Are you trying to figure out how to pay for college? Private student loans are a great way to go; however, there are a ton of options. How do you know which lender has the best student loans for you?
We're going to break down the pros and cons of Sallie Mae student loans so you can figure out if they're the right lender for you. Whether or not you plan to apply for student loans, you should know about all of your options. Let's get started.
Sallie Mae is one of the most popular options for private student loans because they make it easy to qualify. They are typically the lender that students turn to if they've had trouble getting approved by stricter lenders in the past.
Here's what else you need to know about private student loans from Sallie Mae:
Sallie Mae offers more flexibility and options than many other lenders. Let's break down the pros next.
To qualify for Sallie Mae loans, you don't have to be in school full-time. They approve part-time students, and they even approve foreign-born and DACA students, which is unfortunately not common among private lenders.
Finally, Sallie Mae does not have a pre-payment penalty, so you can start paying off your loan in school, and you won't be penalized if you pay it off ahead of schedule.
The overall reason that Sallie Mae offers some of the best student loans is the flexibility they offer and the wide range of students they serve. However, there are some areas where they could approve. Let's look at the cons of Sallie Mae loans next.
Sallie Mae doesn't have a pre-qualifying process, which means you can only find out if you qualify but completing the full application and getting a hard credit check. Other lenders, on the other hand, will ask a few basic questions and just perform a soft credit check to let you know if you qualify.
Once you find out you qualify and what type of interest rate you can get, you do the full application for the loan. Unfortunately, that is not an option with Sallie Mae.
Another downside to Sallie Mae is that they have late fees and penalties. They will charge you up to $25 if you miss a payment or a payment is returned.
Are Sallie Mae loans the best student loans for you? If you've had a hard time getting approved by other lenders, or if you're an international student or DACA student, the answer may be yes.
However, it's important to remember that the application is more intense with Sallie Mae than with other lenders.
If you liked our Sallie Mae student loan review, check out more lender reviews on our blog.
Disclosures –
Sallie Mae
Disclosures –
Advertised rates and other loan information are for the Sallie Mae® Smart Option Student Loan® for undergraduates.
Borrow Responsibly
We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.
Loans for Undergraduate & Career Training Students are not intended for graduate students and are subject to credit approval, identity verification, signed loan documents, and school certification. Student must attend a participating school. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident), and provide an unexpired government-issued photo ID. Requested loan amount must be at least $1,000.
1. Advertised APRs for undergraduate students assume a 10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one- eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment.
2. For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website may be subjected to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time.
3. Although we do not charge a penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note — first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.
4. Based on a comparison of the percentage of students who were approved with a cosigner to the percentage of students who were approved without a cosigner from October 1, 2022 to September 30, 2023.
SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.
Information advertised valid as of 8/3/2024.
Smart Option Student Loans® are made by Sallie Mae Bank.
Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners.
SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America.
Sallie Mae’s corporate headquarters are located at 300 Continental Drive, Newark, DE 19713
BestStudentLoan.com is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae Loan customers. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners.