FAQs about Sallie Mae UK's Education Loan

Frequently asked questions for Sallie Mae UK
1. When do I start repaying?You are not required to make any payments whilst you are attending an eligible university at least part time (50%). You must begin repaying your loans nine months after graduation, a date triggered by the earlier of graduation, enrolment falling below part-time, withdrawal or completion of the programme of study, or your programme of study otherwise coming to an end. Actual amounts and repayment terms will depend on the amount of your Sallie Mae UK loan(s). Payment amounts can vary based on interest rate, loan balance and repayment terms.

2. How long do I have to repay my Sallie Mae UK Education loan?When loans are originated, they are amortised according to the following schedule:

If the loan principal at repayment is £1,000 to £14,999, the loan will be calculated on the basis of a 7-year repayment term (84 months).
If the loan principal at repayment is over £15,000, the loan will be calculated on the basis of a 12-year repayment term (144 months).

3. Should I repay my loan faster if I am able to do so?It depends on your individual circumstance. Sallie Mae UK loans are designed to accommodate various repayment abilities.

In most cases, a lengthy repayment term can be a benefit for borrowers who have difficulty making higher monthly payments on a Sallie Mae UK loan. Upon finishing their university studies, students normally need time to locate employment, and spreading student loan payments out over a longer period can help make more money available to pay for other items such as rent, utilities, etc. The longer repayment term also ensures that a borrower is not locked into an unaffordable, short-term repayment period. With a longer repayment period, however, overall interest costs are higher than when the loan is paid off more quickly.

However, some students do have the means after leaving university to afford a higher monthly repayment amount on their Sallie Mae UK loans, and they can take advantage of our policy that allows partial or full pre-payment at any time, without penalty. By repaying the loan faster, a student can save a significant amount of money in interest costs.

4. What is the current interest rate?Interest rates for the Sallie Mae UK Student Loan are based on the one-month Pound Sterling LIBOR rate, rounded up to the nearest one eighth of one percent (0.125%) and will change monthly if this rate changes. The LIBOR-based rate in effect 1 June 2008 is 5.50%.

5. Contact usBy telephone: 0845 602 0315
By email: studentloan@salliemae.co.uk
By fax: 0845 602 0316

Source: http://www.salliemae.co.uk/faq.asp#one