Lender Profile: Sallie Mae Student Loans

Sallie Mae Student Loans

Sallie Mae offers undergraduate, graduate, and parent loans for college. Undergraduates will generally need a cosigner to qualify due to credit standards, but the cosigner can be released in specific conditions. Sallie Mae student loans offer a wide range of repayment terms, along with both fixed and variable interest options.

 

Sallie Mae offers unique benefits like a quarterly FICO credit score for borrowers, and a Study Starter program for students in partnership with Chegg®.

 

Continue reading more about Sallie Mae student loans.

 

Sallie Mae Student Loan Summary

 

Types of Loans AvailableStudentParent
Cosigner ReleaseYes after graduation and 12 on-time paymentsNo
Prequal With Soft Credit CheckNo, application requires credit checkNo, application requires credit check
Borrowing AmountMinimum: $1000
Maximum: Certified Cost of Attendance
Minimum: $1000
Maximum: Certified Cost of Attendance
Repayment Length5-15 years, depending on loan amount10 years
Interest RatesVariable: 3.87% - 10.75%
Fixed: 5.74% - 11.85%
Variable: 5.37% - 11.74%
Fixed: 5.74% - 12.87%
FeesNo fees for application, origination, or early payoffNo fees for application, origination, or early payoff
BenefitsStudent Starter w/ Chegg®
Quarterly FICO score
0.25% interest rate reduction with autopay
Quarterly FICO score
0.25% interest rate reduction with autopay
Repayment TermsOptions include:
*Interest-only in school
*$25/mo in school
*Defer until six months after school ends
*Up to 12 interest-only payments after graduation
Options include:
*Full immediate repayment
*Interest-only while student in school up to 48 months
Hardship Options Available*Loan forgiven if student dies or is permanently disabled
*Forbearance and hardship programs available
*Loan forgiven if student dies or is permanently disabled
*Forbearance and hardship programs available

 

 

About Parent and Student Loans from Sallie Mae

Sallie Mae is a well-known student lender who has been helping families pay for college since 1972. They offer loans to undergrads, graduate students, and parents of students.

 

The undergraduate student loans will have a term between 5 – 15 years, depending on how much you borrow. All parent loans have a term of 10 years, although if you choose the 48 months of interest-only payments those months do not count toward the 10-year timeframe.

 

Both undergraduate and parent loans are available for amounts between $1,000 and the certified cost of attendance at school. The actual amount Sallie Mae approves you for will be based on creditworthiness and other factors.

 

When you choose a student or parent loan from Sallie Mae, you receive access to quarterly FICO credit scores for free. Both the borrower and cosigner gain this benefit.

 

In addition, a student borrower receives a Student Starter benefit. This allows a student to get up to 120 minutes of live tutoring from Chegg Tutors™ or four months step-by-step Textbook Solutions and Expert Q&A from Chegg Study®. Your student can also combine them and choose 60 minutes tutoring and two months of Chegg Study®.

 

 

Qualifying for a Student Loan from Sallie Mae

To qualify for a student loan from Sallie Mae, you must meet creditworthiness criteria. Most undergraduates will need a cosigner to be approved for this private student loan. However, the cosigner can be released under specific conditions.

 

In addition, student borrowers must be:

  • Attending a degree-granting institution
  • A U.S. Citizen or permanent resident, or international borrower with creditworthy U.S. cosigner

 

A prequalification using only a soft credit hit is not available from Sallie Mae.

 

 

Qualifying for a Parent Loan from Sallie Mae

Parent loans can be issued to any creditworthy individual on behalf of a student. The borrower, cosigner, and student must be U.S. Citizens or permanent residents. In addition, the student must be attending a degree-granting institution.

 

Parent loans allow a cosigner, but there is no cosigner release unless you refinance the loan. The student cannot be the primary borrower or cosigner.

 

A prequalification using only a soft credit hit is not available from Sallie Mae.

 

 

Interest Rates and Fees for Sallie Mae Student Loans and Parent Loans

Both parent loans and student loans from Sallie Mae have variable and fixed interest rate options. You choose your interest rate option during the application process.

 

For student loans, variable rates range from 3.87% – 10.75% and fixed interest rates are between 5.74% – 11.85%. There is no application, origination, or early payoff fees with these loans.

 

Parent loans have variable interest rates between 5.37% – 11.74% and fixed interest rates between 5.74% – 12.87%. There are also no application, origination, or early payoff fees on Sallie Mae parent loans.

 

In both undergraduate and parent loans, borrowers and cosigners can receive a 0.25% interest rate reduction by using automatic payment.

 

 

Repaying a Student or Parent Loan from Sallie Mae

Sallie Mae offers a variety of repayment options for both students and parents.

 

Students can choose between the following repayment options:

  • Interest-only payments in school, regular repayment starts six months after graduation
  • $25/mo in school with regular repayment starting six months after graduation
  • Defer until six months after school ends, then begin full repayment

 

Students can also apply to make 12 interest-only payments after graduation, to slowly transition into full payment. Any reduced payments or deferment will cause any remaining interest to be added to the principal.

 

Parents can choose to begin full repayment right away, or make interest-only payments while the student is in school. The maximum number of interest-only payments is 48, and then full repayment begins.

 

If a student has a cosigner, that cosigner can be removed after graduation and 12 on-time payments. The student borrower will need to meet other income and credit criteria as well.

 

If a student dies or is permanently disabled, Sallie Mae will waive the remaining student loan payments. If a borrower is having financial trouble, they can apply for forbearance and explore other hardship options. It’s important to let Sallie Mae know right away so you can quickly get back on track.

 

 

Keep School Affordable!

Knowing your loan options is only one piece of the puzzle. It’s also vital to choose a generous school and take other steps to keep college costs low. If you’re still looking at schools, find out which ones are best for your family with our toolkit today!

 

 

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