The $70 million South Bay Credit Union of Redondo Beach, Calif., has partnered with Sallie Mae to offer members private student loans, the credit union announced.
The credit union, which serves more than 8,000 members in Los Angeles County’s South Bay area, will refer members to private student loans funded by Sallie Mae through the education-focused financial services company’s Smart Option Student Loan program, South Bay CU said.
The Smart Option Student Loan program offers borrowers competitive interest rates, multiple in-school repayment options, 24/7 online account management and no repayment penalties; it can also cover up to 100% of school certified education costs, South Bay CU said.
The credit union added that depending on the program selected, a typical freshman can save an estimated 17% to 49% in interest charges and pay off the loan three to eight years sooner after graduation with Smart Option Student Loan, compared with a conventional payment-deferred loan with a 15-year term. Prospective borrowers can apply directly from South Bay CU’s website, the credit union said.
Around 500 credit unions participate in the Smart Option Student Loan program, through which they receive fee income in exchange for marketing Sallie Mae’s private student loans to members.