Sallie Mae Student Loan Review

About Sallie Mae

At the forefront of the private loan industry, Sallie Mae’s mission is to provide financing solutions that make higher education accessible to more students. Sallie Mae, originally known as the Student Loan Marketing Association, was established in 1972 as a government-sponsored enterprise, but over the years, it has transitioned into a private entity and now operates independently from the federal government. 

Sallie Mae specializes in offering a wide range of private student loans to cover education costs for undergraduates, graduates and professional students, as well as continuing education courses, certifications and trade schools. These products cater to different educational needs, providing students and parents with flexible options to finance their education expenses, as well as essential information and payment plans to mitigate and manage student loan debt for the long term. 

Types of Sallie Mae Student Loans

When it comes to covering the cost of education beyond high school, taking out a private loan with Sallie Mae often comes into the conversation. That’s because unlike federal loans, a private student loan from Sallie Mae can be used to finance the entire sum of school-related expenses, including tuition and fees, plus room and board, the cost of books and more. 

And while many students turn to Sallie Mae for help funding the typical four-year degree, Sallie Mae also offers a wide array of student loan option to support nearly anyone interested in pursuing a higher education, including:

• Undergraduate
• Graduate school
• Career training
• MBA
• Medical school
• Medical residency
• Dental school
• Dental residency
• Graduate health professions
• Law school
• Bar study

Read on for more information about some of their most popular private student loan options.

Sallie Mae Smart Option Student Loan

The Sallie Mae Smart Option Student Loan is designed to provide financial support throughout an undergraduate student’s academic journey while offering manageable repayment options after graduation, including part-time students or those pursuing professional certifications. Students only have to worry about applying once per year to qualify for an entire year’s worth of eligible school expenses, instead of each academic semester. The Smart Option Student Loan offers both variable and fixed interest rates, giving borrowers the flexibility to choose the best option for their financial situation, plus multiple repayment options, including in-school deferred, interest-only payments and immediate repayment. There is no prepayment penalty or origination fees, and you can lower your interest rate by choosing autopay or in-school repayment. 

Sallie Mae Graduate Student Loans

In addition to offering private loans to help you fund your expenses in pursuit of a master’s or doctoral degree, Sallie Mae also offers specialized loans for graduate students pursuing MBA, law, medical or dental school and other graduate programs. These loans come with competitive fixed and variable interest rates, providing flexibility and affordability for graduate students. They also offer zero origination fee, an easy application process and 100 percent coverage, including relocation expenses for residency programs. The loan includes various repayment plans, like a generous six-month grace period (or more for certain specialties) and deferment options, allowing students to focus on their studies without immediate financial pressure. 

Sallie Mae Student Loans for International Students 

Since international students cannot receive U.S. federal student aid like federal loans or work-study, private loans from Sallie Mae can be a viable option to bridge the financial gap in addition to scholarships and grants. Sallie Mae offers loans for international students who are not U.S. citizens or permanent residents (including DACA students), requiring a creditworthy co-signer who is a U.S. citizen or permanent resident. These loans help international students finance their education in the U.S., providing access to competitive interest rates and flexible repayment options.

How Sallie Mae Student Loans Work

Sallie Mae has been helping make higher education possible for millions of people for more than 40 years. Their private student loans feature competitive fixed and variable rates, no origination fee or prepayment penalties, and can be used for a variety of continuing education expenses, including part-time, online or professional certifications. 

Unfortunately, too many people who take out a private loan don’t exactly understand the terms or repayment options up front, which can create a major problem once your educational pursuits are over. By educating yourself on the ins and out of Sallie Mae students loans from the start, you can better set yourself up for long term success. 

Applying for a Sallie Mae Student Loan

The application process for Sallie Mae student loans is straightforward and can be completed online. Applicants need to provide personal, financial and school information. The approval time can range from as little as 10 minutes to a few weeks, depending on the complexity of the application and the need for additional documentation. 

