By admin 
Sallie Mae is among the largest non-public pupil mortgage suppliers within the nation. Since 2014, it has supplied financing to over 1.4 million households.
Like different lenders, it provides aggressive charges on undergraduate and graduate pupil loans. However in contrast to different lenders that solely have mortgage choices for these pursuing levels, Sallie Mae additionally gives loans for profession coaching, certificates applications, bar examination preparation and medical college residencies. In actual fact, Sallie Mae is our selection for the best student lender for healthcare professions.
Desk of contents:
Sallie Mae Pupil Loans Overview
Simply how large is Sallie Mae? It has a 58% market share of personal pupil mortgage originations, that means greater than half of all non-public pupil loans come from Sallie Mae. Final yr, it originated over $6 billion in loans.
Sallie Mae is a typical selection as a result of it has many mortgage choices for debtors, a number of in-school reimbursement choices and a few extra options.
- Loans out there for profession coaching, bar examination and medical residency
- Cosigner releases out there after one yr
- A number of in-school reimbursement choices
- Late charges apply
- No mortgage prequalification
- Excessive credit score scores required
- Father or mother mortgage program discontinued
With most private student loan lenders, enrollment in a degree-granting college — often in a bachelor’s diploma program or above — is required to qualify for a mortgage. For college students in certificates applications or commerce faculties, discovering loans will be tougher.
Sallie Mae addresses that drawback with its Sensible Choice pupil mortgage for profession coaching applications. College students can borrow as much as the entire value of attendance, making these applications extra accessible. And pupil mortgage debtors can reap the benefits of a number of in-school reimbursement choices to make their month-to-month funds extra inexpensive whereas in class.
Sallie Mae doesn’t listing its credit score or revenue necessities, however it typically requires excellent to glorious credit score, particularly for its lowest rates of interest. In response to the lender’s 2022 annual report, the common credit score rating of authorized college students or their cosigners was 747 on the time of approval. Since many faculty college students don’t have established credit score histories, most candidates will need a cosigner. In actual fact, Sallie Mae reported that 86% of its non-public pupil loans had been cosigned in 2022.
In the event you do want a cosigner, remember the fact that Sallie Mae permits debtors to use for cosigner releases. And whereas some lenders make you wait two to 4 years earlier than you may apply for a cosigner launch, Sallie Mae permits debtors to use after 12 months of consecutive, full curiosity and principal funds.
Sallie Mae doesn’t cost utility or origination charges, and there aren’t any prepayment penalties. Nevertheless, there are late charges in case your fee is late. The late payment is 5.00% of the late fee quantity or $25, whichever is much less.
Sallie Mae’s Companies
By means of Sallie Mae, college students can apply for private student loans for undergraduate college, graduate or skilled applications and profession coaching applications. Sallie Mae additionally provides financial savings accounts and certificates of deposit (CDs).
What they provide: Personal pupil loans
Sallie Mae’s mortgage minimal for all of its non-public loans is $1,000. For undergraduate, profession coaching and graduate college students, the utmost mortgage quantity is the entire value of attendance at your college. For different mortgage choices, similar to bar examination examine or medical residency, mortgage maximums might differ. Sallie Mae provides fastened charges and variable charges for all its mortgage merchandise.
Not like different lenders that solely provide loans to full-time college students, Sallie Mae permits part-time college students and people enrolled less-than-half-time to take out loans.
Relying on the kind of loans you may have, you might have the next reimbursement choices:
- Quick: Full month-to-month funds towards the curiosity and principal when you’re in class
- Curiosity-only: Funds solely cowl accrued month-to-month curiosity when you’re in class
- Flat: Pay simply $25 monthly whereas in faculty
- Deferred: Defer funds till after you allow college. You’ll usually have a six-month grace interval earlier than funds are required.
What they don’t provide
When contemplating borrowing from Sallie Mae, contemplate these limitations:
- No mum or dad lending choices: Beforehand, Sallie Mae supplied mum or dad pupil loans. Not like different lenders, which solely permit dad and mom to borrow cash to cowl the price of their baby’s undergraduate levels, Sallie Mae let dad and mom take out loans to assist youngsters pay for graduate college and profession coaching applications too. Nevertheless, Sallie Mae discontinued its mum or dad mortgage program on the finish of 2021.
- No prequalification: Sallie Mae doesn’t have a prequalification software. As an alternative, you need to full an utility and comply with a tough credit score verify to view your eligibility.
- No refinancing: Not like different lenders, Sallie Mae doesn’t provide student loan refinancing. In case you have present loans you’d wish to consolidate, you’ll need to work with one other lender.
Sallie Mae’s Credentials
Not like different pupil mortgage corporations, Sallie Mae originates and companies its personal loans. Its loans are originated by Sallie Mae Financial institution, which is regulated by the Utah Division of Monetary Establishments, the Client Monetary Safety Bureau (CFPB) and the Federal Deposit Insurance coverage Company (FDIC).
Licenses and Registrations
Sallie Mae points loans to debtors in all 50 states.
