Interest rates on federally guaranteed student loans will jump by nearly 2 percentage points this Saturday, July 1, but customers who submit their Federal Consolidation Loan application online by midnight (PDT) on June 30, 2006 can still receive today's lower interest rate. The forthcoming interest rate hike has caused record call volume to Sallie Mae's consolidation center from students, graduates and parents. To accommodate the call surge, Sallie Mae has added hundreds of customer service representatives responding to consolidation inquiries, and extended the operating days and hours of its phone hotline.

(Logo: http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a )

"It is still not too late to lock in today's lower interest rates, but time is of the essence," said Patricia Scherschel, vice president of loan consolidation, Sallie Mae. "Our customer service representatives are highly trained and ready to answer consolidation inquiries, and to save time, we encourage customers to apply for consolidation online at http://www.salliemae.com/consolidation. At the site, you may quickly and easily complete the entire application process, including submitting an electronic signature."

Consolidation involves paying off current federal education loans in full and creating a new loan. The new loan features a fixed interest rate calculated as the weighted average of the rates of the loans consolidated, adjusted up to the nearest 0.125 percent, and not to exceed 8.25 percent. Through student loan consolidation, customers currently enrolled in school or in their six-month grace period could lock in an interest rate as low as 4.75 percent for the duration of their loan's term, as opposed to a rate of 6.625 percent after July 1.

The loan consolidation experts at Sallie Mae offer these tips to last- minute applicants.

1. Save your cell minutes and apply online. Customers may call our

hotline at (800) 448-3533 for more information, but most borrowers

don't need to make a call to start the application and calling to

request an application isn't the fastest way to apply. In fact, with

the June 30 deadline just days away, the easiest and surest way to

apply is to go online. Sallie Mae offers a highly automated online

application at http://www.salliemae.com/consolidation. Most of our

borrowers can complete this form in 10 to 15 minutes or less!

2. Take the online shortcut. Sallie Mae offers a complimentary, online

concierge service that allows all borrowers to submit the necessary

paperwork to meet the June 30th deadline for locking in the current

interest rates. The concierge service takes just five minutes to

complete and is a fail-safe choice for borrowers who don't have all of

the details about their loans at the ready. Sallie Mae can help you

fill in the blanks and will notify you when your application is ready

to review and sign online. Please note that by completing Sallie Mae's

online concierge request form by June 30, you will have submitted an

application that will allow you to lock in the current variable rates

-- even if you are not able to submit your signed application until

July 1 or later.

3. Electronically sign and submit your application. By signing and

submitting their applications online, customers can avoid the need to

mail their applications or use an overnight delivery service. With

Sallie Mae's online application, you can be done in 15 minutes or

less. Once your application is submitted electronically, we will send

you an e-mail message confirming that we have received your signed

application.

4. Apply now, ask questions later. You don't have to wait to get answers

to any questions you may have about your consolidation loan before you

apply. For example, if you're not sure what repayment option is best

for you, go ahead and submit your application now! You can choose from

any of the available options -- Sallie Mae offers up to nine different

plans. You can always switch to another plan later. What's more, you

may be able to get your questions answered by touring Sallie Mae's Web

site. At http://www.salliemae.com/consolidation, you can use an

online calculator to estimate your interest rate and explore your

repayment options. The site also offers an in-depth FAQ.

5. Mail your paper application by June 30. You can still apply via

regular mail as long as the envelope is postmarked June 30. Before

you drop the letter in the mail box, check the pick-up times to make

sure your letter will be postmarked June 30. Sallie Mae is taking

special steps to record the postmark date to help ensure that our

customers lock in the lower rates.

6. Be sure to double-check the address for applications sent via

overnight delivery service. If you are sending your application by

overnight delivery service, be sure to use a street address rather

than a post office box address. Look for your lender's street address

in your loan documents or your lender's Web site. Sallie Mae's street

address is:

Sallie Mae

Student Loan Consolidation E2135

11100 USA Parkway

Fishers, IN 46038

7. If you like to shop, limit your search to lenders you know and select

a lender that offers an easy application and money-saving benefits.

Your consolidation loan can last up to 30 years, so make sure to pick

a name you trust. Sallie Mae offers eligible customers with a balance

of at least $10,000 a rate discount of 1 percentage point after you

make your first 36 payments as initially scheduled. You will continue

to receive the reduction as long as you make on-time payments. In

addition, you can receive an immediate 0.25-percentage-point reduction

in the interest rate on your consolidation loan after you sign up to

pay via direct debit; this benefit is available for balances of $7,500

or more. Combined, these benefits can provide the average borrower

with $4,200 in savings on a $25,000 loan. Visit our Web site at

http://www.salliemae.com/consolidation to learn more about how our

benefits can save you potentially thousands of dollars and take

advantage of our speedy application services.

8. Don't miss the June 30 deadline. Midnight (PDT) on Friday, June 30 is

the deadline to start the application process with Sallie Mae. Please

don't delay.

9. Be patient. If you have submitted your application to your lender by

the June 30 deadline, relax. It may take several weeks for

application to be processed, although electronic applications often

are processed in less than two weeks. Sallie Mae will base the

consolidation interest rate on the rates in effect on your variable

rate Stafford and PLUS Loans in June even if your consolidation loan

is issued on or after July 1. Sallie Mae will send a disclosure

notice when your new consolidation loan has been disbursed. If you

are a continuing student who is enrolled at least half time, Sallie

Mae will also send you a letter to confirm that your consolidation

loan has been placed into in-school deferment status; this means you

don't have to make any payments on your consolidation loan until you

leave school. If you are in repayment on the loans you are

consolidating, continue to make payments on those loans until you

receive notice that your consolidation loan has been put on the

books.

SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, is the nation's leading provider of education funding, managing nearly $127 billion in student loans and serving 10 million borrowers. Sallie Mae was originally created in 1972 as a government-sponsored entity (GSE) and terminated its ties to the federal government in 2004. The company remains the country's largest originator of federally insured student loans. Through its specialized subsidiaries and divisions, Sallie Mae also provides debt management services as well as business and technical products to a range of business clients, including colleges, universities and loan guarantors. More information is available at http://www.salliemae.com. SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.

Source: prnewswire