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Sallie Mae Student Loans Review

Provides a variety of loans, with a variety of repayment options

Sallie Mae is one of the industry’s most prominent private lenders of a student. Sallie Mae may be the best option for those who have had difficulty getting other loans. It offers undergraduate, graduate, and career instruction, MBA, medical school, dental school loans, etc. It also lends money to those not eligible for loans for students offered by other lenders, for instance, DACA students or foreign-born residents. This makes it a valuable source.

  • Sallie Mae offers undergraduate, graduate, career, and training programs, MBA, medical school the dental college, bar studies, residency, and parent-student loans.
  • In most loan programs, the minimum amount is $1,000, and you can take out loans up to the amount of the cost of attendance.
  • There are no application costs, origination fees, prepayment charges.
  • Sallie Mae offers three options for repayment: fixed, deferred, and interest-only.
  • If you cannot make the payments, Sallie Mae may allow you to take advantage of forbearance to defer the payment.
  • Releases from Cosigner are available in as little as one year.

The federal government is the most significant source of student loans across the U.S. (92.29% of student loans are federal). Using private lenders can be an excellent decision.1 Additionally, Sallie Mae Bank, a publicly traded corporation, is said to be the largest in the industry (owns 1.4 percent in student loans).2 It lets students of all ages, including graduate and undergraduate and vocational students — as well as their parents–take out loans up to the amount of their college education costs and as long as 20 years to pay back (depending on the goal of this loan).

But, Sallie Mae loans do come with a few disadvantages. You need to be aware of this, Sallie Mae, to make an informed choice.

Pros Explained

  • The Loans are available to groups that are often overlooked. Some lenders limit applicants to those with U.S. citizens and enroll in school for at minimum half-time. Through Sallie Mae, you could be eligible for loans even in the case of a part-time or international student (including DACA students).
  • In the event of death or disability, Sallie Mae will discharge. In contrast to many banks, Sallie Mae will discharge (forgive) the loan balance if a student dies or becomes permanently disabled, even if parents have the loan. It’s a benefit over other loans offered by lenders, which include Federal Parent PLUS loans.
  • Cosigner Release: You can request that your cosigner be eliminated from the Sallie Mae loan after 12 months of regular payments. Private lenders typically require on-time payments for several years before you are eligible for a release for a cosigner.

Pros and Cons Explained

  • Fees for late and returned payments If you do not make the payment due date, Sallie Mae will charge the late fee, equal to 5 percent of the scheduled payment amount, to the maximum amount of $25. Other lenders, including Discover, do not charge any late fees. Sallie Mae also charges $20 for any returned payment.
  • There is no pre-qualification. Specific lenders, like SoFi they allow the prequalification of loans. With just a few simple questions, you’ll be able to determine if you’re eligible and receive an estimate of the rate without impacting the credit rating. To decide whether or not you’re eligible and the rate your interest will be at, Sallie Mae, the applicant has to fill out an application and investigate your credit report that could impact your score on credit.

Sallie Mae offers student loans.

Sallie Mae offers a wide selection of student loans, including residency loans and bar exam loans.

Undergraduate Student Loans

If you’re a dependent undergraduate student, you rely on your parents at a minimum for financial support–then the maximum amount you can borrow from federal direct-subsidized or unsubsidized loans is $5,500-$7,500 (the limit is increased in the initial year in school).

There’s a good chance you’ll require more than that to pay for your tuition and accommodation and food, so Sallie Mae’s student loans for undergraduates will help you fill in the gaps. You can borrow up to the total cost of attending college. There aren’t costs for origination or penalties for prepayment.

Variable rates 1.13 percent to 11.23%

Fixed Rates 3.50% up to 12.60%

Loan Amount Up to the cost of the course

The Loan Terms are 5, 10 or 15

The lowest rates listed include auto-debit discounts

Student Loans for Career Training

Suppose you’re planning to go to college for professional development or earn a certification in a specific trade, such as culinary or technical college. In that case, you can obtain funding through Sallie Mae’s Career Education Smart Option Student Loan. You can get up to the cost of attending school, even to cover expenses like food and laptops, and there’s no charge for origination or prepayment penalties.

