Corporate One receives 100th contract for Sallie Mae Smart Option Student Loan Program®

Corporate One Federal Credit Union recently received receipt of its 100th contract from Jeep Country Federal Credit Union (Holland, OH) for the Smart Option Student Loan program that it began offering through Sallie Mae in June. The Sallie Mae Smart Option Student Loan program is a financial institution referral program that allows credit unions to earn fee income when their members receive a loan funded by Sallie Mae.

"Corporate One has received a positive and overwhelming response to offering Sallie Mae’s Smart Option Student Loan program, further confirming our decision to provide this solution to our members,“ said Corporate One’s Vice President of Marketing and Communications Paul Hixon. “With recent changes to the student loan landscape, Corporate One realized a student loan solution was needed so our members could cost-effectively serve their members who are saddled with paying the increasingly expensive price tag that goes hand-in-hand with higher education. As a corporate partner, this program is a great example of how we help our member credit unions provide valuable solutions their members.”

All loans through the program are underwritten, funded and serviced by Sallie Mae. Participating credit unions bear little risk as they serve only as a referral point, primarily via a unique link on each participating credit union’s Web site. Sallie Mae provides comprehensive support and marketing materials as well, including co-branded loan applications, online Web advertisements, or “tiles,” lobby posters, email campaigns and statement stuffers. Credit unions are rewarded a percentage of the principal amount for each loan granted (as well as a percentage of any subsequent loans to said member).

With the Smart Option Student Loan, students pay interest while in school, graduate with less debt, and pay off their loans faster, compared to other longer-term private loan alternatives in which no payments are made until after graduation. The program is targeted for students and families in the market for private student loans to help them cover the full cost of attendance after they have maximized scholarships, grants and federal assistance. Student loan rates are based on LIBOR, and the borrower’s and/or cosigner’s creditworthiness among other factors.