Sallie Mae Snapshot
Sallie Mae is one of the largest online private student lenders, offering borrowers competitive interest rates, a variety of repayment options, and a strong customer experience. Sallie Mae’s loan offering is available for a variety of programs such as undergraduate, graduate, MBA, law, medical, dental, and career training programs. Sallie Mae is best if you are seeking a more flexible repayment plan and competitive interest rates.
Pros
Strong customer experience- Competitive interest rates
- Various repayment options
- Allows a six-month grace period on undergraduate loans
- Available to international, DACA, and part-time students
- Cosigner release option after 12 months
Cons
No biweekly student loan payments via autopay- Not able to see what you qualify for before formally applying
Best Features of Sallie Mae Student Loans
Strong customer experience
From loan application to disbursement (and beyond), Sallie Mae offers excellent customer service that is available through chat and phone.
Competitive interest rates
When looking for a student loan, finding a low interest rate is typically a top priority. If you qualify for a Sallie Mae student loan, you’ll have access to some of the best rates in the industry. In addition, you won’t have to pay any origination, application, or prepayment fees.
Various repayment options
Sallie Mae offers you four repayment options for your student loans, with terms ranging from 10-20 years. If possible, it’s beneficial to make in-school loan payments in order to reduce the amount of interest you pay over time.
Repayment Option
Terms
Pros
Cons
Immediate Repayment
Make full payments as soon as the loan is disbursed, while you’re still in school.
You will minimize the interest you pay, resulting in the greatest savings. Because you’re paying down both interest and principal while you’re still in school, you’ll already have made a good start on repaying your loan by the time you graduate.
For many students, it’s not realistic to make full monthly payments while still enrolled in college.
Interest-Only Repayment
Pay only interest while you’re in school.
Your monthly payments will be more manageable, and your loan balance won’t grow while you’re in school. You will also get a 1% interest rate deduction for opting in to interest-only repayment.
You won’t make any progress paying down your loan balance while you’re a student. But at least you won’t owe more than you borrowed when it’s time to start making full payments.
Fixed Repayment
Pay $25 per month while you’re in school to reduce accrued interest.
You can keep your loan balance in check, and reduce the total amount repaid. You will also get a 0.5% interest rate deduction for opting in to fixed repayment.
You’ll still owe more than you borrowed when you graduate, but your loan balance won’t grow as quickly.
Deferred Repayment
Don’t make any payments while you’re in school. Begin repayment after your grace period ends.
You won’t have to make payments while you’re in school.
You will likely pay the highest overall cost since unpaid interest will be added to your principal amount at the end of your grace period.
Allows a six-month grace period
After you are no longer in school at least half-time – because you’ve graduated, left school, or dropped below half-time enrollment – you have a grace period before you begin making full principal and interest monthly payments. The grace period is six months for Sallie Mae student loans.
Available to international, DACA, and part-time students
Sallie Mae offers student loans for a variety of academic programs, such as undergraduate, graduate, and career school programs. Unlike several other lenders, Sallie Mae student loans are also available for international students, DACA students, and part-time students.
International students: As long as you have a Social Security number and a U.S. citizen or permanent resident cosigner, you’re eligible to apply for a student loan through Sallie Mae.
DACA students: Unlike some other private lenders, Sallie Mae offers student loans to DACA borrowers with a citizen or resident cosigner.
Part-time students: While most private lenders require borrowers to be enrolled at least half-time, Sallie Mae makes its loans available to part-time (i.e. less than half-time) students seeking a degree at eligible schools.
Cosigner release option after 12 months
If you need a cosigner for your student loan, Sallie Mae might be a good option for you. Unlike several other lenders, Sallie Mae allows you to release your cosigner after 12 months of timely payments. This can be helpful if you want to build credit in your own name.
The latest rates from Sparrow’s partners
If you want to skip pre-qualification and apply directly with a lender, you can do so by clicking Apply below.
Drawbacks of Sallie Mae Student Loans
No biweekly student loan payments via autopay
When you repay your student loan, your payments are due monthly by default. Many borrowers use biweekly autopay, where you automatically pay half your monthly amount once every two weeks, in an effort to pay off their student debt faster and pay less in interest over the lifetime of the loan. Sallie Mae unfortunately does not offer biweekly autopay.
Not able to see what you qualify for before formally applying
When you submit a formal student loan application, you will undergo a hard credit inquiry, which can temporarily hurt your credit score. Because of this, many student lenders offer a prequalification process, which allows borrowers to see what rate they’d qualify for without hurting their credit. Unfortunately, Sallie Mae does not offer loan prequalification, which means that in order to see what you’d qualify for with Sallie Mae, you would have to submit a formal application and undergo a hard inquiry.
If you’d like to see what rates you qualify for at 15+ student lenders, without hurting your credit score, submit the Sparrow Application.
Sallie Mae Eligibility Criteria, Repayment Options & More
Fees and Terms
Loan Terms
10 to 20 years.