Variable Rates 4.12% up to 11.52%

Fixed Rates 6.62% up to 13.83%

Loan Amount Up to the cost of the course

Terms of Loan 5, 10, or 15 years

The rates that are the lowest are inclusive of an automatic debit discount

Graduate School Student Loans

If you’re planning to pursue the master’s qualification, Sallie Mae’s graduate school loans could be an excellent option to supplement federal loans with an annual interest of 6.28%.4 Direct PLUS loans are subject to hefty fees for disbursement fees–4.228 percent for loans beginning from October. 1st 2021.

Sallie Mae’s student loans do not have charges for origination, and the repayment period is 15 years with a grace period of six months.

Variable Rates 2.12% up to 11.64%

Fixed Rates 4.75% up to 12.11%

Loan amount Up to the cost of the course

Credit Terms 15 Years

The lowest rates listed contain an auto-debit discount

MBA Loans

An MBA credit offered by Sallie Mae is geared towards those attending business school seeking a master’s qualification in management. It will pay up to 100 percent of the expenses you have been certified by your school. Once you complete your degree, you can avail yourself of the option of a grace period of 6 months and the possibility of up to 48 weeks deferred during your internship.

Variable Rates 2.12% up to 11.64%

Fixed Rates 4.75% up to 12.11%

Loan Amount: Up to the cost of the course

Credit Terms 15 Years

The rates that are the lowest contain an auto-debit discount

Dental School Credit

School loans for dental students through Sallie Mae have a loan period of 20 years, giving you the time to repay the loan and a less expensive monthly payment. There’s a 12-month grace period for dentists, and you can borrow as much as the total costs of attendance for the course.

Variable Rates 2.12% up to 11.48%

Fixed Rates 4.75% up to 11.98%

The loan amount is $1,000, up to the cost of the course

The Loan Terms are 20 years

The lowest rates listed are inclusive of an automatic debit discount

Medical School Loans

Medical school loans offered by Sallie Mae also have a period of 20 years for the loan. For medical professionals, you’ll be granted a grace period of 36 months when you begin your professional career, and you can take out loans up to the amount of the cost of attending the program.

Variable Rates 2.12% up to 11.48%

Fixed Rates 4.75% up to 11.97%

The loan amount is $1,000, up to the cost of the course

The Loan Terms are 20 years

The lowest rates are shown that contain an auto-debit discount

Dental as well as Medical Residency along with Relocation Loans

Sallie Mae’s loan for medical residency and relocation is a great way to cover the expenses of your board exam fees, travel, and moving costs. You can get up to $30,000, and there are no origination charges or penalties for prepayment. You won’t be liable for any payments when enrolled at least half-time during the grace period.

Variable Rates 2.90% up to 8.58%

Fixed Rates 5.93% up to 10.19%

The loan amount ranges from $1,000 to $30,000

The Loan Terms are 20 years

The lowest rates listed contain an auto-debit discount

Law School Student Loans

For students in law school, You can take out loans up to the amount of your tuition through Sallie Mae’s loan for law school. The loans come with a 9-month grace period and the option of deferring for 48 months during the fellowship or clerkship. There aren’t any origination fees or penalties for prepayment.

Variable Rates 2.12% up to 11.48%

Fixed Rates 4.75% up to 11.98%

The loan amount is $1,000, up to the cost of the course

The Loan Terms are 15 years

The lowest rates listed contain an auto-debit discount

Bar Study Loans

When you are studying to pass the bar exam, you may take advantage of the Sallie Mae Bar exam loans to pay for expenses for living and exam fees. You can borrow up to $15,000, and you have a period of 15 years before you have in which to repay the loan. There are no obligations during your time, at least half-time, throughout your grace period (9 months following your leave of school).

