Posts Tagged ‘Sallie Mae#8217;


A good little article has just been published by the WSJ, which will be of special interest to US-based candidates coming to IE this Fall.  The article talks about the challenges US students face when funding their studies, and specifically about US federal loans:

“Federal student loans have long been the option preferred by most borrowers. But annual interest rates on many of these government loans range from 5% to 7.9% at a time when mortgages are going for around 3.5% or less…”  To see the full article, click here.

For US candidates IE offeres a wide range of program funding options, and we are also an approved school for Sallie Mae loans, which is offering rates similar to US federal loans.  To learn more about the Sallie Mae Smart Option Student Loans, check out see the web page here.  IE is able to offer student loans in US Dollars to all qualifying US students who come to IE, and for both Bachelor and Master programs.


If you qualify for Sallie Mae loans, then you should have a look at the below documents before contacting them.  Below you have a brief description of what each PDF provides from an information perspective, then you can download each document by clicking on the indicated link.  For additional information, visit the Sallie Mae web page at

Information About Smart Option Student Loans from Sallie Mae

1) How cosigners can help your application (download here)
2) Overview and tips on repaying your loans (download here)
3) Tips for students who need a loan for studies outside the US (download here)

Smart Option Student Loans are a great option if you need a student loan and intend to return to the US for work after your degree program at IE, as both your student debt and earnings will be in US Dollars.


Sallie Mae® is now offering IE students more choice and flexibility on the Smart Option Student Loan. Beginning with applications initiated on or after Monday, May 21, students attending IE will be able to choose from either a fixed or variable interest rate, in addition to the repayment option that best fits their needs.

Keep in mind there are no origination fees and there is no prepayment penalty for early repayment of the loan.

The rate options are as follows:

Low Variable Interest Rates:

Interest Repayment Option: LIBOR+2.0% (2.25% APR) to LIBOR+8.875% (9.11% APR)
Fixed Repayment Option: LIBOR+2.5% (2.75% APR) to LIBOR+9.375% (9.09% APR)
Deferred Repayment Option: LIBOR+3.0% (3.17% APR) to LIBOR+9.875% (9.37% APR)
Competitive Fixed Interest Rates:

Interest Repayment Option: 5.75% (5.74% APR) to 11.875% (11.85% APR)
Fixed Repayment Option: 6.25% (6.08% APR) to 12.375% (11.43% APR)
Deferred Repayment Option: 6.75% (6.41% APR) to 12.875% (11.69% APR)

Sallie Mae is pleased to be offering IE students and families the best in choice, after all that’s what the Smart Option Student Loan® is all about. Last year Salle Mae announced the addition of a Deferred Repayment Option and this year Sallie Mae will be offering fixed interest rates—in addition to variable interest rates—on all of Sallie Mae’s repayment options, providing even more choice and flexibility for IE students and families.

New for the 2012-2013 Academic Year

Beginning in May 2012, students attending IE will have the choice between existing low variable interest rates and a new competitive fixed interest rates:

•   Fixed Interest Rate, Interest Repayment Option: 5.75% to 11.875%
•   Fixed Interest Rate, Fixed Repayment Option: 6.25% to 12.375%
•   Fixed Interest Rate, Deferred Repayment Option²: 6.75% to 12.875%
•   Both variable and fixed interest rate loans will feature no origination fees and no prepayment penalty.
•   Sallie Mae’s underwriting criteria will not change based on interest rate type.
•   New fixed interest rates will be available to all undergraduate and graduate students.

Contact Sallie Mae for more information if you are a US national, have definitive admissions to an IE degree program, and are looking for a competitive loan option for your studies at IE.


If you are an undergraduate degree candidate at IE University, you are now elegible to Sallie Mae Smart Option Student Loans.   This includes postsecondary grades 1-5, so the loan works for both single and dual degrees.  For more information see Sallie Mae’s web site:


Bloomberg Article on Sallie Mae

Written on May 30, 2011 by Joël McConnell in Global News on Financial Aid

Check out this recent article on Sallie Mae published by Bloomberg (see article here).

Having started as a state-backed enterprise in the US, this lending institution has been fully privatized since 2004 and only makes private loans since 2010.

“The student loan company SLM (SLM), better known as Sallie Mae, has taken a thrashing in recent years. In 2007, Sallie Mae’s stock fell from $58 to $19.65 a share in the wake of a failed buyout attempt led by private equity firm J.C. Flowers. Shares sank as low as $3.19 in March 2009 amid the financial crisis, which froze the debt markets it relies on for funding. Last year, Congress passed legislation that knocked private lenders out of the business of making government-backed student loans, which had accounted for 80 percent of Sallie Mae’s lending… Read More


Today, Sallie Mae announced new lower interest rates on the Smart Option Student Loan, across all three repayment options. For loans credit approved on or after May 16, 2011, Sallie Mae rates will range from: LIBOR + 2% to 9.875% (APRs: 2.25% to 9.37%).

And all students will also continue to benefit from having no origination or repayment fees, regardless of the applicant’s or cosigner’s credit. See below for more information on Sallie Mae Smart Option Student Loan…

Sallie Mae Smart Option Student Loan ®

With college costs growing fast, it’s time to borrow smarter. The Smart Option Student Loan offers multiple repayment options and competitive interest rates to help you pay for college expenses not covered by scholarships and federal loans.


