Private lenders, faced with the loss of billions in subsidies from the federal student loan program, are beefing up their offerings of non-federal student loans, which could lead to lower interest rates and fees for qualified borrowers. Sallie Mae, the USAâ??s largest private student lender, will announce today that starting May 10, rates on its Smart Option Student Loan will be 2.88% to 10.25%, based on the current London Interbank Offered Rate (LIBOR), the benchmark for the variable-rate loan. Thatâ??s down from a range of 4.38% to 12.88%.
Office of Strategic Communication