tuition answer

for undergrads, grad students and parents:
the loan that covers all the costs of college.

If you're following the Sallie Mae® approach to paying for college - and you should be - you've already applied for free money (grants and scholarships). Then you've gone after Federal loans (FAFSA). Now you may have to find whatever money you still need to cover tuition, room and board, books, computers, travel and more. Yes, it all adds up!

This is where the Tuition Answer® Loan comes in. It's a practical, private student loan that allows creditworthy parents, working adults, undergraduate and graduate students, or those with a creditworthy co-signer to borrow from $1,500 up to the calculated cost of attendance or maximum $40,000 per year to cover any qualified higher education expense.*

And as a Upromise member, you'll be happy to know that, with Upromise Loan Link^SM, you can use your Upromise savings to help pay down your eligible Sallie Mae loans.

eligibility

• The borrower, student, and any co-signer must have Social Security numbers.
• The borrower and any cosigner must be U.S. citizens or eligible permanent residents.
• The borrower must have good credit.
• Applicants must be able to provide proof that the student is enrolled (full or half time) at an eligible college, graduate, trade, or technical school. This may be any document that displays the student's name, enrollment period, and the name of the school, such as a tuition bill, application, or a printout of an online class schedule.
• Adding a creditworthy cosigner: Some undergraduate and graduate students may not meet minimum credit requirements and are encouraged to apply with an eligible creditworthy cosigner who does. A creditworthy cosigner can be a parent or any other eligible adult sponsor–such as another relative or spouse. The cosigner is subject to the same eligibility requirements and will be required to authorize a credit check to be approved. Adding a creditworthy cosigner may reduce the total cost of borrowing.

features

• You may borrow $1,500 up to the calculated cost of attendance or maximum $40,000 per year for any qualified higher education-related expense–tuition, room and board, books, computers, study abroad, and more.
• The check comes directly to the borrower, not the school.
• There are no income restrictions, application deadlines, or federal forms to fill out.
• No collateral is required.
• Interest may be tax deductible for qualified taxpayers. You should consult a qualified tax advisor for more information.
• There is no prepayment penalty.
• Flexible repayment options including deferment until after graduation.
• Interest rate reduction benefits for on-time payments and no prepayment penalties.

loan terms

Loan limit

• Minimum: $1,500
• Maximum: calculated cost of attendance or maximum $40,000, whichever is less*
• Aggregate: $130,000

*If you choose to borrow only through Tuition Answer to pay for your education expenses. If you will be using Tuition Answer in addition to other student loan programs, the total of all your loan proceeds may not exceed the calculated cost of attendance at your school.

Not sure how much to request? Use our in-school expense estimator to calculate your need.

Interest rate
The Tuition Answer Loan has interest rates that reward good credit. Interest rates are variable and reset monthly.

Fees
A one-time supplemental fee is added to the loan amount at disbursement.

Repayment
Your repayment options are:

• Pay both principal and interest immediately
• Pay interest only while the student is in school at least half-time
• Defer all payments (principal and interest) while the student is in school at least half-time.

Principal at repayment is the principal amount disbursed (loan amount plus supplemental fee) and interest that accrues during deferment. Deferred interest is capitalized (added to the principal) quarterly and when the loan enters repayment.

Deferring payments until after graduation will result in higher fees and increased overall loan costs. Deferment ends either four-and-a-half years after the disbursement date or six months after the student graduates, whichever is earlier.

benefits

• Interest rate reduction: You receive a 0.50 percentage point interest rate reduction after first 24 on-time payments are made.**

legal

*Maximum loan amount and loan availability varies by school. Tuition Answer Loan proceeds are solely to pay for a student's qualified higher education expenses, as described in Section 221 (d)(2) of the Internal Revenue Code of 1986, 26 U.S.C. Section 221 (d)(2), at an eligible educational institution. The expenses considered "qualified higher education expenses" may vary from school to school and may affect a student's ability to qualify for a school's financial aid program. Students seeking federal financial assistance should seek that assistance first, and then use the Tuition Answer Loan, and any other private loan proceeds, for any remaining financial need gap and, if necessary, to finance their expected family contribution (EFC).

**Terms and conditions apply. To qualify for the 0.50 percentage point interest rate reduction, the borrower must sign up on Manage Your Loans within 60 days of the first payment due date, to receive account information by email and make the first 24 payments by the due dates as initially scheduled. The 0.50 percentage point interest rate reduction continues during active repayment for as long as the borrower continues to pay as scheduled. Borrowers may take advantage of one of the following opportunities: (1) A borrower who has earned the benefit and makes a late payment can re-earn this interest rate reduction once by making 24 consecutive payments by the due dates as initially scheduled. (2) A borrower who fails to earn the interest rate reduction because of a late payment can re-qualify to earn the benefit once by making 24 consecutive payments and then earn the benefit by satisfying the original, remaining on-time payment requirements. Additional terms and conditions apply. Borrower benefits are effective for loans owned and serviced by Sallie Mae and first disbursed July 1, 2007-June 30, 2008.

SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE LOAN PROGRAMS AT ANY TIME WITHOUT NOTICE.