Sallie Mae Helps 2.1 Million Customers Avoid Default and Return to Successful Student Loan Repayment
At the Start of Repayment Season, Customers Encountering Financial Difficulty Encouraged to Contact Loan Servicer for Assistance
NEWARK, Del. – In the past academic year, Sallie Mae, the nation’s No. 1 financial services company specializing in education, assisted 2.1 million past-due customers to return their education loan accounts to good standing, preventing $41 billion in federal and private education loan defaults.
“Our goal is to assist our millions of customers to successfully manage their loans, which will help them build and benefit from a good credit record,” said John (Jack) F. Remondi, president and CEO, Sallie Mae. “We recognize the challenges facing new graduates and work with our customers to understand their individual circumstances and help them navigate the transition to repayment.”
Americans with loans serviced by Sallie Mae are significantly less likely to default compared to those whose loans are serviced by other organizations, according to analysis of the U.S. Department of Education servicing contract performance results. Sallie Mae ranks first in cumulative default prevention success since 2009.
One such customer, Anthony S., a graduate of Western Michigan University’s College of Aviation, needed an alternative to repay his federal loans after he lost his job with a freight airline company. With limited income, he chose to enroll in Income-Based Repayment. “The simplicity of the approval process gave me an instant sense of financial relief,” Anthony said. “I’m very grateful for all the options that were made available to me. I intend to fulfill my loan obligations by increasing my payments to pay off my loans.” He added, “Don’t hesitate to ask for help.”
When customers encounter financial challenges, Sallie Mae loan counseling specialists work one-on-one to understand their situation and help customers identify the repayment program that best fits their needs. There are a variety of alternative repayment options—such as reduced monthly payments, interest-only payments, extended repayment schedules, and temporary interest rate reductions—that are scaled to the customer’s ability to make more manageable loan payments during periods of demonstrated financial hardship. Federal student loan customers may be eligible for income-driven repayment programs, such as Income-Based Repayment or Pay As You Earn, which can cap monthly payments at 10 to 15 percent of discretionary income.
Sallie Mae’s financial literacy website, College Answer, offers tips and information for individuals who want to learn more about student loan repayment options. Sallie Mae customers who need assistance can log into their account on SallieMae.com to explore payment plans and model alternatives or call customer service at 1-888-272-5543.
Sallie Mae (NASDAQ: SLM) is the nation’s No. 1 financial services company specializing in education. Celebrating 40 years of making a difference, Sallie Mae continues to turn education dreams into reality for American families, today serving 25 million customers. With products and services that include 529 college savings plans, Upromise rewards, scholarship search and planning tools, education loans, insurance, and online banking, Sallie Mae offers solutions that help families save, plan, and pay for college. Sallie Mae also provides financial services to hundreds of college campuses as well as to federal and state governments. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
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