Sallie Mae Student Loans Review

# Sallie Mae Student Loans Review

Sallie Mae offers both federal loan servicing and private student loans. The company manages roughly $150 billion in education loans for over 8 million borrowers.

For private student loans, Sallie Mae provides options for undergraduates, graduates, and parent PLUS borrowers. Undergraduate loans start at variable rates around 6.99 percent APR, while graduate loans begin near 7.99 percent APR. Fixed-rate options typically run 1-2 percentage points higher. Parent PLUS loans carry rates starting around 8.99 percent. Actual rates depend on credit score and co-signer status.

Sallie Mae's repayment plans include interest-only payments while in school, full deferment, or standard 10-year repayment. Borrowers can choose between variable and fixed rates upfront. The company offers a 0.25 percent rate reduction for setting up automatic payments.

Pros include flexible application timelines, co-signer release available after 12 consecutive on-time payments, and the ability to borrow up to full cost of attendance. Customer service operates through phone and online chat.

Drawbacks matter. Private loans lack the borrower protections built into federal programs. Income-driven repayment plans don't exist. You cannot pause payments during hardship without interest continuing to accrue. No loan forgiveness programs apply. Sallie Mae requires a credit check and typically demands a co-signer unless your credit score exceeds 750.

Eligibility requires enrollment at least half-time at an accredited school and U.S. citizenship or permanent residency.

Borrowers comparing options should first exhaust federal loans, including Direct Unsubsidized and Direct PLUS options, which offer income-driven repayment and potential forgiveness