Sallie Mae Seeks Lions Share OfStudent Loan Consolidations
RESTON, Va. - (06/13/06) Sallie Mae is expected to snaga huge share of the impending wave of student loan consolidationswhen the rates on federally guaranteed loans jump July 1. Thestudent loan giant announced it has been authorized by theDepartment of Education to offer the lowest possible rates for newconsolidation loans. That means Sallie Mae can use the variableStafford and PLUS rates in effect prior to July 1, as long as thelender receives the borrowers completed consolidationapplication by June 30. Pre-July rates will also be used if formailed-in applications postmarked by June 30. The Department issuedsimilar authorization last year when loan rates jumped 200 basispoints, allowing Sallie Mae to claim more than 164,000consolidation loans for as much as $8 billion, a large share of themarket. Rates on federally guaranteed Stafford and PLUS loans firstissued on or after July 1, 1998 and on or before June 30, 2006 willjump by 1.84% on July 1.