Sallie Mae Student Loans
Are you headed to college next semester, you’re likely stressed out over how to pay for it, especially if you’ve already exhausted federal financial aid. Sallie Mae student loans are one option popular for most undergraduates. If you want to take a loan with Sallie Mae, you should take the following into consideration.
- Deferred: You can pay the loan six months after graduation. You’ll pay more in interest with this option since interest accrues while you’re not making payments, but the extra time before payments are due helps you focus on finishing school and landing a job.
- Fixed: With this option, you pay $25 a month while in school and during your grace period. According to Sallie Mae, this repayment plan can help freshman students save 14% on their total undergraduate student loan cost.
- Interest: Under an interest repayment plan, you pay the interest every month while in school and during the six-month grace period.Paying the interest in school can help first-year students save about 29% on their total loan cost.
Key aspects about Sallie Mae loans
Expanded eligibility for part-time students
To borrow many types of loans, both Federal and private you must attend classes at least half time or full time. Sallie Mae student loans are accessible even for less-than-half-time students. Also part-time student seeking financing will access the loans if you meet the lender’s minimum borrowing amount.
Better repayment plans
Unlike many other private lenders, Sallie Mae, which is also among lenders to offer scholarships, allows you to choose a plan that works for you and your budget. As an added perk, if you can afford to make interest payments while in school you get an interest rate that is one percentage point lower than for borrowers who choose to defer payments. That difference can result in significant savings.
More options if you can’t afford payments
Unlike most lenders, if you’re facing significant financial troubles, such as a job loss or medical emergency, you might qualify for forbearance. That means you can temporarily stop making payments for spans of up to three months, a maximum of 12 months, without defaulting on the loan.
Easier co-signer release requirements
Some lenders don’t offer co-signer releases at all, while others require years of on-time payments before you can apply for co-signer release.Sallie Mae asks for just 12 months of on-time payments, making it easier to get your co-signer removed, so long as you meet the other requirements. Eliminating your co-signer from the loan can help improve your relationship with that person and prevent any tension over money.
There have been cases where the borrowers become disabled or even died, and loan lenders came after their loved ones for the money owed. Unfortunately, private lenders are not allowed to forgive the remaining balance but Sallie Mae is one of the few private lenders that can forgive the remaining loan balance in cases of death and disability, giving much-needed relief to a borrower’s family.