College costs keep climbing, and federal student loans don’t always cover the full bill. Once you’ve maxed out grants, scholarships and federal aid, private lenders are often the next stop.
Sallie Mae is one of the biggest players in the private student lending space. It offers loans for undergraduates, graduate students and parents, with no application or origination fees. Here’s how its rates, eligibility rules and repayment options stack up — and where it makes sense to compare offers before you sign.
Sallie Mae overview
Sallie Mae started in 1972 as a government-backed agency before privatizing in 2004. Today, it works as a consumer bank, offering high-yield savings accounts and certificates of deposit alongside its student loans, plus free tools like scholarship searches and college cost calculators.
Sallie Mae at a glance
| Feature | Details |
| Loan types | Undergraduate, graduate/professional (Master of Business Administration (MBA), law, medical, dental, health professions), career training, parent loans |
| Loan amounts | $1,000 minimum, up to 100% of school-certified cost of attendance (COA) |
| Repayment terms | Typically 10 to 15 years |
| Rate discounts | 0.25 percentage point (for autopay enrollees) |
| Grace period | 6 months after leaving school (longer for some medical and dental programs) |
| Fees | $0 application fee, $0 origination fee, $0 prepayment penalty; late and returned payment fees apply |
| Availability | 50 states plus Washington, D.C. |
| Better Business Bureau rating* | A+ |
* Better Business Bureau (BBB) ratings are accurate as of August 13, 2026.
Student loan options
Sallie Mae breaks its lending into four main categories:
Undergraduate loans
Sallie Mae’s undergraduate loan can cover up to 100% of your school-certified COA, minus financial aid you’ve already received. You can choose a fixed or variable interest rate, and Sallie Mae charges no application, origination or prepayment fees either way.
Graduate loans
Beyond the standard Graduate School Loan for master’s and doctoral programs, Sallie Mae also offers separate loans built around specific fields, like medicine, dentistry and law. Each has terms suited to that program’s timeline and costs.
MBA and professional school loans
The MBA Loan works similarly to Sallie Mae’s other graduate loans but is specifically for business school costs, covering up to 100% of your certified COA. This includes tuition, fees, books and living expenses.
Parent loans
The Sallie Mae Parent loan lets a parent, relative or other creditworthy adult borrow in their own name, rather than cosigning for the student. Unlike a federal Parent PLUS loan, it comes with no origination fee.
Interest rates, fees and discounts
What you pay for a Sallie Mae loan depends on your rate type, whether you qualify for discounts and a few fees worth knowing about upfront.
Fixed vs. variable rates
Sallie Mae offers fixed and variable rates on its loans. A fixed rate locks in for the life of the loan, so your payment stays predictable from your first bill to your last. A variable rate moves with the market — meaning your APR (annual percentage rate, the yearly cost of your loan including interest) and monthly payment can go up or down based on economic conditions.
Sallie Mae’s fixed rates currently range from 1.99% to 17.49% APR, and variable rates range from 3.62% to 17.03% APR, including the autopay discount.
*APRs are accurate as of August 2026, but are subject to change.
Available discounts
If you enroll in automatic monthly payments, Sallie Mae gives a 0.25 percentage point reduction on your interest rate (applied for as long as your payments go through successfully).
Fees
Sallie Mae doesn’t charge application, origination, or prepayment fees. But if you fall behind on a payment, you’ll owe 5% of the past-due amount, up to $25. And a bounced payment from insufficient funds adds another fee, up to $20.
Repayment options
Once you’ve settled on a loan type, Sallie Mae gives you some flexibility in how and when you pay it back.
In-school repayment options
While you’re in school, you can defer payments and let interest build up, pay a fixed $25 each month or cover only the interest to keep your balance from growing.
Repayment term lengths
Most Sallie Mae loans last for 10 to 15 years. Medical school loans may stretch up to 20 years.
Grace period
After you graduate or stop going to school at least half-time, you get six months before full payments kick in.
Cosigner release
Once you’ve shown you can handle the loan solo, cosigner release takes your cosigner off the hook and puts the loan in only your name. You’ll need to graduate, make 12 consecutive on-time payments and have no missed payments or hardship programs in the past year.
Hardship assistance
Sallie Mae offers a few ways to ease the pressure for those experiencing financial difficulty:
- Forbearance: Pause or lower your payments temporarily, though interest continues accruing.
