Texas Tech Federal Credit Union Smart Option Student Loan^® by Sallie Mae^®

For Degree-Granting Institutions

The Smart Option Student Loan^® offers a choice of two great repayment options – both designed to save you money and help you graduate with less debt. Choose the Fixed Repayment Option to save on interest with low in-school fixed payments of just $25. Or choose the Interest Repayment Option to save even more.

The Smart Option Student Loan is an ideal solution for funding up to 100% of your total cost of attendance¹ if you still need funds after maximizing grants, scholarships and federal loans.

Fixed Repayment Option

• You can save over 20% over the lifetime of the loan²
• LIBOR + 3.50% (3.85% APR) to LIBOR + 10.875% (10.48% APR)³
• Monthly in-school payments of $25
• You can save more than $6,000 compared to a traditional 15-year payment deferred private school loan²

GET STARTED WITH FIXED PAY 

Interest Repayment Option

You can save over 30% over the lifetime of the loan⁴

• LIBOR + 2.50% (2.87% APR) to LIBOR + 9.875% (10.21% APR)³
• Monthly in-school interest payments
• You can save more than $8,000 compared to a traditional 15-year payment deferred private school loan⁴

GET STARTED WITH INTEREST PAY

Benefits and features

Borrow the money you need — up to 100% of the cost of your education¹

• No origination fees³
• Enjoy a 0.25% interest rate reduction while enrolled in automatic debit monthly payments⁵
• Earn 2% back in rewards for making scheduled on-time payments while in school⁶
• Applying online is easy — it only takes about 20 minutes
• 24/7 online account management
• No prepayment penalty

Fixed Repayment Option Benefits
With the Smart Option Student Loan Fixed Repayment Option, paying a little while in school could save you a lot. You can save over 20% throughout the life of the loan² by making the required, monthly fixed $25 payments while in school and adhering to the shorter repayment period after school.² The Fixed Repayment Option is a great choice, allowing you to stick to a budget while in school. Plus, you can save more than $6,000² and repay your loan an average of 5 years earlier² compared to a traditional 15-year payment deferred private student loan.

Interest Repayment Option Benefits
With the Smart Option Student Loan Interest Repayment Option the more you pay, the more you save. You could save over 30% throughout the life of the loan⁴ by making required, monthly full interest payments while in school and adhering to the shorter repayment period after school.⁴ With the Interest Repayment Option, you can repay your loan an average of 8 years sooner and you can save more than $8,000⁴ compared to a traditional 15-year payment deferred private student loan.

Importance of a cosigner

Consider a cosigner

Applying with a creditworthy cosigner could help you get approved for the loan and could substantially reduce your total loan cost. Choose a family member or friend with an excellent credit history and the ability to repay the loan if necessary. A creditworthy cosigner can:

• Help you qualify for your loan
• Provide the possibility of a lower interest rate

Cosigning for a student loan is a big responsibility, but it doesn't have to continue for the entire duration. You can apply for a cosigner release once you've completed your education and made 12 consecutive on-time principal and interest payments.⁷

Rates and terms

Interest rate
We offer market-leading rates between LIBOR + 2.50% (2.87% APR) to LIBOR + 10.875% (10.48% APR).³ When you apply with a creditworthy cosigner you may receive a lower interest rate.

Loan limits
Whether you need a Smart Option Student Loan for textbooks or tuition, you can get the money you need up to the total cost of attendance, with loans starting at $1,000.¹

• No origination fees³

Repayment
With the Smart Option Student Loan, you'll build credit by making monthly payments while in school. You'll save even more if you or your cosigner makes principal and interest payments while you're in school. The more you lower the amount that must be paid back, the more you save. You can prepay your loan at any time, without penalty. Principal and interest payments begin after a six-month separation period.

Who is eligible⁸
You must attend an eligible school to qualify for the Smart Option Student Loan. However, this loan does cover a variety of programs — from undergraduate to graduate — degrees.

Upromise® by Sallie Mae® rewards program
With Upromise by Sallie Mae you can earn rewards to help pay down your student loan from everyday shopping — like eating out, filling your gas tank, and more! Plus, as a Upromise member, you can earn a 2% Smart Reward^SM for every on-time payment you make to your student loan.⁶ Look for information on how to join Upromise when you are applying for your Smart Option Student Loan.

1 Borrow up to the cost of attendance (minimum $1,000) as certified by your school and confirmed by Sallie Mae, less other financial aid received. Sallie Mae reserves the right to approve a lower loan amount than what the school has certified.

2 $25/month fixed payment repayment option is available for new loan applications initiated on or after June 28, 2010, and is subject to change. The savings example uses approximated numbers, is for informational purposes only and is an example of loan terms available through the Smart Option Student Loan. Savings is based on the following assumptions: A Smart Option Student Loan made to a freshman borrower at a degree-granting institution of $10,000 with two disbursements and a 10.05% APR [Interest rate of LIBOR + 10.375% (LIBOR of 0.375% as of 6/25/2010) and no origination fee or disbursement fee]. APR may increase after consummation. Repayment consists of 51 fixed $25/month payments (in-school period of 45 months plus separation period of 6 months), followed by 119 principal and interest payments of $179.79 per month and one payment of $115.65. Compare against a traditional 15-year private student loan for $10,000 where payments are deferred during school and grace periods, an estimated APR of 9.97% and repayment consisting of 179 principal and interest payments of $162.11 per month and one payment of $41.83 (following a 45-month in-school period and 6-month grace period, after which accrued interest is capitalized) for total payments of $29,060 (finance charge of $19,060).