Here is a quick overview of what’s involved:

• Application Submission: Fill out the online application form with personal and financial details, including information about the school and the program you are enrolling in and how much you’d like to borrow. 
• Credit Check: Sallie Mae conducts a credit check to determine the eligibility of the applicant. A good credit score or a creditworthy co-signer is usually required.
• Approval: Once the credit check and application review are complete, Sallie Mae provides an approval decision. If approved, the loan terms and conditions are outlined, including options for repayments and interest rate type where applicable.
• Acceptance and Disbursement: After accepting the loan terms, your school will certify your loan and the funds will be disbursed directly to the school to cover tuition and other educational expenses. Interest begins to accrue as soon as the funds are disbursed. 

Credit Score Requirements for Sallie Mae Student Loans

Private student loans are credit-based, meaning that lenders will use your credit history (or lack thereof) to determine your eligibility and loan terms. The specific credit score for Sallie Mae student loans varies (sources suggest their minimum score requirement falls somewhere in the mid-600s range), but generally, a higher credit score improves the chances of approval and securing better interest rates. Younger students who haven’t had the opportunity to accrue a strong credit history, or those with less than stellar credit can still qualify with the help of a co-signer. 

Co-signing for a Sallie Mae Student Loan

Most borrowers end up applying with co-signers because it’s uncommon for applicants for undergraduate loans to have enough credit history to qualify on their own. A co-signer is an adult with good credit, usually a parent, who accepts the responsibility of repaying the loan on time and in full. Having a creditworthy co-signer can often increase your eligibility and improve your loan terms. In fact, Sallie Mae reported that students were 3.5 times more likely to be approved with a co-signer, and 88 percent of their undergraduate loans were co-signed. 

While having a co-signer can be a major advantage, finding someone willing to take on the risk of being responsible for repayments in your stead can be challenging. Sallie Mae offers an attractive option that removes this risk, allowing co-signers to be released from the loan after the borrower makes 12 consecutive on-time monthly payments—covering both principal and interest. 

Sallie Mae Student Loan Interest Rates 

All student loans, both federal and private, come with interest attached. Think of interest as an added “fee” lenders charge in order to borrow the requested loan amount, which can greatly affect the overall amount owed. 

Sallie Mae student loan interest rates vary based on the borrower’s creditworthiness, loan type and the chosen repayment plan. Borrowers can choose between fixed (stays the same) or variable (can rise or fall as the market changes) interest rates, typically ranging from around 4.5 percent to 16.46 percent APR, with loan terms ranging from 10 to 20 years. Sallie Mae loans come with no origination fees or prepayment penalties, and they offer a 0.25-percent discount when you enroll in autopay to make your monthly loan payments.

Sallie Mae Student Loan Consolidation & Refinancing 

For many with student loan debt, finding the best way to manage payments is critical. Sallie Mae offers several repayment options to suit different financial situations, including deferred repayment that doesn’t start until after school is complete, fixed monthly payments while you’re in school, or interest-only repayments that start during school. 

But when it comes time to actually make those payments, the reality can often be at odds with what you originally agreed to when you took out the private loan. That’s why so many people consider consolidating or refinancing their student loans as an alternative. While you can certainly explore these options through other lenders, Sallie Mae doesn’t directly offer ways to consolidate or refinance their private student loans. 

Refinancing can potentially lower interest rates and monthly payments, depending on the borrower’s credit profile and market conditions. It involves taking out a new loan with a different lender to pay off the existing Sallie Mae loan, ideally at a lower interest rate or with better repayment terms.

It’s important to remember that when you refinance or consolidate your student loans, you essentially take on an entirely new loan and can lose any benefits tied to your existing loan. 

Sallie Mae Student Loan Forgiveness 

Private student loans, including those from Sallie Mae, lack the benefit of being eligible for federal student loan forgiveness programs. Since Sallie Mae used to also grant federal loans before switching entirely to the private sector, some older loans may still qualify. 

While newer Sallie Mae loans don’t qualify for forgiveness, they do offer a few other features to help manage your debt, like postponed payments if you return to school or enter the military, as well as a graduated repayment period that lets you make interest-only payments for 12 months. Sallie Mae will also discharge debts for borrowers who die or become totally and permanently disabled.

