Key takeaways
All Sallie Mae loans taken out since 2014 are private.
The best way to determine if you have federal or private student loans is to check studentaid.gov.
If you need to borrow money for college, exhaust federal student loans before taking out a private student loan.
All new Sallie Mae loans are private. But if you took out a Sallie Mae loan before 2014, it might have been a federal loan and is likely now managed by another servicer.
Sallie Mae started off under the federal government and provided loans through the Federal Family Education Loan Program, or FFELP. In 2004, Sallie Mae privatized and began issuing private loans while still offering FFEL loans. Sallie Mae stopped offering federal loans when the FFEL Program ended in 2010, but continued to service federal loans though 2014. Since then, Sallie Mae no longer services federal loans and provides only private student loans.
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Most student loans are federal. But if you’re still unsure about whether your student loan is federal or private, the best way to find out is by logging into studentaid.gov with your FSA ID. All federal loan information is housed there. If you don’t find your loan information through studentaid.gov, you have a private student loan.
How do Sallie Mae loans work?
Sallie Mae currently offers private student loans for undergraduate, career training and graduate programs. It also provides parent loans and is one of the few lenders to offer loans to part-time students.
Applying for a Sallie Mae loan requires a hard credit check. You’ll typically know whether you are approved within 15 minutes. But Sallie Mae doesn’t disclose its minimum qualifying credit scores or income, so you’ll need to fill out an application to see if you qualify. If your application is rejected, check other private student loan lenders to find a better fit.
Before you apply to Sallie Mae or any private lender, file the Free Application for Federal Student Aid, or FAFSA, and exhaust federal student loan options. Federal student loans have benefits not available for private loans and often come with lower interest rates.
FAQs
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.
Is Sallie Mae a federal or private loan? ›
Sallie Mae services private student loans for a variety of degrees, including undergrad, MBA, medical school, dental school and law school. A private loan with a lender like Sallie Mae covers up to 100 percent of your education costs, while federal loans come with borrowing caps that might not cover all your expenses.
Is Sallie Mae a good private lender? ›
Is the Lender Reputable? The lender receives an A+ grade from the Better Business Bureau and gets 1.5 out of 5 stars, or a bad rating, from Trustpilot based on about 30 reviews. The Consumer Financial Protection Bureau received 315 student loan-related complaints in 2022 about SLM Corp., holding company of Sallie Mae.
Will Sallie Mae student loans be forgiven? ›
Those who borrowed from Sallie Mae after this 2014 split have private student loans, which aren't eligible for federal forgiveness programs. However, Sallie Mae will discharge debts for borrowers who die or become totally and permanently disabled.
How hard is it to get approved for a Sallie Mae loan? ›
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.
How do I know if my Sallie Mae loan is federal? ›
All Sallie Mae loans taken out since 2014 are private. The best way to determine if you have federal or private student loans is to check studentaid.gov. If you need to borrow money for college, exhaust federal student loans before taking out a private student loan.
Can private student loans be forgiven? ›
Private student loans are only forgiven when the borrower becomes permanently disabled or dies. Your relief options will depend on your lender and loan agreement. Contact your lender and discuss your financial situation before defaulting on your student loans.
What are the disadvantages of Sallie Mae? ›
Cons Explained
No refinancing option available: Certain lenders offer student loan refinancing, but Sallie Mae does not. Limited repayment terms: Sallie Mae only offers repayment terms of 120 to 180 months.
Why is my Sallie Mae interest so high? ›
If you signed up for a Sallie Mae loan when you entered college, you might have a high interest rate because you were a college student with no credit history and no full-time income. You may be eligible for a lower interest rate if you have a stable job and a good credit score.
Why are private student loans so hard to get? ›
It can be tough to qualify independently without a credit history or a limited one. Because few students have a well-established credit history, many lenders require a co-signer (such as a parent or guardian). Your co-signer's credit matters more than yours.
Lawsuits later revealed that one set of these predatory Sallie Mae private student loans had default rates ranging “between 50 and 92 percent every year from 2000 to 2007,” and that Sallie Mae's own expectations were that these loans would default at rates as high as 92 percent.
Can I pay off my Sallie Mae loan early? ›
You can start paying back your undergraduate loan while you're in school to save money or wait until you're finished. You can also choose to pay off your loan early to reduce the total loan cost—there are no penalties for early repayment.
What happens if I don't pay Sallie Mae back? ›
Ignoring your student loan debt won't make it disappear. In fact, it will make the situation worse and may lead to things like late fees, penalties, and damage to your credit score. Face the issue head-on and take the necessary steps to figure it out—your future self will thank you.
Does Sallie Mae hit your credit? ›
You'll be able to get your rate and loan approval with College Ave via a soft credit check, which won't impact your credit score. With Sallie Mae, the lender will perform a hard credit inquiry to determine your eligibility, which may negatively affect your credit score.
What disqualifies you from getting a student loan? ›
If you don't meet baseline eligibility requirements, or if you've previously defaulted on a loan, you may not be approved for a federal student loan. You must maintain "satisfactory progress" in school to be approved for student loans. You can take steps to regain or improve your eligibility for student loans.
What is the most you can borrow from Sallie Mae? ›
What is the maximum amount I can borrow from Sallie Mae? 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.
Are Sallie Mae loans bankruptable? ›
Private Student Loans and Bankruptcy
Borrowers seeking to discharge student loans owed to private lenders like Sallie Mae, SoFi, Discover, and others still have to show undue hardship.
Is it better to get a federal or private student loan? ›
Federal student loans are generally recommended due to fixed interest rates, repayment flexibility and forgiveness options. However, if you require more funds than federal limits allow or have excellent credit, private loans might be more favorable with potentially lower rates or higher borrowing amounts.
Which student loans are considered private? ›
Generally, there are two types of student loans—federal and private. Federal student loans and federal parent loans: These loans are funded by the federal government. Private student loans: These loans are nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school.
Do you need FAFSA for Sallie Mae? ›
When a FAFSA Is Not Required. There are plenty of private student loan servicers that provide student or parent loans that do not require completion of the FAFSA, such as Sallie Mae. However, they will require credit checks and loan approval, and for students, they will probably also require an adult consigner.
