the Prime Rate
varies and may increase. More examples are listed at www.salliemae.com.
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