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Aliyyah Camp is a writer and personal finance blogger who helps readers compare personal, student, car and business loans. Aliyyah earned a BA in communication from the University of Pennsylvania and is based in New York, where she enjoys movies and running outdoors.
Expert Review
Review by
Aliyyah Camp
Sallie Mae’s tailor-made student loans can suit most students’ needs, especially if you have the credit score to qualify for a low interest rate. This lender can provide your funding for a wide array of educational endeavors, from undergrad to med school to studying for the bar exam to even your child’s K-12 education.
However, one of its biggest drawbacks is that it’s not the most forthcoming about eligibility requirements. And you can’t prequalify to see what rates you might expect — which can potentially be quite high.
Sallie Mae’s tailor-made student loans can suit most students’ needs, especially if you have the credit score to qualify for a low interest rate. This lender can provide your funding for a wide array of educational endeavors, from undergrad to med school to studying for the bar exam to even your child’s K-12 education.
However, one of its biggest drawbacks is that it’s not the most forthcoming about eligibility requirements. And you can’t prequalify to see what rates you might expect — which can potentially be quite high.
Sallie Mae doesn’t have many restrictions on who can apply for a loan. Provided you meet these two criteria, you may be eligible:
At least 18 years old
US citizen or permanent resident
How do Sallie Mae student loans work?
Sallie Mae is a direct lender and provides a range of flexible loans to pay for undergraduate and graduate education. You can borrow up to 100% of the cost of your education, including housing, books and travel expenses. For most students, this amount ranges from $1,000 to $200,000 with repayment terms of up to 20 years. In addition, Sallie Mae also offers loans for private K-12 schools, dental residency, medical residency and bar exams.
Unlike many student loan providers in the market, you have some say in how you repay your loan through competitive fixed or variable rates. Loans also come with interest rate reductions with autopay, low fees, deferment and helpful tools to track your financial health.
What students loans does Sallie Mae offer?
Sallie Mae student loans are designed to provide funding when your savings, scholarships and federal student aid fall short. Your wide range of loan options include:
Undergraduate student loans. Fund your two- or four-year degree or pay for a certificate program.
Career-training student loans. Pay for professional or technical training that doesn’t necessarily result in a degree.
Yes, Sallie Mae offers loans for parents looking to pay for their child’s education. Like its undergraduate and graduate student loans, you can finance up to 100% of the cost of attending school. When you borrow, you’ll be able to choose from interest-only payments or full payments while your child is in school. And depending on your credit, you may qualify for a fixed rate between 5.49% and 12.87% with autopay or a variable rate between 5.74% to 12.37% with autopay.
About to finish medical school? Check out Sallie Mae’s residency relocation loans
Sallie Mae is one of only a handful of student loan providers that offers financing for career-related expenses after you leave school. Its residency relocation loans for medical and dental students cover the cost of traveling, studying for and taking board exams, as well as interviews and moving costs associated with a residency.
Final year M.D., D.O., D.V.M., V.M.D., or D.P.M. students can apply for a medical residency relocation loan and D.D.S. or D.M.D. students can apply for a dental residency relocation loan. If you’ve graduated within the past 12 months, you may still qualify.
Variable rates range from 5.21% to 11.67% APR with autopay for both types of loans, and students can defer repayments for up to three years after graduation. You can apply for cosigner release after making only 12 on-time repayments in a row.
How much do Sallie Mae student loans cost?
Since none of these loans come with an origination fee or prepayment penalty, the main cost you need to worry about is interest. Sallie Mae offers the choice between variable or fixed interest rates on most of its student loan offerings.
Its undergraduate student loans have variable rates ranging from 4.25% to 11.35% with autopay and fixed rates ranging from 5.49% to 11.85% with autopay. Graduate students can expect variable rates between 4.5% and 10.11% with autopay and fixed rates between 6% and 10.23% with autopay, although the exact APR you can expect will depend on your field and may change if you’re in an MBA, medical, dental or law program.
Does Sallie Mae offer discounts?
Sallie Mae has an automatic payment discount that reduces your interest rate by 0.25%. This automatic deduction is worked into the rates shown on Sallie Mae’s website, so keep it in mind when you’re comparing lenders. If you don’t want to use automatic payments, your APR will be slightly higher.
What are my repayment options?
Your loan term and repayment options differ depending on the type of loan you borrow. For undergraduate loans, you can choose one of three repayment plans:
Deferred repayments. Deferring repayments until after you’re out of school can be the most affordable choice in the short term, but it’s the most expensive in the long run. Interest that accrues while you’re in school is added to your loan principal, so you’re essentially paying interest on interest.
Interest-only repayments. Rather than letting interest pile up while you’re in school, you can choose to pay off the interest that accumulates each month. This means you graduate with less and can shave thousands of dollars off the cost of your loan.
Small fixed repayments. Sallie Mae allows you to make $25 fixed monthly repayments while you’re in school and during your six-month grace period. This can save you up to 14% on the total cost of your loan.
Does Sallie Mae offer deferment or forbearance?
Sallie Mae offers in-school deferment followed by a standard six-month grace period once you graduate or drop below half-time enrollment. You may also be eligible for deferment if you return to school or start an internship, fellowship or residency. Check with Sallie Mae to see if you qualify.
