Sallie Mae

Sallie Mae: private student loans and savings products

Sallie Mae is a U.S. financial institution that presents itself as the leading private student lender, with more than 50 years of experience supporting students. Its business combines education financing with savings products and informational resources for those planning to pay for college or career training.

Loans for undergraduate students and career training

The offering includes private loans for students pursuing bachelor's or associate's degrees, as well as a career training loan aimed at professional training or certificate courses. It also offers loan options for parents and cosigners, designed to help finance a student's education. Undergraduate and career training student loans are not intended for graduate students and are subject to credit approval, identity verification, document signing, and school certification. The requested amount must be at least $1,000 and the student must attend a participating institution.

Graduate and professional school loans

For graduate studies, Sallie Mae offers a general loan that funds master's and doctoral programs in humanities, sciences, and other areas. It also has specific lines for medical schools (MD, DO, DPM, DVM, or VMD), law (JD or LLM), business administration (MBA), and dentistry (DMD or DDS). These loans are aimed at graduate students at participating degree-granting institutions and share the same approval, verification, and school certification requirements.

Savings products

In the savings area, the company offers a high-yield savings account, certificates of deposit with fixed terms and guaranteed returns, a money market account with no maintenance fees, and the SmartyPig account, aimed at specific goals with a higher interest rate than a traditional savings account. Certificates of deposit require a minimum deposit of $2,500 and offer multiple terms. Savings and money market accounts compound interest daily and pay it monthly.

Educational resources and planning tools

The site brings together guides on private student loans, the federal PLUS program, savings strategies, and managing student loans. It also includes a calculator to estimate monthly payments and materials on financial aid, scholarships, FAFSA, and aid offers. For those seeking non-repayable funding, the company offers a $2,000 no-essay scholarship and a $5,000 graduate school scholarship, both with online applications that take only a few minutes, plus access to the Scholly tool to search and filter thousands of scholarships, and Scout to explore colleges by location, major, and other criteria.

Scale and experience data

According to its own presentation, Sallie Mae identifies itself as the number one private lender, with more than 50 years of experience, more than one million students served, and more than $345 million saved in PLUS loan origination fees over more than ten years. The company also notes that loans may be offered at rates lower than those of the federal PLUS program for highly qualified applicants with strong credit profiles.

Loan conditions and requirements

Loans are subject to credit approval, identity verification, document signing, and school certification. The student or cosigner must be of legal age in their state of residence. Students who are not U.S. citizens or permanent residents must reside in the United States, attend a school in the country, and apply with a cosigner with good credit who is a citizen or permanent resident. Pre-qualification is not a firm offer of credit and does not guarantee approval; to apply for a loan, a complete application and a thorough credit review are required. Variable rates may increase or decrease over the life of the loan based on changes in the 30-day average SOFR. There is a 0.25 percentage point discount for automatic payment enrollment, applicable only during the active repayment period and subject to suspension during forbearance or deferment periods.

Responsible borrowing approach

The company recommends that students and families start with scholarships, grants, and savings before turning to borrowing. If borrowing is part of the plan, it suggests comparing federal and private options, reviewing rates, fees, repayment methods, and features, and considering estimated monthly payments and future income potential.