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Sallie Mae Review

Monday, July 26th

2021 Student Loan Provider Reviews

Sallie Mae Review 2.5 Star Rating

Sallie Mae

2.5 Star Rating
  • No application or origination fees
  • No prepayment penalties
  • No payments required until 6 months after leaving school
  • Interest rate discounts available for automatic payments
  • Cosigner release option after one year of on-time payments
  • Graduated Repayment Period feature
  • Variable interest rates from 2.50% to 9.59% APR
  • Fixed interest rates from 5.74% to 11.85% APR
  • Minimum monthly payment of $50 during repayment period
  • Customer service: 877-279-7172

You may be familiar with SallieMae already when it comes to student loans. Until several years ago, they were responsible for the administration of federal student loans as well as private ones; however, they have since split off into a lender strictly for private student funding, in addition to other consumer products such as banking and credit cards.

No-frills site

As you might expect from a website that used to be a government program, SallieMae is not flashy or interesting to look at: just a basic site for getting a student loan, known as the Smart Option program.

Borrow up to 100% of college costs

Like most private student loan programs, you'll be able to apply with no application fee and no origination fees. Also, SallieMae is one of the few lenders we reviewed that allows you to borrow up to 100% of your school-certified cost of attendance, with no arbitrary caps or other limits.

Qualification criteria

To qualify for a SallieMae Smart Option student loan, you'll need to meet these criteria:

  • U.S. citizen, or foreign student with a creditworthy cosigner that is a U.S. citizen or permanent resident
  • Good credit (you or your cosigner), typically a minimum score of 640; the average SallieMae borrower has a credit score of 748
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3 repayment options

If you choose a SallieMae Smart Option student loan, you'll have three primary repayment options:

  • Deferred Repayment: no requirements for payment until you've left school
  • Fixed Repayment: $25/month while in school, resulting in an average savings of 12% over the life of the loan
  • Interest Repayment: make monthly interest-only payments while in school, resulting in an average savings of 25% over the life of the loan

You can get additional savings of 0.25% on your interest rate if you choose to make automatically-debited payments while still enrolled in school.

Graduated repayment period

And, for new graduates, you have the option of requesting a "Graduated Repayment Period". This means that if your loan is in good standing and you've graduated, you can request to make 12 interest-only payments, helping you ease into you full payment amount for up to a year after you've graduated (and hopefully gotten a job!).

Other student loan products

SallieMae has several other student loan products that may be applicable to your situation: Career Training Smart Option, Medical/Dental Residency and Relocation Loan, and Bar Study Loan. We recommend you visit the website if your loan falls into those categories.

Cosigner release

Another advantage of SallieMae's program is the possibility of cosigner release after 12 on-time principal and interest payments. This is an improvement over some of their competitors, who require as many as four years of on-time payments before being eligible for a cosigner release. There may also be options for deferment and forbearance - we found several references to those possibilities on other sites, but SallieMae does not make it easy to find the fine print on their own website.

Loan servicing issues

Despite competitive interest rates and some advantages over other student loan providers, SallieMae appears to come up very short when it comes to servicing borrowers' needs after the loan has been approved. We found a significant number of customers who said that they regretted the day they applied for a SallieMae loan, had payments applied incorrectly or not at all, or were sent to collections despite making regular on-time payments. Other reviews said that the representatives treated them rudely, going so far as to call them names or make condescending comments regarding ways in which the borrowers could get the money needed to make their next payment. This is unprofessional at best.

So, while we can't overlook some of the advantages SallieMae has over other student loan companies, we are concerned over the way they handle customer service after the loan has been approved.

Where is the Best Place to Go for a Student Loan?

As the costs of higher education rise, so does the need for student loans. While some individuals are eligible for federal loans, those loans don't always cover the full cost of getting an education - not just tuition and room/board, but books, laptops, transportation and other expenses. And, people who are ineligible for federal loans don't necessarily have overflowing savings accounts to match their college or university costs.

