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Cathode,
The numbers assume no deferments and punitive fees. It's an open secret that SMC derives much of its profits from these areas, to the extent that a recent company official admitted so in an internal document. Since 2001 they have admittedly increased fee revenue by an estimated 220%. It's not unknown given deferments, fees and such for companies like SMC to increase the initial loan amounts by one third or more. Additionally during deferments one tactic these companies use is to report such as defaults so they can collect the federal monies for bringing loans 'out of default'. Has been a cash bonanza for them, but very injurious to the credit of student borrowers. Because of these kinds of manipulations many who have dealt with this company have found they will never be able to repay under their current terms. That's one of the reasons the Canadian's recently re instituted bankruptcy protections for SL loans older than 9 years, they're trying to counteract the problems resultant from US loan companies, of this type, who've been operating internationally.
Quite truthfully you'd be better off waiting. There are some indications that there will be more federal direct loans coming into the system-simply because the costs of subsidizing companies such as SMC has run rampant. And even with the recent cash inflow to 'save liquidity' they are not financially stable (and their move into credit cards, health insurance etc is indicative of potentially massive over leveraging). They also wish to be included in the 700+ billion bailout. So not exactly the most stable entity to bring yourself into hock to...for the next 10 or more years.
Additionally there are upcoming exposes about the private/subsidized aspects of the student loan industry which may be very influential in cleaning up some of the abuses. Once these are published even the most serene (or paid off) public official will not be able to ignore the political consequences. Especially as the upcoming exposes will be published in mainstream books rather than in specialist press such as "The Chronicle of Higher Education"
Unless its absolutely essential you'd be much better off waiting for reforms than involving yourself with a private/sub loan at this time. Keep in mind that under current guidelines once you sign into these type of notes, you have virtually no consumer protections.
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