Sallie Mae Student Loans Review
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Fast Facts
Loan amount:
Starts at $1,000
Interest:
Fixed and variable rates
Origination fees:
None
Repayment tenure:
10-15 years
Late fees:
Lesser of 5% of the amount owed or $25
Autopay discount:
0.25%
If you’re like many students, you need financial assistance to help cover the costs of your college education. That’s where federal and private student loans can help. You can apply for an education loan to help pay for both undergraduate and graduate school. You can also turn to these school loans to help cover the cost of attendance at trade schools, law school, medical school and business school.
One national lender that provides private student loans? Sallie Mae, a lending company based in Newark, Delaware. You can apply for a private student loan from Sallie Mae to cover not just the cost of your college tuition, but also the money you pay for living expenses, food, books, supplies and transportation, the entire cost of attending college.
And like other private lenders, Sallie Mae offers a variety of repayment options, including repayment plans that allow you to make interest-only payments for a portion of your repayment period and others that allow you to make smaller payments while you are still in school.
Should you consider submitting a loan application to Sallie Mae? Read on to learn more about whether this lender is a good choice for borrowers.
Jump To
What is a Sallie Mae student loan?
There are two types of student loans, federal student loans insured by the federal government and private student loans originated by private lenders. Sallie Mae is an example of a lender that provides private student loans.
Federal student loans are generally considered the best student loans. That’s because they typically come with lower interest rates and offer more favorable loan terms. For instance, federal student loans often offer deferment options where you can hold off on repaying your student loan debt depending on your financial situation. They might also offer forbearance programs to borrowers who are struggling financially.
But federal student loans also come with limits. The big one? You can only take out a certain loan amount each year in federal student loans. Most dependent undergraduate students can only borrow a total of $31,000 in federal student loans. Those who need to borrow more than that will often turn to private student loans to fund the difference.
You can borrow as much as you want with private student loans, including those offered by Sallie Mae. You might also be able to apply for a student loan with fixed interest rates or variable rates, depending on your preference. Private lenders, though, will check your credit history and credit score when determining if you qualify for a private student loan. Having a cosigner, then, can help: Lenders will consider this cosigner’s credit score when determining if you qualify for a loan.
After you complete the application process with Sallie Mae and are approved for a student loan? You’ll begin paying back what you borrowed after the loan’s grace period ends. In Sallie Mae’s case, this is usually six months after you graduate. Your monthly payment will cover both your principal balance and any interest payments. Your loan payments, then, can be higher or lower depending on the interest rate attached to your Sallie Mae loan.
It’s important to note that Sallie Mae does not provide all the services that other lenders provide. For instance, you can’t refinance a private student loan with Sallie Mae, though you might be able to do this with another lender. Sallie Mae also doesn’t offer debt consolidation.
VARIABLE RATE APRs 5.37% APR to 15.70% APR and FIXED RATE APRS 3.99% to 15.49%
- Lowest rates shown include 0.25 percentage point interest rate discount with auto debit payments.
- Applying online is easy - you could receive a credit result in about 10 minutes.
- Multiple repayment options from in-school payments to deferred.¹ No origination fee or prepayment penalty.
- Borrow up to 100% of school-certified expenses, whether you're online or on campus.
- Last year, students were 4x more likely to be approved with a cosigner.
How does a Sallie Mae private student loan work?
Ready to start the Sallie Mae application process? Start by visiting Sallie Mae’s website here. Once you do, click on the “Apply for a loan” button on the top of the page.
That will take you to this page, the first of Sallie Mae’s online loan application:
Once you're here, click the “Get started” button to learn about your loan options at Salie Mae.
That will take you to this page, in which you tell Sallie Mae whether you are applying for a student loan on your own or if you are applying with a cosigner:
This is an important decision. If you apply for a student loan independently, you might not have a good enough credit score or a long enough credit history to qualify. Sallie Mae wants to be certain that you will make on-time student loan payments. If you apply independently and your credit history is weak, Sallie Mae might reject your loan application or hit you with higher interest rates and less attractive repayment terms.
If you apply with a cosigner, Sallie Mae will consider that cosigner’s credit history and score when evaluating your application. That might make it easier for you to qualify for a private loan at better rates and terms.
Just remember, your cosigner is responsible for making your student loan payments if you stop making them. You can also cause damage to your cosigner’s credit score if you make late payments. A cosigner is as responsible for your loan payments as you are unless you apply for a cosigner release that erases this responsibility. Sallie Mae allows cosigner release after you make at least 12 months of on-time payments.
