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Sallie Mae - Career Training Loans - Not Guaranteed


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Prospectus Supplement to Base Prospectus dated August 5, 2013

SLM Student Loan Trust 2013-4
Issuing Entity: SLM Funding LLC
Depositor: Sallie Mae, Inc.
Sponsor, Servicer and Administrator: Student Loan-Backed Notes


Career Training Loans.


Sallie Mae Bank funds Career Training Loans.

Career Training Loans provide eligible borrowers financing at technical and trade schools,
tutorial and learning centers, and private kindergarten through secondary education schools.


They are NOT guaranteed by any federal guarantor, or by any governmental agency or by any
private guarantor.



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Career Training Loans (issued by SLM between 1999 and 2010)


The chart below lists the range of minimum FICO scores that have been required for the

program since July 31, 1999.


Range of Dates                           Minimum FICO Score

July 31, 1999 – April 29, 2000                 700


April 30, 2000 – September 4, 2002        550


September 5, 2002 – March 11, 2003     575


March 12, 2003 – June 1, 2004               600


June 1, 2004 – October 16, 2008            630


October 16, 2008 – Present (2013)         700 for strategic partner schools and

                                                                 760 for non-strategic partner schools

Edited by GDayMateAZ
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Sallie Mae To Discontinue Career Training Loan Program

"Here is the announcement that I received from a Sallie Mae representative:

We will be transitioning eligible for-profit schools to the Sallie Mae Smart Option Loan. Because we believe the Smart Option Student Loan is the responsible loan in the marketplace, it makes sense to offer it in the place of the Career Training Loan. This is a change we believe benefits both schools and students. Some schools will no longer have access to Sallie Mae private loans for their students.

For all schools currently using the Career Training Loan, applications received through February 5, 2010, will be processed and disbursed with the schedule provided to the borrower and cosigner in the Truth in Lending Disclosure Statement and Repayment Schedule. The disbursement will occur as long as the required loan documentation and school certification is received within 90 days of the date the student applied online, or May 4, 2010.

So, if you are an eligible for-profit school that uses the Career Training Loan your students will either transition to the Smart Option OR your school will no longer have access to Sallie Mae private loans. I believe that most schools offering the Career Training Loan have been notified of this change but if not, it might be worth a call to your Sallie Mae representative.

This seems to just another step in Sallie Mae reducing their exposure to students at for-profit institutions. The most dramatic change occurred in the first half of 2008 as Sallie Mae executives recounted on a recent call: "We withdrew from the non-traditional lending component which was a little bit more than 15% of originations back in the first half of 2008." One need only look at the performance of their "non-traditional" portfolio to understand why. As of September 30th, chargeoffs stood at 28.5% and delinquencies over 90 days at 17.8% for their non-traditional portfolio. With other lenders hesitant to step into the breach, I would not be surprised to see more for-profits create their own institutional loan programs."


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