Sallie Mae and SoFi® are two reputable lenders in the private loan industry, so you truly can’t go wrong with either. If you’re debating Sallie Mae vs SoFi, here’s what you should know about their private student loans before borrowing with either lender.
Sallie Mae vs. SoFi: A Side-by-Side Comparison
The table below offers an overview of what Sallie Mae and SoFi have to offer.
Sallie Mae
SoFi
Loan Terms
10 to 20 years
5, 7, 10, or 15 years
Loan Amounts
$1,000 to your school-certified, total cost of attendance
$1,000 up to your school-certified, total cost of attendance
Minimum Credit Score
Mid-600s
Mid-600s
Minimum Income
No minimum income requirement
No minimum income requirement
Cosigner Release Options
Yes, the cosigner can be released after 12 months.
Yes, the cosigner can be released after 24 months of timely payments.
Ability to Transfer a Parent Loan to a Student
No
No
Student Status
Students enrolled at a degree-granting institution qualify for student loans.
Must attend an institution that is authorized to receive financial aid
State Restrictions
None
None
Sallie Mae: The Pros and Cons
Sallie Mae student loans are good options for DACA recipients, international students, and individuals who want a short turnaround for cosigner release.
Pros
Offers competitive interest rates.- Has 4 different repayment plans.
- Offers private loans to international and DACA students.
- Cosigners can be released from a student loan after 12 months of timely payments.
- Offers a variety of borrower perks, including free scholarship searches, financial planning calculators, and financial literacy resources.
Cons
Does not offer biweekly student loan payments via autopay. Payments must be paid on a monthly basis.- Does not offer loan pre-qualification, meaning that borrowers must submit a formal application and incur a hard credit check to see what they qualify for.
- Loans are not accessible to students who are enrolled less than part-time.
SoFi: The Pros and Cons
SoFi student loans are fitting for borrowers who are interested in having a variety of borrower benefits and strong borrower protections.
Pros
- Tends to offer lower interest rates than its competitors.
- Has 4 different repayment plans.
- Cosigners can be released from a student loan after 24 months of timely payments.
- Offers generous forbearance and deferment options.
- Offers a variety of borrower perks, including ACH discounts, flexible repayment options, and no fees.
Cons
- Borrowers must have “good” or “excellent” credit scores.
- Loans are not accessible to students who are enrolled less than part-time.
- You will only receive a 6-month grace period if you have the deferred repayment plan.
Sallie Mae vs. SoFi: Which is Better for Student Loans?
When comparing Sallie Mae and SoFi, the right choice depends on your personal circumstances.
SoFi offers a fully online application, no fees, flexible repayment options, and even a cash bonus for students who maintain a 3.0 GPA or higher. Borrowers may also qualify for rate discounts and benefit from a six-month grace period after graduation (nine months for health professionals).
For DACA recipients and international students, Sallie Mae may provide options that better align with eligibility requirements.
If you’re applying with a cosigner, it’s also worth comparing cosigner release timelines. Sallie Mae allows cosigner release after 12 consecutive on-time payments, while SoFi offers this option after 24 months of consecutive on-time payments.
Closing Thoughts From the Nest
Both Sallie Mae and SoFi are great, reputable lenders. To compare personalized loan offers from both companies, consider submitting a free form with Sparrow. Your credit score will not be negatively affected by your pre-qualified offers.