Smart Option Student Loan for Undergraduate Students

For bachelor’s and associate’s degrees or a certificate at a degree-granting school

When savings, scholarships, and federal aid aren’t enough, get the money you need to help pay for your undergraduate education. The “option” in the Smart Option Student Loan name means you can choose the type of interest rate and repayment option that work best for you.

Pay it back now or later.

Deferred repayment option

Make no scheduled student loan payments while you’re in school and in grace (six months after leaving school).*

With this undergraduate student loan repayment option, you’ll likely pay more for your total loan cost, since the interest rate may be higher and unpaid interest will be added to your principal amount at the end of your grace period.

Fixed repayment option

Pay $25 every month** you’re in school and in grace, and you can save an average of 12%*** on your total undergraduate student loan cost when compared to our deferred repayment option.*

While your total loan cost will be less than with our deferred repayment option, unpaid interest will be added to your principal amount at the end of your grace period.

Interest repayment option

Pay interest every month you’re in school and in grace. Your interest rate will be 1 percentage point lower than with our deferred repayment option* and you can save an average of 25%*** on your total student loan cost, compared to our deferred repayment option.

Your undergraduate student loan payments will likely be larger while you’re in school and in grace, but your total loan cost will likely be lower than with the other repayment options.

Choosing the repayment option that’s best for you

If you prefer to hold off making payments until you leave school (and are willing to pay more over the life of your private student loan), consider the deferred option. If you can make payments while you’re in school, the fixed or interest repayment options may be a good choice for you—either one will generally lower your total loan cost vs the deferred option.

During the application process, you’ll see a comparison of the estimated monthly payments and total loan cost for each option, which should help you choose the best one for your needs.

How much should you borrow for your undergraduate student loan

If you’re unsure about the amount you should borrow, start with your school’s cost of attendance and subtract your savings, scholarships, grants, work-study, and federal loans. What’s left, your “gap,” is the amount of money that you still need for college. Borrow only what you can afford to pay back, given your estimated starting monthly salary after you graduate.

Benefit from these Smart Option Student Loan features

How others can help you make college happen

A cosigner may help you qualify

You may have a better chance of approval if a parent, relative, or other creditworthy individual cosigns your loan.

Parents can choose how to help you

Parents have options—learn about the differences between our Smart Option Student Loan and the Federal PLUS Loan for Parents.

Applying online is easy

0 Minutes

is about all it takes to apply and get a credit result.

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of customers would recommend our online loan application process.

We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.

This information is for borrowers attending degree-granting institutions only. You must be attending or have attended a participating school located in the U.S. during an eligible prior enrollment period. You must be a U.S. citizen or a permanent resident or a Non-U.S. citizen borrower with a creditworthy cosigner (who must be a U.S. citizen or permanent resident) and required U.S. Citizenship and Immigration Service (USCIS) documentation. U.S. citizens and permanent residents enrolled in eligible study abroad programs or who are attending or have attended schools located outside the U.S. are also eligible. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.

* Interest rates for Fixed and Deferred Repayment Options are higher than interest rates for the Interest Repayment Option. You’re charged interest starting at disbursement, while in school and during your six-month separation or grace period. When you enter principal and interest repayment, Unpaid Interest will be added to your loan’s Current Principal. Variable rates may increase over the life of the loan. Advertised APRs assume a $10,000 loan to a freshman with no other loans.

** This repayment example is based on a typical loan to a borrower who chooses a variable rate and the Fixed Repayment Option for a $10,000 loan, with two disbursements, and a 8.77% variable APR. It works out to 51 payments of $25.00, 119 payments of $160.54 and one payment of $119.94, for a Total Loan Cost of $20,499.20. Variable rates may increase over the life of the loan.

*** Savings based on a typical loan to a freshman.

2 Borrower or cosigner must enroll in auto debit. The rate reduction benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month, and may therefore be suspended during a forbearance or deferment period.

3 We reserve the right to approve a lower loan amount than the school-certified amount.

4 Borrowers and cosigners who have an available FICO® Score, may receive their score quarterly after the first disbursement of their loan. The FICO® Score provided to you is the FICO® Score 8 based on TransUnion data, and is the same score that we use, along with other information, to manage your account. FICO® Scores and associated educational content are provided solely for your own non-commercial personal review, use and benefit. This benefit may change or end in the future. FICO® is a registered trademark of the Fair Isaac Corporation in the United States and other countries.

5 Available for loans used to pay qualified higher education expenses at a degree-granting institution. Graduated Repayment Period (GRP) allows interest-only payments for 12 billing periods after principal and interest repayment begins. At the time of GRP request, the loan must be current (not past due). Customers may request GRP during the six billing periods before and the 12 billing periods immediately after the loan first enters principal and interest repayment. GRP does not extend the loan term. GRP increases the Total Loan Cost and monthly payments after the GRP will be higher than they would have been without it.

Information advertised valid as of 5/25/2018.

This information is for borrowers with students attending degree-granting institutions only. The student is not eligible to be a borrower or cosigner and must be attending or have attended a participating school during an eligible prior enrollment period, or be enrolled in an eligible study abroad program. The borrower, cosigner, and student must be U.S. citizens or permanent residents. The school may refund loan funds directly to the student, and if that occurs, borrower and cosigner (if applicable) would still be responsible for repaying that amount. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.

1 Borrower or cosigner must enroll in auto debit. The rate reduction benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month, and may therefore be suspended during a forbearance or deferment period.

2 The lender reserves the right to approve a lower loan amount than the school certified amount.

3 Borrowers and cosigners who have an available FICO® Score, may receive their score quarterly after the first disbursement of their loan. The FICO® Score provided to you is the FICO® Score 8 based on TransUnion data, and is the same score that the lender uses, along with other information, to manage your account. FICO® Scores and associated educational content are provided solely for your own non-commercial personal review, use and benefit. This benefit may change or end in the future. FICO® is a registered trademark of the Fair Isaac Corporation in the United States and other countries.

4 This information is not meant to provide tax advice. Consult with a tax advisor for education tax credit and deduction eligibility. For more information, see IRS Publication 970.

Information advertised valid as of 5/25/2018.

WE RESERVE THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK BACKFOR THE MOST UP-TO-DATE PRODUCT INFORMATION.