In the past academic year, Sallie Mae, the nation’s No. 1 financial
services company specializing in education, assisted 2.1 million
past-due customers to return their education loan accounts to good
standing, preventing $41 billion in federal and private education loan
defaults.
“Our goal is to assist our millions of customers to successfully manage
their loans, which will help them build and benefit from a good credit
record,” said John (Jack) F. Remondi, president and CEO, Sallie Mae. “We
recognize the challenges facing new graduates and work with our
customers to understand their individual circumstances and help them
navigate the transition to repayment.”
Americans with loans serviced by Sallie Mae are significantly less
likely to default compared to those whose loans are serviced by other
organizations, according to analysis of the U.S. Department of Education
servicing contract performance results. Sallie Mae ranks first in
cumulative default prevention success since 2009.
One such customer, Anthony S., a graduate of Western Michigan
University’s College of Aviation, needed an alternative to repay his
federal loans after he lost his job with a freight airline company. With
limited income, he chose to enroll in Income-Based Repayment. “The
simplicity of the approval process gave me an instant sense of financial
relief,” Anthony said. “I’m very grateful for all the options that were
made available to me. I intend to fulfill my loan obligations by
increasing my payments to pay off my loans.” He added, “Don’t hesitate
to ask for help.”
When customers encounter financial challenges, Sallie Mae loan
counseling specialists work on-on-one to understand their situation and
help customers identify the repayment program that best fits their
needs. There are a variety of alternative repayment options—such as
reduced monthly payments, interest-only payments, extended repayment
schedules, and temporary interest rate reductions—that are scaled to the
customer’s ability to make more manageable loan payments during periods
of demonstrated financial hardship. Federal student loan customers may
be eligible for income-driven repayment programs, such as Income-Based
Repayment or Pay As You Earn, which can cap monthly payments at 10 to 15
percent of discretionary income.
Sallie Mae’s financial literacy website, College
Answer, offers tips and information for individuals who want to
learn more about student loan repayment options. Sallie Mae customers
who need assistance can log into their account on SallieMae.com
to explore payment plans and model alternatives or call customer service
at 1-888-272-5543.
Sallie Mae (NASDAQ: SLM) is the nation’s No. 1 financial services
company specializing in education. Celebrating 40 years of making a
difference, Sallie Mae continues to turn education dreams into reality
for American families, today serving 25 million customers. With products
and services that include 529 college savings plans, Upromise rewards,
scholarship search and planning 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.
Copyright Business Wire 2013