Forbearance is also available if you’re having trouble making repayments due to a job loss or other unexpected event. You can apply to postpone repayments for up to three months at a time for a total of 12 months during your loan term. To qualify, you’ll have to meet a few requirements and make a “good faith” payment of $50 per loan toward your current balance. While it can be helpful if you hit a rough patch, remember that interest continues to accrue, so you’ll owe more on your loan when you get out of forbearance than when you started.
Top reasons to consider Sallie Mae student loans
You’ll find many benefits beyond competitive fixed and variable rates with Sallie Mae, including:
Autopay discount. Get a 0.25% interest rate reduction on your loan by signing up for autopay.
Deferment and forbearance available. Sallie Mae lets you hold off on repayments if you decide to go back to school, start an internship or hit a temporary financial setback.
Cosigner release. You may be able to take your cosigner off your loan after making 12 on-time repayments in a row, provided you meet its eligibility criteria.
Track your FICO score. You and your cosigner can track your FICO score online for free.
Drawbacks to borrowing from Sallie Mae
A student loan from Sallie Mae could be just what you need to fill any funding gaps, but there are a few potential drawbacks to consider:
Potentially high rates. Sallie Mae’s rates aren’t as competitive as what you’d find with some federal loans, especially if you have poor credit.
Not transparent about eligibility requirements. Unlike other lenders, Sallie Mae isn’t transparent about what credit score or minimum income you need to qualify.
Can’t prequalify. You’ll have to fill out a full application, which requires a hard credit check, to see what rates you qualify for — it doesn’t offer a preapproval option.
Compare Sallie Mae to top online student loan providers
Updated January 29th, 2020
What to expect when signing up
Before you apply, confirm you and your cosigner are eligible for a loan. Then follow these steps to apply online:
Visit Sallie Mae’s website and click I’m ready to apply.
Select your status: Student, cosigner or parent. Follow the prompts, selecting the program you need to fund, the state your school is in and your school’s name.
Select the type of loan you’re interested in and fill out information about yourself and your school.
Calculate your loan amount based on the financial assistance you have, then enter the loan amount you want to borrow.
Select your employment status and enter details about your employer, if applicable. If you have additional financial information or assets, provide information about them.
Enter the name, phone number and relationship of two personal contacts.
Select if you plan on applying individually or with a cosigner. Keep in mind that having a cosigner may increase your chances of approval.
Read the electronic delivery consent form, the information about rates and the Sallie Mae privacy policy before you submit your application.
Sallie Mae will process your application, which may take a few minutes. You’ll receive details on your approval or rejection shortly after. If approved, Sallie Mae will give your more information on how to finalize your loan and the next steps you’ll need to take.
What information do I need to apply?
Have the following information on hand to speed up the application process:
Your complete name, residential address and Social Security number
Your enrollment status, course of study and degree
The academic period of enrollment
Your employer’s name and your income
Financial information, such as rent payments and savings
Details of two personal contacts other than your possible cosigner
If the application includes a cosigner, you’ll need to submit similar information for them as well.
Who services Sallie Mae student loans?
Sallie Mae services its own student loans. While it has relatively few complaints compared to other student loan servicers of its size, its not without its share of problems. Some borrowers reported issues changing their repayment plan or having incorrect information show up on their credit report. You can learn more about what to expect with Sallie Mae servicing and out how to avoid these common problems with our guide.
More about Sallie Mae
Sallie Mae was founded in 1972 as the Student Loan Marketing Association to support the Guaranteed Student Loan Program set forth in the Higher Education Act of 1965. Today, it’s helped more than 30 million Americans plan, pay and save for education through flexible private loans. Unlike many banks and other lenders, it offers one of the widest selections of private student loans out there. And alongside its resources that help borrowers understand the student loan process, Sallie Mae also offers personal loans and credit cards.
For help with new student loans, you can call 855-756-5626. For existing student loans, call 800-472-5543. Representatives are available Monday through Thursday from 8 a.m. to 10 p.m. ET and on Friday from 8 a.m. to 9 p.m. ET. If you have an existing student loan account, you will also be able to contact a representative on Saturday from 9 a.m. to 6 p.m. ET.
Sallie Mae starts by reviewing your credit. If they approve your application, you choose the type of interest and repayment option you want. You and your cosigner then accept the terms of the loan and provide a digital signature. Finally, your school verifies your eligibility and Sallie Mae disburses the funds.
If you have loan money left over after you’ve fully paid for your college costs, you could receive a student loan refund. You can choose to return those funds to Sallie Mae and reduce your loan’s overall cost or use the money to pay for other education-related expenses.
Yes, you’re eligible to apply for the release of your cosigner after 12 months. You cannot be in deferment or forbearance, and you’ll need to provide proof that you can satisfy the payment responsibilities on your own.
I am uncertain how this works for my daughter – would she borrow the amount she needs for all 4 years at once or just the current year of school and if its just the current year – what if she needs more in her next 3 years of school
Some applicants were able to get fund for their four-year degree program. As per this page you’re looking at, the loan varies on various factors like the student’s program, student/parent’s eligibility etc. This lender provides a range of flexible loans therefore, it is best to get in touch with them or visit their official page to learn more on their offered products. Once you decided to apply online, please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you or your daughter.
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