What You Need to Know About Sallie Mae Loans
You’re soon to enroll in college and need all the financial help you can muster. However, you struggle to decide where to turn for it, such as the abundance of your options.
There are government and private loans, and within those categories, there are tons of other possibilities, including Sallie Mae, one of the industry’s most prominent private student loan lenders. So, while you’re casting about for info on lenders, here’s what you need to know about Sallie Mae loans.
Just What are Student Loans?
It’s time to define terms. Student loans are specially crafted loans designed to help students pay for post-secondary education costs, namely tuition, textbooks, supplies for coursework, and living expenses.
We should add that such assistance is sorely needed since tuition and fees at private universities have risen a whopping 144 percent on average, while out-of-state tuition and fees have skyrocketed 171 percent in the last two decades, according to U.S. News. The most significant increase is in public universities, where education and costs have spiraled upward by 211 percent.
What is Sallie Mae?
As we said above, Sallie Mae is one of the biggest private student loan lenders. It offers loans for undergrad, graduate, professional (medical school, law school, etc.), and career training. The company was initially founded 48 years ago as a federally guaranteed student loan program, although it discontinued servicing federal loans back in 2014.
What are Some of the Benefits of Sallie Mae?
For one thing, the lender is one of few that provides loans to part-time students. What’s more, if they can get a co-signer, non-U.S. citizens, including Deferred Action for Childhood Arrivals (DACA), can get loans. And Sallie Mae provides online tutoring and complimentary credit score tracking. You also can choose to make interest-only payments for a year after graduation.
Are There Many Downsides to Sallie Mae?
We found just one big one: the lender must conduct a hard credit check to see if you qualify and to determine the interest rate for which you’re eligible. In terms of where Sallie Mae could improve, it’d also be nice if the lender provided more than 12 months of forbearance and allowed biweekly payments through autopsy.
What Kinds of Rates Could I Expect?
Sallie Mae offers a fixed APR of between 3.50 percent and 12.60 percent and a variable rate of between 1.13 percent and 11.23%. You’ll have to qualify credit-wise, though. You will need a credit score of the mid-600s or above.
If it turns out you can’t handle your rate, you can always do a student loan refinance, a move with few downsides and one that can save you thousands of dollars and allow you to pay off your loans faster. What is refinancing? It’s the process of applying for a new loan to pay off your existing student loans, typically to lower your interest rate.
Who is Sallie Mae Best For?
When it comes down to it, Sallie Mae works optimally for those who wish to benefit from making payments while they’re enrolled in school. The lender offers the best rates, for example, to those who, while in school, earn $25 monthly payments or interest-only payments.
Now that you know what you need to know about Sallie Mae’s student loans, you can move forward with confidence to finance your education – IF the lender is right for you. You’ll need to run your numbers, then decide. And remember, if you wind up needing shelter from high-interest rates, we’ve found that letting Juno handle your refinance is the most brilliant move around.
