SLM Financial Career Training Loan Application Instructions and Tips for Mazzei Flying Service by Jerry Personius (golfpapa@flymfs.com) of Mazzei Flying Service. Phone SLM: 888 2 SALLIE (888 272 5543) Web address: http://www.salliemae.com/apply/borrowing/career_training.html "If you are submitting an online application, it is IMPORTANT that you have certain INFO & TIPS available while you are doing so. Following this step-by-step procedure (and using a co-signer) will help ensure that you submit an accurate and complete application, giving you the best chance for loan approval at the most favorable rate and terms. · CLICK on Apply for a loan. · CLICK on Career Training Loan, then CLICK Apply online. · CLICK Begin Online Application (or other appropriate button if you are amending your original application). · SELECT CA (California). · SELECT Mazzei Flying Service from pull-down menu. · ENTER School Contact: Patti Brannan · ENTER School Code: 602598 · ENTER Loan amount requested NOTE: Loan amount must be the SAME as Tuition amount, and EACH must equal the sum of Disbursement amounts. · ENTER Repayment term requested. · ENTER Interest-only payments YES or NO NOTE: You may choose Interest-only OR Deferred-payments, NOT BOTH. · ENTER Number of interest-only payments. · ENTER Deferred payments. · ENTER Number of deferred payments. · ENTER Tuition amount NOTE: Tuition amount must be the SAME as Loan amount, and each must EQUAL the sum of Disbursement amounts. · ENTER Date classes begin NOTE: Date should date upon which you wish to begin MFS training. · ENTER Date classes end NOTE: For MFS courses 6 months or longer, enter 1 yr from Begin Classes date. For MFS courses of less than 6 months, enter 6 months from Begin Classes date. · ENTER Graduation date NOTE: For MFS courses 6 months or longer, enter 1 yr from Begin Classes date. For MFS courses of less than 6 months, enter 6 months from Begin Classes date. · ENTER Additional Expense Amount NOTE: DO NOT ENTER A FIGURE. You are allowed additional expenses of up to 60% of your Loan amount or $6000, whichever is LESS. You must contact Patti Brannan (pbrannan@flymfs.com) with your request to add expenses to your loan amount. · ENTER School Disbursement Date(s) NOTE: First disbursement date should be five (5) days PRIOR to your Date classes begin (above), then two (2), four (4), and six (6) months exactly, from that date. · ENTER School Disbursement Amount(s) NOTE: Each of the four (4) disbursement amounts should be exactly 25% of your Loan amount. If you have requested an Additional Expense amount from Patti Brannan (see above), 25% of the Additional Expense funds will be added to each of your four disbursements. At this point you will have arrived at the student information section. Fill in ALL requested information for BOTH you and your co-signer and submit your application. Good Luck!" "In an effort to make your SallieMae Career Training loan application as quick & easy as possible, and to give you the best chance of getting your loan approved (in the amount you need), SallieMae has assisted us in providing you with the following information and tips. This financing program is available to all U.S. citizens and legal U.S residents." To apply for a Sallie Mae Career Loan you must download the Sallie Mae Co-Borrower application, fill it out completely and accurately, and fax or mail it to Mrs. P. Brannan at 559 255 8900. (You may download a MFS-edited application from 9/2003 at this address: "http://flymfs.com/co-signor-application.pdf". Contact Sallie Mae to obtain the unedited, original copy of the application [call 888 272 5543, select option #2, then option #3]. An original application from 11/2004 for borrowing with one co-borrower is available at "http://www.salliemae.com/tools/forms_pdf/App_STD_1_03.pdf", and the web page with further information is located at "http://www.salliemae.com/apply/borrowing/career_training_pci.html".) Sallie Mae bases its lending largely on income and credit. According to Sallie Mae, a borrower must be employed and have a gross annual salary that can support the amount for which an individual is applying. (Salary should be at least 2.5 times the loan amount.) Also an applicant's monthly payments due