Sallie Mae Cuts Rate for Bar Study Loan: Boon for Students? - Analyst Blog

SLM Corporation SLM, also known as Sallie Mae, announced a reduction in interest rates for the Bar Study Loan provided to finance the costs related to bar exam that are not covered by federal student loan programs. Sallie Mae's Bar Study Loan is available for the students pursuing law and tenders minimum annual percentage rate ("APR") among private education lenders in the country.

Study Loan

Study Loan 

About Bar Study Loan

This product facilitates loans for law students by providing for bar review course fees, bar exam deposits and fees as well as living expenses incurred while studying for and taking the bar exam. The interest rates for the loan vary from 3.25% to 9.96% in terms of APR based on the current LIBOR index.

Though similar loans are available, the loan program offered by Sallie Mae covers post-graduate training expenses unlike others. In addition, apart from the accessible competitive rates, borrowers do not have to shell out origination or disbursement fees to the saving, planning and paying for college company.

Moreover, no prepayment fine is levied by Sallie Mae and students do not have to rush to make payments while in school or after that for nine months. Sallie Mae's Bar Study Loan is an attractive opportunity for students interested in higher studies as it comprises flexible repayment options.

The repayment alternatives include interest-only payments for the first two or four years with principal sum and remaining interest repaid subsequently. A standard repayment option of repaying for up to 15 years is also available under the program.

To top that, a cutback of 0.25% is provided by Sallie Mae for registration to make scheduled monthly payments by automatic debit. Further, free of charge access to FICO Credit Scores is given on a quarterly basis.

Our Take

Sallie Mae's Bar Study Loan program takes into consideration the immeasurable study hours and expensive preparation courses and thus, accordingly offers easy loans to students. The new economical rates will further help extend affordable choices to the law students.

Currently, Sallie Mae carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Enova International, Inc.

ENVA , Credit Acceptance Corp. CACC and Santander Consumer USA Holdings Inc. SC. While Enova International sports a Zacks Rank #1 (Strong Buy), Credit Acceptance and Santander Consumer USA hold a Zacks Rank #2 (Buy).

Source: https://educationloansinindia.wordpress.com/2016/06/29/sallie-mae-cuts-rate-for-bar-study-loan-boon-for-students-analyst-blog/