Sallie Mae Review

Overview

Sallie Mae® is one of the most well-known providers of student loans in the USA. As a private lender, Sallie Mae has helped countless Americans achieve their educational goals, and continues to offer a wide variety of loan options so you can explore rates, terms, and repayment conditions that work best for you. Whether you’re just starting out as an undergrad, or you’re well on your way to a Masters or PhD, Sallie Mae is a great choice that can help you close funding gaps, while also enjoying competitive rates and beneficial terms.

Why Choose Sallie Mae?

Sallie Mae originally got its start back in 1973, and over the years has grown and expanded into the company we know today. Throughout the decades they have been a stable source of financial resources for students who want to invest in their future, offering loans, credit cards, savings accounts, and planning materials for everyone to tap into. A household name when it comes to private student loans, Sallie Mae is one of the most popular options for students pursuing a post-secondary education, and they have millions of clients who rely on their services to fill in any funding gaps. 

While most students begin by seeking out federal loans and scholarship opportunities, the reality is that these funds don’t always cover the full amount needed for your education. Tuition, books, housing, food, and other expenses can add up quickly throughout your time at college, leaving you with an outstanding balance that you need to figure out how to cover. Private loans are a great way to cover these gaps in funding, providing you with access to the money you need while still taking into account the fact that you’re a student. Unlike other private loan providers, Sallie Mae understands you are pursuing your education, not working, and require a loan that accounts for these factors when determining rates and repayment. 

With Sallie Mae you can not only achieve your educational goals and dreams, you can also set yourself up for a strong financial future by putting yourself on the right path with savings and long-term, healthy habits. Sallie Mae can help you do more than just pay for schooling, they can also help you:

• Plan for the future
• Save money with specialized accounts
• Reach big goals with a number of financial products
• Find applicable scholarship with their free search tool
• Make responsible financial decisions
• Establish good credit
  

Types of Private Loans

Sallie Mae offers a wide range of private loan types that can assist virtually all students in achieving their educational goals. These loans may be able to cover up to 100% of all your eligible school-certified expenses, and can be used in conjunction with government-funded loans. Some of the common loan types that students apply for with Sallie Mae include:

• Smart Option Student Loan® for Undergraduate and Career Training Students 
  
• Graduate Student Loans
• MBA Loans
• Medical School Loans
• Medical Residency Loans
• Dental School Loans
• Dental Residency Loan
• Health Professions Graduate Loans
• Law School Loans

How much you borrow for your private loan will depend on what exactly you need. For some students, there may only be a small gap between their federal funding and total costs, while others may need significantly more in order to cover all expenses. The best course of action is to only borrow an amount that you genuinely think you can afford to pay back once you graduate, mainly taking into account how much your chosen career field pays. Sallie Mae is here to help fund your education, but they also want to ensure you don’t start off your post-university life with a huge amount of debt, which is why they offer college planning, savings accounts, and other information to assist you in making smart financial decisions. 

Sallie Mae can also help you find scholarships that you may be eligible for through their online search engine. Completely free to use, the Sallie Mae Scholarship Search opens the door to over 6 million opportunities that you can explore and apply to easily. If you do qualify, this can provide you with additional funding and ultimately reduce how much you require in private loans in order to pay for college.

How Does It Work?

You may be wondering if a private student loan is right for you, and the truth is it will depend on a number of factors. Scholarships, grants, and federal funding will likely be your first avenue before you explore private loans to fill in any gaps. Depending on your situation, you may be left with extra expenses that aren’t covered, and with your time being spent studying instead of working, you will need extra money in order to complete your education. What you use your private student loans for will come down to your circumstances and needs, but many find they are helpful for:

• Tuition
• Housing
• School Fees
• Books
• Supplies
• Transportation
• Necessary Electronics

With Sallie Mae, you only need to apply once a year and they will send a check for tuition directly to your school for you every semester. Private student loans can be used for regular semesters, as well as summer semesters, and can help you complete everything from your undergraduate degree to your PhD. 

