Sallie Mae Student Loan Review

By Anita Thomas July 16, 2020

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Sallie Mae is a partner lender from which we receive compensation. Edvisors® evaluates each lender we partner with and only recommend loan programs which we believe are a best fit for our audience.

What is Sallie Mae?

Sallie Mae is the leading bank in education financing. The company is publicly traded under the symbol SLM and has served millions of students and families to help them pay for college. They offer a variety of private student loans that fill the gap when financial aid is not enough.

Their student loan products include:

• Undergraduate student loans
• Parent student loans
• Graduate student loans
• Loans for professional students (medical school, law school, business school)
• K-12 Family Education Loan

Sallie Mae Customer Service

Sallie Mae has been recognized as providing an “Outstanding Customer Service Experience,” according to J.D. Power (J.D. Power 2019 Certified Customer Service Program).

Sallie Mae prides itself on great customer service and operates all of its call center operations in the United States. They are also committed to promoting diversity in higher education and advancing social justice.

Apply for a Sallie Mae Private Student Loan

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Recommendation

Best for Private Loans

Interest Rates

Variable Rates: 1.13% APR - 11.23% APR¹

Fixed Rates: 4.25% APR - 12.59% APR¹

Repayment Terms

N/A

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• Variable Rates: 1.13% APR - 11.23% APR. Fixed Rates: 4.25% APR - 12.59% APR. Lowest rates shown include the auto debit discount.¹
• Choose from multiple repayment options, including no payments while in school¹
• No origination fee or prepayment penalty²
• The only undergraduate student loan that offers 4 months of Chegg® study help --a $100 value⁶

¹This loan is for undergraduate students at participating degree-granting schools. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend a participating 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 to verify their identity. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.

Interest is charged starting when money is 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. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a freshman with no other Sallie Mae loans.

²Although 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.

³The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit 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, if available for the loan.

⁴Loan amount cannot exceed the cost of attendance less financial aid received as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half time.

⁵Only the borrower may apply for cosigner release. Borrowers who meet the age of majority in their state may apply for cosigner release by providing proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if your status has changed since you applied). In the last 12 months, the borrower must be current on all Sallie Mae serviced loans (including no hardship forbearances or modified repayment programs) and have paid ahead or made 12 on-time principal and interest payments on each loan requested for release. When the cosigner release application is processed, the borrower must demonstrate the ability to assume full responsibility of the loan(s) individually, and pass a credit review that demonstrates a satisfactory credit history including but not limited to no: open bankruptcy, open foreclosure, student loan(s) in default or 90 day delinquencies in the last 24 months. Requirements are subject to change.

⁶This promotional benefit is provided at no cost to borrowers with new loans that first disburse prior to April 30, 2021. Borrowers who reside in, attend school in, or borrow for a student attending school in Maine are not eligible for this benefit. Chegg Tutors offers One Free session of up to 60 minutes. A session will be considered redeemed if it has a minimum duration of thirty (30) minutes. Any minutes not used within the same session will expire upon conclusion of the session. No cash value. Terms and Conditions apply. Please visit Chegg.com/studystarter/termsandconditions for complete details. This offer expires one year after issuance.

⁷Borrowers and cosigners who have an available FICO^® Score and a Sallie Mae loan with a current balance greater than $0, may receive their score quarterly after the first disbursement of their loan. The FICO^® Score provided to you is the FICO^® Score 8 based on TransUnion data, and is the same score that Sallie Mae uses, along with other information, to manage your account. FICO^® Scores and associated educational content are provided solely for your own non-commercial personal review, use and benefit. This benefit may change or end in the future.  FICO^® is a registered trademark of the Fair Isaac Corporation in the United States and other countries.

Information advertised valid as of 4/1/2021

SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION.

Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners.

Sallie Mae loans are made by Sallie Mae Bank.

Edvisors is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.

© 2021 Sallie Mae Bank. All rights reserved. SLM Corporation and its subsidiaries, including Sallie Mae Bank are not sponsored by or agencies of the United States of America.

Sallie Mae Loans

Sallie Mae offers a variety of loan products ranging from K-12 to residency and relocation loans. These loans can be used to supplement federal student aid, or can be a competitive alternative to other financing options, with low interest rates and fees, along with competitive loan terms.

