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More Take Advantage of Income-Driven Programs
NEWARK, Del.--(BUSINESS WIRE)--At the start of 2014, Sallie Mae celebrates the millions of college students, graduates and their families who began the New Year with a track record of progress toward repaying their education loans.
Sallie Mae services federal and private education loans for over 13 million people. At the end of 2013, nearly 85 percent of customers in repayment were up to date with their payments.
Overall, federal loan customers with loans serviced by Sallie Mae default at a rate 30 percent lower than the national average. Sallie Mae’s private loan charge-off rate has improved significantly since the recession, and is now less than 3 percent. Sallie Mae provides financial literacy tools, proactive outreach and guidance to help customers experience success.
During 2013, more than 600,000 Sallie Mae customers repaid their education loans in full, including Kent Ives of Westerville, Ohio.
“My education positioned me to get a great job with one of the largest and most successful companies in the world,” he said. “I am doing exactly what I had hoped for throughout my education. I earn a good income and have many career opportunities ahead of me that would never have been possible without my education.”
Also in 2013, Sallie Mae conducted numerous campaigns to educate customers about income-driven repayment in support of the Department of Education’s initiative to promote awareness of the plans. As a result of more than 50 million customer touch points, including web visits, emails, videos, text messages, and live chat sessions, enrollment in Income-Based Repayment, Pay As You Earn, and other plans tied to income, nearly tripled in one year.
“When Americans borrow to attend college, they’re investing in their future,” said John (Jack) F. Remondi, president and CEO, Sallie Mae. “It’s our privilege to serve these students and alumni, and one that we take seriously. Helping customers successfully repay their loans is our top priority. In fact, it’s the most important work we do. Our track record of success is achieved through a significant commitment of expertise, resources and continuous improvement for the benefit of our customers.”
In 2013, the company also assisted a record 60,000 Americans who had previously defaulted on their federal student loans to complete a special loan rehabilitation program that allows federal loan borrowers a second chance and an opportunity to rebuild their credit.
Sallie Mae (NASDAQ: SLM) is the nation’s No. 1 financial services company specializing in education. Whether college is a long way off or just around the corner, Sallie Mae turns education dreams into reality for American families, today serving 25 million customers. With products and services that include Upromise rewards, scholarship search and planning tools, education loans, insurance, and online banking, Sallie Mae offers solutions that help families save, plan, and pay for college. Sallie Mae also provides financial services to hundreds of college campuses as well as to federal and state governments. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.