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Sallie Mae announces a new repayment plan for student loans
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News from Reston, Virginia, (Business Wire), Sallie Mae, the nation's leading saving, planning and saving and paying for education company announced today that they have a new repayment plan. This is to assist eligible federal student loan customers by lowering their monthly payments.
The income based repayment option or “IBR” was authorized by federal law and it is to begin on July 1, 2009. This will enable federal student loan customers having financial difficulty by capping their monthly payments to 15 percent of their discretionary income. It also allows for an extended time period for repayment from the standard 10 year term to up to 25 years, after which the remaining balance is forgiven.
A new college graduate with an entry level job paying $31,000 with $31,000 in federal Stafford loans would pay just about $170 less per month compared to the payment due under the standard plan. Albert L. Lord, CEO stated, “Sallie Mae is committed to providing students not only with the resources needed to invest in higher education, but also with the tools to help them succeed afterward”. Sallie Mae has offered seminars that have assisted students from all types of college campuses, including Direct Lending schools.
Sallie Mae offers a new student loan repayment calculator. It is available at www.SallieMae.com/repaymentcalculator. You can use this site to help assess whether or not you qualify for the new plan. You can also compare it to alternatives. In addition, you can change the income assumptions and assess the likely time to pay the loan in full. You can also evaluate the total cost of each option. There is an eligibility worksheet with in depth repayment options. They have presentation and materials geared for students that are likely to qualify. In addition they provide information on loan forgiveness for public service professions.
This is all available at www.Sallie Mae.com/ibr. These new resources build on other outreach efforts Sallie Mae has undertaken to build awareness about IBR and assist students on customer and non-customer (Direct Lending) campuses. In January, Sallie Mae began holding workshops and in-person visits to educate financial aid professionals and their students about the program. In March, Sallie Mae identified students likely to benefit from the new repayment plan and started educating those individuals about it with targeted counseling.
“Income-based repayment is an important new tool to help our graduates stay on track to financial success,” said Tara Olsen, director of financial aid, Tufts University School of Medicine. “Sallie Mae’s repayment strategies sessions did an excellent job of translating complex details into practical tips, and as a result our graduating students have a much better understanding of their options. As we transition to a Direct Lending school this year, we are grateful that Sallie Mae has continued to provide assistance with the education of our students.”
Under federal law, student loan customers are eligible for income-based repayment if they demonstrate financial need as defined by the Department of Education based on a formula that considers the individual’s income, federal student loan balance and household size. The monthly payment is capped at 15 percent of discretionary income and is reset each year.
Contact information is as follows:In addition you might want to check this site: www.SallieMae.com/ibr.
Sallie Mae
Erica Eriksdotter, 703-984-5628
Erica.Eriksdotter@SallieMae.com
or
Patricia Nash Christel, 703-984-5382
patricia.christel@SallieMae.com
For more info: http://www.businesswire.com/portal/site/wvec/?ndmViewId=news_view&newsId=20090617005829&newsLang=en
Photo courtesy of Microsoft Clip Art
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