Here’s what you need to know about Sallie Mae private student loans.

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What is a Sallie Mae private student loan for?

Sallie Mae private student loans are for those who don’t want to pay out-of-pocket for their education. However, before you turn to a private lender to finance your education, make sure you understand the benefits of opening federal vs. private student loans.

Federal student loans come with certain terms that private lenders simply don’t offer (or aren’t obligated to offer, anyway). Hardship programs like income-driven repayment and forbearance, as well as reasonable fixed interest rates, mean it’s wise to use all the federal funding you qualify for—and make private student loans your plan B. Most federal student loans don’t even require a credit check.

Sallie Mae private student loans are great supplements for those with expenses that aren’t entirely covered by a federal student loan. Depending on your degree, you may have extra tuition, textbooks, housing, even meals that you can pay for with a Sallie Mae private student loan.

If you don’t qualify for federal funding, Sallie Mae is also an elite choice thanks to its lack of annual borrowing cap. Many lenders stipulate a maximum amount you can borrow, but Sallie Mae does not. You can borrow up to your school’s full cost of attendance (less any aid you’ve already been given).

Sallie Mae also has a useful cosigner release policy that allows your cosigner to wash their hands of the loan after 12 on-time principal and interest payments after graduation—provided you meet the income and credit requirements.

Pros and cons of Sallie Mae private student loans

Types of Sallie Mae private student loans

Sallie Mae offers an extremely wide array of personal student loans:

• Undergraduate loans: Covers expenses of a bachelor’s or associate degree—or a certificate from a degree-granting school. Not all institutions fund associate degrees, giving Sallie Mae a leg up
• Graduate school loans: Targeted toward those pursuing a master’s or doctoral degree in humanities, sciences, and other education tracks
• Career training loans: For students enrolled in professional or vocational training/certificate courses, from culinary arts to technical trades—things that fall outside of traditional degrees
• Nursing school loans: Designed for students earning an undergrad degree in nursing or a related field
• Flight school loans: Bachelor’s and associate degrees are both eligible for funding, as well as professional flight training
• MBA loans: Tailored to business school students earning their Master of Business Administration degree
• Law school loans: For expenses you accrue when pursuing either a JD or LLM
• Medical school loans: MD, DO, DPM, DVM, and VMD degrees qualify for this loan
• Health professions loans: Those going after graduate-level degrees such as nursing and pharmacy
• Dental school loans: Created for DMD and DDS students
• Bar exam loans: Not quite a traditional tuition loan, as it simply covers your expenses while preparing for the bar exam—including living costs, fees, and expenses
• Medical residency loans: There are unique costs associated with medical residency that this loan is designed for, including exam fees, travel, and moving
• Dental residency loans: Similar to medical residency, you may need to pay for things like moving and travel to participate in your dental residency

How to qualify for a Sallie Mae private student loan

As previously mentioned, Sallie Mae private student loans aren’t quite as easy to get as a federal student loan may be. To qualify, Sallie Mae will check your credit and income to gauge how responsible you are with borrowing money—and how capable you are of repaying it. If your credit and/or income is deemed insufficient, you’ll need someone with more impressive credit and income to cosign the loan with you.

In addition, you’ll also need to:

• Be the age of majority in the state in which you live
• Be a U.S. citizen or permanent resident
• Attend an eligible school (Sallie Mae doesn’t fund every school)
• Be enrolled in an eligible program
• Be enrolled at least half-time for some programs (e.g. a medical residency)

While you can complete the online application in minutes—and even get a decision within a day, based on your credit credit—school certification and disbursement can make finalizing the process considerably longer.

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What repayment options do Sallie Mae private student loans offer?

Sallie Mae offers a range of term lengths, depending on the specific private student loan you open. You can typically expect between 15 and 20 years to repay your loan. While in school, you’ve got the following repayment options:

• Deferred repayment: Avoid payments while you’re in school and during the grace period.
• Fixed repayment: Make fixed payments each month while you’re in school and during the grace period.
• Interest repayment: Only pay interest each month while you’re in school and during the grace period.

It’s worth noting that some programs, including medical and dental residency and relocation and bar study loans, only give you the option of deferred repayment.

When you begin your repayment, Sallie Mae gives you the option of a Graduated Repayment Period (GRP). This lets you make interest-only payments for 12 months after your grace period (though note that it doesn’t extend your loan term).

Sallie Mae does also offer forbearance for those going through qualifying hardships. This temporarily postpones your payments to help prevent your account from slipping into delinquency.

What do customers say about Sallie Mae?

When researching the best private student loans for your situation, you’ll generally find that many lenders have low ratings on review sites and forums. Particularly for financial institutions, the most motivated reviewers are the ones who have a poor experience.

This helps to explain Sallie Mae’s 1.3 star rating out of 5 on Trustpilot. Reviewers comment on difficulty receiving hardship benefits and harassment, as well as what they frame as customer-unfriendly processes seemingly making simple things deliberately difficult.

Positive reviews praise Sallie Mae’s low APRs (as long as you’re creditworthy enough to qualify for a low rate), as well as positive customer service experiences.

The takeaway

Sallie Mae private student loans can be a great option to fund your education. It offers an impressive selection of loans, funding programs that many competitors won’t—such as associate degrees, bar exam, and career training. Plus, Sallie Mae doesn’t cap the amount of school-certified expenses you can finance.

Frequently asked questions

Does Sallie Mae charge origination fees or prepayment penalties?

No, Sallie Mae does not charge origination fees or prepayment penalties.

How much can you borrow with a Sallie Mae private student loan?

Sallie Mae does not limit the amount you can borrow. As long as they are school-certified expenses, it’s possible to get the funding you need from Sallie Mae.

Does Sallie Mae allow part-time students to borrow?

Yes, Sallie Mae allows part-time students to borrow, whether you’re attending half-time (or even less).

Can international students get a Sallie Mae private student loan?

Students that aren’t U.S. citizens are able to get a private student loan as long as they apply with a cosigner who is either a U.S. citizen or permanent resident. The student will also need to live in the U.S. and attend an eligible school.

Does Sallie Mae require a cosigner?

Sallie Mae only requires a cosigner if you’re not creditworthy enough to be approved for the loan yourself. It’s difficult to be approved for a private student loan if you have limited or bad credit history.