Federal PLUS Loan for Graduate Students (GradPLUS Loans)

Benefits of Borrowing from Nellie Mae

With a GradPLUS Loan from Nellie Mae^®, you may be eligible for benefits* that reduce your interest rate from 8.5% to 6.75%, and let you earn a 2.4% loan credit with Nellie Mae PLUSback^®! Here's how:

• Earn a 0.25 percentage point interest rate reduction—for the life of the loan—when your loan is first disbursed.
• Earn a 0.50 percentage point interest rate reduction when you choose to have your payments automatically debited from a checking or savings account.
• Earn a 1 percentage point interest rate reduction—after your first on-time payment—with a one-time benefit reinstatement opportunity.
• Earn a 2.4% loan credit—with Nellie Mae PLUSback— after your first 24 on-time payments.
• Borrower benefits are effective for loans serviced by Sallie Mae and first disbursed July 1, 2007 through January 31, 2008. Check back soon for updated information for the remaining 2007/2008 academic year.

And, when you join Upromise^®, you can use your Upromise rewards to help pay down balances automatically on your eligible Sallie Mae-serviced student loans by linking your Sallie Mae^® account to your Upromise account with Upromise Loan Link^SM!  To learn more, or to join Upromise now, go to www.salliemae.com/upromise.

Terms and conditions apply. The 6.75% interest rate assumes the borrower takes advantage of all available interest rate reductions. The automatic-debit benefit is available during active repayment for as long as the borrower's monthly payment is successfully deducted from his/her bank account. To qualify for the 1 percentage point interest rate reduction and the 2.4% loan credit, the borrower must sign up on Manage Your LoansSM, prior to the first payment due date, to receive account information by e-mail and make the required number of payments by the due dates as initially scheduled. The 1 percentage point interest rate reduction benefit continues during active repayment for as long as the borrower continues to pay as initially scheduled. A borrower who makes a single late payment can re-earn this interest rate reduction once by making the next 24 monthly payments by the due dates as initially scheduled. Loan credit borrower benefits are based on the original principal loan amount (less cancellations, refunds and returns). Borrower benefits are effective for loans owned and serviced by Sallie Mae and first disbursed July 1, 2007 through June 30, 2008. Sallie Mae reserves the right to modify, continue, or discontinue loan and borrower benefit programs at any time without notice.

Borrower Eligibility

• Must be a graduate student enrolled in school at least half time
• Student must have good credit
• Student must have a valid US Social Security number and be a US citizen or eligible permanent resident

Loan Rates and Terms

Annual Loan Amount

• $100 up to cost of attendance, minus other aid

Interest Rate

• The interest rate is fixed at 8.50%.

Fees

• Origination fee: Up to 3%
• Default fee: none (paid by your guarantor)

Repayment

GradPLUS Loan borrowers must sign up for an in-school deferment of payments if they wish to postpone making loan payments while enrolled. Otherwise, payments begin within 60 days of disbursement. There is no grace period on GradPLUS Loans. Borrowers are expected to begin repayment within 60 days of graduating or otherwise dropping below half-time enrollment. Graduates may elect to postpone payments of GradPLUS Loans for 6 months after leaving school by filing for a forbearance. Repayment plans available include:

• Standard Repayment: requires a fixed monthly amount for up to 10 years. The actual length of repayment depends on the total amount borrowed.
• Graduated Repayment: begins with lower monthly payments for either 2 or 4 years and gradually increases the payment amount over the 10-year repayment term. Payments must at least equal the interest accrued on the loan.
• Income-Sensitive Repayment: allows borrower to increase or decrease monthly payment amount based on gross annual income and the loan amount. Payments must at least equal the interest accrued on the loan; borrower must submit income verification to the lender to qualify.
• Extended Repayment: allows new borrowers with federal student loans totaling $30,000 or more disbursed after 10/7/98 to make fixed or graduated monthly payments for up to 25 years.

If a repayment plan is not selected, the graduate student will automatically receive a standard repayment schedule. Repayment plans may be changed annually, and GradPLUS loans may be prepaid without penalty.

Forbearance

If necessary, students can choose to postpone or forbear payments in 12-month increments for up to 5 years; however, interest will accrue and will be capitalized on the principal, increasing the overall cost of the loan. Postponing payments may affect eligibility for borrower benefits.