Sallie Mae student loan review for 2024

Sallie Mae®, a leading private student loan provider in the U.S., is renowned for its competitive rates and comprehensive loan options, covering a range of educational programs, including professional training and certificate courses.

Unlike some lenders, this one approves funds for full-time, half-time, and even part-time students, providing as little as $1,000 or up to 100% of school-certified expenses.

If you're looking to refinance your student loan, Sallie Mae may not be the best option as it doesn't offer refinancing.

What does Sallie Mae offer student loans for?

In 1972, the Student Loan Marketing Association was established as a government-backed entity to manage federal student loans. It later transformed into a publicly traded consumer bank in 2004 and now provides private student loans and savings products to assist families in funding their college education.

It offers loans for a variety of educational needs, including:

• Undergraduate school
• Graduate school
• Career training and professional certification courses
• Business school
• Law school
• Bar study
• Medical school, residency and relocation costs
• Dental school, residency and relocation costs
• Nursing school/health professions
• Commercial flight school
• Coding boot camp

How to qualify for a Sallie Mae student loan

To qualify for a Sallie Mae student loan, you must be a U.S. citizen or permanent resident, or have a creditworthy co-signer who is. If you are an international student or a DACA recipient, you can still be eligible if you reside in and attend school in the U.S. and have an eligible co-signer. In all cases, the student or co-signer must be at least 18 years old in their state of residence.

Enrollment status

Eligible institutions can be found on the online application, and borrowers can enroll full-time, half-time, or less than half-time, and loans can be used for in-person or online schooling or as part of a participating school's study abroad program.

Credit requirements

Sallie Mae evaluates various aspects when considering an application, such as credit score, loan and payment history, employment status, and income and outstanding debts. However, the company does not reveal the minimum credit score or income requirements for approval. While having a co-signer is not mandatory, applicants are four times more likely to be approved with one, according to Sallie Mae. Between October 2022 and September 2023, 88% of Sallie Mae's undergraduate loans had a co-signer.

Sallie Mae rates, terms and fees

Your Sallie Mae loan rates and terms may differ based on your credit and program.

Rates

Sallie Mae's Smart Option Student Loan® for undergraduate students has a fixed APR ranging from 4.25% to 15.49%, and a variable APR ranging from 5.37% to 15.70%. For graduate school loans, Sallie Mae offers a fixed APR ranging from 4.25% to 14.48%, and a variable APR ranging from 5.37% to 14.97%.

Autopay comes with a 0.25% discount on monthly payments.

Terms

The loan duration can vary between 10 and 15 years based on the loan amount.

Fees

Sallie Mae does not charge application or origination fees, and there is no penalty for paying off your loan early. However, there is a 5% late fee on past due amounts (up to $25) and a returned check fee of up to $20.

Loan amounts

The minimum loan amount available to borrowers is $1,000 and the maximum is 100% of your school-certified costs for the entire year, minus any financial aid. Eligible expenses include tuition and fees, books, room and board, supplies, laptops, and transportation.

Repayment and deferment options

Sallie Mae provides various repayment options, including the option to begin repayment while still in school. All plans include a six-month grace period following graduation or withdrawal from school.

During school and grace period, you pay loan interest. Afterward, you make monthly payments on principal and interest. This option minimizes your total costs.

After six months, your payment amount increases.

You won't have to make any payments until you finish school and your grace period ends. This will give you more time to concentrate on your studies, but you'll have to pay back more in the end.

Sallie Mae offers deferment and forbearance options for loans, but loan forgiveness is typically only available in the event of death or permanent and total disability. If you're facing financial hardship, contact Sallie Mae to explore available options.

Sallie Mae benefits and features

Sallie Mae simplifies the borrowing process with tools such as a student-loan repayment calculator, scholarship programs, and free FICO® Score access.

Other perks include:

Sallie Mae's Scholarship Search: Effortlessly browse through hundreds of scholarships with customizable filters for amount, state, requirements, major, and target recipients. Co-signer release: After making 12 on-time payments and meeting specific credit criteria, Sallie Mae allows you to release your co-signer. Unlike other providers, Sallie Mae may require as few as 12 payments or wait until your repayment period is more than half over.

Sallie Mae guarantees that 95% of undergraduate and graduate students who were approved for the 2021-2022 academic year with a co-signer will be re-approved when they return for the 2022-2023 year.

Sallie Mae pros and cons

While Sallie Mae has much to recommend it, there are some drawbacks.

Pros

• Loans available to part-time students:
• Co-signer release after 12 payments
• No origination, application or prepayment fees
• Accepts in-school payments

Cons

• No student loan refinancing
• No parent loans
• Hard credit check to prequalify
• Credit score requirements not disclosed
• Late fee and returned payment charge

Sallie Mae customer service

The Better Business Bureau gave Sallie Mae an A+ rating, which is their highest grade and shows their effectiveness in handling and resolving customer complaints.

Customers who are new to Sallie Mae can contact customer service at 855-756-5626 between the hours of 8 a.m. and 9 p.m. ET on weekdays, 8 a.m. and 8 p.m. ET on Fridays, and 10 a.m. to 2 p.m. ET on Saturdays.

Customers can contact customer service at 800-472-5543, available Monday through Thursday from 8 a.m. to 8 p.m. ET and Friday from 8 a.m. to 5 p.m. ET.

You can use the automated chat feature on the Sallie Mae website to get answers to common questions.

How to apply for a Sallie Mae student loan

Enter your personal information, including name, address, birth date, employment history and Social Security number to complete the Sallie Mae online application.

You'll also need to submit information about your school including:

• School name
• Degree or program
• Enrollment level
• Expected graduation date
• Any financial aid you've been awarded
• Estimated cost of attendance, including, tuition, books and supplies

You will choose your loan repayment option and either a fixed or variable interest rate after reviewing and signing the loan disclosure. Sallie Mae will then disburse funds directly to your institution.

You only need to apply once per year.

How Sallie Mae compares to other student loans

We compared Sallie Mae's performance to that of two other significant players in the student loan industry.

Sallie Mae vs SoFi

While Sallie Mae and SoFi® are both top-rated private student loan providers, they stand out in distinct categories.

While SoFi does not offer as many loan programs as Sallie Mae, it does provide parent student loans, which Sallie Mae does not. Additionally, prequalifying with SoFi does not negatively impact your credit score, whereas applying with Sallie Mae requires a hard credit check. Furthermore, SoFi borrowers must be enrolled in school at least half-time, while Sallie Mae allows students to receive financing even if they are attending school part-time.

Both lenders have comparable interest rates and terms, and do not charge origination, application, or prepayment fees. However, Sallie Mae does impose late fees and returned payment charges.

Both SoFi and Sallie Mae offer loans for up to 100% of school-certified costs, but SoFi's minimum loan amount is $5,000 while Sallie Mae allows for as little as $1,000. If you have a co-signer, SoFi requires 24 consecutive on-time payments before you can release them, which is twice the number required by Sallie Mae. Additionally, Sallie Mae does not offer the option to refinance student loans.

Sallie Mae vs. College Ave

College Ave and Sallie Mae are both renowned student loan providers that offer loans to full-time, half-time, and part-time students. They both provide loans ranging from $1,000 to 100% of your school-certified costs.

College Ave offers more repayment options than Sallie Mae, and like SoFi, allows you to review rates and terms without affecting your credit score.

Sallie Mae requires a formal loan application with a hard credit check, which can temporarily lower your credit score. However, neither provider charges application or origination fees, and they both have late fees and returned-check charges. College Ave offers parent loans and refinancing, but if you have a co-signer, you won't be able to release them until more than half of your repayment period has passed.

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