SLM Career Loan Program

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• SLM Career Loan Program

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Sallie Mae Facts

• Over 27 years of educational financing experience
• Nations largest source of funding and servicing
  support for educational loans
• Provided over 90 billion in student loan
  financing
• Serviced over 20 million borrowers during Sallie
  Maes 27 year history
• Sallie Mae ranks among the top 10 diversified
  financial companies, according to Fortune
  Magazine

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Flexibility

• High Approval Percentage (70)
• Up to 15 years to repay
• Quick Approvals The entire application process
  can take as little as 4-5 days with cooperation
  on both sides
• School is funded directly
• Interest Only Payments for length of time the
  student is taking classes

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Loan Components

• Variable interest rates based on individual
  credit score
• Supplemental fee
• A fee that lenders charge to protect themselves
  against the risk of bad debt (2 to 8 of loan
  amount)

CREDIT
SUPPLEMENTAL
SPREAD ABOVE
CURRENT
FEES
PRIME
INTEREST RATE
Excellent
2 - 4
1.0 - 3.0
10 - 12
Good
4 - 6
3.0 - 6.5
12 - 15.5
Moderate
6 - 8
6.5 - 9
15.5 - 18
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How are Rates and Fees Assigned?

• Rates and fees are assigned according to the
  credit worthiness and debt to income ratio of the
  applicant
• Applicants with the best credit profile and
  strongest debt to income ratio will receive the
  lowest rates (Prime 1) and lowest supplemental
  fee (2)
• Section B of application
• Applicant has option of submitting with a co-
  borrower, judged on the same criteria
• Advantages
• Applicant has a better chance to get approved
• Applicant will receive a better rate

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Determining Need for Co-Borrower

• If student is not working
• If student has limited or no credit history
• If student is under 18 years of age
• If student has a poor credit history, has
  collectors calling
• The borrower is currently in bankruptcy
• The borrower has no re-established credit since
  a bankruptcy has been discharged
• A borrower that has ever defaulted on a student
  loan will be automatically denied (there will be
  no exceptions)

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What makes a good Co-Borrower?

• Is the Co-Borrower established in their current
  job, making a reasonable salary with good debt to
  income ratios?
• Is the Co-Borrower careful with their credit,
  paying bills on time?
• Has the Co-Borrower not moved homes in the past
  two years?
• Is the Co-Borrower an adult?

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Two Co-Borrower Options

• Co-Borrower Drop Option
• Student makes first 24 payments on time and
  maintains good credit, can petition to have
  Co-Borrower dropped from loan
• Assign the Loans Interest Rate to Co-Borrowers
  Credit Score
• Upon approval, the superior credit of the
  Co-Borrower is assigned to the loan, saving the
  borrower money overall

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Whats Required?

• Student completes Application - Part A
• School completes Application - Part D
• School or student faxes application, copy of pay
  stub and ID to SLM Financial
• ID must be legible (enlarged copies helpful)
• Pay-stubs must be current (within last 30 days)
• Tax returns only accepted for self-employed
• All Documents should be submitted together

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Application Processing

• SLM Financial processes application/ runs credit
  score
• Approvals After a credit evaluation the student
  is either approved or advised to find a
  co-borrower
• Within 24/48 hours SLM e-mails to the school the
  Promissory Note and Disclosure with the
  borrowers interest rate, supplemental fee,
  repayment term and monthly payment
• The Note and Disclosure are signed by the student
  and mailed back to SLM Financial along with a
  copy of a signature ID and most recent pay stub
  (if still needed)

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Application Processing, continued

• After signed P-note/Disclosure statement is
  received and verified, the funds will be wired
  directly to school within 48/72 hours.
• Disbursement funds delivered to school via
  Electronic Funds Transfer (EFT)
• Denials
• School is notified
• Student given option to secure co-borrower
• Student can attempt loan with up to two
  co-borrowers (on separate attempts)

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Frequent Obstacles That Slow Down the Process

• Sections of loan application left blank
• The applicant must fill out all of section A
• The school must fill out all of section D
• Loan amount, tuition amount, and length of
  schooling are often left blank, which slows down
  the process.
• Missing Copy of pay stub and signature I.D.
• SLM must receive a copy of signature I.D. and a
  most recent pay stub before they can fund any
  money. Must be sent with the Promissory Note and
  Disclosure or original application
• If a co borrower is submitted, SLM needs the same
  information on the co-borrower

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Repayment

• Repayment period begins 30 days after each
  disbursement
• Repayment can be up to 15 year with minimum 30
  monthly payments
• No penalty for early repayment
• Eventual combined billing with other Sallie Mae
  loans
• Interest only payments while the student is in
  school

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Contact Information

• SLM Financial
• Questions 1-800-559-3220
• Application Fax Line1-856-596-3594
• Mailing Address
• SLM Financial Corporation
• 3000 Lincoln Drive East Suite F
• Marlton, NJ 08053-0470