Sallie Mae Undergraduate Student Loan Review: Are They Worth It?

Best for:

• Part-time undergraduate students
• Those who can make interest-only payments while in school

If you’ve tapped out your college financial aid, Sallie Mae Bank offers private student loans with a range of repayment plans that can help you close funding gaps. Learn how Sallie Mae private student loans can help you pay for tuition and living expenses while you earn your undergraduate degree.

In this post:

• Sallie Mae loan details
• Sallie Mae student loan review
• How Sallie Mae compares to other lenders
• How to take out student loans with Sallie Mae

Sallie Mae undergraduate loans: Interest rates, loan terms, and fees

Sallie Mae offers fixed-rate and variable-rate loans to full-time and part-time students with flexible repayment options. You can defer payments until six months after leaving school, but you’ll save money if you make interest-only or partial interest payments while in school.

Credible rating	4.3
Rates from (APR)	Fixed: - Variable: -
Loan amounts	$1,000 up to 100% of school-certified cost of attendance
Loan terms	10 to 15 years (undergraduate loans)
Loan products	Undergraduate Smart Option Student Loan
Fees	No application, origination, or disbursement fees
Prepayment penalty	None
Cosigner info	Cosigner release available after 12 consecutive on-time payments
Discounts	0.25% autopay rate reduction (all loans) 0.5% interest rate reduction on graduate and professional school loans when making interest-only payments while in school
Residency	Must be a U.S. citizen or a permanent resident Non-U.S. citizen may apply with creditworthy cosigner who is U.S. citizen or permanent resident (U.S. Citizenship and Immigration Service documentation required)
Enrollment	Part-time students eligible Must be enrolled at least half-time to finance personal expenses (such as a laptop)
Repayment	In-school deferment: No monthly payments until six months after leaving school Partial interest: Pay $25 a month while still in school Interest only: Pay only the interest owed while in school Full interest and principle payments: For parent loans
Loan servicer	Sallie Mae
Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available | 9Sallie Mae Disclosures

See: The Best Private Student Loan Companies

Sallie Mae student loan review

Sallie Mae offers the undergraduate Smart Option Student Loan which you apply for just once a year. The funds are sent directly to your school each term.

How to qualify

With Sallie Mae, you can apply to have your cosigner released from their obligation after making 12 consecutive on-time monthly payments.

Borrowers must be attending a participating U.S. school and be a U.S. citizen or a permanent resident. Non-U.S. citizens can apply with a cosigner who is a U.S. citizen or permanent resident if they also have required U.S. Citizenship and Immigration Service (USCIS) documentation.

Repayment options

Sallie Mae offers a range of repayment plans and loan terms. The options available to you will depend on the type of loan you take out. Most Sallie Mae loans allow you to defer payments until six months after you leave school, but keep in mind you’ll save money if you can make monthly interest-only or $25 flat fee payments.

There are three repayment plans for the Sallie Mae Undergraduate Smart Option Student Loan:

1. In-school deferment: You make no monthly payments until six months after leaving school. Because interest starts accruing as soon as you take out your loan, this is typically the costliest repayment plan.
2. Interest only: You pay the interest you owe each month while in school, so your loan balance doesn’t grow while you’re in school.
3. Partial interest: You pay a flat fee of $25 a month while still in school, which typically takes care of some, but not all of the interest you owe

There are no penalties for student loan prepayment. So no matter which repayment plan you choose, you can always make more than the minimum monthly payment (use our student loan repayment calculator to see how much this strategy can save you).

You also choose a loan repayment term when you apply for a private student loan. Repayment terms for Sallie Mae loans are:

• Undergraduate Smart Option Student Loan: 10 to 15 years

How Sallie Mae compares to other lenders

	Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Rates from (APR)	Fixed: 3.24% Variable: -	Fixed: 3.24% Variable: -	Fixed: 3.49 Variable: 1.04%
Loan amounts	$1,000 up to 100% of your school-certified cost of attendance	$1,000 up to 100% of your school-certified cost of attendance	$1,000 to $350,000 (depending on degree type)
Compare rates without affecting your credit score. 100% free! Compare Now
Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available | 1Citizens Disclosures | 2,3College Ave Disclosures | 7EDvestinU Disclosures | 8INvestEd Disclosures | 9Sallie Mae Disclosures

How Sallie Mae can improve

Sallie Mae could improve its loan offerings by:

• Providing personalized rates without a credit check
• Publishing minimum income and credit score requirements

How to take out student loans with Sallie Mae

Sallie Mae student loans can be a great match for many students, particularly part-time students. But because lenders compete for your business, comparing rates from multiple lenders can help you find the best private student loans.

Credible makes it easy to compare rates from multiple student loan lenders with just one form. You can also check your prequalified rates without a hard credit pull, so it won’t affect your credit.

About the author

Matt Carter

Matt Carter is a Credible expert on student loans. Analysis pieces he’s contributed to have been featured by CNBC, CNN Money, USA Today, The New York Times, The Wall Street Journal and The Washington Post.

Read More

Home » All » Student Loan Lender Reviews » Sallie Mae Undergraduate Student Loan Review: Are They Worth It?