SMS Hawaii®, Hawaii's
designated nonprofit student-loan secondary market, in partnership with USA Funds®, the
designated student loan guarantor for Hawaii, pays the 1 percent federal
default fee on behalf of the borrower on Stafford loans issued by SMS Hawaii lender
partners
.
By subsidizing this fee, SMS Hawaii puts more money in students' pockets to pay tuition, fees and other education-related expenses. For example:
| Amount Borrowed |
Savings |
| $3,500 |
$35 |
| $4,500 |
$45 |
| $5,500 |
$55 |
| $18,500 |
$185 |
In addition, student-loan borrowers qualify for these savings when they receive their loan dollars; they don't have to wait for months or even years of on-time payments to realize savings.
As an added benefit, borrowers also may subsequently qualify for an interest-saving 0.25 percentage-point reduction in the prevailing interest rate on their loans when their loans enter repayment, if they permit their loan payments to be deducted automatically from their bank accounts.
Contact us for more information.
At its sole discretion, SMS Hawaii reserves the right
to modify or discontinue any of its borrower benefits at any time and without
notice.