NEWARK, DE — Sallie Mae has introduced a new private parent loan, expanding its education financing portfolio as families weigh alternatives to federal borrowing programs amid changes in the student loan landscape.
The Sallie Mae Parent Loan allows credit-qualified parents, guardians and other individuals to borrow for undergraduate and graduate education, with financing available for up to the school’s certified cost of attendance.
The lender is positioning the product as an alternative to the federal Parent PLUS program, highlighting the absence of origination fees and the availability of fixed and variable interest rates. Federal Parent PLUS loans assess an upfront origination fee in addition to interest.
The new offering broadens Sallie Mae’s suite of private education financing products as uncertainty surrounding higher education affordability and evolving federal lending policies continues to drive borrowers to evaluate private financing options.
Patrick Freeman, senior vice president at Sallie Mae, indicated the product is intended for families that prefer a parent to borrow directly rather than co-sign a student’s private loan.
“Families have different priorities when deciding how to pay for college; while many parents choose to cosign a student loan, others prefer to borrow in their own name to support their student’s higher education goals,” Freeman stated. “Our new Parent Loan gives them that flexibility and another responsible option backed by the experience and expertise of a trusted partner.”
According to the company, borrowers can prequalify without affecting their credit scores, choose between fixed and variable interest rates and finance up to 100% of a school’s certified cost of attendance, including tuition, fees, housing and other education-related expenses.
The loan offers multiple repayment options, including interest-only payments while a student is enrolled or full principal-and-interest payments. Customers who enroll in automatic payments are eligible for a 0.25 percentage-point interest rate reduction.
Sallie Mae also emphasized that the loan carries no origination fees and includes U.S.-based customer support from application through repayment.
The launch expands the company’s existing portfolio of undergraduate, graduate and career-training loans, including financing for students pursuing nursing, health professions, medicine, aviation and law degrees.
Beyond lending products, Sallie Mae provides college planning resources, savings products and educational guidance through its Sallie platform to assist students and families throughout the higher education process.
More information about Sallie Mae’s private education financing products is available at SallieMae.com.
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