Loans for Students

Sallie Mae Smart Option Student Loan ^®

The Sallie Mae Smart Option Student Loan® is a private loan that can be used to help pay for undergraduate and graduate school. Your college or university needs to be a degree-granting institution to qualify. Students are encouraged to apply with a creditworthy cosigner; especially if there is a lack of robust credit history or proof of income.

Career Training Smart Option Student Loan^®

If you attend a non-degree granting school and need financing, the Career Training Smart Option Student Loan is something to consider. Designed to assist with trade programs (i.e. technical, medical, culinary) and professional training, you may be able to borrow up to the full cost of your educational program.

Sallie Mae Graduate Loans

Graduate loans are another offering from Sallie Mae. If you are enrolled in a graduate (i.e. post-baccalaureate) or professional program, or if you need financing for medical residency or bar study here are some options available to you:

• Sallie Mae^® Medical Student Loan
• Medical Residency and Relocation Loan
• Sallie Mae^® Dental School Loan
• Dental Residency and Relocation Loan
• Sallie Mae^® MBA Loan
• Bar Study Loan^®
• And more...

Loans for Parents

K-12 Family Education Loan ^SM

As the name implies, this loan can be used to help pay for private school, from kindergarten to grade 12. Parents can borrow up to the full school-certified cost of private school. There is no application fee and no pre-payment penalties.

Sallie Mae ^® Parent Loan

If you are a parent who chooses to borrow on behalf of your son/daughter (rather than cosigning a loan) this could be a good solution. In fact, eligible borrowers can be parents or another creditworthy individual (such as an aunt, uncle, or grandparent) who is willing to assume the duty of financing a college education. The types of educational programs the loan can be used for include degree and certificate programs, but must be at a degree-granting institution.

How Do I Apply for a Sallie Mae Student Loan

Applying for a Sallie Mae loan is easy. First, you can enter your school to see if it matches the list of schools Sallie Mae offers financing for on our website. Then simply click on “Apply Now” to be taken to the application page.

Be prepared to provide information that will help Sallie Mae determine your eligibility based on creditworthiness. And remember that you can always apply with a cosigner to improve the odds of getting approved, or to potentially qualify for a lower rate.

Sallie Mae Cosigner Release

If you need a cosigner to take out a student loan, you may be interested in a lender with cosigner release.

Sallie Mae offers an application process for a cosigner to be released from the loan. You are eligible to apply once you’ve made 12, on-time regular payments—meaning principal and interest—and can demonstrate that your credit is strong without a cosigner present.

You must be a U.S. Citizen or U.S. Permanent Resident, as well as meet the age of majority.

Additionally, you will need to:

1. Demonstrate your income,
2. Provide proof of graduation or certificate completion (whichever applies).
3. Pass a formal credit check.
4. Other conditions may apply.

Pros and Cons of Sallie Mae Student Loans

When choosing any private student loan product, you should think about the pros and cons. Here are some things to consider for Sallie Mae.

Refinance Sallie Mae Loans

If you’re looking to refinance your student loans through Sallie Mae, unfortunately this is not an option. This is because Sallie Mae no longer offers a refinance loan product.

However, depending on your goals and the type of loans you have (federal vs. private, or both) you may want to check out our other website to find the best student loan refinance companies. You’ll be able to compare available interest rates, repayment terms, borrower benefits and other information that can help you make an informed decision.

You may also want to calculate the effects of refinancing by using our Student Loan Refinance Calculator.

How Sallie Mae Gives Back

Sallie Mae is known for being a philanthropic organization and prides itself on community involvement. Since 2016, Sallie Mae awarded $785,000 in their Bridging the Dream Scholarship program. And in 2019 they gave $1.06 million in charitable donations. Sallie Mae also has a formal Employee Volunteer Program and donated $1 million in 2020 to food banks in communities affected by COVID-19.

Additionally, Sallie Mae has raised awareness about the need for financial literacy via award-winning nationwide tours. They help to educate high school students on the importance of going to college and how to pay for it.

Sallie Mae Headquarters

Sallie Mae is a consumer bank with corporate offices in Newark, Delaware. They also operate satellite offices in other locations. They have approximately 1,800 employees in the company.