SoFi vs. Sallie Mae: Which Lender Should You Choose?

When exploring your private student loan options, finding the right lender can make all the difference. Although both SoFi and Sallie Mae offer private student loans, the lender you choose can make a big difference to your bottom line and repayment experience. 

This guide offers a private student loan comparison between SoFi and Sallie Mae to help you decide which lender is the right fit for your situation. 

Current private student loan rates

SoFi and Sallie Mae at a glance

Sallie Mae and SoFi student options each offer ways to cover your education costs. We explore the options available through each lender below. 

SoFi

After being founded in 2011 by a group of Stanford business school students, SoFi has funded more than $73 billion in loans. Its private student loans and student loan refinancing options offer a suite of borrower-friendly benefits. Perks include cash bonuses for good grades, cosigner release in just 12 months, free financial planning sessions, access to travel deals, and a loyalty discount on future student loans. 

Beyond student loans, SoFi offers many financial services, including bank accounts, an investing platform, credit monitoring, personal loans, credit cards, mortgages, and help finding insurance. 

Sallie Mae

Sallie Mae student loans offer a more flexible approach to student lending. The lender provides funding for a wide range of educational pursuits, including college, career training, flight school, grad school, law school, and more. Plus, you won’t have to reach half-time status to borrow through Sallie Mae, allowing you to pursue your education at your own pace. 

Notably, Sallie Mae doesn’t offer parent loans, but parents can cosign their child’s loan. Sallie Mae also doesn’t offer prequalification, which means you’ll need to commit to a hard credit check to see your loan offer. 

SoFi and Sallie Mae compared

Borrower eligibility and requirements

Neither Sallie Mae nor SoFi discloses credit score or income requirements. But, generally, private lenders look for a minimum FICO credit score of about 670. 

Sallie Mae offers an extensive selection of private student loan options, designed to fund a wide range of educational experiences. You’ll find student loan options for career training, nursing school, flight school, law school, and more through Sallie Mae. 

In contrast, SoFi only offers private student loans for undergraduate or graduate degree programs. 

Repayment options

SoFi offers a more expansive range of term lengths, including terms of five, seven, 10, and 15 years. When taking out a SoFi private student loan, you’ll have the option to start full payments during school, make smaller flat payments during school, make interest-only payments during school, or defer repayment until after graduation. 

Sallie Mae’s repayment options are slightly less robust. For starters, your repayment term options are either 10 or 15 years. But you can choose to defer repayment until after graduation, make fixed payments of $25 while in school, make payments to cover the interest during school, or make full payments right away. 

Both SoFi and Sallie Mae offer deferment and forbearance options to borrowers struggling to keep up with their loan payments. 

Fees and discounts

Sallie Mae doesn’t charge any origination fees or prepayment penalties. SoFi doesn’t charge any fees, including late fees. 

Both lenders offer a 0.25 percentage-point autopay discount for borrowers who sign up for automatic payments. If you need to borrow again, SoFi offers a rate discount on subsequent student loans. SoFi also offers a discount if you have an immediate family member with an existing SoFi loan. 

Borrower experience

SoFi offers plenty of perks to its community of borrowers. As a SoFi member, you’ll get access to free financial planning sessions, a home loan discount, a community, member events, and a suite of travel offers. 

Sallie Mae works with students who are enrolled less than half-time in their program, which is a rare benefit. Sallie Mae also makes it possible to take out a loan for career training. But the need to undergo a hard credit check to see your rates might be an inconvenience. 

Both lenders offer a cosigner release option, which can help you take charge of your finances when you’re ready. 

SoFi vs. Sallie Mae: Which is better for you?

The best student loan lender for you varies based on your unique situation. 

Sallie Mae might be the better choice if you’re pursuing an education in a non-traditional field, like flight training or another type of career training. Additionally, it’s a good fit for students attending classes on less than a half-time basis. 

SoFi might be a better option if you want to capitalize on the perks available, like bonuses for good grades and access to financial planners. Plus, the wider range of repayment terms might suit your preferences better. 

Regardless of which direction you’re leaning, it’s a good idea to compare rates across multiple lenders to find the best deal for your situation.