Sallie Mae started its history as a government-sponsored enterprise that serviced Federal student loans, but since 2004, it’s been a fully private company, and in 2014 it stopped servicing student loans altogether.
Despite its legacy, Sallie Mae no longer has anything to do with Federal student loans.
It issues private loans for everything from K–12 education, to career colleges, to undergraduate and graduate school. It's also a bank with some of the most competitive money market and CD rates.
They are also on our list of the places with the best student loan rates. If you want to see how they compare to other lenders, check out our list of the best private student loan lenders.
Sallie Mae is part of the Credible Platform, which allows you to compare student loan lenders in 2 minutes or less. We love Credible and think you should see how Sallie Mae compares for your situation. Check out Credible here.
Quick Summary
- Private student loan lender with no application or origination fees
- Some of the best rates available in the market
- Most loans require a cosigner
SallieMae Student Loans Details | |
|---|---|
Product Name | SallieMae Student Loan |
Min Loan Amount | $1,000 |
Max Loan Amount | Cost of Education |
APR | As low as 1.25% APR |
Rate Type | Variable and Fixed |
Loan Terms | 5 to 15 Years |
Promotions | None |
Who Can Take Out a Loan from Sallie Mae?
Since Sallie Mae issues private student loans, most borrowers (especially undergraduate borrowers) will need a cosigner with adequate income and credit score to borrow the money. Following graduation, borrowers must make 12 on-time principal and interest payments to release a cosigner from the loan. This is one of the shortest cosigner release periods we've seen.
The Sallie Mae private student loan is available to borrowers who are full-time, or below half-time students. In fact, it is one of the few private student loans available to borrowers who aren’t taking a full course load.
Sallie Mae also offers education loans for parents and for graduate students who may not need a cosigner to qualify for the loan.
Sallie Mae's Student Loan Refinancing Rates and Terms
Sallie Mae’s private loans are designed for maximum flexibility. Most loans have three major repayment options which allow for deferred payments for the time you’re in school plus a 6-month grace period (or 36 months for medical school graduates). Borrowers can also exercise the option of up to 12 interest-only payments when they first start their payback period.
The three major repayment options include the following:
- Deferred interest: This is where students make no payments during their school years or for their grace period.
- Fixed payment: This is where students make small payments (of $25 per month) during their school and grace period.
- Interest-only: This is where students pay the interest on the loan during school and their grace period.
These are the terms on Sallie Mae’s private loans (select private loans — they also offer bar exam, medical residency loans, and others). Rates are subject to change. Please check out the latest rates here.
Loan Type | Repayment Period | Fixed Interest | Variable Interest | Repayment Options |
|---|---|---|---|---|
Undergraduate loan | 5 to 15 years | 4.25 to 12.35% | 1.25 to 11.15% | Deferred interest, |
Parent loan | 10 years | 5.49 to 13.87% | 3.50 to 13.12% | Interest-only for up to 48 months. 12 months of interest-only payments following graduation is not available. |
Career training loan | 5 to 15 years | 4.25 to 11.64% | 6.62 to 13.83% | Fixed payment, interest-only. |
Medical school loan | 20 years | 4.75% to 11.97% | 2.25% to 11.60% | Deferred interest*, fixed payment, interest-only. *48 months of deferment available during medical school and residency, 36-month grace period available. |
Dental school loan | 20 years | 4.75% to 11.98% | 2.25% to 11.61% | Deferred interest*, fixed payment, interest-only. |
Law school loan | 15 years | 4.75% to 12.11% | 2.25% to 11.98% | Deferred interest* fixed payment, interest-only. |
MBA student loan | 15 years | 4.75% to 12.11% | 2.25% to 11.76% | Deferred interest*, fixed payment, interest-only. |
Graduate school loan | 15 years | 4.75% to 12.11% | 2.25% to 11.76% | Deferred interest*, fixed payment, interest-only. |
Any Concerning Fine Print?
Compared with other private lenders, Sallie Mae offers more generous repayment terms. The choice between deferred interest, fixed payments, and interest-only is especially generous along with generous grace periods and deferments for graduate school loans.
While taking on any loan with a cosigner is concerning, Sallie Mae offers releases within 12 months which is ideal compared to most other lenders.
The only issue with Sallie Mae’s loans is the cost you could incur. Taking advantage of no-interest deferment options could lead your loans to balloon over time. Add to that the higher (but still competitive) interest rates, and you could head toward student loan disasters.
In general, it is better to stick with Federal loans if possible. These come with a wide range of repayment plans, and even some loan forgiveness options. If you must opt for student loans, Sallie Mae could be a good choice.
Remember, always compare your options on a platform like Credible.
How to Contact Sallie Mae Customer Service
You can reach out to Sallie Mae customer service through the following:
Phone number: 800-472-5543
Hours of operation: 9-6. Mon-Fri (ET)
General mailing address:
Sallie Mae
P.O. Box 3319
Wilmington DE 19804-4319
Address for sending payments:
Sallie Mae
P.O. Box 8459
Philadelphia PA 19101-8459
Email/online contact form: N/A
Read about Sallie Mae Student Loans here.
Final Thoughts
With no application fee, no origination fee, and generous repayment terms, Sallie Mae is a good choice for borrowers that need repayment flexibility. The flexibility comes at a cost, and you’ll likely find lower interest rates from other lenders (use Credible to shop around).
That said, Sallie Mae could be the right choice if you’re stuck taking out private loans. Compared with other lenders, Sallie Mae is especially generous with its undergraduate student loans.
And remember, if you take advantage of Sallie Mae’s generous terms early on, you can always refinance your student loan to a lower interest rate later if you have the income and credit score to do so.
Sallie Mae Student Loans
- Rates And Fees
- Application Process
- Customer Service
- Products And Services
Overall
Summary
Sallie Mae is one of the largest providers of undergraduate and graduate school private student loans.
Pros
- They offer one of the largest selection of loan types
- They typically have some of the lowest rates available in the marketplace
- They offer a variety of repayment options for private loans
Cons
- They have a reputation for mixed customer service
- They only offer private loans, which borrowers should only take advantage of in certain circumstances
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.