Student Loans

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Private Student Loans

The Sallie Mae Smart Option Student Loan® from Commerce Bank can help you bridge the gap between the cost of your education and the amount you receive from scholarships, grants and federal aid. It's an ideal education funding solution if you still need funds after maximizing these sources. It can help you save money, build your credit and pay off your Smart Option Student Loan faster, saving more than 30% over the life of the loan compared to a 15-year payment deferred private student loan, thanks to a shorter repayment period and by making interest-only payments while in school.1

Traditional private loan $26,694
Sallie Mae Smart Option Student Loan® by Commerce Bank - $17,878
You can save $8,816

Features:

  • You could save more than 30% over the life of the loan1
  • Graduate with less debt with full monthly interest payments or fixed monthly payments of $252 while in school and during a six-month separation period after graduation
  • Easy online application with fast credit decision and electronic signature (“eSign”) available
  • 24/7 online account management
  • No prepayment penalty
  • A creditworthy cosigner usually means a lower interest rate and a better chance of approval. Applying with a creditworthy cosigner could substantially reduce your total loan costs
  • Borrow up to the full cost of your education, less other aid received3

Example:

Total cost of education $30,000
Scholarships and Grants - $6,000
Federal Aid - $4,000
Private Student Loan Eligibility $20,000

Who’s eligible:

  • Students must be enrolled in an eligible undergraduate or graduate degree program, a technical/trade program or a continuing education program
  • Full-time, half-time, and less-than-half-time
  • U.S. citizens enrolled in eligible study abroad programs or studying at medical schools outside the United States
  • International students with appropriate U.S. Citizenship and Immigration Service documentation and a creditworthy cosigner (who must be a U.S. citizen or permanent resident)
  • Must meet current credit and other eligibility criteria

Benefits:

  • You can apply for a cosigner release upon successful completion of your education and 12 months of consecutive on-time payments of principal and interest4
  • 0.25% interest rate reduction is available while enrolled to make monthly payments by automatic debit5
  • May be able to deduct the interest you pay on a qualified student loan6
  • Smart RewardSM – Students receive 2% of their scheduled monthly payment as a reward in their Upromise® account when they pay on time7
  • No prepayment fee
  • No origination fees8

Interest rates:

  • Interest rates that reward good credit
  • Market-leading interest rates9
  • Applying with a creditworthy cosigner may help you qualify for the loan and/or receive a lower interest rate
  • Interest rates are variable and are reset monthly

How to pay:

  • Choose between two repayment options that begin immediately:
    1. Full monthly interest payments
    2. $25/month fixed payment repayment option – The fixed $25/month payment applies regardless of the loan amount, and it won’t change—regardless of the interest rate—while the student is in school or during the six month separation period.2
    • It’s a great alternative for students and families who understand the value of making in-school payments but want more budgeting flexibility.
  • Principal and interest payments begin after the six-month separation period.
  • You can pay both principal and interest payments while in school to lower the amount you will pay back.
  • Prepay your loan at any time without penalty.
  • Join Upromise® by Sallie Mae where earnings balances of at least $25 can be automatically transferred to eligible Sallie Mae-serviced student loan accounts on a quarterly basis. To join, visit Upromise.com.


Disclosures:

