Sallie Mae Student Loans Review 2024

Sallie Mae began in 1972 as a government-sponsored entity to support the student loan market but transitioned to a fully private company by 2004. Now a major player in the private student lending space, Sallie Mae offers a variety of loan options and runs a monthly scholarship program.

In this review, we'll break down Sallie Mae's loan options, eligibility requirements, and key features to help you decide if it's the right lender for you.

Sallie Mae student loans review

Best for: Specialized loans

Sallie Mae is unique in that it offers a variety of specialized private student loans tailored to a wide range of educational needs, including:

• Undergraduate student loans
• Career training and trade school loans
• Graduate school loans
• MBA loans
• Medical school loans
• Medical residency loans
• Dental school loans
• Health professions graduation loans
• Nursing school loans
• Law school loans
• Bar study loans
• Flight school loans

These loans cover diverse educational paths, from traditional college programs to career-focused training like flight school or law preparation. They also account for the unique expenses of advanced degrees and specialized careers, such as medical residencies or bar exam costs.

Pros and cons

There are both pros and cons to borrowing with Sallie Mae that are worth weighing.

Pros of borrowing with Sallie Mae

• Wide range of loan options: Sallie Mae offers loans for various educational paths, including trade school and professional training. This makes it a versatile choice for students pursuing nontraditional education, such as career training or certification programs.
• Flexible enrollment requirements: Sallie Mae provides loans to students enrolled less than half-time, which is uncommon among lenders. This flexibility can benefit those balancing school with work or other commitments.
• Short cosigner release timeline: Borrowers can apply to release their cosigner after just 12 on-time principal and interest payments, provided they meet credit requirements. This shorter timeline is more borrower-friendly compared to many lenders, which often require 24 or more payments.

Cons of borrowing with Sallie Mae

• No prequalification option: Sallie Mae doesn't allow applicants to check their rates or approval odds with a soft credit pull. This means potential borrowers must undergo a hard credit check to apply, which can impact their credit score.
• No parent loan options: Sallie Mae doesn't offer parent student loans, so families looking for this option will need to consider other lenders.
• Unclear credit score requirements: Sallie Mae doesn't disclose the minimum credit score needed for approval, making it harder for borrowers to gauge their chances before applying.

Eligibility requirements

To qualify for a Sallie Mae student loan, here's what you need to know:

• Citizenship requirements: Borrowers must be U.S. citizens or permanent residents. Noncitizens can qualify by applying with a cosigner who is a U.S. citizen or permanent resident.
• Credit requirements: Sallie Mae doesn't disclose a minimum credit score for approval but reports an average approval FICO score of 754 in 2023.
• Income requirements: Proof of income is required, though Sallie Mae doesn't specify a minimum income threshold.
• Cosigner details: While a cosigner isn't mandatory if you meet credit requirements, Sallie Mae encourages applying with one to improve your chances of approval. Cosigners must be U.S. citizens or permanent residents with strong credit.

Check Out: Credit Score Needed for Federal and Private Student Loans

Borrowing limits

Sallie Mae allows students to borrow up to the full cost of their school-certified expenses, minus any financial aid already received. Eligible expenses include tuition, fees, books, supplies, housing, meals, travel, and even a laptop.

There's no aggregate borrowing limit, meaning students can borrow as much as they need, provided it's within the school-certified cost of attendance. However, the minimum loan amount is $1,000.

Repayment terms

Sallie Mae offers repayment terms of 10 or 15 years, with three options for managing your loan while you're in school:

• Deferred repayment: No payments are required while you're in school and during your grace period. Full principal and interest payments begin after that.
• Fixed repayment: You'll pay a fixed amount, typically $25 per month, while in school and during your grace period.
• Interest repayment: You'll make payments on the loan's interest while in school and during the grace period. Principal and interest payments begin after that.

Notable benefits

Sallie Mae offers several unique features that set it apart as a lender:

• Graduated Repayment Period (GRP): Borrowers can request to make interest-only payments for up to 12 months after leaving school, easing the transition to full repayment. This option is available during the six months before and 12 months after principal and interest payments begin.
• Hardship repayment options: Sallie Mae provides support for borrowers facing financial difficulties, including loan modification, payment extensions, and reduced payment plans. Borrowers can also request forbearance, which temporarily pauses payments during times of financial hardship.
• Deferment for continued studies and other opportunities: Borrowers can pause their student loan payments if they return to school at least half-time or participate in programs like internships, clerkships, fellowships, or residencies. Deferment is also available during active military service, allowing borrowers to temporarily reduce or postpone payments.

Should I borrow with Sallie Mae?

Private student loans, like those offered by Sallie Mae, can be a good option for borrowers who have already exhausted their other potential sources of funding, including scholarships, grants, and federal student loans.

For students who still need extra funding, Sallie Mae offers specialized loan options, including those for career training and trade schools - something not all private lenders provide. The lender also works with students enrolled less than half-time, making it a flexible choice for those juggling school with other responsibilities.

Before settling on any one lender, however, it is important to take the time to compare student loan options to see where you might get the best deal.

Compare student loan rates

How to apply

Sallie Mae differs from many other lenders by not offering a prequalification option, which is a drawback for borrowers who want to check their rates without affecting their credit score. Instead, you'll need to submit a full application and undergo a hard credit check to see your rate and terms.

Here's a general overview of the application process:

1. Fill out the application form: You can easily apply for a Sallie Mae loan through the lender's website. The application will request information such as your name, address, and date of birth, alongside some details about your school. If you're applying with a cosigner, you'll need to provide their personal and financial details too.
2. If approved, select your loan options: You should find out in as little as 10 minutes whether you're approved for a Sallie Mae loan. If you are, you'll need to select a loan repayment term that works for you, and choose between a fixed or variable interest rate.
3. Sign and accept your loan: To finalize your loan, review all loan documents and sign your loan disclosure. Sallie Mae will then work with your school to certify the loan. The lender will disburse the funds directly to your school, typically within about 10 business days of your initial application.

Why you can trust our Credible experts

The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology below.

Methodology

To determine Sallie Mae's lender rating, Credible collected more than 1,000 points of data on two dozen private student loan companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.

• Repayment options: 30%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 15%
• Customer support: 10%

While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.

Learn more about our methodology.