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Business Insider's personal finance team compared Sallie Mae to the best private student loans and found it to be a standard offering.
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, private student loans can be an option.
Sallie Mae is one of many private student loan lenders you might consider for these loans.
Sallie Mae Student Loans Overview
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.
What are Sallie Mae Student Loans?
Sallie Mae's 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 submit to a credit check in order to qualify. Your credit will also play a role in what interest rate and terms you get.
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 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.
Sallie Mae doesn't charge origination fees, and you also get four months of Chegg (online study support) with its undergraduate loans.
Types of Sallie Mae Student Loans
Sallie Mae offers student loans for many types of degrees, including graduate and undergraduate loans.
Sallie Mae Undergraduate Student Loans
Sallie Mae undergraduate student loans have no origination and prepayment fees, and you also get four months of the study service Chegg for free. Chegg offers expert Q&A, and students can submit up to 20 questions per month. There are three repayment options to choose from, including two that allow you to defer student loan payment 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.
Sallie Mae Student Loan Eligibility and Application Process
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)
You will also need to agree to a credit check. The exact score you will need depends on your loan program and amount. It will also impact your interest rate.
You can contact customer support by phone Monday through Thursday from 8 a.m. to 9 p.m. ET or on Friday from 8 a.m. to 8 p.m. ET. You are also able to send mail to Sallie Mae at its Delaware address.
Sallie Mae has a well-reviewed app that has received 4.6 out of 5 stars on the Apple store and 4.0 out of 5 stars on the Google Play store. You may like this feature if you want to manage your loan on the go.
5.37% - 15.70% variable and 3.99% - 15.49% fixed
late payment of 5% of the amount due, capped at $25
Undisclosed
Starts at $1,000
- No prepayment or origination fees
- Part-time students eligible
- Four months of Chegg included with your loan
- International students eligible with an eligible cosigner
- Relatively high APR
- Sallie Mae sets repayment term length
- Credit check required
- Customer service unavailable on Saturday and Sunday
- Late payment fee
- No loan preapproval
Sallie Mae is a solid lender that includes four months of Chegg with its undergraduate loans. Sallie Mae charges late fees, though, and you can get better student loan interest rates elsewhere.
- Apply through your computer or mobile device
- Customer service available via phone Monday through Thursday from 8 a.m. to 9 p.m. ET or on Friday from 8 a.m. to 8 p.m. ET
- Five, 10, or 15 year repayment term, which will be assigned by Sallie Mae
- Loan approval requires a hard credit pull
- Loan amounts available: $1,000 minimum, up to 100% cost of attendance
- Repayment options available:
- Deferred: No payments for up to six months after leaving school
- Interest only: Only make payments on the loan's interest while in school and during grace period
- Fixed payments: Pay $25 per month while in school and during grace period
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 from 3.99% to 15.49% for fixed-rate loans, including an autopay discount, and 5.37% to 15.70% for variable-rate loans.
Graduate Student Loan Rates
Graduate loan rates range from 3.99% to 14.48% for fixed rates and 5.37% to 14.97% for variable ones, while rates on career training loans are slightly higher, maxing out at 15.69% on fixed rates and 16.46% on variable rates.
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 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 |
|
|
|
Deferment and Forbearance Options
Sallie Mae offers deferment options for while you're in school or completing a residency, internship, law clerkship, or fellowship. There are no forbearance options available.
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.
5.37% - 14.97% variable and 3.99% - 14.48% fixed
None
- No prepayment or origination fees
- Part-time students are eligible
- International students eligible with an eligible cosigner
- High APR
- Only one repayment term length
- Credit check required
- Customer service unavailable on Saturday and Sunday
- Late payment fee
- No loan preapproval
- Apply through your computer or mobile device
- Customer service available via phone Monday through Thursday from 8 a.m. to 9 p.m. ET or on Friday from 8 a.m. to 8 p.m. ET
- 15 year repayment term
- Late payment of 5% of the amount due, capped at $25
- Loan approval requires a hard credit pull
- $1,000 loan minimum
- Member FDIC
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 vs. Other Private Lenders
Sallie Mae Student Loans vs. College Ave Student Loans
College Ave offers similar interest rates to Sallie Mae, with the minimum sitting at 3.99% for fixed-rate loans. 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.
Where the two differ is in product offerings. College Ave has a parent loan, while Sallie Mae does not. It 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
Earnest Graduate Student Loans have higher minimum interest rates than Sallie Mae, with 4.17% being the lowest rate currently available (including a 0.25% autopay discount). 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 5% of your outstanding balance for late payments.
Pros and Cons of Sallie Mae Student Loans
Sallie Mae's student loans have both drawbacks and advantages. Make sure you weigh both before applying for your loan.
Advantages
- Four months of Chegg are included with undergraduate loans. The study service Chegg offers expert Q&A, and students can submit up to 20 questions per month.
- 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.
Disadvantages
- 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.
- Customer service unavailable on the weekends. If you need help with your loan on the weekend, Sallie Mae won't be able to help you.
Sallie Mae Student Loan Customer Experience
Sallie Mae's customers generally report a poor experience with the lender. It rates a mere 1.3 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, currently 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.
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 loans may have origination fees and other charges. Review the loan terms carefully before applying.
Sallie Mae provides various student loan repayment plans, including fixed repayment, interest repayment, and deferred repayment options.
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 do not directly tie 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 >>
