Business Insider's personal finance team compared Sallie Mae Sallie Mae Undergraduate Student Loans to the best private student loans and found it to be a standard offering.
Sallie Mae doesn't charge application or origination fees, and there are no prepayment penalties. This lender also has more flexible enrollment requirements, with loan options for students enrolled in school less than half-time, taking online courses, or studying abroad.
There are many options to help pay for college. Scholarships and grants — aid that doesn't need to be repaid — should be your first stop, with federal student loans next. If you still have financial gaps to fill after that, Sallie Mae is one of many private student loan lenders you might consider.
Sallie Mae Student Loans Overview
What are Sallie Mae Student Loans?
Sallie Mae offers private student loans, which are different from federal student loans — loans offered by the U.S. federal government. Unlike federal student loans, which are available to everyone, have set interest rates and terms, and do not require a credit check, private student loans are offered at the lender's discretion.
Amounts, rates, terms, and eligibility requirements can vary widely, and you'll usually need to agree to a credit check in order to qualify. Your credit will also play a role in the interest rate and terms you get.
Sallie Mae is a private lender offering a variety of student loan options. There are undergraduate loans, career training loans, graduation student loans, and loans for specific career paths, including law, medical, dental, and MBAs.
Key Features of Sallie Mae Student Loans
Sallie Mae's student loans come with both variable and fixed interest rates, and you can get a 0.25% rate discount for setting up autopay. You can be enrolled full-time, half-time, or less than half-time (something most competitors don't allow), and there are both cosigned and non-cosigned options, as well as loans for many career paths and degree programs.
Additionally, Sallie Mae doesn't charge application or origination fees.
Types of Sallie Mae Student Loans
Sallie Mae offers private student loans for many types of degrees, including graduate and undergraduate loans.
Before taking out a private student loan, you should consider using savings or a federal student loan first. Federal student loans come with more flexibility and typically have lower interest rates than private student loans. Federal student loans also don't take into account your creditworthiness when determining what loans you'll qualify for.
Sallie Mae Undergraduate Student Loans
Sallie Mae undergraduate student loans have no origination and prepayment fees. There are three repayment options to choose from, including two that allow you to defer student loan payments while in school.
Sallie Mae charges a late payment of 5% of the amount due, capped at $25.
Sallie Mae Graduate Student Loans
Sallie Mae offers a general graduate student loan, as well as graduate loans for MBAs, medical/dental students and residents, and law school students. There is also a bar study loan to help cover the costs of studying for the bar exam. There are no origination or prepayment fees on these loans.
Sallie Mae Career Training Student Loans
Sallie Mae's career training student loans are designed for students in professional training, trade school, or certificate courses. The loans can be used for tuition, books, equipment, travel, and more, and there are no origination fees. There are three repayment options to choose from.
How to Apply for Sallie Mae Student Loans
Sallie Mae's loans can help you finance your educational goals. Here's who may be eligible and how to apply for one:
Sallie Mae Student Loan Eligibility Requirements
To get a student loan with Sallie Mae, you must meet the following qualifications:
- Be enrolled in a degree-granting school full time, half-time, or less than half-time
- Be pursuing a degree or certificate
- Be the age of majority in your state (18 years or older in many cases)
- Be a U.S. citizen or have permanent resident status
You will also need to agree to a credit check. The exact score you will need depends on your loan program and amount. Your credit score will impact your interest rate.
You may also consider finding a cosigner. It's common for undergraduate students to have little to no credit history, so having a cosigner with good credit will likely help you qualify for a loan with more favorable terms and rates. Securing a lower interest rate means you'll pay less in interest over time.
You can contact customer support by phone at (855) 756-5626 Monday through Thursday from 8 a.m. to 9 p.m. ET, Friday from 8 a.m. to 8 p.m. ET, or Saturday from 10 a.m. to 2 p.m. ET. You can also mail Sallie Mae at its Delaware address listed on the lender's Contact Us webpage.
Sallie Mae has a well-reviewed app that has received 4.5 out of 5 stars on the Apple store and 4.1 out of 5 stars on the Google Play store. You may value this feature if you want to manage your loan on the go.
Required Documentation
You will likely need to submit some documentation when applying for your Sallie Mae student loan, so it's best to gather these early. You'll usually need your Social Security card, proof of residency, and proof of income.
Step-by-Step Application Guide
To apply for a Sallie Mae student loan, you'll need to:
- Fill out the online Sallie Mae student loan application. You should be able to complete the application in about 15 minutes, and after doing so, you'll get your rates.
- Send the required supplementary documents. Sallie Mae may need to see financial documents including proof of income and residency.
- Sign your loan agreement. After you get all your documents in order, Sallie will send you a formal loan agreement. Sallie Mae will fund your loan after you sign on the dotted line.
Sallie Mae Student Loan Interest Rates and Fees
Student loan rates and fees vary widely between lenders, so you'll want to compare a few options before deciding who to apply with. Here's what to know about Sallie Mae's interest rates.
Current Interest Rates
Sallie Mae's interest rates are competitive with other student loan lenders and vary by loan type. Rates on undergraduate loans currently range 4.54% - 14.71% variable and 3.49% - 15.49% fixed with auto debit discount.
