Sallie Mae Student Loans Review 2024 (2024)

• Sallie Mae Overview
• Sallie Mae Undergrad Student Loan Details
• How To Qualify for a Sallie Mae Student Loan
• How To Apply for a Sallie Mae Student Loan
• How To Contact Sallie Mae
• Methodology
• Frequently Asked Questions (FAQs)

Sallie Mae was formed as a government-sponsored enterprise in 1972 and started offering private student loans in 2004.

The company offers undergraduate loans and graduate loan options for students in medical, dental, health professions, business or law.

Students taking professional training or certificate courses such as culinary arts, aviation and more, are also eligible for funding.

This review focuses on private student loans for undergraduates.

Loan Amounts and Terms

• Loan amounts. You can borrow up to the total cost of attendance, including tuition, fees, and room and board. You should maximize federal and state grants, scholarships and federal student loans before applying for private funding.
• Terms. Loan terms range from 10 to 15 years.

Loan Costs and Fees

• Annual percentage rate (APR). Sallie Mae’s variable interest rates for undergraduate students range from while fixed rates range from
• Origination fees. Sallie Mae charges no origination or application fees.
• Late fees. Sallie Mae charges a . When you opt to make automatic monthly payments, you’ll receive an interest rate discount of 0.25%.
• Prepayment fees. Sallie Mae charges no prepayment fees, allowing you to potentially pay your loan early.

Repayment Options

Sallie Mae offers three repayment plans. A six-month grace period is available after you leave or graduate from school. The earlier you begin making payments on your loans, the more money you’ll save over time.

• Interest repayment: You’ll pay interest in school and during your grace period. After that, you’ll pay principal and interest for your full loan term—making you eligible for a lower interest rate. However, in-school payments may be larger than fixed or deferred options.
• Fixed repayment: A $25 monthly payment is due while you’re in school and during your grace period. After that, you’ll pay both principal and interest for your full loan term.
• Deferred repayment: You won’t pay anything while in school or during your grace period. After that, you’ll pay both principal and interest for your full loan term.

You can pause payments using Sallie Mae’s forbearance program for up to 12 months throughout your term. With deferment, you can go back to school or participate in programs like a clerkship, fellowship or residency. However, your interest will continue to accumulate while you are deferred.

Perks and Features

Sallie Mae offers several unique benefits to undergraduate student loan borrowers, including:

• Co-signer release. After 12 months of full, on-time payments, you can release your co-signer from the loan, which frees them of all debt obligations.
• Access to free tutoring services. Borrowers receive four free months of study help from Chegg.
• Free FICO score access. If you have a Sallie Mae account, you can access your FICO score for free, which allows you to track and fix your credit score.

Eligibility Requirements

Sallie Mae evaluates your credit score, payment history, income, employment and citizenship status. It does not disclose its minimum credit score and income requirements.

To be eligible for a , you must be a U.S. citizen or permanent resident. DACA students can qualify with a U.S. citizen or permanent resident co-signer. Applicants and co-signers must meet the age of majority in their state of residence.

Students must pursue a bachelor’s degree, associate’s degree or a certificate at an eligible institution. The online application lists all of the eligible institutions. Sallie Mae also requires students to max out their federal student loans, scholarships and grants before applying.

Co-signer Options

Students are three times more likely to receive approval with a co-signer, according to Sallie Mae. The company will look at your co-signer’s credit and financial history to determine their eligibility.

A co-signer release is available after you’ve made 12 full, on-time payments. You aren’t eligible if you’ve opted for forbearance or deferment during that 12-month period. You must also show proof of graduation and proof of income.

Fill out the online application form with your personal and financial information to get a credit decision. Personal information includes your name, birthdate, address, employment information and Social Security number.

You’ll also need the gather following information on your school:

• School name
• Degree information
• Enrollment level
• Planned graduation date
• Previously awarded financial aid
• Estimated cost of attendance, including books and supplies, travel and miscellaneous expenses

Sallie Mae will offer an estimate based on your information. If you’re approved, choose your interest rate type and repayment term. Once you select your terms, Sallie Mae will send you a loan disclosure containing your loan details. You’re only required to apply once per year.

Your school will certify the loan 30 days before classes start. Loan funds are disbursed to schools once per semester. Monthly payments begin after disbursem*nt if you choose the interest or fixed repayment options.

Related:Best Private Student Loans

You can chat online with a customer service agent Monday through Friday from 8 a.m. to 8 p.m. ET using the chat feature on the website.

You can also contact Sallie Mae by phone:

• Call 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; and Saturday from 10 a.m. to 2 p.m. ET.
• To pay by phone, call 888-295-3447 Monday through Friday from 10 a.m. to 7 p.m.

We reviewed Sallie Mae based on 16 data points in the categories of interest rates, fees, loan terms, hardship options, application process and eligibility. We rated Sallie Mae based on the weighting assigned to each category:

• Hardship options. 30%
• Application process. 16%
• Loan terms. 14%
• Eligibility. 14%
• Interest rates. 13%
• Fees. 13%

Specific characteristics taken into consideration within each category included number of months of forbearance available, economic hardship repayment options available beyond traditional forbearance, perks like cash-back rewards upon graduation, discounts, time to default, disclosure of credit score and income requirements, and other factors.

Lenders who offered interest rates below 10% scored the highest, as did those who offered more than the standard 12 months of forbearance, who made their loans available to non-U.S. citizens, who offered interest rate discounts beyond the standard 0.25% for automatic payments, who offered multiple loan terms maxing out at 15 years and who charged minimal fees.

In some cases, lenders were awarded partial points, and a maximum of 3% of the final score was left to editorial discretion based on the quality of consumer-friendly features offered.

To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our .

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