- Reduced payment plan: Make interest-only payments for a limited time.
- Loan modification: For more serious hardship, Sallie Mae may adjust your rate or terms.
Eligibility requirements
Before you apply, it helps to know what Sallie Mae looks for in a borrower, a cosigner and the school itself.
Credit score
Sallie Mae keeps its credit score bar under wraps, but most approved applicants or their cosigners land in the mid-600s or above.
Income requirements
Sallie Mae doesn’t publish an income minimum either. It looks at your full financial picture, including debt-to-income (DTI) ratio and credit history, to gauge whether you can handle the loan.
Cosigner requirements
A Sallie Mae cosigner must be a United States citizen or a permanent resident who has reached the age of majority in their state (usually 18). They’ll need a verifiable income, a solid credit history and a valid Social Security number to pass Sallie Mae’s credit evaluation.
School eligibility
Your institution must be an accredited college, university or trade school that participates in Sallie Mae’s private loan programs.
Application process
Applying for a Sallie Mae student loan takes about 10 minutes online, and the process runs like this:
- Prequalify. Check estimated rates with a soft credit check, which won’t hurt your credit score.
- Submit your application. Enter your school, requested loan amount and financial details, along with cosigner information if you have one.
- Wait for a decision. Formally applying triggers a hard credit inquiry, which might dip your score a bit for a while.
- Let your school confirm the details. Sallie Mae reaches out to your financial aid office to verify your enrollment and ensure the loan amount lines up with your costs.
- Get your funds. Sallie Mae sends the money to your school (and most schools certify a month before the enrollment period starts).
Customer experience
Here’s what borrowers can expect once they’re managing a loan or need help along the way:
- Mobile app: Check balances, track your application status and make payments here (or use the desktop site for more detailed statement breakdowns).
- Customer support: Reach Sallie Mae by phone or live chat during their listed business hours.
- Customer reviews: Reviews on the Better Business Bureau and Trustpilot often mention aggressive collections tactics and little flexibility when borrowers hit financial trouble. Still, some reviewers say the application itself was quick and easy.
Sallie Mae pros and cons
Pros:
- Allows cosigner release after 12 on-time payments
- Doesn’t charge an origination fee or prepayment penalty
- Offers soft-pull prequalification
Cons:
- Rates can be steep without strong credit
- Doesn’t offer refinancing
- Only autopay enrollees get a discount
How Sallie Mae compares
| Feature | Sallie Mae | College Ave | SoFi |
| Fixed/variable APR | 1.99% to 17.49% fixed, 3.62% to 17.03% variable | 1.97% to 17.99% fixed; 3.89% to 17.99% variable | 2.45% to 15.99% fixed; 4.39% to 15.99% variable |
| Cosigner release | After 12 on-time payments | After half of the original repayment term has elapsed | Available on some in-school loans |
| Parent loans | Offered | Offered | Offered |
| Refinance | Not offered | Offered | Offered |
| Fees | $0 origination; late and returned payment fees apply | $0 origination, application and prepayment fees | $0 fees across the board, including late fees |
| Repayment flexibility | Deferred, $25 fixed, interest-only or full payment in school | Deferred, interest-only, $25 fixed or full payment in school | Deferred, interest-only, $25 fixed or full payment in school |
*Features are accurate as of August 2026, but are subject to change.
Is Sallie Mae right for you?
Sallie Mae could be the right fit for these borrowers:
- First-time students and graduate students who’ve maxed out federal aid
- Parents who want a loan in their own name
- Those with excellent credit
- Anyone applying with a cosigner
Bottom line
Sallie Mae’s low fees and fast cosigner release make it a solid pick once you’ve exhausted federal aid, though the lack of refinancing and federal protections are worth weighing first. Compare a few lenders using their soft-credit prequalification tools before you commit, since checking won’t affect your score.
FAQs
Does Sallie Mae require a cosigner?
No, you may not need a cosigner to get a Sallie Mae loan. But most students do because without a strong credit history or steady income, approval on your own is difficult.
Does Sallie Mae offer student loan refinancing?
No, Sallie Mae doesn’t offer refinancing or consolidation for existing student loans. It only issues new loans to cover current school costs.
Can you pay off a Sallie Mae loan early?
Yes, you can pay off a Sallie Mae loan early with no prepayment penalty. Add extra to your monthly payment or pay the full balance at once, and any extra amount goes toward lowering your principal.