The application process itself is simple and it all begins online. Simply provide your basic information, details about your school, and wait to see if you are approved for the loan of your choice. If approved, Sallie Mae will then allow you to continue with your application, where you can select the loan type, repayment plan, and even interest rate that best suits your needs and your budget. Sallie Mae will look over your application and, if they approve it, will send you over the final documentation for you to sign and complete the process.

Sallie Mae Loan Requirements

Before you begin the application process it is important to consider the loan requirements that are set forth by Sallie Mae. Beyond just being a US citizen or permanent resident, you must also meet a number of financial criteria in order to be approved. Sallie Mae will also consider non-US citizens who are continuing their education in the USA, so long as they have a co-signer who is able to be approved and is a citizen.

Sallie Mae will look at a number of factors when making their approval decision, mainly centering around your financial situation and credit history. For some students, this may be difficult as young adults rarely have built up enough of a history to make them worthy of a loan, which is why many choose to have a cosigner on their application. Cosigners are creditworthy adults who have the financial history needed to be approved for a loan, and these will generally be family members such as a parent, a grandparent, or a close family friend. 

Whether you choose to have a cosigner or not, some of the key criteria that can affect eligibility include a:

• Minimum credit score in the mid-600s
• History that does not include an open bankruptcy
  
• Sufficient income

As for the loan amount itself, the amount that can be borrowed is $1,000 up to 100% of the school-certified expenses**.

Rates, Fees, Terms, & Repayment

One of the biggest questions surrounding private loans is about how much this will cost the borrower once they are out of school. Unfortunately, there is no one-size-fits-all answer for this, as each student will have their own unique circumstances surrounding their student loans. How much you borrow, what your rates are, the details of your repayment plan, and your loan term length will all impact how much a private loan will cost you.

With Sallie Mae there are no origination fees and no prepayment penalties***, meaning you won’t have to worry about these hidden costs along with your loan. Instead, you will benefit from having access to flexible repayment schedules and personalized term rates, all of which go a long way in making Sallie Mae an affordable option for covering gaps in funding. 

If you’re interested in seeing exactly what you could qualify for, and what rates and terms you would be eligible for, then the best thing to do is complete an application, which is completely free to fill out, and with no commitment necessary.

Bottom Line

Don’t let financial worries cloud your college dreams and instead partner with Sallie Mae to make your career goals a reality. Featuring affordable funding that you can depend on, Sallie Mae offers all types of students the opportunity to pursue higher education and to get a degree that opens the door to their future. With flexible repayment options and competitive APRs to take advantage of, Sallie Mae can help you cover any funding gaps and allow you to get started pursuing your passions at the school of your choice. 

To learn more about Sallie Mae, or to see why so many Americans choose them as their private loan provider, you can visit their website today. There you will be able to explore all of the loan types available and browse their extensive library of educational materials. From various loans to savings accounts and more, Sallie Mae makes it easy to understand your financial needs and see the many solutions available to you. Partnering with millions of students across the nation, Sallie Mae is a trustworthy and reliable resource for making your educational dreams come true.

Borrow responsibly

We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.

Loans for Undergraduate & Career Training Students are not intended for graduate students and are subject to credit approval, identity verification, signed loan documents, and school certification. Student must attend a participating school. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident), and provide an unexpired government-issued photo ID. Requested loan amount must be at least $1,000.

Undergraduate loan: Variable rates: 6.12% – 16.45% APR and Fixed rates: 4.50% – 15.49% APR. Lowest rates shown include the auto debit discount.

* Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment.

** For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website may be subjected to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time.

*** Although we do not charge a penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note—first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.

SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.

Information advertised valid as of 4/25/2023.

Sallie Mae loans are made by Sallie Mae Bank.

Consumer Voice is not the creditor for these loans and is compensated by Sallie Mae for the referral of the Sallie Mae loan customers.