Sallie Mae Loan Credit Qualifications

Sallie Mae offers both federal and private loans to students to sponsor their educational expenses. They also offer both federal and private consolidation loans to students. These loans are offered to both graduate and undergraduate students and parents of those students availing such loans. Apart from just providing loans they educate, inform and guide the students and their parents about the various options available.Credit Qualifications for a Sallie Mae LoanGeneral Federal Loan and Consolidation Loan:
They generally do not conduct any credit checks for a federal loan.
Federal loans are normally need based loans hence they do not need credit scores of students applying for the same.
These loans being guaranteed by the Federal Government do not pose any risk to the lender.
Sallie Mae does not consolidate defaulted loans.
They offer reduction in interest rates for consecutive payments and auto debit facilities.
Sallie Mae does not charge any application or processing fee for federal loans
They do no charge any premium fee irrespective of the credit status of the borrower.
There is no minimum amount for federal loan consolidation
They offered fixed interest rates, provide lock in facility
Private Students Loan and Consolidation Loan:
They do not offer loans beyond $275,000 without a cosigner
The student should have a minimum of $5,000 for a private loan consolidation.
If you have a credit worthy co signer there is no maximum limit on the loan offered.
Loans are offered at variable interest rates.
They conduct credit checks and prefer a positive credit score.
They charge higher interest rates and premiums for vulnerable credit scores and exercise high cautions in disbursing such loans
Improvement in credit score results in reduced interest rates.
Interest rates are reset monthly.

Student Loans Are Disappearing, Now How Do You Pay For College?

The credit crunch has already taken many victims during these Recessionary times but now parents and students are affected. Sallie Mae the nation’s largest student loan lender has reported very distressing news. They can’t continue much longer to write student loans unless they get help from the Federal government.In the first quarter of 2008, Sallie Mae reported a $104 million loss and fell short of Wall Street’s expectations. Like residential mortgages, student loans are packaged into securities and sold to investors. The problem is that amidst our credit strife, the demand for this kind of debt has fallen dramatically even though the majority of student loans carry a federal guarantee and is highly rated.If the Federal government doesn’t step in soon then parents and students could be finding themselves without a way to pay for tuition. “Our current economic situation has people strapped for liquidity. The cost of living is going up and people are struggling to stay afloat. People have tapped out their credit cards, available loans and salary and are now pushed into a financial corner”, said Ben Peterson successful entrepreneur and author of “$500 Startup”.The Recession is expected to get worse and now with the troubled student loan industry, a rise in student drop out is expected. More than 50 student lenders have stopped making federally guaranteed student loans until something changes.”Parents and students need to re-evaluate how they fund a college education. Utilizing the power of the Internet and the 21st century, people can create a new revenue source by starting an online business. You can do it with less than $500 immediately,” said Ben. He brings up an important point of finding new revenue streams to help pay the bills. His idea is that parents and students can start a company even part time and pay for college.He is offering his book for free (digital version/limited time) at the following website []. It is a step by step guide to starting your own online business with $500. As families struggle with rising costs in everything from gas, food and now college, they need to consider how to create additional streams of revenue. He is donating his book as a way for families to get out of debt or develop the money to send kids in school.The Recession and student loan crisis really brings everything into question. How we got here is another story but we can’t be a strong society with fewer people attending college.