to current creditors should not exceed 50% of their monthly income. Monthly payments due to creditors include minimum payments on credit cards, auto loan payments, rent or mortgage payments, student loan payments, etc. If the income criteria are met an individual has proved that they have the ability to repay a Sallie Mae Career Training Loan. Next Sallie Mae will analyze an applicant's credit to determine their willingness to make payments. An individual should have at least 3 open lines of credit on their report. Included in these 3 open lines of credit, a potential borrower must have one piece of unsecured credit that is similar (approximately 60-70% of the loan amount) to the amount they are trying to borrow. Example: If a borrower is trying to borrow $50,000, they should have one or two co-borrowers on the loan with unsecured credit close to the loan amount. Unsecured credit includes credit card limits, student loans, and personal loan, etc. Keep in mind that mortgage or auto loans are good to have on a credit report, but they are considered secured credit. Also an applicant must show that they are willing to pay creditors by keeping their last 2 years of credit current. Make sure the borrowers know what we are looking for. When you are asking for $50K, that is a huge amount of unsecured credit. So for your younger borrowers, we are looking for parents on the loan (as opposed to brothers/sisters) who have 5 years of good credit history and have a solid work background. If they can get two solid co-borrowers on the loan, it is more likely that we will be able to underwrite these larger loans for you. They just need to understand that we want to see very solid co-borrowers, as opposed to just "a warm body" on this loan. Co-borrowers that should be avoided: · Unemployed · Limited or no credit history · Poor credit history; Several delinquencies on accounts · High debt to income ratio · Have an outstanding judgement · Currently in bankruptcy · Have not re-established credit since bankruptcy · Have any charged off accounts Benefits of getting a co-borrower: · Rates are based on the better credit rating Lower interest rates Smaller monthly payments Less interest paid over the term of the loan · Establish credit for future loans · Co-borrower release option after 24 current payments and upon request From the written tips above and the several phone conversations we have had with the people at Sallie Mae, the following items appear to be KEY in obtaining the loan you need: 1. APPLY WITH A STRONG CO-BORROWER 2. TWO STRONG CO-BORROWERS USUALLY REQUIRED FOR LOANS OVER $30K 3. BORROWER CAN BE OTHER THAN THE STUDENT (if student has poor credit) 4. APPLY ONLY ON THE DOWNLOADABLE, 2 CO-BORROWER APPLICATION The following instructions will guide you through the application process: COMPLETING SEC A: BORROWER SECTION: (Page 1) · LOAN AMOUNT - The amount you will need for your course of training PLUS $2K to cover the Fuel Surcharge (if it should remain in effect throughout your training) · REPAYMENT TERM - Choose any term up to 15 years, expressed in years (Ex: 8.5 yrs) · Choose INTEREST ONLY or DEFERRED PAYMENT, not BOTH · BORROWER NAME CAN BE OTHER THAN THE STUDENT (if student has poor credit) COMPLETING SEC B: CO-BORROWER SECTION: USE SEPARATE CO-BORROWER APPLICATION (Page 2) COMPLETING SEC C: STUDENT SECTION: This will always be the student's name & info COMPLETING SEC D: SCHOOL SECTION: Mazzei Flying Service will do this one BORROWER MUST SIGN AND DATE THIS PAGE (1) >>> GO ON TO CO-BORROWER APP (P.2) COMPLETING SEC A: BORROWER SECTION: (Page 2) Enter the name & info of the borrower you listed in the same Section A: Borrower Section on Page 1 COMPLETING SEC B & C Enter the required info on your co-borrower(s) COMPLETING SEC D: SCHOOL SECTION: Mazzei Flying Service will do this one too CO-BORROWER(S) MUST SIGN AND DATE THIS PAGE (2) IMPORTANT: SEND your application to Mazzei Flying Service, ATTN: Patti Brannan VIA FAX @: 559/255-8900 VIA MAIL TO: 4885 E. Shields, Suite 201 Fresno, CA 93726 NOTE ON DISBURSEMENTS: For course terms less than 1 year, SM will make two (2) disbursements. Half of the loan amount at the start of training and the second half paid midway through the course term.