If you're looking for a comprehensive Sallie Mae student loan review, look no further!
Sallie Mae is one of the most popular student loan providers in the United States. Many internet reviews trash Sallie Mae. However, most of those reviews come from people that do not understand loans and blame Sallie Mae for the amount of debt they have.
At the end of the day, Sallie Mae is one of the best lenders if you have to use private student loans. The key is making sure you make an informed decision.
This Sallie Mae student loan review will provide all the information you need to make an informed decision about taking out a student loan with them.
In this review, I go over the pros and cons, interest rates, loan types, and how to get a Sallie Mae loan. After reading this review, you'll be able to make an informed decision about whether or not Sallie Mae is right for you.
Sallie Mae started as a government sponsored entity in 1972 that serviced student loans. They switched to being more than a loan servicer when they changed to a private lender in 2004.
In addition to student loans, Sallie Mae Bank offers savings products and other tools for families to pay for college.
They are now a publicly traded bank that offers private student loans.
Pros and Cons
As someone who is currently in college or thinking of attending college, you are probably all too familiar with the name Sallie Mae. For those who don’t know, Sallie Mae is a private student loan provider, and they are one of the biggest in the country.
So, if you’re looking for a student loan, chances are Sallie Mae will be one of the first places you look.
But what are the pros and cons of taking out a loan with Sallie Mae?
- The biggest pro of taking out a loan with Sallie Mae is that they offer a lot of different repayment options relative to other private lenders. This means that you can choose terms that work best for your financial situation.
- They also have a good reputation for being flexible with their repayment plans relative to other private lenders.
- You can financing for 100% of your school-certified expenses
- There is no orgination fee
- The biggest con of taking out a loan with Sallie Mae is that they are a private lender. This means there are no income-driven repayment plans or loan forgiveness plans like there are for Federal loans.
- They do not refinance your loan after you graduate.
When it comes to college, one of the biggest concerns is how to pay for it. There are a variety of ways to finance your education, including student loans.
Fixed rate loans have an interest rate that remains the same for the life of the loan, while variable rate loans have an interest rate that can fluctuate.
Currently, the interest rates range between 4.00% and 14.34% APR for variable rate loans and 4.50% to 14.83% APR for fixed rate loans. One item to point out, almost all the loans we see members of FitBUX receive are variable rate loans because that is what they qualify for.
Of course, the interest rate is not the only factor to consider when taking out a loan. You’ll also want to think about the repayment period, the fees, and the total amount of the loan.
But if you’re looking for a loan with a competitive interest rate relative to other private lenders, Sallie Mae is a good option to consider.
Loan Types & Repayment Options
Sallie Mae offers loans for Undergraduates, Career Training Students, and Graduate Students. However, they are most popular for undergraduate loans so that is what I’ll focus on.
Sallie Mae’s most popular option is their Smart Option Student Loan. The following contains details on this loan type:
- Its convenient because you can apply once and get money for the whole year. Plus its easy to apply for more loans each year. However, you should build a financial plan as a student so you know exactly how much you’ll need to borrow.
- There are no required payments while you are in school
- There are no prepayment fees
- There are no origination fees
Specific Loan Types
Sallie Mae offers the following loan types:
- Graduate School
- Career Training
- Medical School
- Medical Residency
- Dental School
- Dental Residency
- Graduate Health Professions
- Law School
- Bar Study
How to Get a Sallie Mae Loan
Always shop rates between companies. That is the #1 thing you need to do if you are taking out private loans. For example, we see College Ave often times beating Sallie Mae when it comes to rates!
Here’s what you need to know about getting a Sallie Mae loan offer. First, you’ll need to fill out an online application.
You’ll need to provide some personal information, including your Social Security number and date of birth. Once your application is approved, you’ll be able to decide if you want to use them.
Checking rates and getting approved should take about 15 minutes. Loans are typically disbursed to your school within 10 days.
You can choose to make monthly payments or pay the loan off in full when you graduate. If you’re worried about having to make monthly payments, don’t be!
Sallie Mae offers several options to help make your payments more affordable. You can choose to make interest-only payments while you’re in school, or you can defer your payments until after you graduate.
If you’re ready to get started, head over to the Sallie Mae website and fill out an application today. It’s easy to get started.
FAQs in Relation to Sallie Mae Student Loan Review
Are Sallie Mae loans legit?
Each person’s experience with Sallie Mae may be different. However, many people who have taken out loans with Sallie Mae report feeling satisfied with the process and finding the company to be legitimate.
Is Sallie Mae forgiving student loans?
Sallie Mae’s policies on student loan forgiveness may vary depending on the specific situation.
However, it is worth noting that Sallie Mae does offer a number of different options for borrowers who are struggling to repay their loans, including deferment, forbearance, and loan consolidation.
What credit score is needed for a Sallie Mae loan?
There is no minimum credit score required for a Sallie Mae student loan. However, your interest rate may be higher if you have a lower credit score.
How long does it take for Sallie Mae to approve a student loan?
As quick as 15 minutes to check rates and get a credit decision and 10 business days to disburse the loan for most loans.
Thank you for taking the time to read our Sallie Mae student loan review.
Sallie Mae is a great option for students who are looking for a loan provider with competitive interest rates and repayment plans. If you’re considering taking out a student loan, be sure to research all your options carefully before making a decision.
Also, if you need help building your financial plan as a student, be sure to check out FitBUX’s student financial plan building technology.
By Joseph Reinke, CFA