About bank
Sallie Mae is a bank offering student loans. It focuses on private education loans and online tools for college planning. In 2014 Sallie Mae established a separate entity Navient. It is now the largest provider of federal student loans and a collector on behalf of the Department of Education.
Sallie Mae bank was established in 1973 and, at first, serviced federal student loans under the federal government. It was providing federal loans under the Federal Family Education Loan Program and collecting the loans on behalf of the Department of Education. When it became a private entity, the company started providing private student loans.
Pros and Cons
Pros
Available for diverse groups. Unlike other lenders, Sallie Mae offers loan options for borrowers with different credit scores, as well as allows to provide a co-signer to qualify for the loan.
Discharges loans upon death or disability. Sallie Mae forgives the loan if the borrower dies or becomes permanently disabled. It does apply even if the student's parents actually own the loan.
Co-signer release. A borrower can request releasing a co-signer from a loan after 12 months of the loan term if a borrower meets the loan schedule.
International students can apply. The students currently studying in the US can qualify for the loan under the condition of providing a co-signer. This person must be a US citizen or a permanent resident.
Eligibility of part-time students. Even if the student doesn't do the school full-time, they still can qualify for Sallie Mae student loans.
Cons
Fees and penalties. Sallie Mae issues a late fee if a borrower misses a payment. The fee is usually 5% of the amount of past-due payment, a maximum of $25. The other fee is a returned payments fee in the amount of $20.
Absence of pre-qualification. You will find a lot of loan options for students with pre-qualification. It is a useful procedure allowing you to assess the efficiency of a student loan you are about to take. In the case of Sallie Mae loans, you cannot pre-qualify. It only does hard credit checks affecting your credit score.
Loans cannot be refinanced. Sallie Mae doesn't provide refinancing for your student loan.
Types of Loans
Sallie Mae offers different loans, all varying in terms, amounts, and requirements.
Undergraduate Student Loans
This type of private student loans is meant for undergraduate students dependent on their parents at least partially. The maximum loan amount for federal direct loans per year is between $5,500 and $7,500. The amount increases after the first year of school, yet it still may not cover your expenses.
Sallie Mae undergraduate student loan allows you to borrow up to the total cost of attendance, so you can fill the gaps in your finances. There are no prepayment penalties or origination fees.
Career Training Student Loans
Sallie Mae offers Career Training Smart Option Student Loan. This is an option for the students attending schools for professional training, like technical or culinary schools, or a certification in a trade. The amount you can borrow goes up to the cost of attendance, and you can cover any kind of expenses related to school. Sallie Mae doesn't issue origination or prepayment fees for this loan.
Graduate School Loans
Sallie Mae provides graduate school loans. It can be a good financing option for students getting a master's degree. Graduate school expenses are often covered with federal Grad PLUS loans. The interest rate for this type of loan is 6,28%. Sallie Mae doesn't issue origination fees, and the repayment term is 15 years.
MBA Loans
If you pursue business education and a master's degree in business administration, a Sallie Mae MBA loan can help you cover the expenses. It has a grace period extending to six months and a deferment of up to 48 months.
Medical School Loans
These private student loans are for medical professionals. The loan term is 20 years, and as a professional, you will have a grace period of 36 months. The loan amounts can cover up to the total cost of your attendance.
Law School Student Loans
Law school students can borrow up to the total cost of attendance. The grace period here is up to nine months, while deferment extends up to 48 months. Sallie Mae doesn't have origination or prepayment penalties.
Bar Study Loans
If you are going to take a bar exam and study for it, you can borrow from Sallie Mae to cover the living expenses and fees. The loan amounts go up to $15,000, and the loan terms extend to 15 years. You don't have to pay while enrolled at least half-time. The grace period is nine months after leaving school.
Parent Student Loans
There are loans for parents under the Federal PLUS loans. However, these loans have the highest interest rates among all federal student loans. They are available only to the parents of undergraduate students. Sallie Mae, on the contrary, offers private student loans for parents of undergraduate, graduate, or certificate degree students and has lower interest rates.
Credit Cards
Sallie Mae offers its own credit cards for customers. All these cards don't have annual fees or a limit on the cashback. You will be able to add the card to a digital wallet, pay monthly phone bills, and get US-based customer service.
There are three types of cards:
Ignite Credit Card for Students. This allows a student to earn $50 after spending $250 in the first three months. In the customer made six consecutive payments on time, they 2ill get a 25% bonus on their base cashback.
Accelerate Credit Card for Down Payments. A borrower earns $200 cashback after spending $1,000 in the first three months. They can redeem cashback of 2% for paying down a student loan or 1.5% for anything else.
Evolve Credit Card for Automatic Bonuses. Customers earn $200 cashback after spending $1,000 in the first three months. They can get 2% cashback on their two highest-spending eligible categories per month and 1.5% for any other expenses.
Additional Services
Sallie Mae has the additional benefit of providing four free months of Chegg Study for its borrowers. It is an online tutoring program supporting study for any subject and has hundreds of books.
Sallie Mae has college planning tools available for their customers. It allows you to make a plan. The company offers help with choosing a school and assessing how to finance it. The tools Sallie Mae has are scholarship search, college financial plan, student loan payment estimator, and accrued interest calculator.
