Student Loan break from Sallie Mae:

The Smart Option Student Loan will be available for classes that start after June 1, 2009. Sallie Mae recommends students join rewards programs to accumulate points on everyday purchases to help defer the cost of their education.

Smart Option Student Loan, is designed to save students $$$. The student can repay the loan nine years earlier than other existing student loans. According to Sallie Mae’s Web site, this loan is for students who still need funds after they have received grants, scholarships and federal loans.

Under the new program, students will make interest-only payments on the student loan while in school, so students avoid negative amortization and finish school with substantially less student loan debt load.

Sallie Mae’s new loan program comes as many banks and loan outfits have drastically reduced lending as a result of the ongoing economic recession in the United States.