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

Sallie Mae is a great option for part-time undergraduate students who need a private student loan.

Matt Carter Matt Carter Updated August 18, 2020

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."

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.

sallie mae personal loans
Rates from (APR)Fixed: 4.25% - 12.35%9
Variable: 1.25% - 11.10%9
Loan amounts$1,000 up to 100% of school-certified cost of attendance
Loan terms5 to 15 years
(undergraduate loans)
Loan productsUndergraduate Smart Option Student Loan
FeesNo application, origination, or disbursement fees
Prepayment penaltyNone
Cosigner infoCosigner 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 servicerSallie 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: 5 to 15 years

How Sallie Mae compares to other lenders

sallie mae personal loanscollegeavecitizens bank student loans
Rates from (APR)Fixed:
3.49%+2,3

Variable:
1.25% - 11.10%9
Fixed:
3.49%+2,3

Variable:
1.04%+2,3
Fixed:
3.99%+1

Variable:
1.22%+1
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 Bank 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.

Compare student loan rates from top lenders

  • Multiple lenders compete to get you the best rate
  • Get actual rates, not estimated ones
  • Finance almost any degree

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Trustpilot

 
The company above is one of Credible’s approved partner lenders. Because they compete for your business through Credible, you can request rates from them by filling out a single form. Then, you can compare your available options side-by-side. Requesting rates is free, doesn’t affect your credit score, and your personal information is not shared with our partner lenders unless you see an option you like. Credible receives compensation if you close a loan with one of our partner lenders. The rates you receive and the fees you pay (if any) are not impacted by this compensation.
About the author
Matt Carter
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.

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Discover Student Loans Disclosure

The interest rates depicted on Credible represent the APR. The fixed interest rate is set at the time of application and does not change during the life of the loan. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable Margin percentage. The margin is based on your credit evaluation at the time of application and does not change. For variable interest rate loans, the 3-Month LIBOR is 2.375% as of July 1, 2018. Discover Student Loans will adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the “interest rate change date”), based on the 3-Month LIBOR Index, published in the Money Rates section of The Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. Please visit http://www.discover.com/student-loans/interest-rates.html for more information about interest rates.

Citizens Bank Disclosures

Student Loan Rate Disclosure

Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of July 1, 2018, the one-month LIBOR rate is 2.10%. Variable interest rates range from 4.07%-12.04% (4.07%-11.94% APR) and will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a cosigner. Fixed interest rates range from 5.25%-12.19% (5.25% – 12.09% APR) based on applicable terms, level of degree earned and presence of a cosigner. Lowest rates shown requires application with a cosigner, are for eligible applicants, require a 5-year repayment term, borrower making scheduled payments while in school and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of the loan.

Citizens Bank - Refi - Disclosures

Education Refinance Loan Rate Disclosure:

Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of July 1, 2018, the one-month LIBOR rate is 2.10%. Variable interest rates range from 2.75%-8.20% (2.75%-8.20% APR) and will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a cosigner. Fixed interest rates range from 3.50%-8.69% (3.50% – 8.69% APR) based on applicable terms, level of degree earned and presence of a cosigner. Lowest rates shown require application with a cosigner, are for eligible, creditworthy applicants with a graduate level degree, require a 5-year repayment term and include our Loyalty discount and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty and Automatic Payment Discount disclosures. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of their loan.