Tuition Financing-SLM
Frequently
Asked Questions
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1. Q.
What is the difference between a regular Sallie Mae loan and a
SLM Financial loan?
A. The Sallie Mae loans are backed by the government. Loans made by SLM Financial, an affiliate of Sallie Mae, are not.
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2. Q.
Will everyone qualify for
SLM loans?
A. The great majority of applicants are approved. However, loans are based on income and credit. To qualify for this loan, an applicant must be employed and have a gross annual salary that can support the amount of the loan requested. A general rule is your salary should be at least 2.5 times the amount of the loan. Your FICO score will also be reviewed and considered.
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3. Q.
Is it necessary to be a U.S. citizen to qualify for
SLM loans?
A. No, permanent resident aliens as well as U.S. citizens residing outside of the United States are eligible to
apply, as long as they can provide a U.S. address. However, non-resident aliens are ineligible.
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4. Q.
Are there any alternatives if I’m initially turned down by
SLM?
A. Yes, first make sure your credit reports are accurate. If the credit report is accurate you still may be able to qualify if you find a co-signer.
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5. Q.
Can I apply with a co-signer up front?
A. Yes, many individuals apply with a co-signer up front in order to increase their chance of approval and obtain the lowest interest rate.
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6. Q.
Does Taft approve the loan application?
A. No, SLM makes all loan decisions.
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7. Q.
What interest rate will I pay?
A. SLM has stated that interest rates range from the Prime Rate plus zero-percent to Prime Rate plus
6.5 percent.
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8. Q.
What determines the interest rate I pay?
A. The more credit worthy the borrower the lower the interest rate. Obtaining a co-signer can also generally lower your interest rate.
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9. Q.
When do I begin to repay the loan?
A.
Students may elect to pay interest only or deferred payments while they are in school. If a student elects to pay interest only, this period cannot exceed four years. If a student elects deferred payments, this period cannot exceed 12 months. Interest only or deferred payments begin 30 days after the loan is funded.
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10. Q.
What is the amortization period?
A. Students can elect to take up to 15 years to repay the loan. If interest only payments are scheduled, amortization of the loan (principal payments) will begin 30 days after
graduation.
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11. Q.
What if I withdraw from the University?
A. The amortization of the loan would then begin one month after withdrawal. Any refund due as a result of the withdrawal would be paid directly by the University to SLM.
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12. Q.
Can I pay off the loan early?
A. Yes, loans can be paid off at any time with no prepayment penalty.
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13. Q.
Can I borrow an amount equal to all my tuition charges?
A. Yes, students approved by SLM are permitted to borrow 100% of tuition charges.
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14. Q.
What about books and other expenses?
A. In addition to 100% of the tuition, you may borrow an additional 60% for what SLM classifies as “living expenses.” This amount, which cannot exceed $6,000, can be used to purchase books, a new computer or to pay California Bar registration and examination fees.
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15. Q.
Can Taft representatives advise me on my financing alternatives?
A. If you like you can submit a copy of your application to Taft before it is submitted to SLM. We can answer general questions on how the SLM program has been used by other students in a similar situations. However, you must keep in mind the fact that Taft is not making the decision on whether you qualify and will not be reviewing the loan documents. As with any loan, you should review all loan documents before they are executed and be sure any of your questions have been answered.
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16. Q.
Assuming I qualify, do I apply for loans one year or trimester at a time? (i.e., borrow only the amount I need for the first year or trimester now then re-apply later?)
A. Yes, this is the normal procedure. Law students apply for one academic year at a time while students enrolled in other programs apply one trimester at a time. This means funds are disbursed only as needed, reducing interest
charges.
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17. Q.
Can I consolidate my new SLM loan with existing Sallie Mae loans?
A. No, while SLM is a Sallie Mae affiliate, the loans are through different programs. (However for billing purposes, they can be consolidated on one monthly statement, which would include all Sallie Mae and SLM Financial loans.)
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18. Q.
Assuming I’m approved, how long does it take to fund the loan?
A. The School fills in the “Authorized Disbursement Date” in Section D of each application, which corresponds to the commencement date requested by the student. For students wanting to begin immediately, loans can generally be funded within 48-72 hours after receipt of completed and signed loan
documents.
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19. Q.
Can I enroll in the Taft Program before my loan is funded?
A. Students relying on SLM funding can receive enrollment materials and begin study as soon as the loan is
approved and loan documents are signed.
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20.
Q.
If I have any questions on the above procedures, is there someone at Taft I can contact?
A. Yes, you can contact Tina Saxon at
saxon@TaftU.edu.
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