Sallie Mae Review
Sallie Mae is a publicly traded consumer bank that offers private student loans to pay for undergraduate, graduate, and professional degrees, among other educational needs. The company was originally founded in 1973 as a federally guaranteed student loan program. Today it makes private student loans, but it stopped servicing federal loans in 2014.
Additionally, Sallie Mae Bank offers savings products and other tools to help families plan and pay for college, including a credit card that earns bonus cash back to help you pay off any student loan. It approves 95% of loans when the student signs up with a cosigner. Its loans can be used for all school-related purchases, including classes, books, and housing.
Advantages & Disadvantages of Sallie Mae
- Interest-Only Payments for 12 Months After Grace Period.
- 4 Months of Free Chegg® Study Benefit.
- Less-Than-Half-Time Enrollment Eligibility.
- Offers Varied and Fixed Rates.
- Access to Online Tutoring & Free Credit Score Tracking.
- Co-signer Release Possible After 12 Months
- Loans Available to Non-U.S. citizens & DACA students
- Does Not Offer Refinancing
- Late Fees & Returned Payment Fees Apply
- Pre-Qualification Not Available
Benefits of Sallie Mae Student Loans
- Comprehensive. Sallie Mae offers undergraduate, graduate, career training, MBA, medical school, dental school, bar study, residency, and parent student loans.
- User-friendly. There are no application fees, origination fees, or prepayment penalties.
- Flexible. Sallie Mae provides its borrowers with three repayment options: deferred, fixed, and interest-only repayment, with the added option of entering into forbearance to delay payments.
- Rewarding. Students who get a Sallie Mae loan also receive access to benefits like four months of free Chegg Study, an online education resource, and college planning resources. Sallie Mae also offers certain scholarships.
What does Sallie Mae Student Loans offer?
Sallie Mae provides a diverse range of loans for students to help pay for undergraduate and graduate degrees, along with specialty degrees. Loans also accommodate part-time students and those pursuing continuing education courses or earning professional certifications. Borrowers can choose from any of these types of student loans:
- Undergraduate. Variable interest rates range from 3.25% – 13.59% APR. Fixed rates range from 3.75% – 13.72% APR.
- Career training. Variable interest rates range from 3.25% – 13.97% APR. Fixed rates range from 3.75% – 14.08% APR.
- Graduate Loans. Created for graduate students seeking loans for medical, dental, health professions, MBA, law, and master’s/doctorate degree expenses. Interest rates vary depending on the field of study.
Graduate student loans that Sallie Mae offers include the following:
- MBA. Variable interest rates range from 3.75% – 13.38% APR. Fixed rates range from 4.25% – 12.92% APR.
- Medical school. Variable interest rates range from 3.75% – 13.34% APR. Fixed rates range from 4.25% – 12.84% APR.
- Medical residency. Variable interest rates range from 4.97% – 10.54% APR. Fixed rates range from 5.93% – 10.19% APR.
- Dental school. Variable interest rates range from 3.75% – 13.35% APR. Fixed rates range from 4.25% – 12.85% APR.
- Dental residency. Variable interest rates range from 4.97% – 10.54% APR. Fixed rates range from 5.93% – 10.19% APR.
- Graduate health professions. Variable interest rates range from 3.75% – 13.38% APR. Fixed rates range from 4.25% – 12.92% APR.
- Law school. Variable interest rates range from 3.75% – 13.35% APR. Fixed rates range from 4.25% – 12.85% APR.
- Bar study. Variable interest rates range from 5.02% – 14.65% APR. Fixed rates range from 5.25% – 13.66% APR.
Sallie Mae offers the Multi-Year Advantage program, in which students can reapply for a loan easily year after year. It also lends to borrowers that are often ineligible for student loans from other lenders, such as DACA students or foreign residents, making it a useful resource.
To qualify for a student loan from Sallie Mae, you must meet the following requirements:
- Borrowers must be the age of majority (18 in most states).
- Borrowers must be U.S. citizens or permanent residents. DACA students or foreign residents can apply if they have a U.S. citizen cosigner.
- You or your cosigner must have sufficient income.
- You or your cosigner must pass a credit check.
Sallie Mae doesn’t charge origination fees or prepayment penalties. However, there is a late fee if you miss a payment—5% of the missed payment amount, up to a maximum of $25—and a $20 returned check fee.
If you sign up for automatic payments, Sallie Mae will reduce your interest rate by 0.25%.
In case of financial trouble and the inability to afford regular payments, Sallie Mae offers the chance of delayed payment under the risk of forbearance. Sallie Mae will discharge any loan if the student dies or becomes permanently and totally disabled.
How it works
Get a Pre-Qualification
Discuss Terms of Loan & Repayment
Get Your Student Loan
It has streamlined its application process and promises fast approvals, although a hard credit check is required in order to see your rates and options. Its additional benefits, like the Multi-Year Advantage program and $0 origination fees, do help most students take control of their loans over the entirety of their time in college for easier payments after graduation.
Once pre-qualification is complete, you have the ability to customize the loan to better fit your needs by modifying repayment terms, rates, payment types, and other factors. Repayment options include:
- Deferred – With deferred repayment, you don’t make payments while the student is in school and during the grace period. Deferred repayment is available for undergraduate, graduate, medical school, dental school, MBA, and law school student loans. Parent student loans and career training loans aren’t eligible.
- Fixed – Under a fixed repayment plan, you pay $25 per month while you’re in school. Once you graduate and after your grace period, you begin paying the principal and interest. Career training, undergraduate, graduate, medical school, dental school, MBA, and law school loans are eligible for fixed repayment.
- Interest – If you choose the interest-only repayment option, you’ll make monthly interest payments while in school and during the grace period. Parent, career training, undergraduate, graduate, medical school, dental school, MBA, and law school student loans qualify for interest repayment.
I have been with Sallie Mae for many years, I started to pay off my loans but went back to college and had several forbearance. Because I started out late, I also went on disability until retirement and now I am in a program thru President Obama that I don't have to repay for 25 yrs then the loan will cancel. Sallie Mae was always a good company to deal with, great customer service.
Sallie Mae has been good. They send plenty of reminders when your bill is coming due or something has changed with your account. I am a co signer and I like being kept in the loop. I would apply with Sallie Mae for school loans in the future.
Sallie Mae is a national student loan lender with multiple programs. While its application requires a hard credit check, it has online resources and a 95% approval rating for applicants with cosigners. Sallie Mae has more loan options than any other lender, offering loans for career training, bar study, and medical residency. With multiple loan options, repayment plans, and loan terms, students can customize their loan to meet your needs.
*Sallie Mae’s private student loans are best for those who want to be rewarded for making payments while in school.