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Sallie Mae offers competitive rates, but has limited loan options
By
Jessica Ullrich
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Full Bio
Jessica is an Associate Finance Editor on the Performance Marketing team at Investopedia and The Balance. She's been editing financial and business content for over a decade.
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Updated September 11, 2024
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Investopedia’s Rating Our Take Sallie Mae is a private lender offering undergraduate, graduate, and professional student loans. While its loan rates are competitive, it doesn’t offer parent or spousal loans, or student loans for Deferred Action for Childhood Arrivals (DACA) recipients. If you’re interested in those options, you’ll need to look for another lender. Pros & Cons Pros Offers multiple discounts Forbearance available in certain cases Cons No refinancing option available Limited repayment terms Charges late and returned payment fees Key Takeaways Company Overview The U.S. government started the Student Loan Marketing Association, or Sallie Mae, in 1972, and it was established as a government-sponsored enterprise (GSE)—a special type of company that abided by specific government regulations. It served as a secondary market for federal student loans, with the goal of making these loans more accessible to borrowers. Congress began converting Sallie Mae to a private company in 1996, a process that was completed in 2004. The company split into two entities in 2014: Navient and Sallie Mae. Today, Sallie Mae offers undergraduate, graduate, and professional student loans, including loans for medical, law, and dental school. While Sallie Mae has several loan options for U.S.-based and international students, it doesn’t offer parent or spousal loans, or loans for DACA recipients. The company also has a controversial history. In 2014, Sallie Mae agreed to pay $60 million to compensate military members for violating Servicemembers Civil Relief Act (SCRA) protections, and in 2022, Navient agreed to pay $95 million in restitution and cancel $1.7 billion in loans for predatory lending and violating consumer protection laws. Table of Contents Sallie Mae Student Loans Review Quick Look Pros Explained Cons Explained Loans Offered Eligibility/Approval Fees and Repayment Refinancing Customer Service How to Apply Alternatives Final Verdict Methodology Sallie Mae doesn’t disclose its credit score requirements for loans, and you might need a co-signer to qualify. If you don’t have someone to co-sign your loan, check out our roundup of the best student loans without a co-signer. If you need additional financing beyond what federal loans provide, Sallie Mae could be a good option for undergraduate loans. It offers competitive rates; repayment terms of 10, 12, or 15 years; and no origination or application fees or prepayment penalties. However, as mentioned, borrowers may pay late fees or returned payment fees. Sallie Mae also offers graduate student loans for international and U.S.-based students interested in furthering their education. Like its undergraduate loans, its grad student loans have no origination, application, or prepayment fees. Those attending law school may be able to get a loan from Sallie Mae to pay for the cost of attendance. You won’t pay an origination fee with a law school loan from Sallie Mae, though the lender doesn’t provide information on loan amounts or terms. If you decide to pursue your MBA, a loan from Sallie Mae could help offset the cost of tuition and fees. Loan ranges and repayment terms aren’t disclosed. Medical school can be very costly, and Sallie Mae offers loans to help cover your tuition and fees. While its medical school loans have fairly competitive rates, loan amounts and terms aren’t mentioned on Sallie Mae’s site. Those seeking financial aid to pay for dental school could get a loan from Sallie Mae. Similar to medical school loans, Sallie Mae doesn’t offer insight into loan amounts or terms for dental school loans on its website. In addition to its undergraduate, graduate, and professional loans, Sallie Mae also provides technical school loans with even more competitive rates (as of publication). These loans can help offset the cost of technical or trade school. Sallie Mae offers loans for U.S. students in all 50 states and international students. However, parent, spousal, and DACA recipient loans aren’t available through this lender. Sallie Mae doesn’t explicitly mention that you’ll need someone to co-sign your loan, but this lender also doesn’t disclose its minimum credit score requirements. If your credit score isn’t great, you may need to apply for a loan with a co-signer to get approved. A co-signer can be someone you trust with a strong credit profile. Once you apply, approval decisions may be made within just 15 minutes. If you’re approved, Sallie Mae requires that your school verify your total loan amount (which can take some time, depending on the school). Once that’s all set and you accept the final loan disclosure, the funds can be disbursed directly to your school. Different loans from Sallie Mae may have different repayment options, so that’s important to be aware of if you’re shopping around for a graduate or specialty loan. However, this lender specifies that its undergraduate borrowers can access three repayment options (aside from full repayment): Sallie Mae indicates that loan forbearance is available in certain circ*mstances, but it doesn’t specify what those circ*mstances are. Its website mentions that it’s committed to working with borrowers struggling to make payments, though. If you’re faced with this situation, consider