Click either the “Student” or “Cosigner” button to proceed with your loan application. You’ll then be taken to a new page where you’ll tell Sallie Mae some information about you:
Once you provide your name, email address and phone number, a new screen asks about your citizenship status. Here, you’ll tell Sallie Mae whether you are a U.S. citizen, permanent resident, or non-U.S. citizen. Sallie Mae does offer student loans to students who are not permanent residents or U.S. citizens. Still, these students must live in the United States, attend a school in the United States, and apply with a cosigner who is either a U.S. citizen or U.S. permanent resident.
Once you provide this information, Sallie Mae will verify your identity:
Here, you’ll need to provide your date of birth and Social Security number. Once you do, you can apply for the private student loan that works best for you.
You’ll need to tell Sallie Mae how much you want to borrow. You’ll also be able to choose a loan and your repayment terms. If approved, you’ll begin paying back your Sallie Mae loan once the six-month grace period ends after graduation. Sallie Mae will also disburse funds to the school that you attend after your loan is approved.
How much does a Sallie Mae student loan cost?
Sallie Mae does not charge origination fees or application fees when you apply for a private student loan. You also won’t have to pay prepayment penalties if you pay your loan off before its final payment.
If you make your payment late, you will be charged a late fee. The fee will be 5% of the past-due amount, up to a maximum of $25.
You will pay interest, though, on your loans. It’s how Sallie Mae earns a profit.
Rates vary based on your credit history or the credit of your cosigner. Your interest rate could be higher or lower, depending on your loan's term and how much you borrow. But Sallie Mae says that fixed interest rates range start at 3.99% for undergraduate loans. For variable-rate undergraduate loans, rates run from 5.37% to 15.70%.
If you are a graduate student interested in pursuing a degree, your rates might vary from those above. Again, your credit history, repayment plans, and the amount you borrow will play a role in your loan’s interest rate.
VARIABLE RATE APRs 5.37% APR to 15.70% APR and FIXED RATE APRS 3.99% to 15.49%
- Lowest rates shown include 0.25 percentage point interest rate discount with auto debit payments.
- Applying online is easy - you could receive a credit result in about 10 minutes.
- Multiple repayment options from in-school payments to deferred.¹ No origination fee or prepayment penalty.
- Borrow up to 100% of school-certified expenses, whether you're online or on campus.
- Last year, students were 4x more likely to be approved with a cosigner.
Features of a Sallie Mae student loan
A wealth of repayment plans
You can choose from many repayment plans when taking out a Sallie Mae student loan, including the deferred repayment option, in which you make no scheduled loan payments while you are in school or for six months after you graduate, and the fixed repayment option, in which you pay $25 every month you are in school and during your grace period. Sallie Mae says that freshman students can save 6% on their total loan cost by choosing this repayment option. You can also choose an interest repayment option, in which you pay your interest every month you are in school or throughout your grace period. With this option, your interest rate will typically be one percentage point lower than with the deferred payment option.
Fixed or variable interest rates
You can choose a private student loan with a fixed interest rate that never changes or a variable interest rate that can change throughout the life of your loan. A fixed-rate provides more stability, as your monthly payment will not change. With a variable rate, though, you might start with a lower initial rate. Just be sure that you can afford your monthly payment if your variable interest rate rises during the life of your student loan.
Autopay discount
You’ll receive a discount on your interest rate if you set up autopay on your student loan. If you choose autopay, your student loan rate could be up to 0.25% lower than if you don’t set up this feature.
A wide range of loan types
Sallie Mae offers both undergraduate and graduate student loans. You can also choose from loans designed for dental school, law school, medical school, or business school students. Sallie Mae offers loans for students attending career-training schools. And parents can take out their own private loans to help pay for their children’s college education.
Who should apply for Sallie Mae student loans?
Undergraduate students who can find a co-signer. Sallie Mae says that 88% of its undergraduate student loans include a cosigner. That’s because Sallie Mae checks your credit. Though the loan company doesn’t list a required minimum credit score, if your credit history is short or your credit score weak, you might struggle to qualify. If you have a cosigner – usually a family member – willing to sign your loan application, though, Sallie Mae will consider that person’s credit history, which could land you a private student loan with a lower interest rate.
Those who have exhausted other forms of financial aid. It’s best to first focus on federal student loans, grants, scholarships and other forms of financial aid before you apply for a private student loan. If you’ve already exhausted these other forms of aid? Then, it might be time to apply for a private student loan.
Those who want extra time to repay their loans. Sallie Mae offers repayment terms of 10 to 15 years. If you choose a longer term, you’ll have smaller monthly payments. You will, though, pay more in interest over time.
Those who might take time to earn a higher income after graduation. Entering a field in which starting pay rates might be lower? You can request a graduated repayment period. This allows you to make 12 months of interest-only payments after you graduate.
Who are Sallie Mae student loans not right for?
