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Sallie Mae's 1-2-3 Approach to Paying for College

With Sallie Mae's 1-2-3 Approach to Paying for College, we encourage students and families to tap the most affordable education funds first and minimize education loan debt upon graduation.

Step 1.

Use Free Money First. Students should fill out the FAFSA to access need-based grants and research and apply for scholarships. Students should consider supplementing grants and scholarships with current income and college savings.
Step 2.

Explore Federal Loans. Available to both students and parents regardless of need, federal loans offer low, fixed interest rates and flexible repayment options.
Step 3.

Fill Any Gap with Private Student Loans. After students have pursued free money and federal loans, private student loans may be available to cover the rest of their education costs.

Federal PLUS Loans

The Federal Parent PLUS loan allows parents with good credit histories to borrow up to the cost of a college education for dependent undergrads.

Below please find helpful repayment information about the PLUS Loan.

Repayment info

Standard Payment Plan

You pay the same amount each month for up to 10 years towards the principal and interest of the loan. The minimum payment amount is at least $50 per month.

Graduated Payment Plan

You begin repaying your loan with a lower payment and increase that amount after two to four years. The minimum payment amount is at least $50 per month.

Income-Sensitive Payment Plan

You may repay your loan based on your gross monthly income. You must show income documentation annually and additional documentation may be required.

Extended Payment Plan

You may take up to 25 years to repay your loan if you received your first loan after October 7, 1998 and your combined loans totals $30,000 or more.

PLUS In-School Forbearance

You may forbear your loan payments while your child is enrolled at least half-time for up to 48 months. You must reapply every 12 months and your accrued interest will be capitalized at the end of each forbearance period.

Cover the Total Cost of Education

Parents can borrow up to the student's total cost of education minus the student financial aid awarded. This total cost can include tuition and fees, room and meals, books and supplies, transportation, and more.