PARTNERSHIP PROMOTES RESPONSIBLE BORROWING WITH SALLIE MAE SMART OPTION STUDENT LOAN BY PEFCU

25 August 2009 12:00 p.m. Eastern
Kristy Robb

Purdue Employees Federal Credit Union (PEFCU) announces a private loan that helps students save money, build their credit, and repay their student loan debt faster. With the new Smart Option Student Loan^SM by PEFCU, a typical member would pay off the balance nine years sooner and would save an estimated nearly 60 percent in finance charges, compared to most other private student loan alternatives.

Under the program, members will make interest-only payments while in school, so students avoid negative amortization and graduate with substantially less student loan debt. A freshman borrowing the average loan size of $7,700 would cut the payment time in half and save approximately $8,700, compared to most other private student loan alternatives.

Sallie Mae and PEFCU recommend private student loans for families that have exhausted their eligibility for free or less-expensive funds such as scholarships, grants and federal student loans. The Sallie Mae Smart Option Loan by PEFCU has repayment terms between five and 15 years, depending on the student's cumulative Sallie Mae-serviced private student loan balance and academic grade level. Interest rates will be variable based on LIBOR. Those who apply for a Salle Mae Smart Option Student Loan by PEFCU with a creditworthy cosigner will increase the probability of approval and a lower interest rate. Interest rate reductions may also be available for members who choose to make payments via automatic debit and receive communications via e-mail.

Individuals can find loan details and an application link at www.purdueefcu.com, or they may contact PEFCU at 765.497.3328 or 800.627.3328 with questions.