Through a new loan agreement between BGSU and the SLM Corp. (“Sallie Mae”), the average Bowling Green student who borrows over four years can save $7,000 in repayment over the life of the loan, compared to the lowest rate offered previously by the University, Student Financial Aid officials estimate.
BGSU chose Sallie Mae to assist in providing private loan financing for its students based on the comprehensive financing and a service package that provides student borrowers with one-stop-shopping simplicity, according to financial aid Director Craig Cornell.
Last year, the University awarded $26.5 million in alternative loans to more than 3,800 students.
"We are very excited to have partnered with Sallie Mae in the development of our new BGSU Signature Loan," Cornell said. “Through the RFP (request for proposal) process, Sallie Mae was able and willing to meet our specific campus population needs in developing a program for us. We will now be able to offer our students and their families the best private alternative loan program I am aware of.
"This will benefit our students in the near and long term, as we anticipate significant benefits up front and long-term savings over the life of the loan," Cornell added.
Under the new agreement, Sallie Mae has collapsed its traditional, three-tiered pricing structure for private loans into one, flat-interest-rate tier-set at prime rate minus 1.5 percent. Additional options will be made available to students who do not qualify for that rate.
"Sallie Mae is known for providing great rates and great services to its customers, and we are pleased to bring those products and services to Bowling Green State University," said Lisa Mitchell, president of Sallie Mae for the central region. "We believe the students are the real winners in this partnership."
The new loan option will be available to BGSU students starting Feb. 1.
Sallie Mae is the nation's largest paying-for-college company, managing nearly $121 billion in student loans for eight million borrowers. Created in 1972 as a government-sponsored entity, the company terminated all ties to the federal government in 2004. It remains the country's largest originator of federally insured student loans.
More information is available at www.salliemae.com and at www.bgsu.edu.