New Sallie Mae loans help students cover college costs

A new program may provide the solution for undergraduate and graduate students requiring private loans to supplement their government loans. The Sallie Mae Signature Student Loan Program allows students to obtain both a federal Stafford Loan and a loan from a private lender by filling out one application. "With one simple application package, students can obtain a Stafford and a supplemental Signature Student Loan," Sallie May spokesperson Denise Rossitto said. "When it comes time to repay, they will get one convenient monthly statement." She explained that students who transfer schools or continue on to graduate school can still have all of their loans serviced as one account. Any student at a four-year college or university with a "good credit history or no history at all" is eligible to participate in the program, Rossitto added.. Sallie Mae is a private company acting as a "secondary market" for student loans which has provided over $15 million in loans to students at more than 350 colleges. The company buys student loan portfolios from local banks across the country, giving these banks more money to loan out, Rossitto said. Sallie Mae then becomes responsible for ensuring that the loan is paid off, allowing the company to offer borrowers several benefits during the repayment period. Students who borrow through the Signature Student Loan Program are eligible for many of these benefits. The Signature Student Rewards Program, for example, reduces the interest rate by half a percent if the first 48 payments toward the private loan are made on time. Under the Great Rewards and Great Returns Programs, borrowers with good repayment records can reduce their payments through lower interests rates and refunded processing fees. "We wanted to simplify the process of getting government and private loans," Rossitto said. "The bottom line is that it's time-saving and cost-saving." Rossitto explained that options like the Signature Student Loan Program are necessary to keep up with the rising cost of higher education. "Federal loan programs haven't been keeping pace with tuition increases," she said. "The Signature Student Loan Program is a simple way to bridge this gap." Students can borrow the full amount they need to pay for college, less any other financial aid or scholarships they are eligible to receive. The program also offers several financial aid options for graduate students. The Signature Health Loan Program, for example, allows students pursuing graduate study in health-related fields ranging from veterinary medicine to dentistry to obtain private loans. Students seeking information on the new program -- which is available through a national network of private lenders -- should visit the Sallie Mae on the World Wide Web at http://www.salliemae.com.