  1. The savings example uses approximated numbers, is for informational purposes only and is an example of loan terms available through the Smart Option Student Loan. Savings is based on the following assumptions: A Smart Option Student Loan made to a freshman borrower at a degree granting institution of $10,000 with two disbursements and a 9.72% APR [Interest rate set at LIBOR + 9.375% (LIBOR of 0.375% as of 5/25/2010) and no origination fee or disbursement fee]. APR may increase after consummation. Repayment consists of 51 interest payments ranging from $40.63 to $81.25 per month (in-school period of 45 months plus separation period of 6 months), followed by 83 principal and interest payments of $165.80 per month and one payment of $134.84 for total payments of $17,878 (finance charge of $7,878). Compare against a traditional 15-year private student loan for $10,000 where payments are deferred during school and grace periods, an estimated APR of 9.11% and repayment consisting of 179 principal and interest payments of $148.81 per month and one payment of $57.43 (following a 45-month in-school period and 6-month grace period, after which accrued interest is capitalized) for total payments of $26,694 (finance charge of $16,694).
  2. The $25/month fixed payment repayment option for Smart Option Student Loans is effective for loan applications initiated on or after June 28, 2010, and is subject to change. The following typical loan example uses approximated numbers, is for informational purposes only and is an example of loan terms available through the Smart Option Student Loan with the $25 fixed payment repayment option: A Smart Option Student Loan made to a freshman borrower at a degree granting institution of $10,000 with two disbursements and a 10.05% APR [Interest rate set at LIBOR + 10.375% (LIBOR of 0.375% as of 5/25/2010) and no origination fee or disbursement fee]. APR may increase after consummation. Repayment consists of 51 fixed $25/month payments (in-school period of 45 months plus separation period of 6 months), followed by 119 principal and interest payments of $179.79 per month and one payment of $115.65.
  3. Borrow up to the cost of attendance (minimum $1,000) as certified by your school and confirmed by Sallie Mae, less other financial aid received. Sallie Mae reserves the right to approve a lower loan amount than what the school has certified.
  4. To qualify for cosigner release, the borrower must have successfully completed school, made 12 consecutive on-time principal and interest payments, meet age of majority requirements, be a U.S. citizen or permanent resident and meet the underwriting requirements when the release request is processed. Account must remain current until the request for cosigner release is processed.
  5. Benefit for enrolling in monthly recurring automatic debit payments is available for as long as monthly payment is successfully deducted from the designated bank account. Benefit is suspended during periods of forbearance and certain deferments.
  6. Consult your financial advisor for more information or visit http://www.irs.gov/pub/irs-pdf/p970.pdf.
  7. 2% reward is available during initial in-school and separation period only. If borrower leaves school but returns later, the reward will not be available for any subsequent in-school period. Primary borrower must be of the age of majority in his or her state of residence (typically 18 years old) and must indicate current Upromise membership or enroll in Upromise at the time of loan application. To be eligible to receive the 2% reward, the borrower may not have had two consecutive scheduled payments past due on the loan for which the benefit is available. If the borrower has two consecutive scheduled payments past due, he or she will no longer be eligible for the reward on that loan. If all conditions are met, primary borrower will earn 2% of the scheduled payment amount in Upromise rewards into his or her Upromise account for each on time payment. The 2% reward is not earned on payment amounts in excess of the scheduled payment. Benefit is subject to the terms and conditions of the Upromise service (as may be amended from time-to-time), including without limitation, restrictions on conversion, transfer and redemption of rewards, reward denomination, including whether and under what circumstances the rewards have independent cash value, and terms relating to fees and/or the forfeiture of rewards. Benefit available on eligible loans first disbursed on or after June 1, 2010.
  8. There are no origination fees for borrowers attending degree-granting institutions. For borrowers attending non-degree granting institutions, the origination fee will range from 0% to 5%. Please visit your financial aid office for more information.
  9. Market-leading rates based on May 7, 2010 review of rates of national competitors. Rates range from LIBOR + 2.50% to LIBOR + 9.875% (2.87% APR to 10.21%APR) (LIBOR of 0.375% as of 5/25/2010) with no origination or disbursement fees and are available for borrowers attending degree-granting institutions with the interest repayment option only. The rates for borrowers attending non-degree granting institutions with the interest repayment option will range from LIBOR + 7.75% to LIBOR + 11.75% (8.13% APR to 13.30% APR) (LIBOR of 0.375% as of 5/25/2010) and the origination or disbursement fees will range from 0% to 5%. Rates for borrowers with the fixed repayment option may be higher. The APR and interest rate on your loan will be variable rates and will changed based on changes in the one-month LIBOR rate. Your interest rate and monthly payment may increase if the one-month LIBOR rate increases. APR may increase after consummation.
  • SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK THE SALLIE MAE WEBSITE TO OBTAIN THE MOST UP-TO-DATE PRODUCT INFORMATION.
  • Sallie Mae, Sallie Mae Smart Option Student Loan, Smart Option Student Loan and Sallie Mae Bank are registered service marks of Sallie Mae, Inc. Upromise and Upromise Loan Link are registered service marks of Upromise, Inc. SLM Corporation and its subsidiaries, including Sallie Mae, Inc., are not sponsored by or agencies of the United States of America. ©2010 Sallie Mae, Inc. All rights reserved.
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