Graduate Student Loan Rates
Graduate loan rates range from 4.54% - 14.71% variable and 3.49% - 15.49% fixed.
Fee Structure
Sallie Mae doesn't charge origination fees, nor does it have prepayment penalties if you opt to repay your loan early. It does, however, charge a fee for late payment of 5% of the amount due, capped at $25.
Sallie Mae Student Loan Repayment Options and Benefits
Sallie Mae offers three different student loan repayment options. The right one depends on your unique situation and finances, but you can learn more about each below.
Repayment Plans Available
After taking out your loan, you have three options to repay it: deferred, fixed, and interest-only. Each option has its benefits for different types of borrowers.
Here's how these compare:
| Deferred | Fixed | Interest-only |
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Deferment and Forbearance Options
Sallie Mae offers deferment options while you're in school or completing a residency, internship, law clerkship, or fellowship. There are only forbearance options available during military service.
Loan Forgiveness Programs
Sallie Mae doesn't offer any sort of student loan forgiveness options. If you have federal student loans and enter a public service field, you may qualify to have your loan balances forgiven under the Public Service Loan Forgiveness program.
Sallie Mae Student Loan Pros & Cons
Sallie Mae's student loans have both drawbacks and advantages. Make sure you weigh both before applying for your loan.
Sallie Mae Student Loan Pros
- No origination fee. Other lenders may hit you with origination fees which are deducted from your overall loan proceeds.
- Part-time students are eligible. Most lenders don't offer loans to part-time students, making Sallie Mae stand out from the pack.
- Financial resources are available at no cost. Sallie Mae's website has an easy-to-use scholarship finder tool named Scholly Scholarships, helpful educational articles on how to compare financial aid packages, and an accrued interest calculator.
Sallie Mae Student Loan Cons
- Late payment of 5% of the amount due, capped at $25. Other lenders don't charge late fees at all if you fall behind on your payments.
- Poor customer service. Online reviews claim customers have difficulty getting an agent on the phone and resolving their issues. Another common complaint is about harassing phone calls to cosigners.
Sallie Mae Student Loan Alternatives
Before applying for a student loan with Sallie Mae, it's important to compare it against other lenders. Here's how Sallie Mae measures up to some of its competitors.
Sallie Mae Student Loans vs. Federal Student Loans
You should always exhaust your federal loan options before using private student loans, no matter who you get them from. Federal student loans come with a number of valuable benefits that private student loans just don't offer, like income-based repayment plans, low interest rates, no credit checks, and even loan forgiveness programs for some borrowers. You'll usually enjoy lower costs and more repayment flexibility with federal student loans.
Sallie Mae Student Loans vs. College Ave Student Loans
College Ave Undergraduate Student Loans offers similar interest rates to Sallie Mae. Also like Sallie Mae, it doesn't charge origination fees or prepayment penalties either, and both charge a late payment of 5% of the amount due, capped at $25.
The two differ in product offerings. College Ave has a parent loan, while Sallie Mae does not. College Ave also offers a student credit card. Sallie Mae, on the other hand, offers scholarships, savings accounts, financial aid guides, and other resources for borrowers.
College Ave Student Loan Review
Sallie Mae Student Loans vs. Earnest Student Loans
While both Sallie Mae and Earnest do not charge origination or prepayment fees, with Earnest, you won't run into late fees or application fees. With Sallie Mae, you'll be charged a late payment of 5% of the amount due, capped at $25.
Sallie Mae Student Loan Customer Experience
Sallie Mae's customers generally report a poor experience with the lender. It rates a mere 1.4 stars out of 5 on Trustpilot, though its mobile apps are highly rated, indicating they're easy for users to navigate.
Keep in mind that your individual experience may differ from what's reported online, but it's always a good idea to research customer reviews before moving forward with a loan servicer.
Is Sallie Mae Trustworthy?
Sallie Mae is considered a trustworthy company, boasting an A+ rating from the Better Business Bureau. This means the company is good at responding to complaints and customer concerns. There are no notable lawsuits pending against Sallie Mae at the moment.
Why You Should Trust Us: How We Rated Sallie Mae Student Loans
We rate all student loan products in our reviews and guides on a 1-5 scale. Sallie Mae student loans' overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. These are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths (15% of rating)
- Repayment options while in school (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category's weighting is determined based on its importance to your borrowing experience. Rates and fees have the most significant impact on the total cost of your loan, so we weigh those the most heavily. Customer support and ethics are still crucial parts of the borrowing experience but are not directly tied to a student loan's terms, so they have less of an impact on the overall rating.
Read more about how we rate student loans »
Sallie Mae Student Loan FAQs
Sallie Mae offers competitive interest rates that vary depending on the type of loan and the borrower's creditworthiness. Check its official website for the most current rates.
Yes, Sallie Mae offers deferment options for borrowers experiencing financial difficulties or returning to school.
You can apply online via the Sallie Mae website by filling out the application form and submitting the necessary documents.
Sallie Mae does not charge application fees, origination fees, or prepayment penalties. However, this lender charges a late payment of 5% of the amount due, capped at $25, and a returned check fee of up to $20.
Sallie Mae provides various student loan repayment plans, including fixed repayment, interest repayment, and deferred repayment options.
