Sallie Mae Private Student Loan Review
An important factor, though choose a college recognizes whether or not you can afford the participation fee. Fortunately, there are plenty of options for students who want to continue their education but don’t have the financial means to pay for themselves.
It is common knowledge that students seeking financial support for the school exhaust all available options before turning to private student loans. This includes, among other things, the pursuit of federal student loans, the application for scholarships or grants, the consideration of dual study programs. However, private student loans can help students who don’t qualify for any of the above options or just need extra help to pay for the ever-increasing college costs.
Sallie Mae is one of the largest private student loan providers in the country, providing many funding options for college students and their families.
Variety of loan products. One of the main advantages of Sallie Mae is the wide range of products it offers. It not only grants loans to undergraduate and graduate students, but also offers loans to students in non-graduate institutions for vocational training and commercial degrees. Parents who want to finance their children’s university education and the K-12 private school can also apply for a loan.
Graduate students who specialize in healthcare or law can choose from a number of options, including loans for residence, relocation, and law school.
Offers loans to part-time students. Sallie Mae is one of the few private student loan providers that allows part-time students (less than half-time enrollment) to apply. Federal loans and most private student loan companies require students to be at least halfway enrolled (generally six credits at a time). This greatly reduces the opportunities some students have to pay money for school.
Allows approval by co-signers. Private student loans carry a co-signer if the student’s FICO score is insufficient for approval or if the addition of the co-signer results in a lower interest rate on the loan. However, many private student loan lenders do not offer the option to remove a co-signer at a later date, even if the borrower has been enabled to assume the debt himself. In these situations, a borrower typically needs to refinance their loan to remove a co-signer.
However, Sallie Mae is one of the few private student loan providers that allows the approval of co-signers. The borrower must have closed a deal, completed 12 on-time payments (principal and interest), and meet certain credit requirements in order to apply for co-signer clearance.
No prequalification / hard credit pull. Some, if not all, private student loan providers offer prequalification options. By answering basic questions about their credit history and financial profile, borrowers enable lenders to conduct a gentle credit check that results in a more detailed credit summary including interest rates, terms and the amount of credit available.
Unfortunately, Sallie Mae does not offer pre-qualification. To get an idea of how much money to borrow or what the fees are, you need to complete the application process. The process involves a tough query that shows up on your credit report and lowers your credit score.
Limited information on qualifying parameters. As with any other loan product, customers should look for the best deal before selecting a private student loan provider. That means comparing prices, conditions and costs and knowing the minimum requirements. While the Sallie Mae website provides some information (such as general pricing), it does not disclose factors such as minimum creditworthiness or minimum income. This forces the borrower to go through the application process before knowing if it can even be approved.
Sallie Mae student loan options
Sallie Mae offers a wide variety of educational loans for full-time and part-time students. Undergraduate and graduate studies have their own specific types of loans. In addition, there are parenting loans for legal guardians who want to support their child’s studies, as well as job-specific loans for law, medicine, dentistry and other health professions.
Sallie Mae’s private student loans include the following:
- Vocational training
- Medical school
- Medical stay
- Dentist school
- Dental office
- Graduate of Health Professions
- Faculty of Law
- Law degree
Undergraduate loans have a term of 5, 10, or 15 years, while graduate loans have a term of 15 years. Other specialized loan options have a term of 15 or 20 years, depending on the loan.
Sallie Mae prices
Contrasted with the federal student loan rates, which are fixed rates and generally lower private student loans, are set by each lender and are based on several factors including market trends and the borrower’s or co-signatory’s credit profiles.
Sallie Mae offers both variable and fixed interest rates. Due to changes in the market, these prices may fluctuate from time to time. As of December 2020, Sallie Mae private student loan rates are:
For student loans:
Variable: From 1.25% to 11.10% APR
Fixed: From 4.25% to 12.35% APR
For student loans for vocational training:
Variable: From 4.25% to 11.64% APR
Fixed: From 6.62% to 13.83% APR
For parent loans:
Fixed: From 5.49% to 13.87% APR
Variable: From 3.50% to 13.12% APR
The amount of student loan depends on the type of loan.
Applicants or co-signers with higher credit ratings typically receive the lowest rates. The APR can also vary based on the type of loan you are applying for by choosing a school repayment option and using the automatic debit feature which will give you a 0.25 percentage point discount.
Sallie Mae Costs and Fees
As a private lender Sallie Mae Doesn’t collect some of the fees that federal student loans bear. For undergraduate and graduate loans, it does not charge an application or grant fee, nor any prepayment penalty for paying out your loan before the due date.
Even without the application fees, Sallie Mae will charge late payment fees for late payments: either 5% of the overdue payment or $ 25, whichever is lower.
Sallie Mae repayment options
The repayment plans for private student loans are different from those for federal loans. Sallie Mae offers private repayment terms for student loans during school time and support programs for after graduation.
During your school days, you can choose between three repayment options:
- Deferred payment – You do not have to make any monthly payments during school enrollment or during the subsequent grace period.
- Fixed repayment – During school hours and the subsequent grace period, you pay a fixed amount from your bank account every month.
- Interest repayment – You only pay interest every month after starting school and during the subsequent grace period.
Certain loans, such as B. Bar Study and Medical or Dental Residency and Relocation, are only eligible for the choice of the deferred payment option.
Once students leave school and the grace period ends, borrowers must make principal and interest payments for the remainder of the loan. However, there are options if additional time is needed or personal circumstances have changed. Borrowers can choose:
- The graduated repayment period – This option is specifically tailored to Sallie Maes undergraduate and graduate student loans and allows borrowers to only make interest payments on the loan amount for one year after the grace period expires.
- Postponement due to further training – Postponement or reduction of repayment if the borrower is continuing another bachelor’s or master’s degree or has an internship, legal traineeship, scholarship or residence.
- Postponement or omission due to military service – Allows active service members to request and receive a deferment or deferral for their payments.
- Forbearance due to temporary financial difficulties– Allows repayments to be postponed in the event of financial difficulties. This option inevitably increases the total amount of the loan cost.
In addition to the above student loan payment options, Sallie Mae offers alternatives for customers who are behind with their payments. Eligibility for these options depends on the financial situation of each borrower and must be settled directly with Sallie Mae.
Before requesting any of these options, borrowers should consider whether there are other ways to continue making their payments. Borrowers should also calculate whether the postponement is worth the additional cost.
Sallie Mae company information
Sallie Mae was originally founded in 1972 as a government sponsored company called the Student Loan Marketing Association. She made and serviced federal student loans for over 30 years before her federal charter was terminated. Sallie Mae is now a publicly traded company that specializes in personal student loans and offers consumer banking.
Frequently asked questions about Sallie Mae
What Are the Differences Between State Student Loans and Personal Student Loans?
Federal student loans are issued by the government and include low interest rates and statutory repayment options for borrowers.
The private student loan service is provided by financial institutions such as banks and credit unions, with the interest rates, terms and conditions being set by the lenders. Private student loans are usually more expensive than federal loans.
Do Personal Student Loans Qualify For Lending Programs?
While federal student loans might qualify for debt relief in some cases, private student loans are not eligible for such benefits. However, Sallie Mae may waive the current loan balance in such cases as permanent disability or death.
Sallie Mae: Summary and Key Findings
- A wide range of credit products for undergraduate, graduate and vocational school students
- Loans for part-time students (with less than half the study time).
- No pre-qualification available. Borrowers need to complete the application process to find rates and terms.
- Limited information on minimum requirements available online.
- Co-signer approval available when certain requirements are met.
- Repayment options at school and after school.
- Deferral and deferral options for selected cases, although this usually increases the overall cost of the loan.