FAQs

Federal Stafford Loans are made by private lending institutions such as banks or credit unions to undergraduate and graduate students to help them cover the costs of higher education. These loans are typically the least expensive loan option with interest rates lower than private credit loans, no payments while the student is in school at least half time, up to a 6 month period preceding repayment when no payments are required and up to 10 years to repay. Students are encouraged to exhaust their federal loan eligibility before looking in to Private Loans. There are two types of Stafford Loans, "subsidized" and "unsubsidized". Apply for a Federal Stafford Loan.

Subsidized Federal Stafford loans are awarded on the basis of financial need. The federal government pays the interest on these loans during in school, grace and deferment periods. Unsubsidized Federal Stafford loans are available to students regardless of financial need. Students are responsible for paying the interest that accrues on the loan from the time the loan is disbursed until it is paid in full.

Federal PLUS loans are available to graduate and professional students to borrow on their own behalf. Federal PLUS loans are also available to the parents of dependent, undergraduate students. All PLUS borrowers may borrow up to the full cost of attendance minus other aid received. However, before pursuing a Graduate PLUS loan, graduate and professional students should exhaust their federal Stafford loan eligibility (subsidized and unsubsidized).
Apply for a Federal Parent PLUS Loan
Apply for a Federal Graduate PLUS Loan

Money borrowed through Federal Stafford and Federal PLUS Loans can be used to cover tuition, room and board, books, and other education-related expenses.

Undergraduate and graduate students who are pursuing post-secondary education are eligible to apply for Stafford loans. Parents of undergraduate, dependent students may apply for a PLUS loan. In addition, graduate and professional students may apply for a Federal PLUS Loan on their own behalf.

The Free Application for Federal Student Aid (FAFSA) is a form to be completed by students who are interested in applying for federal and state student grants, work-study and loans. The FAFSA form can be completed online at www.fafsa.ed.gov or paper copies may be obtained from the Financial Aid office at many high schools and colleges.

The undergraduate or graduate student is the borrower on a Federal Stafford Loan. The parent of a dependent, undergraduate student of the graduate student themselves is the borrower on a Federal PLUS Loan.

If you have questions, please call 1-800-UPROMISE (1-800-877-6647).

The Tuition Answer Loan covers any college-related expense: tuition, supplies and lab fees, books, room and board, a new computer or computer upgrade, discretionary costs of attending school, travel expenses, studying abroad, and fraternity/sorority or club dues.

The interest rate is a variable rate, set monthly and is based on the Prime Rate, not to exceed the highest Prime Rate as published in The Wall Street Journal plus a margin. The interest rate on your Tuition Answer Loan will increase or decrease if the Prime Rate increases or decreases.

Refer to your Truth in Lending disclosure statement for your loan's detailed interest rate and APR information.

Rates and fees are determined by the borrower's and any cosigner's credit history at the time of application and the repayment option chosen. Interest rates are subject to change monthly based on the fluctuation of the Prime Rate as published in The Wall Street Journal. If you have excellent credit and begin repayment immediately, you'll get the lowest rates and fees.

Visit www.tuitionanswer.com and complete the "Check my loan status" box. You will need a confirmation number and Social Security number to view your account status.

To process your loan, Sallie Mae needs:

• A copy of the application signed by the borrower and any cosigner.
• A copy of the borrower's and any cosigner's driver's license or another form of government-issued identification with a legible signature.
• Address verification (e.g., utility bill or driver's license) may be required if changes are made to the address during the loan process.
• For eligible permanent residents: Verification documentation. (See instructions on application for acceptable documents.)
• A document on school letterhead, verifying the student's enrollment
  • Copy of tuition bill for the current academic period
  • Copy of current registration schedule for the current academic period

The school document must show the student name, school name, and the current academic period for which the loan is requested.

• Fax documents to (866) 588-7919 or (800) 392-4856.
• Be sure your confirmation number is on all pages before faxing.
• Allow three business days for your fax to be processed.

Please allow 5-7 business days after the disbursement date for your check to arrive.

Tuition Answer Loan checks are sent through the U.S. Postal Service.

Your Tuition Answer loan payment is determined by the following:

• Total amount borrowed (including any applicable fees)
• Repayment option
• Interest rate

You will receive a Truth in Lending disclosure before your loan is disbursed that shows your interest rate and payment schedule.

