Sallie Mae's private student loans are best for those who want to be rewarded for making payments while in school. For example, Sallie Mae offers lower interest rates to borrowers who make monthly interest-only payments while in school.
If you signed up for a Sallie Mae loan when you entered college, you may have a high interest rate because you were a college student with no credit history and no full-time income. If you have a stable job and a good credit score now, you'll likely be eligible for a lower interest rate.
Our Verdict. Sallie Mae is one of the largest private student loan providers with several perks and features. A co-signer release is available after 12 full, on-time payments—which is ideal for borrowers needing temporary assistance. International and part-time students are also eligible for Sallie Mae loans.
The average credit score for approved Sallie Mae borrowers is around 748 for undergraduate student loans. That's pretty high – but don't panic if your credit score is much lower than that. You'll need a minimum credit score (or have a cosigner with a minimum credit score) that is somewhere in the mid-600s.
To qualify for a student loan with Sallie Mae, you must have a credit score in the mid-600s. They're a good option for students seeking competitive interest rates with a creditworthy cosigner.
Typically, prequalifying for a student loan includes a soft credit check, which does not affect your credit score. Thus, if you apply for a loan with Sallie Mae, a hard credit check will be done, which could temporarily hurt your credit score.
When you (and your cosigner, if you have one) pass the credit review, you'll be notified that you're approved. It can take as few as 15 minutes to find out whether you've met their credit requirements. If the lender needs more information, the approval can take a few business days.
Get a 0.25 percentage point interest rate reduction when you pay by auto debit from your bank account. Lower your interest rate when you choose in-school repayment. No prepayment penalty or origination fees. You can pay off your undergraduate student loan as early as you'd like to reduce your total loan cost.
In December 2007, a class action lawsuit was brought against Sallie Mae in a Connecticut federal court alleging that the company discriminated against African American and Hispanic private student loan applicants by charging them high interest rates and fees.
A variable interest rate is an interest rate that may go up or down due to an increase or decrease to the loan's index. Variable rate Sallie Mae loans applied for on or after April 1, 2021, use the Secured Overnight Financing Rate (SOFR) as the index.
Sallie Mae does not have a maximum amount that you can borrow. Sallie Mae permits students to borrow up to the full cost of attending a qualified school, minus any financial aid they may have received.
Sallie Mae is better for borrowers who have excellent credit to qualify for the lowest rates, while Discover is better for borrowers who need several years of funding.
At Sallie Mae, we pride ourselves on our unwavering commitment to conduct business ethically and with integrity.
Sallie Mae does not require a cosigner if you meet certain criteria to qualify on your own: Student loan borrowers must be 18 years old at the time of application and a U.S. citizen or permanent resident of the country. Student loan borrowers must be enrolled at least part time in a college or university.
Once all requirements are met, the lender will disburse (send) the funds directly to your school. Interest begins to accrue (grow) as soon as the funds are disbursed. Borrow responsibly. We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college.
Sallie Mae loans are subject to credit approval, identity verification, signed loan documents, and school certification. This loan is available to students at participating schools and is not intended for students pursuing a graduate degree. Student or cosigner must meet the age of majority in their state of residence.
You'll generally want to complete the Free Application for Federal Student Aid (FAFSA) and review federal funding options before applying for any type of private student loan — Sallie Mae loans included. However, private student loans, like those offered by Sallie Mae, have their place.
Private student loans are credit-based, which means we check students' credit when they apply. With a cosigner, students are 3x more likely to be approved. A cosigner is an adult with good credit, usually a parent, who shares responsibility with you for paying back the undergraduate student loan.
Lenders may look at your employment history, credit score, debt-to-income ratio, and enrollment status at your school. One of the most common reasons why a student might not qualify for a private student loan is because they don't meet their lender's FICO® Credit Score criteria.
Your credit history, current credit score, insufficient application information, or a whole host of other issues could cause you to be rejected for a loan. If you were denied a student loan, you still have options.