I have heard from a few sources that the new terms of Sallie Mae's Smart Option Loan are:
| Previous | New | |
| Maximum Int. Rate | LIBOR + 14.0% | LIBOR + 12.5% |
| Fees | 0% to 5% | 0% to 3% |
| Int. Rate Reduction for Electronic Comm. | 0.25% | None |
As of this evening, their website shows the fee change and the elimination of the interest rate reduction for electronic communication but the maximum interest rates remain at:
- LIBOR + 12.5% at 4-year non-profits
- LIBOR + 14% at a school other than a four-year not-for-profit institution
It will be interesting to see if they have collapsed the two pricing structures into one or whether they will continue to differentiate between 4-year nonprofits and all others. The puzzle will be complete once that information is available.
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