Private student loans are the way that many students close that gap. On average, students have nearly $40,000 in student loan debt at the time of graduation; without those funds, their aspirations of being a teacher, engineer, or social worker may have been put on hold indefinitely.

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Student Loan Provider FAQ

Most students need a loan to fund the full cost of their college education. While the majority of student loans in the United States come through federal programs, there are also private loans available. You usually have to start making repayments on student loans six months after your last semester, though you can start sooner if you wish. Student loans often have repayment terms of at least 10 years.
Yes, very easily. If you're applying for federal student loans, you'll complete the FAFSA online. For private student loans, there are several ways to apply: either directly with a financial institution, like Discover or Wells Fargo, or using a platform that connects you with multiple lenders using a single quote request or application.
Unlike many other types of borrowing, student loans are designed to be affordable - it's rare to be charged an application or origination fee, and you should be able to pay off your loan early with no penalties. Interest rates are also much lower than credit cards and personal loans, and you'll usually have very long repayment terms: starting 6 months after your last semester and often stretching 10 years into the future. Expect interest rates between 1% and 6%, but watch out for fixed vs. variable APRs.
Your student loan will probably be disbursed directly to your school, not deposited to your personal bank account. That's a good thing if you want to ensure that your loan money actually gets used for your education! Because the process requires your school to certify the loan amount, the process can take a few days or more. It's a wise idea to start the loan application process early, to make sure there's plenty of time to meet your school's payment deadlines.
If you have a financial hardship or other eligible circumstance, you can request to defer your student loan repayments. Most lenders allow you to suspend your payments for up to three years if you qualify. Contact the servicer of your student loan to find out what requirements you need to meet to defer your loan.
Forbearance is similar to deferring your student loan payments. If you don't qualify for a deferral but still can't pay your student loan, you might be able to get your payments reduced or suspended temporarily, for up to 12 months. You'll need to get in touch with the servicer of your student loan to see if you're eligible for a forbearance arrangement.
In limited circumstances, yes. It usually depends on the type of student loan you have, the lender, and your situation. Student loans may be forgiven (or, essentially, written off) in the event of the disability or death of the borrower; issues with the school, like closure, error or fraud; income-driven repayment plans or employment-based forgiveness programs.
Yes, most of the time. Tax laws are changing constantly, but in the past students have been able to reduce taxable income by as much as $2,500 based on student loan interest paid, as long as they meet eligibility criteria (like having a qualified student loan that was used exclusively for educational expenses).
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Continued from above...

Fortunately, there are many lenders who want to make it as affordable and simple as possible to complete undergraduate and graduate-level studies. Some represent well-known, established financial institutions, while others work directly with networks of community banks to get much-needed cash into the hands of eager learners.

Comparing offers from lenders can be as easy as going online; in a matter of minutes and mouse clicks, you can see a variety of interest rates, repayment terms, and other details of each program for which you are eligible. This saves you significant time compared with going hat in hand to your local bank or other lending institution, hoping that they will say yes to your loan application.

When deciding on which lender to use for your student loan, you should consider the following factors:

  • Interest rates. The higher your interest rates, the more you pay over the life of the loan. Does the lender have rates that are competitive? Does the lender offer you the choice between fixed and variable rates?
  • Loan terms. What is the repayment term? Does it give you enough time to get a good job and pay it back? Can you pay it off in advance with no penalty?
  • Discounts. Can you get your interest rates lowered by setting up automatic payments from your checking account? Will you get any perks for having a relationship with the lender in other ways, such as a checking account or credit card?
  • Reputation. Some lenders have a solid history of working with borrowers, while others have a not-so-great track record when it comes to customer service after the loan has been disbursed. How does this lender measure up?

TopConsumerReviews.com has reviewed and ranked the best Student Loan providers available today. We hope this information helps you to get the money you need for your studies right away!

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