Sallie Mae Loans

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.

Check to see if your school participates in the K-12 Education Loan program. If they do, apply online. You may qualify directly even if your does not participate-apply for qualification.