As with any type of loan, it’s best to be proactive in managing your repayment plan and reach out to Sallie Mae to explore your options before any missed payments begin to add up. 

Additional Resources

Sallie Mae Scholarship Opportunities 

In addition to private loans, Sallie Mae offers various scholarships designed to provide financial assistance to eligible high school seniors, undergraduate and graduate students to help them reach their education goals with no repayment required. Sallie Mae’s website provides a comprehensive list of available scholarships, along with eligibility criteria and application deadlines. At the time this review was written, they were also running a special scholarship sweepstakes that awarded $2,000 to a winning applicant each month through the end of 2024. 

Financial Planning Tools 

In addition to scholarships, Sallie Mae provides access to financial planning tools and resources to help students and families manage their education expenses effectively. These resources include budgeting tools, loan calculators, scholarship directories and informational articles on financial aid and debt management. Sallie Mae’s commitment to supporting students extends beyond loan products, offering valuable guidance on managing personal finances and planning for the future.

Sallie Mae Customer Service Phone Number 

Sallie Mae’s customer service representatives are available to assist with loan inquiries, repayment options and account management via phone or at SallieMae.com. 

• New loan inquiries call: 1-855-756-5626
• Existing loan inquiries call: 1-800-472-5543

Comparing Sallie Mae to Other Private Loan Lenders 

Sallie Mae vs. College Ave

Two of the most popular private loan lenders on the market, Sallie Mae and College Ave offer some similar features, like fast application, competitive interest rates and fairly generous grace periods. But while both lenders share the same minimum loan amount, Sallie Mae offers 100 percent tuition coverage for any student (even part-time students), whereas College Ave imposes a cap for some graduate degrees. Sallie Mae also offers more friendly terms for co-signers, while College Ave is particularly vague about their qualifications, which may make it more difficult for some students to understand their eligibility. Both lenders offer tools for managing loans and planning for repayment, but Sallie Mae’s extensive support resources and scholarship opportunities give it an edge for some borrowers. The choice often comes down to specific borrower needs and preferences, such as the availability of co-signers, interest rates and customer service experiences.

Sallie Mae vs. Discover Student Loans

While these two companies were often on many students’ shortlists when searching for student loans, Discover announced that it will no longer be accepting new loan applications after January 31, 2024. Similar to Discover, Sallie Mae offers competitive loan products for undergraduate, graduate and professional students, as well as more flexible repayment options.

Bottom Line: Why We Love It

Sallie Mae is one of the biggest names in student loans, serving as a life-changing resource for millions of people hoping to pursue higher education. Their loans are especially appealing to those who need to finance a large amount (or even all) of their educational expenses, those looking for help funding things like travel or housing during residency, or part-time or trade school students who aren’t typically eligible for loans. While their interest rates can be higher than federal loans, the flexible repayment options, lack of origination fees and access to scholarships and comprehensive financial planning advice make them a strong contender in the private student loan landscape. By carefully considering the outlined pros and cons, loan options, and comparing Sallie Mae with other lenders, you can determine if Sallie Mae Student Loans is the right choice for financing your education.

Disclaimer

Borrow responsibly
We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.

Loans for Undergraduate & Career Training Students are not intended for graduate students and are subject to credit approval, identity verification, signed loan documents, and school certification. Student must attend a participating school. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident), and provide an unexpired government-issued photo ID. Requested loan amount must be at least $1,000.

1 Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent.  Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment.

2 Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/separation period depending on the repayment option selected. Variable rates may increase over the life of the loan.

3 For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may
be included in the cost of attendance for students enrolled at least half-time.

4 Although we do not charge a penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note—first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.

SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS,
SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.

Information advertised valid as of 10/12/2024

Sallie Mae loans are made by Sallie Mae Bank.
ConsumerRating is not the creditor for these loans and is compensated by Sallie Mae
for the referral of the Sallie Mae loan customers.