NEWARK, Del.--(BUSINESS WIRE)--Good habits can pay off, and Sallie Mae’s Smart Option Student Loan customers proved it. These students earned $1 million back in Smart Rewards for making payments on time while in school. The Smart Reward, introduced in 2010 by the nation’s No. 1 financial services company specializing in education, allows Smart Option Student Loan customers to earn back 2 percent of their scheduled in-school payments simply for making their payments on time.
“A borrower making in-school payments on a Smart Option Student Loan is a sensible way for today's students to establish a good credit history while managing their student loan debt," said Cheryl Williard, associate director of financial aid at Baldwin-Wallace College in Berea, Ohio.
Sallie Mae’s Smart Option Student Loan, designed to supplement federal student loans, assists students to save money, build credit, and repay their student loan faster. Customers are encouraged to make payments while in school to help minimize finance charges and the overall cost of the loan.
When Smart Option Student Loan customers choose to make payments on their student loans while in school, they can earn 2 percent of that scheduled on-time payment. They can choose either monthly interest payments or fixed, low monthly payments. That reward goes into their Upromise by Sallie Mae account and can be used to pay down their eligible Sallie Mae loan, transferred into a Sallie Mae High-Yield Savings Account or turned into a check for expenses like books.
“With the Smart Reward, good habits can turn into cash. By getting into the routine of successful loan repayment early in life, students can build a credit history and are better able to achieve other financial goals such as home ownership,” said Joe DePaulo, executive vice president of Sallie Mae. “We’re very proud of these customers who are making responsible financial choices and we’re happy to help them along the way.”
Sallie Mae advises families to follow its 1-2-3 approach to paying for college: first, tap college savings and maximize scholarships and grants. Second, explore federal student loans. Third, fill the gap with a responsible private education loan with your choice of in-school payment options to help you save money.
Join the conversation on how to save, plan and pay for college at Facebook.com/SallieMae.
Sallie Mae (NASDAQ: SLM) is the nation’s No. 1 financial services company specializing in education. Whether college is a long way off or just around the corner, Sallie Mae turns education dreams into reality for its 25 million customers. With products and services that include college savings programs, scholarship search tools, education loans, tuition insurance, and online banking, Sallie Mae offers solutions that help families save, plan, and pay for college. Sallie Mae also provides financial services to hundreds of college campuses as well as to federal and state governments. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.