TALLAHASEE, Fla. – Southeast Corporate FCU said it has signed with Sallie Mae to allow its member credit unions to offer Smart Option Student private loans through the student loan giant.
With the Sallie Mae Smart Option Student Loan, students pay interest while in school and graduate with less debt compared to other longer-term private loan alternatives in which no payments are made until after graduation, Sallie Mae said. With the loan’s shorter repayment period, a member can pay off the loan five to eight years faster after graduation, compared to a standard 15-year interest deferred private loan. The member may select either a $25 monthly in-school payment plan or opt to pay interest only while in school.
The deal is similar to the one arranged with Corporate One FCU and Volunteer Corporate CU in that all loans through the program are underwritten, funded and serviced by Sallie Mae. Participating credit unions bear no risk as they serve as a referral point, primarily via a unique link on each participating credit union’s website. Credit unions are rewarded a percentage of the principal amount for each loan granted (as well as a percentage of any subsequent loans to said member).
Sallie Mae provides comprehensive support and marketing materials as well, including co-branded loan applications, online Web advertisements, or “tiles,” lobby posters, e-mail campaigns and statement stuffers.