Variable Rates 2.90% up to 11.56%

Fixed Rates 5.75% up to 12.68%

The loan amount ranges from $1,000 to $15,000

Credit Terms 15 Years

The rates that are the lowest contain an auto-debit discount

Parent Student Loans

Federal PLUS loans are the most expensive in terms of interest rates and disbursement charges of all federal loans. The interest rate on Parent PLUS loans currently is 6.28 percent, which means that taking out an individual loan with an institution like Sallie Mae might be a viable option if your financial situation allows you to get the most affordable rates.4

You can borrow up to the amount of your student’s course costs. While parent PLUS loans are available only to parents of undergraduates, Sallie Mae parent student loans are available to finance your child’s graduate, undergraduate, or certificate degree.

Variable Rates 3.37% up to 12.99%

Fixed Rates 5.49% up to 13.87%

The loan amount is $1,000, up to the cost of the course

Unknown Loan Terms

The lowest rates are shown that include auto-debit discounts

Loan Eligibility

To be eligible for a loan for students credit from Sallie Mae to be eligible, you must meet the following criteria:

  • Borrowers must be of the majority (18 in the majority of states).
  • The borrower has to meet the requirements of U.S. citizens or permanent residents. DACA students or foreign citizens can apply if they have a U.S. citizen co-signer.
  • Your co-signer or you must be able to earn enough money.
  • Your co-signer or you need to clear a credit screening.

Do you have a loan pre-qualification option?

The problem is that Sallie Mae does not provide loan pre-qualification. To determine if you are eligible for a loan and determine the price you could get, it is necessary to complete a complete loan application and then goes through an inquiry into your credit.

Fees for Loans

Sallie Mae does not charge origination charges or prepayment penalties. There is, however, a late fee when you fail to make a payment. It’s 5 percent of the missed payment amount and up to a maximum of $25. There is also a $20 returned check fee.

Discounts on loans

Sallie Mae will reduce interest rates to 0.25 percent if you opt for automated payment.

Repayment Options

Aside from the standard principal-and-interest repayment method, in which you pay both principal and interest right away, even while you’re in school, Sallie Mae has three other repayment options:

  • Deferred It is not necessary to pay when the student is in school or in the grace time when you make a deferred repayment. Deferred repayment is available to undergraduate and graduate students in dental school, medical college, MBA, and law school student loans. Parent student loans, as well as career-related loans, aren’t eligible.
  • Fixed – In a fixed repayment plan, you’ll pay $25 per month when you’re at the school. After you graduate and following the grace period has expired, you’ll be required to pay the principal and interest. The undergraduate, career training graduate, graduate dental school, medical college, MBA, and law school loans can be repaid with the fixed repayment.
  • If you opt for the interest-only option for repayment, you’ll be required to make monthly interest payments during school and in the grace time. Parents, career training undergraduate, graduate, dental school, medical college, MBA, and law school student loans are eligible for interest-only repayment.

Other student loans like bar exams and residency loans do not have to be paid when you’re enrolled at least half-time in your grace periods.

Sallie Mae does offer some additional benefits for borrowers. The borrower will receive 4 FREE months of Chegg Study, an online tutoring program that assists your studies in any subject, and many textbooks. Additionally, you’ll have access to your FICO score updated every quarter. You can check your score whenever you log in to your account.

If you choose to take the interest-only option for payment throughout your schooling, you’ll save in the long run, as per Sallie Mae.

Do Cosigners Need to Be Licensed?

Sallie Mae does not require that you have a cosigner. However, it is strongly recommended that you include one in your application. As mentioned above, Sallie Mae does allow you to apply for your cosigner released after one year.

Although cosigners aren’t necessary, they can increase your chances of being approved for a loan.

Optional Loan Discharge and Forbearance

If you’re having difficulty making your bills, Sallie Mae may be in a position to provide you with the option of forbearance. You can temporarily delay your expenses during a specified time frame.

Sallie Mae will discharge any loan if the student dies or is completely and permanently disabled.