speaking with a Sallie Mae representative to discuss your options. This lender may discharge your loan balance if you die or become permanently and totally disabled. Loan discharge fees aren’t specified, though, so if you have questions, it’s best to contact a Sallie Mae representative directly. Student loan refinancing is not available with Sallie Mae. If you’re interested in this option, you’ll need to look for another private lender that offers refinancing loans. If your credit has improved since you originally took out student loans, refinancing could save you quite a bit of money over the long term. See our picks for the best student loan refinance companies to see the kind of rates you might get. Sallie Mae offers a convenient live chat feature on its website, and prospective and existing borrowers can also connect with a representative over the phone during certain hours. To apply online for a student loan with Sallie Mae, you’ll need to share the following information and more: If you’re planning to take out student loans, be sure to complete the Free Application for Federal Student Aid (FAFSA) first and exhaust your options for federal aid. Federal loans typically offer better rates than private loans, and they may come with additional benefits like student loan forgiveness. Sallie Mae offers competitive rates on undergraduate, graduate, and professional loans. However, its repayment terms are fairly limited compared to some competitors, and the company has experienced its share of controversy in the past. Despite this, a private student loan from Sallie Mae could still be worth considering if its loan options, rates, and terms meet your needs. Sallie Mae has some excellent loan options, but you should always get a few rate quotes before making a decision. See what else is out there with our picks for the best student loans. Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of student loan lenders. We collected thousands of data points across 30 lenders—including loan types, interest rates, fees, loan amounts, and repayment terms—to ensure that we help readers make the right borrowing decision for their education needs. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. U.S. Department of the Treasury. "Treasury Announces Successful Privatization of Sallie Mae." The United States Department of Justice. "Justice Department Reaches $60 Million Settlement With Sallie Mae to Resolve Allegations of Charging Military Servicemembers Excessive Rates on Student Loans." Navient Multi-State Settlement. "39 State Attorneys General Announce $1.85 Billion Settlement With Student Loan Servicer Navient." Sallie Mae. "Sallie Mae Graduate School Loan." Sallie Mae. "Payment Difficulties." Sallie Mae. "Smart Option Student Loan Terms & Conditions," Page 1. Sallie Mae. "Private Student Loans." Sallie Mae. "Undergraduate Student Loans." Sallie Mae. "Choose a Type of Interest Rate and Repayment Option." Sallie Mae. "Life Changes." Sallie Mae. "What to Expect During the Student Loan Application Process." Investopediais part of the Dotdash Meredithpublishingfamily.:fill(white):max_bytes(150000):strip_icc()/Sallie_Mae-35591d9ca1464972ae7ebe2d8d295271.jpg "Sallie Mae Student Loans Review (3)")
Sallie Mae Student Loans: Quick Look
Loan Type Variable APR Fixed APR Undergraduate loan 5.54%–15.70% 3.69%–15.49% Graduate loan 5.54%–14.97% 3.69%–14.48% Law school loan 5.54%–14.97% 3.69%–14.47% MBA school loan 5.54%–14.97% 3.69%–14.48% Medical school loan 5.54%-14.96% 3.69%-14.46% Dental school loan 5.54%–14.96% 3.69%–14.47% Technical school loan 5.54%–16.46% 3.69%–15.69% Pros Explained
Cons Explained
Student Loans Offered by Sallie Mae
Undergraduate Student Loans
Terms for Undergraduate Student Loans Variable APR 5.54%–15.70% Fixed APR 3.69%–15.49% Loan amounts Minimum of $1,000 per year Loan terms 120–180 months Graduate Student Loans
Terms for Graduate Student Loans Variable APR 5.54%–14.97% Fixed APR 3.69%–14.48% Loan amounts Minimum of $1,000 per year Loan terms 120–180 months Law School Loans
Terms for Law School Loans Variable APR 5.54%–14.97% Fixed APR 3.69%–14.47% Loan amounts Not disclosed Loan terms Not disclosed MBA Loans
Terms for MBA Loans Variable APR 5.54%–14.97% Fixed APR 3.69%–14.48% Loan amounts Not disclosed Loan terms Not disclosed Medical School Loans
Terms for Medical School Loans Variable APR 5.54%–14.96% Fixed APR 3.69%–14.46% Loan amounts Not disclosed Loan terms Not disclosed Dental School Loans
Terms for Dental School Loans Variable APR 5.54%–14.96% Fixed APR 3.69%–14.47% Loan amounts Not disclosed Loan terms Not disclosed Technical School Loans
Terms for Technical School Loans Variable APR 5.54%–16.46% Fixed APR 3.69%–15.69% Loan amounts Not disclosed Loan terms Not disclosed Loan Eligibility and Approval
Loan Fees and Repayment Options
Loan Fees
Loan Discounts
Repayment Options
Loan Forbearance and Discharge Options
Is Student Loan Refinancing Available?
Customer Service
Live Chat
Phone (New Loans)
Phone (Existing Loans)
Applying for a Sallie Mae Student Loan
Alternative Choices
Sallie Mae Citizens Bank Education Loan Finance (ELFI) Loan types offered Undergraduate; graduate; MBA; medical; dental; law; bar study; technical Undergraduate; graduate; parent; MBA; medical; dental; law; bar study Undergraduate; graduate; parent Undergraduate fixed APR 3.69%–15.49% 3.99%–15.61% Starts at 3.69% Undergraduate variable APR 5.54%–15.70% 5.99%–16.61% Starts at 6.00% Origination/administrative fee None None None Repayment options Deferment; fixed; interest-only; full payment Deferment; interest-only; full payment Deferment; fixed; interest-only; full payment Refinancing available No Yes Yes Final Verdict
Methodology
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