Federal Stafford Loan

Benefits of Borrowing from Nellie Mae

With a zero-fee Stafford Loan from Nellie Mae^®, you may be eligible for additional benefits that reduce your interest rate, and save you 3.3%! Here's how:

• Earn a 0.60 percentage point interest rate reduction when you choose to have your payments automatically debited from a checking or savings account*
• Earn a 4% check or credit—with Nellie Mae Cash Back^®—after your first 33 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. Nellie Mae will pay the 1.5% origination fee on Stafford Loans and, for those guaranteed 7/1/07-6/30/08 by USA Funds or NELA, the 1% default fee on the borrower's behalf. 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 3.3% Nellie Mae Cash Back, the borrower must sign up on Manage Your Loans^SM, prior to entering repayment, to receive account information by e-mail and make the required number of payments by the due dates as initially scheduled. Loan credit borrower benefit is 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 7/1/07-6/30/08. Sallie Mae reserves the right to modify, continue, or discontinue loan and borrower benefit programs at any time without notice.

Borrower Eligibility

• Borrower must be a student enrolled at least half time
• Student must be a US citizen or eligible permanent resident
• Student must have a valid US Social Security number

Loan Rates and Terms

Annual Loan Amount

Undergraduate Students

	Y1 Limit	Y2 Limit	Other Years	Cumulative Limit
Dependent Undergraduate Students	$3,500	$4,500	$5,500	$23,000
Independent Undergraduate Students	$7,500	$8,500	$10,500	$46,000

Graduate Students

	Per Year	Cumulative Limit
Subsidized	$8,500	$138,500* (subsidized and unsubsidized total)
Unsubsidized	$12,000	$138,500* (subsidized and unsubsidized total)

*Certain health professions students may borrow more than this limit

Interest Rate

• The interest rate for the 2006-2007 academic year for loans disbursed after July 1, 2007 is fixed at 6.8%.
• For Stafford Loans made prior to July 1, 2007, the Variable Rate formula previously assigned applies.

Fees

• No origination fee (paid by Nellie Mae)
• No default fee (paid by the guarantor)

Repayment Plans

After graduating (or dropping below half-time enrollment), there is a six-month grace period before repayment on your Federal Stafford Loans begins. Repayment plans 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: allows you to begin with lower monthly payments for either 2 or 4 years and then gradually increase your payment amount over the 10-year repayment term. Payments must at least equal the interest accrued on the loan.
• Income-Sensitive Repayment: allows you to increase or decrease your monthly payment amount based on your gross annual income and the loan amount. Payments must at least equal the interest accrued on the loan; you must submit income verification to your 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 you don't select a repayment plan, you will automatically receive a standard repayment schedule. You may change repayment plans annually and prepay your student loans without penalty.

Postponing Repayment

If your grace period is ending and you meet certain conditions, you may be eligible to continue postponing repayment under a deferment. These conditions include:

• Returning to school at least half time;
• Participating in an approved graduate fellowship or rehabilitation training for the disabled;
• Seeking but unable to find full-time employment (maximum three years); or
• Experiencing other types of economic hardship (maximum three years).

In other cases, if you don't meet deferment conditions but you're still having difficulty repaying your loan(s), you may request forbearance from your lender. A forbearance is generally granted in 12-month increments; it allows you to reduce your monthly payment amount or postpone payments altogether. You must request a deferment or forbearance from your lender; and you should continue making payments until you receive notice that your request has been processed. During deferment, interest does not accrue on subsidized Stafford Loans, however, interest accrues on all loans during forbearance. Postponing payments may affect eligibility for borrower benefits.