• Competitive interest rates—2.25% APR to 9.37% APR
• No origination fees1and no prepayment penalty
• Pay now or later—defer your payments until after graduation or choose an in-school repayment option that fits your needs
• Borrow up to 100% of your school certified education costs (minimum $1,000)
• Get a 2% Smart Reward® in your Upromise® account when you make scheduled monthly payments on time while in school (Not available with the Deferred Repayment Option)
• New Free Tuition Insurance—covers up to $5,000 of tuition lost due to a covered medical withdrawal  (Available with loans that first disburse July 1 through October 31, 2011)
• Earn a 0.25 percentage point interest rate reduction while enrolled to make scheduled monthly payments by automatic debit
• Applying with a creditworthy cosigner may help you qualify and/or receive a lower interest rate.
• You can apply for a cosigner release after you graduate and make 12 consecutive on-time principal and interest payments

Visit for additional information. Terms, conditions and limitations apply.

Useful Brochures and Documents

1. Smart Option Student Loan Brochure
2. Smart Option Student Loan Tuition Insurance Benefit Flyer
3. Information for Parents Considering an Education Loan for their Student
4. Smart Option Student Loan Rewards Flyer
5. Getting a Cosigner Flyer


If you are a US student coming to IE with funding from Sallie Mae, keep in mind the following information:

1) From the disbursement date Sallie Mae lists on OpenNet to the time any remaining fees are physically in your account here in Madrid, there is a waiting period of 20 business days/4 weeks.  The funds must pass through multiple processes, and so keep this in mind when planning financially for your first weeks in Madrid. Studying outside the US is an exciting and formative experience, but the collaboration between multiple institutions and across borders takes time, often much more so than if all processing were completed within the US.

2) If you have applied for and been approved a loan from Sallie Mae, keep in mind that IE only accepts single disbursements and we only pass on excess funds to students once their pending student account has been covered in full.  This means that if you are planning on coming early, your disbursement date should be at least 20 business days/4 weeks before you plan on arriving to Madrid.  This is especially important with regards to signing lease agreements for an apartment, and having the funds necessary to cover daily living expenses.  IE does not provide cash advances.

3) If you’ll be studyig in Madrid full-time, IE Financial Aid can open a bank account for you in Madrid ahead of your arrival but you must request it.  Contact us to open a bank account at

4) If you are studying on a blended format program or the IE Brown Executive MBA, your funds will be handled separately as you will not be able to obtain a local residency number and so we can’t open a local bank account for you ahead of arrival.  If you are funding your program with a Sallie Mae loan, and you are studying in a blended format program or the IE Brown Executive MBA, please contact IE Financial Aid for more information at

5) Because Sallie Mae loans must be returned to Sallie Mae by the institution if the student does not join the program, and because place reservation payments to IE to secure your place in a specific program and intake are non-refundable, you cannot pay your place reservation with a Sallie Mae loan.  Place reservation payments must be paid with funds other than your Sallie Mae loan.


Information for US Students: Sallie Mae and Place Reservations.

Written on January 11, 2011 by Joël McConnell in Uncategorized

Just a quick clarification for our students coming from the US and who plan to fund their program partially or entirely with a Sallie Mae Smart Option Student Loan: Sallie Mae loans cannot be used to pay Place Reservation and/or IE Foundation fees.  Below is more information on this policy and our recommended alternative course of action.

Why can’t I pay my Place Reservation and IE Foundation contribution with my Sallie Mae loan?

IE has a strict policy of not returning Place Reservation or IE Foundation fees if a student ends up not joining the intake for which they have committed to.  This policy is based in the fact that when a student makes their place reservation and IE Foundation payments, IE issues legal documentation which is valid for student visa processing purposes.  Also, when a student commits to a given intake, necessarily the spot cannot be given to another deserving candidate and it’s not fair to other candidates if a confirmed candidate pulls out of the program.

While we have the Place Reservation and IE Foundation policy clearly in place, we also must abide by regulations and laws applicable to a partnerships, such as the one we have with Sallie Mae.  Since our agreement with Sallie Mae is such that we return funds to the financial institution if the student does not attend the program, Sallie Mae loans cannot be used to pay Place Reservation and IE Foudnation fees given our policy of not refunding these payments, for the reasons stated above.

What should I do then, with regards to guaranteeing my place in my chosen intake?

What our students do is usually to use personal savings, company support or some other financial backing to bridge the short term financial need.  So for example, a student may borrow the amount equal to the Place Reservation and IE Foundaiton fee from their personal savings or line of credit, a family member or even their company, and then later once they’ve begun their program and the Sallie Mae funds have arrived to IE, any funds over and above those required to pay their tuition fees in full is sent directly to the student to manage as they see fit.  The excess funds can be used to repay the savings account or other source of funds used to pay the Place Reservation and IE Foundation fee.  Again, keep in mind, the Place Reservation and IE Foundation fee is non-refundable.

Final point worth keeping in mind: single disbursements, tuition fees must be paid in full first.

IE’s master programs generally follow the 1-year model most common in the EU, and as students generally take out a Sallie Mae loan for both tuition and living expenses, IE has a strict policy of receiving the funds in 1 single disbursement.  Why?  Simply, this way you take care of your tuition pending up front, and then we can send you the balance of funds to meet your living expenses and other needs.  We do not release any funds to students until they’ve paid their tuition fees in full.  One of our roles as a Sallie Mae partner institution is to ensure students are being financially responsible, and this policy ensures students don’t inadvertantly find themselves in a difficult financial situation that could result in the student having to withdraw from the program before they obtain their degree.


Thinking of applying for a private loan?  Then take into account that most US financial institutions are doing their best to ensure the ongoing quality of their loan portfolio.  How can you better your chances of being approved?  First, present your application with a high-quality cosigner: the overwhelming majority of those approved initially applied with a qualified cosigner.  Second, make sure your credit is in order: while there are many variables that could affect the approval of credit, typically a credit score in the range of 730 to 760 would be considered competitive.  For information on how to improve your FICO, click here. Finally, make sure you apply for the minimum amount necessary, that together with personal savings, family support and/or corporate backing will allow you to meet tuition dues and living expenses for your time in Madrid, without taking on too much financial burden.”

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