Sallie Mae Offers Tips, Tools, and Resources to Help Students
Prepare For and Manage Student Loan Payments
NEWARK, Del.–(BUSINESS WIRE)–#SallieMae–For those students who graduated last spring and borrowed to help pay
for college, November marks the end of the six-month grace period and
means the first payment on student
loans are due. That said, according to recently released research, “How
America Pays for College 2018,” four in 10 families haven’t
researched any repayment topics.
To help students prepare for, and responsibly manage, student loan
payments, Sallie Mae — the nation’s saving, planning, and paying for
college company — offers a variety of free tips, tools, and resources.
The company’s managing
your student loans resource is a destination for practical tools,
including a monthly budget worksheet and a loan payment estimator, as
well as easy-to-understand explanations of subjects, like how interest
accrues, how payments are allocated to principal and interest, and how
to build a strong credit history.
“For many students, paying back student loans is their first experience
with managing and building a credit profile so it’s extremely important
to be prepared and start off on the right track,” said Winnie Sun,
founding partner and managing director of Sun Group Wealth Partners.
“Developing a realistic budget and overall plan to pay back loans,
including paying a little extra each month when possible, can pave the
way to financial success.”
Sallie Mae recommends the following tips to help recent graduates manage
Know how much and whom you owe. Understand whether loans are federal
and how much you owe, including any accrued interest. Think about your
other expenses, too. Using Sallie Mae’s budget
worksheet, can help you get organized.
Enroll in auto-debit. With automatic payments, never worry about
missing a payment, avoid late fees, and you could qualify for a
discounted interest rate. Sallie Mae customers, for example, may be
eligible for a 0.25
percent interest rate reduction when they pay on-time via auto-debit.
Consider paying a little extra and save. According to “How
America Pays for College 2018,” nearly six in 10 students would prefer
to make larger payments over a shorter period of time rather than
stretch out payments. Making those larger or more than the minimum
payments means you’ll pay off loans sooner and pay less interest. Sallie
interest calculator can estimate how much you might save.
Use all or part of a cash windfall. Consider using bonuses, tax
refunds, inheritance, settlements, and/or other unexpected sources of
income to make a payment towards your loans.
Think long-term. Paying on time consistently can help you
establish and build a favorable credit history, and that can make a big
difference when applying for a car loan, credit card, lease, mortgage,
or even a job. Learn credit basics in “Understanding
Credit,” a handbook published by Sallie Mae and FICO.
Tap technology. If you are a Sallie Mae customer, you can make
and manage payments anytime, anywhere, from your iPhone, Android or
Apple Watch via the Sallie
Mae Mobile App.
“Having a plan, setting priorities, and being disciplined are key
components of a successful student loan repayment strategy,” said Martha
Holler, senior vice president, Sallie Mae. “Our free tips and resources
provide practical guidance to help customers establish responsible
personal finance habits and build a favorable credit history, which will
serve them well as they go on to create the lives they imagine.”
In addition, Sallie Mae also offers a Graduated
Repayment Period (GRP), which allows students with eligible Sallie
Mae loans in good standing to make 12 months of interest-only payments
before they transition into making full principal and interest payments.
Sallie Mae is the first private student lender to offer a graduated
For more information about saving, planning, and paying for college,
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.
Antoine L. Oakley, 302-451-4916