THE REFERRAL PROGRAM WITH SALLIE MAE®

AND THE SMART OPTION STUDENT LOAN®

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Trends in Funding How America Pays for College

Study Objective: Determine how American families are paying for college -

Trend over time behaviors and attitudes related to the purchase and value of higher

education

College is an investment Belief in the value of college is unwavering

Families continue to be resourceful in finding ways to make college more affordable

Families who borrow are making responsible decisions

Scholarships and grants funded 34 percent of college costs in 2015-16, the largest proportion

of any resource used to pay for college in the past five years. As a result, families paid less

out of pocket than they had in 2014-15.

98% of students are taking steps to make college more affordable.

Sixteen percent of families used savings from 529 plans or other college savings vehicles to

help pay for college.

Families spent an average of $23,688 on college in 2015-16.

Sallie Mae Referral Partnership Overview

Source: Sallie Mae – How America Pays for College 2016

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How Families Paid For College

Sallie Mae Referral Partnership Overview

13% student

borrowing

7% parent

borrowing 34% scholarships

and grants

5% relatives

and friends

12% student income

and savings

29% parent income

and savings

Source: Sallie Mae – How America Pays for College 2016

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Responsible Borrowing

College Financing Solutions for Students and Families

• Sallie Mae is the #1 saving, planning and paying for education company with

over 40 years of leadership in the education lending market.

1-2-3 Approach to Borrowing: Credit Union and Sallie Mae know how

important it is to find the right funds at the right time for an education. That’s

why you can suggest a simple formula to your members to help make financing

college as easy as 1-2-3.

1. Start with free money: savings, scholarships, and grants

2. Explore federal student loan options

3. Fill any gaps with responsible private student loans

Sallie Mae Referral Partnership Overview

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Sallie Mae Partnership Overview

Referral Partnership – Marshfield Medical Center Credit Union acts as a

referral source for the Smart Option Student Loan product, sending interested

members to Sallie Mae to apply for the product

CreMarshfield Medical Center Credit Union makes members aware of the

partnership through the website, email campaigns and by providing product

awareness to branches

Sallie Mae originates, underwrites, funds, and services the loan

Benefits of partnership – helps members meet a critical need of funding their

child’s education

Sallie Mae Referral Partnership Overview

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Smart Option Student Loan Product Overview

Features and Benefits

• Borrow up to 100% of the school-certified cost of attendance

• A choice of competitive fixed and variable interest rates

• No origination fee and no prepayment penalty

• Receive a 0.25 percentage point interest rate reduction while enrolled to

make scheduled monthly payments by automatic debit

Choose between three repayment options

• Interest Repayment Option – Make monthly interest payments while in

school and for six months after school

• Fixed Repayment Option – Pay fixed monthly payments while in

school and for six months after school

• Deferred Repayment Option – Defer payments until after school, or

pay as much as you want while in school

Sallie Mae Referral Partnership Overview

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How the Process Works

Sallie Mae Referral Partnership Overview

Member comes to you for help

Member is referred to Sallie Mae from Credit Union

Loan application taken online

Sallie Mae funds the loan to the school

School provides certification to Sallie Mae

Sallie Mae processes the credit approval

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The Support We Provide

Sallie Mae Referral Partnership Overview

Training

Event materials

Customized URL

Proven student-focused web content

Easy online application hosted by

Sallie Mae

Effective print and online marketing

materials

Loan origination, disbursement and

servicing

Call center and 24/7 online service.

Full reporting capabilities

State of the art online servicing system

Self-service online marketing portal

Financial literacy tools, articles and

resources

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College Planning Calendar

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

-Social Media

-Blog Articles

-Product page link

-1-2-3 Video

FAFSA Season

-Social Media

-Blog Articles

-Link to analyzer tools

on product page

-Scholarship campaign

Award Letters

School RFP Season

-Proactive RFI Content to target

schools

-SM responds on your behalf to

school requests for lender list

RFPs

Peak Season Marketing

-Rotating Home Page Banner Ad

-Online banking ad/messaging

-Targeted email campaign

-Ad tiles throughout web site

-Mobile banking promotion

-Statement messaging

-ATM advertising

-In Branch collateral – brochures,

posters, teller line signs,

electronic display ad

-Pre-peak branch staff

training – webinars,

staff meeting

-FAQs & print-on-

demand materials

Branch Training

-Dec-Jan Banner Ad

-Targeted Email

-In-branch collateral

-Social media

messaging

Mini-Peak

Nat’l Scholarship Month

-1-2-3 Approach Video

-Social media

- Submit the FAFSA

(fafsa.gov) October 1st

New FAFSA Season

Sallie Mae Referral Partnership Overview

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Online Support

Sallie Mae Referral Partnership Overview

• The Marketing Portal provides a variety of marketing collateral, reports

and other tools and resources to download or print.

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Tools Available

Sallie Mae Referral Partnership Overview

Cobranded BrochureWeb Ad Tiles