3 Market-leading rates based on a May 7, 2010 review of competitor rates and APRs. The rates and fees shown are available for borrowers attending degree-granting institutions only. The rates for borrowers attending non-degree granting institutions will range from LIBOR + 7.75% to LIBOR + 12.50% (8.13% APR to 13.88% APR) (LIBOR of 0.375% as of 6/25/2010) and the origination or disbursement fees will range from 0% to 5%. The APR and interest rate on your loan will be variable and will change based on changes in the one-month LIBOR rate. Your interest rate and monthly payment will increase if the one-month LIBOR rate increases.

4 The savings example uses approximated numbers, is for informational purposes only and is an example of loan terms available through the Smart Option Student Loan. Savings is based on the following assumptions: A Smart Option Student Loan made to a freshman borrower at a degree-granting institution of $10,000 with two disbursements and a 9.72% APR [Interest rate set at LIBOR + 9.375% (LIBOR of 0.375% as of 6/25/2010) and no origination fee or disbursement fee]. APR may increase after consummation. Repayment consists of 51 interest payments ranging from $40.63 to $81.25 per month (in-school period of 45 months plus separation period of 6 months), followed by 83 principal and interest payments of $165.80 per month and one payment of $134.84. Compare against a traditional 15-year private student loan for $10,000 where payments are deferred during school and grace periods, an estimated APR of 9.11% and repayment consisting of 179 principal and interest payments of $148.81 per month and one payment of $57.43 (following a 45-month in-school period and 6-month grace period, after which accrued interest is capitalized) for total payments of $26,694 (finance charge of $16,694).

5 Benefit for enrolling in monthly recurring automatic debit payments is available for as long as monthly payment is successfully deducted from the designated bank account. Benefit is suspended during periods of forbearance and certain deferments.

6 2% reward is available during initial in-school and separation period only. If borrower leaves school but returns later, the reward will not be available for any subsequent in-school period. Primary borrower must be of the age of majority in his or her state of residence (typically 18 years old) and must indicate current Upromise membership or enroll in Upromise at the time of loan application. To be eligible to receive the 2% reward, the borrower may not have had two consecutive scheduled payments past due on the loan for which the benefit is available. If the borrower has two consecutive scheduled payments past due, he or she will no longer be eligible for the reward on that loan. If all conditions are met, primary borrower will earn 2% of the scheduled payment amount in Upromise rewards into his or her Upromise account for each on-time payment. The 2% reward is not earned on payment amounts in excess of the scheduled payment. Benefit is subject to the terms and conditions of the Upromise service (as may be amended from time to time), including without limitation, restrictions on conversion, transfer and redemption of rewards, reward denomination, including whether and under what circumstances the rewards have independent cash value, and terms relating to fees and/or the forfeiture of rewards. Benefit available on eligible loans first disbursed on or after June 1, 2010.

7 To qualify for cosigner release, borrower must have successfully completed school, made 12 consecutive on-time principal and interest payments, meet age of majority requirements, be a U.S. citizen or permanent resident and meet the underwriting requirements when the release request is processed. Account must remain current until the request for cosigner release is processed.

8 You must attend an eligible school and be enrolled in an eligible program. U.S. citizens enrolled in eligible study abroad programs or studying at medical schools outside the United States are also eligible. International students are eligible with a creditworthy cosigner (who must be a U.S. citizen or permanent resident) and appropriate U.S. Citizenship and Immigration Service documentation.

You must meet current credit and other eligibility criteria.

Terms and conditions apply to the Upromise service. Participating company, contribution levels and terms and conditions are subject to change at any time without notice. Go to upromise.com to learn more.

SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK THE SALLIE MAE WEBSITE TO OBTAIN THE MOST UP-TO-DATE PRODUCT INFORMATION.

Borrower benefit information valid as of June 28, 2010.

The Sallie Mae logo, Sallie Mae, Sallie Mae Bank, and Sallie Mae Smart Option Student Loan are registered service marks of Sallie Mae, Inc. Smart Rewards is a service mark of Sallie Mae, Inc. Upromise is a registered service mark of Upromise, Inc. SLM Corporation and its subsidiaries, including Sallie Mae, Inc. and Upromise, Inc., are not sponsored by or agencies of the United States of America.

Sallie Mae Smart Option Student Loans are made by Sallie Mae Bank^®. Texas Tech Federal Credit Union is compensated for the referral of Smart Option Student Loan Customers.

SLM Corporation and its subsidiaries, including Sallie Mae, Inc. and Upromise Inc., are not sponsored by or agencies of the United States of America. ©2010 Sallie Mae, Inc. All rights reserved. GCR2517 6/10