Private Education Loan Application and Solicitation Disclosure
Page 1 of 4
Smart Option Student Loan Sallie Mae Bank
P.O. Box 3319
Variable Rate Type (see pages 3 & 4 for Fixed Rate Type) Wilmington, DE 19804
(877) 279-7172
Loan Interest Rate & Fees
Your Starting Interest Rate (upon approval)
The starting interest rate you pay will be determined after you
apply. It will be based upon your credit history and other factors
(cosigner credit, repayment option, etc). If approved, we will
5.625% and 16.750% notify you of the rate you qualify for within the stated range.
Your Interest Rate during the life of the loan
Your rate is variable. This means that your rate could move lower
or higher than the rates on this form. The variable rate is based
upon the 30-day average Secured Overnight Financing Rate
(SOFR) (as published by the Federal Reserve Bank of New York).
For more information on this rate, see the reference notes.
Although the rate will vary after you are approved, it will
never exceed 25.000% (the maximum allowable for this loan).
Loan Fees
Application Fee: $0.00. Origination Fee: The fees that we charge to make this loan range from 0.000% to 0.000% of
total loan amount. Loan Guarantee Fee: 0.000% to 0.000% of total loan amount. Repayment Fee: The fees we charge
when you begin repayment range from 0.000% to 0.000% of the total loan amount. Late Fee: 5.000% of the amount of
the past due payment, up to a maximum of $25. Returned Check Fee: up to $20.00.
Loan Cost Examples
The total amount you will pay for this loan will vary depending upon when you start to repay it. This example provides
estimates based upon three (3) different repayment options available to you while enrolled in school.
Repayment Option Amount Provided Interest Rate Loan Term Total Paid over
(while enrolled in school and during the separation (amount provided (highest (how long you have life of loan
period of 6 billing periods thereafter) directly to you or possible to pay off the loan) (includes
your school) starting rate) associated fees)
1. INTEREST REPAYMENT $10,000 16.750% 10 years $27,514.87
Make interest payments but defer payments on the starting after the
principal amount while enrolled in school and during the separation period
separation period.
2. FIXED REPAYMENT $10,000 16.750% 10 years $33,386.68
Make payments of $25 while enrolled in school and during starting after the
the separation period. Interest will be charged and added separation period
to your loan.
3. DEFERRED REPAYMENT $10,000 16.750% 10 years $34,731.19
Make no payments while enrolled in school and during the starting after the
separation period. Interest will be charged and added to separation period
your loan.
About this example
The repayment example assumes you have no prior loans serviced by Sallie Mae, remain in school for 4 years and have a 6-month separation
period before beginning repayment. It is based on the highest starting rate currently charged and associated fees. If the cumulative amount of the
borrower’s loans that are serviced by Sallie Mae is less than $14,500, repayment will last 10 years, starting once the initial principal payment is
made. If it is $14,500 to $28,999, repayment will last 12 years, starting once the initial principal payment is made. If it is $29,000 or more, repayment
will last 15 years, starting once the initial principal payment is made. Loans that are subject to a minimum principal and interest payment amount of
$50.00 may receive a shorter loan term than those listed above.
LPXSPP2309v01 SEE BACK OF PAGE 7SDA2405/Rev082024v02
Page 2 of 4
Federal Loan Alternatives
Loan Program Current Interest Rates by Program Type*
You may qualify for Federal
6.530% fixed Undergraduate subsidized and unsubsidized education loans.
DIRECT For additional information, contact
for Students your school's financial aid office or
8.080% fixed Graduate
the Department of Education
DIRECT PLUS at:
9.080% fixed Federal Direct Loan
for Parents and
Graduate/Professional www.studentaid.gov
Students
*These interest rates are determined by federal law and are for federal loans first disbursed on or after July 1, 2024 and before July 1, 2025. The federal loan
interest rates may change in the future but only for new federal loans.
Next Steps
1. Find Out About Other Loan Options.
Some schools have school-specific student loan benefits and terms not detailed on this form. Contact your school's
financial aid office or visit the Department of Education's web site at: www.studentaid.gov for more information about
other loans.
2. To Apply for this Loan, Complete the Application and the Self-Certification Form.
You may get the certification form from your school's financial aid office. If you are approved for this loan, the loan
terms will be available for 30 days (terms will not change during this period, except as permitted by law and the
variable interest rate may change based on the market).
REFERENCE NOTES
Variable Interest Rate Cosigner
This loan has a variable interest rate, that is based on a publicly A cosigner is not required, but may help you qualify and/or receive a
available index, the 30-day average Secured Overnight Financing lower interest rate.
Rate (SOFR) rounded up to the nearest one-eighth of one percent. Must have attained the age of majority in the cosigner's state of
Your rate will be calculated each month by adding a margin between residence at the time of loan application.
0.250% and 11.375% to the SOFR rounded up to the nearest one-
eighth of one percent.
The rate will not increase more than once a month, but there is no Bankruptcy Limitations
limit on the amount that the rate could increase at one time.
Please see the INTEREST section of your promissory note for more If you file for bankruptcy you may still be required to pay back this
information including the circumstances in which a replacement or loan.
substitute index may be used in place of SOFR.
Eligibility Criteria More information about loan eligibility and repayment deferral or
Borrower forbearance options is available in your loan application and
promissory note.
