(LifeWire) - Sallie Mae Private School K-12 Loan Basics:
Relatively solvent parents, family members and guardians of kids in private school may be the recipient of Sallie Mae's K-12 Family Education Loan. The loan is available for all kinds of nonpublic grammar, middle and high schools -- including military, boarding, college prep and parochial. The loan can cover both tuition and related costs.
Qualifying for a Sallie Mae Private School K-12 Loan:
The applicant must have U.S. citizenship or permanent residence and a credit history that reflects responsibility. The particular accredited school must show up on the scroll-down of the Sallie Mae application, or else the lender says that it cannot assist the applicant. Sallie Mae encourages applicants to boost their credit worthiness and lower their potential rate by having a strong cosigner. The cosigner can be omitted from the contract after the borrower makes 24 straight payments on time.
Applying for a Sallie Mae Private School Loan K-12:
Follow the prompts and drop-down menus on the Sallie Mae website. Questions can be answered by phone by calling (888) 2-SALLIE, 9 a.m. to 7 p.m. EST Monday through Thursday.
Repaying a Sallie Mae Private School Loan K-12:
Installments begin no more than two months after the loan is disbursed. Borrowers can take up to 20 years to pay back the loan, with interest. The rate is variable, depending on the one-month LIBOR. Sallie Mae offers a $12,000 loan as an example: If the LIBOR is +11% and the annual percentage rate is 8%, the monthly payment would be $137.02.