Those who want to refinance an existing student loan. Sallie Mae does not do refinancing. If you have an existing student loan that you would like to refinance to one with a lower interest rate, you’ll have to find a different lender.
Those with low credit scores and no cosigner. If your credit score is low and no one is willing to cosign your loan application? You might need to find a different lender. Sallie Mae checks your credit history when you apply. If your credit score is too low, you might struggle to qualify for a loan.
VARIABLE RATE APRs 5.37% APR to 15.70% APR and FIXED RATE APRS 3.99% to 15.49%
- Lowest rates shown include 0.25 percentage point interest rate discount with auto debit payments.
- Applying online is easy - you could receive a credit result in about 10 minutes.
- Multiple repayment options from in-school payments to deferred.¹ No origination fee or prepayment penalty.
- Borrow up to 100% of school-certified expenses, whether you're online or on campus.
- Last year, students were 4x more likely to be approved with a cosigner.
Pros and cons
Pros
- Sallie Mae offers a variety of repayment plans
- You can choose fixed or variable interest rates
- You can choose terms of 10 to 15 years
- No origination or prepayment fees
- Loans designed for a wide range of students
Cons
- Interest rates can be high if your credit score is lower
- You will be charged late fees if you miss your payment due date
- Sallie Mae does not refinance existing loans
- You must borrow at least $1,000
Sallie Mae vs. the competitors
Lender | Interest rates | Fees | Term lengths |
Sallie Mae | Rates on undergraduate loans range from 4.15% to 15.70% | No application, origination, or prepayment fees. Sallie Mae does charge late fees, though. | 10 to 15 years |
College Avenue | 4.29% to 16.85%. | No application, origination, or prepayment fees. College Avenue does charge late fees. | Five to 15 years. |
SoFi | 4.19% to 14.83%. | No origination, application, prepayment, or late fees. | Five, seven, 10 or 15 years. |
College Ave
Like Sallie Mae, College Ave provides several student loan types, including those designed for undergraduate and graduate students, those studying in medical school, and those pursuing law degrees and MBAs. Parents can apply for student loans with College Avenue to help pay for their children’s college educations.
Depending on the type of student loan for which you are applying, interest rates on College Ave loans range from 4.29% to 16.85%. If you are a student with limited or no credit history, you’ll need to apply with a cosigner. College Ave says this cosigner must have a credit score in the mid-600s.
College Ave offers loan terms of five to 15 years. This lender does not charge origination or application fees for its loans. However, it does charge late payment penalties of 5% of the amount owed or $25, whichever is less.
SoFi
SoFi is a lender that provides a variety of loans, including private student loans. Like other lenders, SoFi offers several flavors of student loans, including those tailored for graduate students, undergrads, those enrolled in medical school, those seeking MBAs, students attending trade or career-training schools, and those pursuing a law degree.
Interest rates on SoFi student loans vary depending on your credit, the amount you are borrowing, and your term, but you can expect to pay from 4.19% to 14.83% with the company’s autopay discount. You can choose from loan terms of five, seven, 10, and 15 years.
SoFi does not charge any application fees, prepayment penalties, or late fees. To qualify for a SoFi loan, you might consider enlisting the help of a cosigner. Otherwise, you’ll typically need a minimum credit score of 670.
FAQs
How can I lower my interest rate on a Sallie Mae private student loan?
The higher your credit score – or the credit score of your cosigner – the more likely you are to qualify for a lower interest rate. You can also lower your rate with Sallie Mae’s autopay discount. You can qualify for a discount of 0.25% on your rate if you opt for auto pay.
How much can I borrow with a Sallie Mae student loan?
You can borrow enough to cover 100% of your cost of attendance. Sallie Mae requires that you borrow at least $1,000.
What can I pay for with a Sallie Mae student loan?
You can use the funds from a Sallie Mae loan to cover tuition, but you can also use it to pay for living expenses, meals, books, supplies and transportation costs.
You can use the funds from a Sallie Mae loan to cover tuition, but you can also use it to pay for living expenses, meals, books, supplies and transportation costs.
When do I need to start paying back my student loan?
You’ll typically need to start making student loan payments six months after you graduate.
The bottom line
Paying for college is no easy task. A private student loan from Sallie Mae can help. Sallie Mae boasts an easy online loan application, and if you apply with a cosigner with solid credit, the odds of qualifying for a private student loan from the lender are high. Just remember to first explore federal student loans, grants, and scholarships before you turn to any private student loans.
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Writer
Dan Rafter is a freelance writer who has more than 20 years experience covering personal finance. He's written for the Chicago Tribune, Washington Post, Bankrate, CreditCards.com, Rocket Mortgage, NortonLifeLock and several others.
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