For full-time, half-time, or less-than-half-time enrollment at an eligible
school.
Must have attained the age of majority in your state of residence at
the time you apply. Otherwise a cosigner is needed.
Military Lending Act Disclosure: To receive important disclosures and payment obligation information about this loan verbally, please call 855-
455-6972.
LPXSPP2309v01 7SDA2405/Rev082024v02
Private Education Loan Application and Solicitation Disclosure
Page 3 of 4
Smart Option Student Loan Sallie Mae Bank
P.O. Box 3319
Fixed Rate Type (see pages 1 & 2 for Variable Rate Type) Wilmington, DE 19804
(877) 279-7172
Loan Interest Rate & Fees
Your Interest Rate (upon approval)
The interest rate you pay will be determined after you apply. It
will be based upon your credit history and other factors
(cosigner credit, repayment option, etc). If approved, we will
3.990% and 16.530% notify you of the rate you qualify for within the stated range.
Your Interest Rate during the life of the loan
Your rate is fixed. This means that your rate will not increase
or decrease for the life of the loan. For more information on this
rate, see the reference notes.
Loan Fees
Application Fee: $0.00. Origination Fee: The fees that we charge to make this loan range from 0.000% to 0.000% of
total loan amount. Loan Guarantee Fee: 0.000% to 0.000% of total loan amount. Repayment Fee: The fees we charge
when you begin repayment range from 0.000% to 0.000% of the total loan amount. Late Fee: 5.000% of the amount of
the past due payment, up to a maximum of $25. Returned Check Fee: up to $20.00.
Loan Cost Examples
The total amount you will pay for this loan will vary depending upon when you start to repay it. This example provides
estimates based upon three (3) different repayment options available to you while enrolled in school.
Repayment Option Amount Provided Interest Rate Loan Term Total Paid over
(while enrolled in school and during the separation (amount provided (highest (how long you have life of loan
period of 6 billing periods thereafter) directly to you or possible rate) to pay off the loan) (includes
your school) associated fees)
1. INTEREST REPAYMENT $10,000 16.530% 10 years $27,261.13
Make interest payments but defer payments on the starting after the
principal amount while enrolled in school and during the separation period
separation period.
2. FIXED REPAYMENT $10,000 16.530% 10 years $32,948.81
Make payments of $25 while enrolled in school and during starting after the
the separation period. Interest will be charged and added separation period
to your loan.
3. DEFERRED REPAYMENT $10,000 16.530% 10 years $34,273.53
Make no payments while enrolled in school and during the starting after the
separation period. Interest will be charged and added to separation period
your loan.
About this example
The repayment example assumes you have no prior loans serviced by Sallie Mae, remain in school for 4 years and have a 6-month separation
period before beginning repayment. It is based on the highest starting rate currently charged and associated fees. If the cumulative amount of the
borrower’s loans that are serviced by Sallie Mae is less than $14,500, repayment will last 10 years, starting once the initial principal payment is
made. If it is $14,500 to $28,999, repayment will last 12 years, starting once the initial principal payment is made. If it is $29,000 or more, repayment
will last 15 years, starting once the initial principal payment is made. Loans that are subject to a minimum principal and interest payment amount of
$50.00 may receive a shorter loan term than those listed above.
LPXSPP2309v01 SEE BACK OF PAGE 7SDA2405/Rev082024v02
Page 4 of 4
Federal Loan Alternatives
Loan Program Current Interest Rates by Program Type*
You may qualify for Federal
6.530% fixed Undergraduate subsidized and unsubsidized education loans.
DIRECT For additional information, contact
for Students your school's financial aid office or
8.080% fixed Graduate
the Department of Education
DIRECT PLUS at:
9.080% fixed Federal Direct Loan
for Parents and
Graduate/Professional www.studentaid.gov
Students
*These interest rates are determined by federal law and are for federal loans first disbursed on or after July 1, 2024 and before July 1, 2025. The federal loan
interest rates may change in the future, but only for new federal loans.
Next Steps
1. Find Out About Other Loan Options.
Some schools have school-specific student loan benefits and terms not detailed on this form. Contact your school's
financial aid office or visit the Department of Education's web site at: www.studentaid.gov for more information about
other loans.
2. To Apply for this Loan, Complete the Application and the Self-Certification Form.
You may get the certification form from your school's financial aid office. If you are approved for this loan, the loan
terms will be available for 30 days (terms will not change during this period, except as permitted by law).
REFERENCE NOTES
Fixed Interest Rate Cosigner
This loan has a fixed interest rate, and will not increase or decrease A cosigner is not required, but may help you qualify and/or receive a
for the life of the loan. lower interest rate.
Must have attained the age of majority in cosigner's state of
residence at the time of loan application.
Eligibility Criteria
Borrower
Bankruptcy Limitations
For full-time, half-time, or less-than-half-time enrollment at an eligible
school. If you file for bankruptcy you may still be required to pay back this
Must have attained the age of majority in your state of residence at loan.
the time you apply. Otherwise a cosigner is needed.
More information about loan eligibility and repayment deferral or
forbearance options is available in your loan application and
promissory note.
Military Lending Act Disclosure: To receive important disclosures and payment obligation information about this loan verbally, please call 855-
455-6972.
LPXSPP2309v01 7SDA2405/Rev082024v02