• Defer the principal and interest while enrolled, up to four years plus a six-month grace period. (Deferring payments until after graduation will result in higher fees and increase overall loan costs.)
• Make interest-only payments while enrolled, up to four years plus a six-month grace period.
• Begin making principal and interest payments immediately within 45 days after disbursement

Low interest education loans are the most financially sound way to finance your education. Student loans usually carry a much lower interest rate than credit cards and can allow you to choose repayment terms that fit your budget. Additionally, if you experience financial hardship you may request forbearance of your student loan payment without penalty.

Low interest education loans can be a great alternative to liquidating higher-yielding investments. Remember, you can borrow money to send your child to school, but you cannot borrow for your retirement.

During the application process, Sallie Mae will review each applicant's credit history and FICO score. In addition to generally accepted FICO ranges indicating good credit, to meet Sallie Mae's credit requirements for the Tuition Answer Loan, creditworthy borrowers or cosigners must:

• Be at least 18 years old or apply with a creditworthy adult cosigner.
• Be a U.S. citizen or permanent resident.
• Have a Social Security number.
• Have an established history of making on time payments.
• Have no major derogatory items on their credit report.
• Have no history of bankruptcy or student loan default.

Many undergraduate students will not meet minimum credit requirements and are encouraged to apply with an eligible cosigner who does. A cosigner can be a parent or any other eligible adult sponsor-such as another relative or spouse.

For more information on creditworthiness and FICO scores, visit www.myfico.com/CreditEducation.

• The primary applicant is under the age of 18.
• The primary applicant does not have established credit.
• The primary applicant did not meet all the established credit requirements

Applying with a creditworthy cosigner may reduce the overall cost of borrowing as the interest rate and fees charged are lower then if you borrowed on your own.

Contact customer service to request a cancellation. If you have received your check, please return it to:
Sallie Mae Tuition Answer Loan
P.O. Box 859243
Braintree, MA 02185-9243

Your loan amount may be decreased only if the loan has not been scheduled for disbursement. A verbal request to decrease the loan amount is acceptable. Please contact customer service at (800) 749-9100.

The loan amount may be increased if the loan has not been scheduled for disbursement:

• If the paper application has not been sent in, cross out the initial requested amount, write in the new amount, and initial it. The borrower and any cosigner must initial the change.
• If the paper application has been sent and a copy of the application is available, cross out the initial requested amount, write in the new amount, and initial it. The borrower and any cosigner must initial the change.
• If the paper application has been sent and a copy is not available, then an addendum letter must be requested. This addendum must be completed, signed by the borrower and any cosigner listed on the loan, and returned to Sallie Mae. This can be requested by contacting customer service

Please allow at least 10 business days from the time the check was mailed before you request a stop payment.

If the check is not received after the 10th business day, please call customer service at (800) 749-9100 to request a stop payment on your check. You may be asked to submit your request in writing.

The check will be mailed by U.S. Postal Service directly to the borrower. Before a check is reissued, Sallie Mae will send a Reissue Request Letter that you will need to sign and return to Sallie Mae along with a copy of one of the following:

• Your government-issued identification.
• A utility, mortgage, or tax bill that displays your name and address.

A Consolidation Loan allows you to combine many different student loans into one loan as a tool to manage your educational debt. The main advantages of consolidation are locking in a fixed, lower interest rate with a single monthly payment on your education debt.

The following federal loan programs are eligible for student loan consolidation:

Subsidized Federal Stafford Loans
Unsubsidized Federal Stafford Loans
Federal Direct Student Loans
Federal Perkins (formerly NDSL)
Health Professional Student Loans
FISL
Federal PLUS Loans (Parent and Graduate PLUS)
Federal Consolidation Loans
Nursing Student Loans
Federal Supplemental Loans for Students (SLS)

Anyone with an eligible federal education loan may apply for a Federal Consolidation Loan. Federal loans must be in grace, repayment, deferment or forbearance status to be eligible to consolidate. Stafford loans that are in an in-school (pre-grace) status cannot be consolidated.

Typically, monthly payments will decrease. Under consolidation rules, existing student loans are being combined into a new loan with a fixed interest rate and new repayment term. The new repayment term can range from 10 years to as long as 30 years, depending on the borrower's level of education indebtedness. The longer payback period can reduce a borrower's monthly payment by as much as 45%.

Private lenders are not required to impose any credit check requirements when consolidating federal education loans under the Federal Consolidation Loan program.

No, there are no application fees or prepayment fees.

No, consolidation loans are eligible for important deferment and forbearance benefits. In addition, subsidized Stafford loans retain their federal interest subsidy after being consolidated.

If you have questions, please call 1-800-UPROMISE (1-800-877-6647).