The length of time required for loan Approval and disbursement

The period between the approval of your loan and the loan’s payment can be quite long. After your loan has been granted, Sallie Mae will send an application for certification at your schools. Most schools only approve requests within 30 days of when the enrollment starts, even if you’ve applied for an advance loan in the months before and don’t receive the money you require until a few weeks before the school year begins.

After the school has approved that request, Sallie Mae will disburse the money straight to your school. Any money left, referred to as a student loan reimbursement, will be refunded. The whole procedure could take as short as ten working days.

Are Student Loan Refinancing Options Available?

There is no way Sallie Mae does not offer refinancing for student loans. If you want to refinance your loan, check out the top refinance services for student loans.

Customer Service

Sallie Mae is its loan servicer. According to the Annual Report of the Consumer Financial Protection Bureau, Private Education Loan Ombudsman does not mention Sallie Mae in their roundup of complaints against loans from private lenders.5 According to Trustpilot.com, Sallie Mae has only 11 reviews and an average of 2.0 TrustScore (out of a possible 5).6 The complaints center around bad customer service and accusations of misdeeds.

Customer service is also accessible via chat. We utilized this option to inquire about borrowers’ eligibility and loan terms, and we found the customer service representatives to be accommodating and knowledgeable. We received answers to our questions in a few minutes.

Request the Sallie Mae Student Loan

Before you apply for a privately-funded student loan, be sure that you fill out and submit an application for free Federal Student Aid (FAFSA). The FAFSA is the one that the federal schools and the government use to determine the financial aid you’re entitled to, including grants and federal student loans.

If you’re still looking for money to pay for your school, You can apply for the Sallie Mae student loan. When you use online, you’ll need to provide the following information regarding your personal information:

  • Permanent Address
  • Social Security Number (of cosigner and borrower (if applicable))
  • School Information
  • Requested Loan Amount
  • The Financial Aid Program and the Scholarships (you are hoping to receive)
  • Employment Information (including the name of the employer and income)
  • The Financial Data (including Bank Account Numbers, as well as monthly rent or mortgage payment)
  • Name and contact information for two Personal Contacts

After submitting the application form, you can be notified of the results as short fifteen minutes.

Do you think the Sallie Mae Loan the Right For You?

The costs for college have risen significantly in recent years. Federal direct Direct Unsubsidized and subsidized loans are subject to strict limitations on the amount you can take out. If you require additional funds to finance your education, using the private student loan offered by an institution like Sallie Mae could be an alternative.

The good news is that Sallie Mae offers a wide variety of loans, including different repayment options available to students of all ages. They also provide a program of loan forgiveness and discharge, superior to federal loan discharge guidelines and the ability to request an agreement with a cosigner within 12 months, which sets the company against other lenders. On the other hand, Sallie Mae doesn’t allow customers to obtain an estimate of the rate before they make an application. This means that a credit inquiry is necessary to find out the rate.

If Sallie Mae’s rates are competitive compared to the rates of other lenders as well as the Federal government is a complicated issue. It all depends on your financial situation. Although Sallie Mae’s rates are less than the Fed’s, you’ll only be able to qualify for them if you’ve got excellent credit scores or pay about the same amount or more. The lender offers variable rates of interest on loans, unlike the government. This could be a benefit in a time of falling interest rates.

Before you choose, ensure you’ve compared other lenders’ offers for private student loans.

Final Verdict

Sallie Mae offers greater loan possibilities than other lenders, providing the opportunity to finance career training or bar studies and medical residency. With various choices for loans, payment options, and loan terms, you can tailor your loan to your requirements. If you have a cosigner with creditworthiness, The lender can offer low rates to lower the cost of your loan.

Methodology

Green Day Online is committed to providing customers with impartial and comprehensive reviews of lenders of student loans. We have gathered over 45 information points across more than 15 lenders, including fees, rates of interest, loan amounts, and repayment terms, to ensure that our information helps consumers choose to meet their educational needs.

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