NEWARK, Del.--(BUSINESS WIRE)--Sallie Mae, the nation’s saving, planning, and paying for college company, today announced new financing options for graduate students pursuing law, MBA, health professions, and other graduate degrees. Sallie Mae’s new graduate student loans offer competitively priced fixed or variable interest rates and extended repayment terms, have no origination fees or pre-payment penalties, and can cover up to 100 percent of the school-certified cost of attendance.
The Sallie Mae Law School Loan offers fixed interest rates with an annual percentage rate ranging from 6.24 to 8.93 percent, and variable interest rates with a starting APR that ranges from 4.00 to 8.82 percent. It also features a grace period of nine months and up to 48 months of deferment for an internship, fellowship, or clerkship. In comparison, the federal Direct PLUS Loan for graduate students offers a grace period of just six months, and fellowship deferments can vary.
The Sallie Mae MBA Loan offers fixed interest rates with an APR ranging from 6.25 to 9.16 percent, and variable interest rates with a starting APR that ranges from 4.00 to 9.04 percent. The Sallie Mae MBA loan also features an internship deferral of up to 48 months, on top of a six-month grace period.
The Sallie Mae Health Professions Graduate Loan is for master of arts, master of science, or doctoral candidates pursuing grad-level medical degrees in fields such as nursing, pharmacy, and allied health disciplines. For M.A., M.S., and Ph.D. candidates in non-health-related programs, the Sallie Mae Graduate School Loan may be an option. Both offer fixed interest rates with an APR ranging from 6.25 to 9.16 percent, and variable interest rates with a starting APR that ranges from 4.00 to 9.04 percent. They also feature six-month grace periods and internship deferments of up to 48 months.
These new financing options join the Sallie Mae Medical School Loan and the Sallie Mae Dental School Loan, which were introduced earlier this year, to complete a suite of loans specifically designed for graduate school students. Both offer fixed interest rates with an APR ranging from 6.24 to 8.86 percent, and variable interest rates with a starting APR that ranges from 4.00 to 8.74 percent. The Medical School Loan features a 36-month grace period, while the Dental School Loan features a 12-month grace period, and both offer up to 48 months of residency or fellowship deferment.
Customers may choose to make monthly fixed-amount or interest-only payments while in school or defer all payments until after leaving school. More than half of Sallie Mae’s customers choose to make in-school payments, and that responsible choice reduces interest rates. The interest rate for customers who make interest-only payments while in school is 0.50 percentage points lower than for those who choose the deferred payment option; for customers who choose to make fixed-amount payments while in school, the interest rate is 0.25 percentage points lower than for the deferred payment option.
“The demands and pressures on grad students can be daunting, and a one-size-fits-all approach may not meet their financing needs, especially when their focus is on finishing studies, completing internships, and building a career,” said Kelly Christiano, senior vice president, Sallie Mae. “From competitive pricing to repayment options to extended grace and deferment periods, our new loans provide the choice, flexibility, and attractive features grad students desire and which, in many cases, are not available with federal student loans.”
Additionally, Sallie Mae’s graduate student loans offer repayment terms and options to help graduate students manage their budgets, transition into their careers, and establish themselves financially. Law, MBA, health professions, and other graduate students may take up to 15 years to repay their loans. Medical and dental students may take up to 20 years. For even more budget flexibility, customers who maintain their Sallie Mae loans in good standing may request a Graduated Repayment Period, which allows eligible customers to make interest-only payments for one year after their grace period ends.
Sallie Mae’s new graduate student loans also offer:
- Cosigner release. Customers (primary borrowers) may apply to have their cosigner released from the loans after they graduate, meet certain credit requirements, and make 12 on-time principal and interest payments — the shortest qualification period among private student lenders.
- Rate reduction for auto-debit. Customers can reduce their interest rate by 0.25 percentage points by enrolling in the automatic debit option.
- Free access to credit scores. Customers, including cosigners, have free access to their FICO® Credit Score, along with information about factors that affect credit scores and why monitoring credit scores is important.
Sallie Mae and Winnie Sun, one of the most followed financial advisors on social media, will discuss tips to help students prepare for graduate school in a Twitter chat on June 27 at 2 p.m EDT. To participate, use hashtag #WinnieSun.
For more information on graduate student loans or to apply, visit SallieMae.com or call 877-279-7172.
Sallie Mae (Nasdaq: SLM) is the nation’s saving, planning, and paying for college company. Whether college is a long way off or just around the corner, Sallie Mae offers products that promote responsible personal finance, including private education loans, free scholarship search tools, free college financial planning tools, and online retail banking. 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.