434,000 Customers Successfully Complete Student Loan Payment
Last Academic Year
NEWARK, Del., Oct. 24, 2012 -In the last academic year,
Sallie Mae, the nation's No. 1 financial services company
specializing in education, successfully helped 2.2 million
customers navigate difficult financial circumstances and
avoid the consequences of default on $44 billion in federal
and private student loans.
One such customer is Gresha V., a single mother from Fort
Meyers, Fla., who experienced a temporary gap in employment
earlier this year. "Sallie Mae worked with me so that
I did not have to default on my loan," she said. "They gave
me time to get caught up with my other bills." Three months
ago, Gresha paid her student loan off entirely. "My advice
to anyone who may be experiencing issues in making their
student loan payments is to have an open line of
communication with the default prevention people. They are
there to help."
Sallie Mae offers a variety of informational resources to
help families make wise borrowing decisions and identify
repayment options that work for their individual situation.
As a matter of practice the company also encourages
in-school loan payments to help students graduate with less
debt. Sallie Mae's free financial literacy website,
CollegeAnswer.com, provides a repayment calculator and
information to help understand repayment options.
In total, Sallie Mae services federal and private education
loans for 10.5 million customers-the vast majority of whom
manage their payments successfully. For those customers who
do need extra help, default prevention specialists educate
them about payment options, including Income-Based
Repayment (IBR), which enables federal student loan
customers to cap monthly payment at 15 percent of
discretionary income. For private education loans,
customers who have fallen behind may qualify for reduced
payments or temporary suspension in payments. Since 2009,
Sallie Mae has modified $1.1 billion in private education
loans with interest rate reductions or extended repayment
"This economy continues to pose real financial challenges.
Our work with distressed borrowers focuses on preserving
their good credit standing and minimizing overall loan
costs," said Jack Remondi, president and chief operating
officer, Sallie Mae. "It's so important that when customers
struggle financially, they contact us to discuss one-on-one
the available options to help them avoid the severe credit
consequences of delinquency or default."
In the past academic year, 434,000 Sallie Mae customers
reached the major financial milestone of successfully
paying their student loans in full. "I can't put into words
how college prepared me intellectually and mentally for
what the world has to offer," says Ray S., a Mississippi
State University graduate and sales executive for a food
packaging company. "Once you can afford to increase or
double up on your payments, do it. Paying off my student
loan is as good of a feeling as the first time I crossed
the finish line in a half marathon."
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 529
college savings plans, Upromise rewards, scholarship search
tools, education loans, 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.