Loan Amounts
$1,000 up to the school-certified cost of attendance.
Application or Origination Fee
No.
Prepayment Penalty
No.
Late Fees
Yes, 5% of the past due amount if a payment has not been received within 15 days, however, the fee will not exceed $25.
Eligibility Requirements (Financial)
Minimum Credit Score
Mid 600s.
Minimum Income
No income minimum
Typical Credit Score of Approved Borrowers or Cosigners
749
Typical Income of Approved Borrower
Did not disclose.
Maximum Debt-to-Income Ratio
Did not disclose.
Ability to qualify if you’ve filed for bankruptcy
No.
Eligibility Requirements (Personal)
Citizenship
Must be a U.S. citizen or permanent resident, or a non-U.S. citizen with a creditworthy cosigner who is a U.S. citizen or permanent resident. DACA borrowers are eligible with a citizen or resident cosigner.
Location
Available to borrowers in all 50 states and Puerto Rico.
Must be enrolled half-time or more
No. Sallie Mae student loans are available to part-time students (ie. less than half-time) as well.
School requirements
Borrowers must be enrolled in a degree-granting program at an eligible school.
Percentage of borrowers who have a cosigner
80%
Repayment Options
In-school Repayment Options
Immediate repayment: Make full payments as soon as the loan is disbursed, while you’re in school.
Interest-only repayment: Make interest-only payments while in school and during the grace period. If you select interest-only repayment, your interest rate will be 1% lower than the deferred repayment option.
Fixed repayment: Pay $25 a month during school and the grace period. If you select fixed repayment, your interest rate will be 0.5% lower than the deferred repayment option.
Deferred repayment: Wait to make payments until you’re out of school.
Grace Period
6 months.
In-school Deferment
Yes. Borrowers can request to defer payments if returning to school or going to graduate school, for up to 48 months.
Military Deferment
Yes. The borrower must contact the military customer service representative team for more information. Interest rates will be capped at 6% during eligible periods of military service.
Disability Deferment
Did not disclose.
Forbearance
Up to 12 months available, in 3-month increments. Borrowers must pay $50 per loan, with a maximum of $150 per account, to get forbearance.
Cosigner Release
Yes, after 12 months of on-time payments.
Death or Disability Discharge
Yes, if the borrower dies or suffers a permanent disability, Sallie Mae will waive all remaining payments on the loan.
Loan discharge if cosigner dies or becomes disabled
No.
Autopay
Allows for surplus payments via autopay: Yes.
Allows for biweekly payments via autopay: No.
Customer Service
Loan Servicer
Sallie Mae
In-house Customer Service Team
Yes.
Process for Escalating Concerns
Yes.
Borrowers get assigned a personal customer service representative
No.
Average time from application to approval
15 minutes.
Student loan rates from our partners
Ascent
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 11/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require full
principal and interest payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 11/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require full
principal and interest payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
LendKey
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments.
4 – AutoPay Discount & Lowest Interest Rate
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
Earnest
Student Loan Origination (Private Student Loan) Interest Rate Disclosure:
Student Loan Origination (Private Student Loan) Interest Rate Disclosure:
College Ave
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
(1) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
(2) As certified by your school and less any other financial aid you might receive. Minimum $1,000.
(3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 11/1/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
(1) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
(2) As certified by your school and less any other financial aid you might receive. Minimum $1,000.
(3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 11/1/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
Sallie Mae FAQs
Is Sallie Mae a legitimate lender?
Yes, Sallie Mae is a legitimate lender that has been providing student loans since the late 90s.
Is Sallie Mae available in all 50 states?
Yes.
How long does it take to get a Sallie Mae student loan?
Submitting an application through Sallie Mae takes a few minutes. Once you’ve submitted your loan application, Sallie Mae will instantaneously return a decision about your eligibility. If you qualify, you will receive the rate and terms of your loan.
It may take some time to actually receive your loan. First, you must go through Sallie Mae’s loan certification process. Then, your school must approve the loan which may take between four to six weeks.
What happens if I don’t qualify for a Sallie Mae student loan?
If you don’t qualify for a Sallie Mae student loan, the company will inform you why. Depending on the reason, you may consider applying with a qualified cosigner or trying with a different lender. To check your rates across multiple lenders at once, try using Sparrow’s free search engine. In just two minutes, you can receive real, personalized offers from over 15 different lenders ready to help you. And best of all, it won’t impact your credit score.
Are Sallie Mae student loans federal or private?
Sallie Mae loans are private loans. Before you take on a private loan, we recommend that you exhaust your federal loan options.
Does applying for a loan through Sallie Mae hurt my credit score?
Sallie Mae does not have a custom prequalification process. Typically, prequalifying for a student loan includes a soft credit check, which does not affect your credit score. Thus, if you apply for a loan with Sallie Mae, a hard credit check will be done, which could temporarily hurt your credit score.