Awards and Certifications
Sallie Mae is frequently chosen as a prime supplier of personal pupil loans. For instance, Sallie Mae is on NerdWallet’s listing of the 16 finest lenders.
Third-Occasion Rankings
With Sallie Mae’s measurement, it is unsurprising that it has obtained some detrimental consideration. In response to the CFPB’s criticism database, greater than 1,400 complaints had been submitted over the previous 5 years. Frequent complaints involved combating funds, receiving incorrect data, and issues coping with their mortgage servicer.
Regulatory Actions
Sallie Mae has a sophisticated historical past. Navient, previously a part of Sallie Mae earlier than the corporate break up in two in 2014, has been the goal of lawsuits from the CFPB over the way it dealt with debtors in reimbursement. The Navient swimsuit resulted in a $1.7 billion settlement.
Sallie Mae’s Accessibility
Sallie Mae has instructional assets and calculators on its web site, and buyer help will be reached in a number of methods.
Availability
Sallie Mae’s buyer help group will be reached through online chat or telephone throughout its enterprise hours.
Contact Info
Sallie Mae’s enterprise hours for candidates are:
- Chat: Monday by Friday from 8:00 a.m. till 8:00 p.m. EST
- Telephone: Monday by Thursday from 8:00 a.m. till 9:00 p.m. EST; Friday from 8:00 a.m. till 8:00 p.m. EST; Saturday from 10:00 a.m. till 2:00 p.m. EST
Contact buyer help at 855-756-5626.
Person Expertise
Not like different corporations, Sallie Mae doesn’t use a third-party mortgage servicer; it companies loans originated by its platform. Sallie Mae is who you must contact with questions on your account or reimbursement choices.
For present debtors, buyer help is obtainable Monday by Friday from 8:00 a.m. till 8:00 p.m. EST. You may get help by calling 800-472-5543. On-line brokers are additionally out there.
Limitations
Sallie Mae’s web site will be tough to navigate, and a few pages are outdated. Discovering details about mortgage phrases isn’t at all times straightforward, and requires some digging. And since there isn’t a prequalification possibility, you need to fill out an utility and consent to a hard credit inquiry to view mortgage phrases and charges.
Sallie Mae’s Buyer Satisfaction
Regardless of its measurement, there are comparatively few Sallie Mae pupil mortgage critiques on client websites like TrustPilot. Nevertheless, the few critiques are typically pretty detrimental.
Buyer Complaints
On TrustPilot, Sallie Mae has a TrustScore of 1.5 out of 5 on TrustPilot.
Sallie Mae is accredited by the Higher Enterprise Bureau and has an A+ ranking. Nevertheless, client critiques gave Sallie Mae a 1.12 out of 5 ranking.
Third-Occasion Rankings
Sallie Mae has not been rated by third-party client ranking businesses.
Sallie Mae FAQ
What credit score rating do I want for a Sallie Mae mortgage?
Though Sallie Mae would not specify its credit score rating necessities, you typically want excellent or glorious credit score to qualify for a mortgage. In response to the corporate’s annual report, the common FICO credit score rating at approval for debtors was 747 in 2022. With such a excessive common credit score rating, the vast majority of pupil mortgage candidates will want a cosigner to qualify for a mortgage.
Does Sallie Mae forgive pupil loans?
Sallie Mae loans aren’t eligible for federal pupil mortgage forgiveness applications like Public Service Mortgage Forgiveness. Nevertheless, Sallie Mae does provide mortgage forgiveness if the borrower passes away or turns into completely and completely disabled.
For debtors experiencing monetary hardships, you could be eligible for forbearance or deferment applications to cut back or postpone your funds. Contact your mortgage servicer to debate your choices.
Are you able to refinance Sallie Mae loans?
Though Sallie Mae would not provide pupil mortgage refinancing, you may refinance present Sallie Mae pupil loans with one other lender.
How lengthy do you need to pay again Sallie Mae pupil loans?
Your mortgage time period relies on the kind of loans you may have and the quantity you borrow. Usually, mortgage phrases vary from 10 to twenty years.
How We Evaluated Sallie Mae
We in contrast Sallie Mae to 18 different main pupil mortgage corporations to see the way it stacked as much as the competitors. We checked out lenders’ out there mortgage choices, reimbursement phrases, mortgage quantities, customer support critiques and monetary hardship insurance policies. We significantly targeted on in-school reimbursement choices and monetary hardship reimbursement plans.
Abstract of Cash’s Sallie Mae Evaluate
Debtors planning on attending profession coaching or certificates applications typically battle to search out lenders prepared to work with them. However with Sallie Mae, you may borrow as much as the entire value of attendance of your program. Whereas most debtors will want a cosigner, Sallie Mae has an often quick ready interval earlier than you may apply for a cosigner launch; you could be eligible in as little as 12 months after your full reimbursement begins.
Sallie Mae does have some drawbacks; notably, it doesn’t provide mum or dad pupil loans, and debtors usually want excellent or glorious credit score to qualify. In case you are on the lookout for a mum or dad mortgage or don’t have a cosigner with glorious credit score, try our selections for the best student loans of 2023 to search out different choices.