Sallie Mae Launches 'Education Investment Planner' to Help Families Build a Customized Plan to Pay for College

Sallie Mae, the nation’s leading saving- and paying-for-college company, today launched a new, free online tool that makes understanding the total cost of college and how to pay for it easier for students, parents, financial aid professionals and guidance counselors. The Education Investment Planner, available at www.SallieMae.com/plan, enables families to: Estimate the full cost of a college degree: Find out how much four years for a bachelor’s degree, two years for a master’s degree, or other programs will cost at a specific school, including the average growth of tuition over time. Build a customized Plan to pay for college through a combination of their own money, federal and state grants, scholarships and, if necessary, federal and private student loans. Compare schools: Compare actual costs for approximately 5,500 colleges and universities—not only tuition, but also average room and board expenses, fees, books and supplies. Determine if they need student loans and, if so, estimate what their monthly payments could be after graduation—and project how much a graduate would need to earn to keep payments manageable. Sallie Mae developed the Education Investment Planner in response to feedback from customers and higher education policy advocates indicating that families need better ways to assess the cost of college and their choices for footing the bill. New data from a Gallup survey conducted in May and June, commissioned by Sallie Mae, found that 41% of families did not consider students’ expected income after graduation on their decision to borrow for college and another 29% said expected income made no difference their borrowing decision. Another study, Sallie Mae’s 2007 Survey of Parents of College-Bound Freshmen, indicated that parents want an honest assessment of the total cost of college: 39 percent of all respondents said the most helpful information from the financial aid office was "an honest assessment of total costs over four years,” and 32 percent said "basic information about federal loans, private loans, and payment plans.” "Sallie Mae offers this free online tool to help families make more informed choices about school selection by understanding upfront how to pay for it without going beyond their means,” said C.E. Andrews, president, Sallie Mae. "So often we think of financial aid in a one-year snapshot. We developed the Education Investment Planner as part of Sallie Mae’s commitment to financial literacy and to helping students and parents understand the full cost of a college degree.” The Education Investment Planner takes families through a series of questions, prompting users to model various funding sources, including 529 college savings plans, parent and student savings and income, scholarships, federal and state grants, institutional aid and other sources. It helps families follow Sallie Mae’s "1-2-3 approach” to paying for college: first, use free money such as scholarships and grants; second, fully explore federal student loans; and third, fill any remaining gap with private student loans. "The college search and selection process is one of the most daunting tasks undertaken by high school students and their families, and the Education Investment Planner is a terrific step forward—simple to use and a great confidence booster for families as they explore how to estimate costs and plan into the future,” said Brian Ralph, vice president for enrollment management, Queens University of Charlotte, in North Carolina. "As someone who works with prospective and current students, I know that students who plan well are less likely to struggle financially during their college experience, resulting in higher rates of student success and graduation. This new site will be a great resource to supplement the college planning process.” Using the Education Investment Planner, families considering student loans can explore various options and estimate monthly repayment amounts, better understand repayment terms and learn what beginning salary is needed to keep payments manageable—before borrowing a penny. "Now is the right time for families to start thinking about their students’ futures, and having a free planning tool that helps educate families on how to save and pay for college is crucial,” said Tom Burton, immediate past president of the Ohio Middle School Association. "Starting early is the best way to make sure there are no surprises years down the road when it’s time for college.” Education Investment Planner took more than a year of planning and countless hours in research, programming and testing to develop. Sallie Mae will add more robust features in the future, including savings planning tools and loan repayment scenarios. SLM Corporation (NYSE:SLM), commonly known as Sallie Mae, is the nation’s leading provider of saving- and paying-for-college programs. The company manages nearly $172 billion in education loans and serves 10 million student and parent customers. Through its Upromise affiliates, the company also manages more than $19 billion in 529 college-savings plans, and is a major, private source of college funding contributions in America with 9 million members and $425 million in member rewards. Sallie Mae and its subsidiaries offer debt management services as well as business and technical products to a range of business clients, including higher education institutions, student loan guarantors and state and federal agencies. More information is available at www.salliemae.com. SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.