Frequently Asked Questions
Q: How much to students typically owe at graduation?
A: According to a national study done in 2002, the average
student loan debt for students who have completed a four-year degree was $18,900. This is a 66%
increase since 1997. Those students who attended a public four-year college averaged $17,100
and those who attended a private four-year college averaged $21,200.
Q: What kind of repayment assistance do you provide?
A: Student Loan Finance Association offers
several kinds of repayment assistance as part of the company’s student
loan programs, including:
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Interest rate reductions during repayment: Our
loan programs offer Stafford Loan borrowers a 1.5% interest rate reduction when loans
are repaid using an automatic payment process, and a reduction of another
2% after borrowers make the first 36 consecutive payments on time. PLUS
Loan borrowers receive a 1.5% interest rate reduction for automatic payments
and an additional 1% reduction after the first 36 payments are made on time. -
Graduation Reward: Upon successful completion of
a certified course of study, Student Loan Finance Association makes the
first scheduled Stafford Loan payment. -
SMART LOAN®Consolidation Accounts: Loan consolidation
allows borrowers to combine multiple student loans into one new loan with
a more manageable payment. Consolidation Loans offer flexible repayment
options, including payments that stay the same throughout the life of the
loan, payments that start small and grow over time, or payments that are
based on the borrower’s earnings. Borrowers with a loan balance of $10,000
or higher receive one full percentage point reduction in the interest rate, during
periods of active repayment, after the initial 36 scheduled payments and an immediate 0.25%
reduction in the interest rate for signing up for automatic debit.
Q: Do you have any outreach programs to promote higher
education and inform students and families of financing options?
A: Yes. One of our primary goals is to
help more students gain access to education — especially those who may
not realize that a college or technical degree is available to them. Each
year, we provide information to more than 7,000 students from sixth grade
through high school on specific strategies to plan and pay for higher education.
Those efforts include:
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Presenting educational sessions at local high schools
to provide students with in-depth information on financial assistance, including
grants, scholarships, student loans, work-study and more. -
Introducing fifth and sixth graders from low-income areas
to the prospects of college and financial aid through the “I’m going to College” program. -
Participating in the GEAR UP College Career Fair at the
University of Washington, giving students information about planning and
paying for college. -
Supporting the Washington Dollars for Scholars scholarship program.
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Delivering easy-to-access online information for students
and parents about college funding options through the Student Loan Finance
Association Web site: www.slfaloan.com.
