Are Sallie Mae Student Loans Eligible for Forgiveness?

Loans issued by Sallie Mae after 2014 are private, so federal student loan forgiveness programs don’t apply to them. If you borrowed before then, though, your loans may be federal and being serviced by another company. That could open the door to forgiveness through an income-driven repayment plan or similar federal program.

Here’s how to confirm what type of Sallie Mae loan you have and what relief options may be available.

Compare private student loan refinance rates

Does Sallie Mae offer student loan forgiveness?

Sallie Mae has a long history in student lending and originally began in the 1970s as a government enterprise providing federal student loans. While the modern Sallie Mae you know today doesn’t offer student loan forgiveness, the answer isn’t so simple for borrowers with older Sallie Mae loans. 

In 2014, the company split into two separate organizations: The Sallie Mae business arm began originating and managing private student loans exclusively, while its federal loans were spun off into another company called Navient. 

Those who borrowed from Sallie Mae after this 2014 split have private student loans, which aren’t eligible for federal forgiveness programs. However, Sallie Mae will discharge debts for borrowers who die or become totally and permanently disabled.

If you borrowed from Sallie Mae before 2014, it’s possible that you have federal student loans from the company. In that case, your debt would have been transferred to Navient (which, in turn, could have later transferred it again to another loan servicer called Aidvantage). If that describes your situation, you may be eligible for federal loan forgiveness programs, depending on the details of your debt. 

Are my Sallie Mae student loans private or federal? 

As mentioned above, if you borrowed a Sallie Mae loan after 2014 — or if Sallie Mae is still the current owner of your debt — you have private student loans and aren’t eligible for federal student loan forgiveness programs.

But if your Sallie Mae debt was transferred to Navient or Aidvantage, you could have federal student loans. Here’s how to confirm:

1. Visit the Federal Student Aid (FSA) site at StudentAid.gov.
2. Log in with your FSA ID, email address, or phone number.
3. Navigate to the “My Aid” page, which will show you the details of the federal loans you’ve borrowed and which company currently services them.

Alternatives to Sallie Mae student loan forgiveness

While newer Sallie Mae loans don’t qualify for forgiveness, you may have other options. Find out if one of these strategies can help you better manage your debt. 

1. See if Sallie Mae can lower or pause your payments 

If you’re struggling to keep up with your Sallie Mae loan payments, you may have options. Depending on your situation, Sallie Mae may let you temporarily pause payments, make interest-only payments, or lower your monthly bill.

Sallie Mae also offers deferment in some situations, such as returning to school at least half-time or entering an eligible internship, clerkship, fellowship, or residency. 

Eligibility depends on your circumstances, so contact Sallie Mae as soon as you think you may have trouble making payments.

2. Research state-based assistance programs

Many states offer student loan repayment assistance for borrowers who work in high-need professions. To qualify, you typically must work for several years in an underserved area at an eligible job. In exchange for your service, the state agrees to pay off a portion of your student loans. Common fields that offer these programs include teaching, health care, dentistry, and law.

While exact requirements vary by program, many of those opportunities will help repay both federal and private student loans. To see what’s available in your area, visit your state’s Department of Education website or check with your professional association.

3. Ask your employer for help

Employers are increasingly helping to repay their workers’ student loans as a standard workplace benefit. Companies may offer employees a flat monthly amount toward their student debt or match an employee’s loan payments up to an annual or lifetime maximum.

Ask your employer if it might institute a similar program or consider switching to a company that does. 

4. Refinance your student loans 

Because Sallie Mae doesn’t offer student loan refinancing, you’ll need to refinance with a different private lender. That lender pays off your Sallie Mae loan and replaces it with a new loan with different rates and terms.

Refinancing could help if you qualify for a lower interest rate, want to reduce your monthly payment, or prefer a different repayment term. A lower rate can also reduce how much interest you pay over time.

Interest rates for student loan refinancing by credit score

When exploring your student loan refinancing options, it's important to understand the impact of your credit score on the rates you might receive. Generally, a higher credit score indicates lower risk to lenders and can help you secure lower interest rates. Conversely, a lower credit score may increase your rates because lenders see you as more likely to default on your student loan debt.

The chart below shows average prequalified refinancing rates by credit score for borrowers who used Credible to compare and select a lender.

How to refinance your Sallie Mae student loans

If your Sallie Mae loans aren't federal and thus don't qualify for loan forgiveness, you might want to refinance them instead. Student loan refinancing involves taking out a new loan that repays your current loan — after that, you'll begin making payments on your new loan.

Refinancing has many benefits, including potentially lowering your interest rate, changing your repayment term, and simplifying repayment if you have multiple loans that you combine into one.

Here are the general steps you'll need to take to refinance your Sallie Mae loans:

1. Prequalify with multiple lenders: Research lenders that offer student loan refinancing and compare rates by prequalifying on each lender's website. This allows you to find out what rate you might qualify for without negatively impacting your credit. Be sure to consider factors beyond the interest rate, such as repayment terms and any discounts lenders offer.
2. Submit an application: After you've selected the best lender for you, complete an application. You'll typically need to gather supporting documentation, such as recent tax returns or pay stubs. Note that when you formally apply, the lender will conduct a hard credit check, which can cause your credit score to dip temporarily.
3. Continue making payments on your existing loan: Until your loan application is approved and fully processed, continue to make payments on your current loan. Once your new lender notifies you that it has paid off your old loan, you can begin making payments on the new loan.