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Contact: Erin Korsvall, Sallie Mae Corporate Communications Jeanne Norberg, Director Purdue University News Service 765/494-2084, jnorberg@purdue.edu Purdue University Students and Parents to Save Millions of Dollars on Stafford and Parent LoansRenewed Partnerships Bring Money-Saving Benefits in Academic Year 2005-2006, Including Zero-Fee Stafford Loans and Account Credits for PLUS Loans WEST LAFAYETTE, Ind., March 23, 2005 - Purdue University today announced that it will bring significant cost-saving borrower benefits to its students and families next fall. Beginning in academic year 2005 - 2006, Purdue students will be eligible for zero-fee Federal Stafford Loans, and parents who borrow Federal PLUS Loans will receive a 3-percent account credit after they make only one on-time payment. The new borrower benefits will save the typical undergraduate Purdue borrower more than $100 annually in loan fees. The typical graduate student borrower will save more than $200 annually. The typical parent borrower at Purdue will receive an account credit of $250. Overall, the potential for origination-fee savings in the Stafford program exceeds $2.2 million annually; account credits for PLUS Loan borrowers could exceed $1.3 million annually. "This is a very competitive borrower benefit package for our students and their parents," said Joyce Hall, executive director of the division of financial aid, Purdue University. "These valuable benefits provide families with a significant, up-front savings - putting money in their pockets when they need it the most." Beginning next fall, the standard 3-percent origination fee will be waived for students who take out a Federal Stafford Loan with Purdue Employees Federal Credit Union (PEFCU). Stafford Loans are the most common loan type for students, and currently feature interest rates under 3 percent for students in school. In addition, borrowers entering repayment will be eligible to receive a 5-percent account credit after only 12 on-time payments, providing the typical borrower an additional $1,000 of savings. Borrowers can work with the division of financial aid to apply online, and will receive Sallie Mae's superior customer service, flexible repayment options and additional interest-rate discounts for making payments via direct debit. Parents who take out a Sallie Mae PLUS Loan from specific Sallie Mae lender partners like PEFCU, will be eligible for a 3-percent credit to their account after they make just one on-time payment. Federal PLUS Loans are low-cost loans that allow parents to borrow up to the full cost of education, are not based on income or assets, and do not require collateral. Parents may take up to 10 years to repay the loan with a wide variety of repayment options, and repayment begins roughly 60 days after the loan is issued. Sallie Mae offers parents free, no obligation pre-approval services by calling 1-800-891-1410, Monday through Friday, 8 a.m. to 11 p.m. ET. The program brings together three organizations that are deeply committed to Purdue University and the State of Indiana. Sallie Mae is the nation's No. 1 paying-for-college company, and services student loans at its largest facility located in Fishers, Ind. Federal Stafford Loans and PLUS Loans will be offered through PEFCU, a nonprofit lender dedicated to financial education. PEFCU is the only local financial institution with a branch inside a campus building and ATM locations in the residence halls. Loans will be guaranteed by Indianapolis-based USA Funds, the nation's largest student loan guarantor. USA Funds recently announced plans to waive the guarantee fee on all Stafford and PLUS loans that it guarantees, providing even more fee savings to Purdue borrowers. "We are pleased to build on our long-standing relationship with Purdue University to bring the best financing solutions to its students and parents at the lowest cost available," said Thomas J. Fitzpatrick, president and chief operating officer, Sallie Mae. "This renewed partnership demonstrates Sallie Mae's commitment to increasing access to higher education for Indiana's students and helping Indiana schools, such as Purdue, attract the leaders of tomorrow." Content Contacts: Joyce Hall, Executive Director, Purdue University Division of Financial Aid 765/494-5090, jjhall@purdue.edu Lisa Mitchell, President, Sallie Mae Higher Education Sales Central Region 317/806-0383, lisa.mitchell@salliemae.com About Purdue University Purdue University, Indiana's land-grant university, was founded in 1869. More than 38,000 students, from all 50 states and 130 countries, are enrolled at Purdue's West Lafayette, Ind., campus. Purdue's systemwide enrollment is more than 69,000 students. At its West Lafayette campus, Purdue offers 7,400 courses in more than 500 undergraduate majors and specializations. About Sallie Mae SLM Corporation (NYSE: SLM ), commonly known as Sallie Mae, is the nation's No. 1 paying-for-college company, managing more than $107 billion in student loans for more than 7 million borrowers. Sallie Mae was originally created in 1972 as a government-sponsored entity (GSE) and terminated all ties to the federal government in 2004. The company remains the country's largest originator of federally insured student loans. Through its specialized subsidiaries and divisions, Sallie Mae also provides debt management services as well as business and technical products to a range of business clients, including colleges, universities and loan guarantors. More information is available at www.salliemae.com. SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America. About Purdue Employees Federal Credit Union Founded on the Purdue University campus in 1969, Purdue Employees Federal Credit Union is a recognized credit union leader, employing the latest technology to enhance the delivery of financial services to its members. With assets exceeding $400 million, PEFCU serves more than 56,000 members nationwide and is committed to serving and supporting the Greater Lafayette community. About USA Funds USA Funds is a nonprofit corporation that works to enhance postsecondary-education preparedness, access and success by providing and supporting financial and other valued services. USA Funds annually guarantees education loans totaling $16.5 billion for students and parents throughout the nation and serves as the designated guarantor of federal education loans for eight states: Arizona, Hawaii and the Pacific Islands, Indiana, Kansas, Maryland, Mississippi, Nevada and Wyoming.
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