Private student loans have been on the rise, with $6.2 billion borrowed in 2012-2013, compared to $5.5 billion in 2011-2012.
Many students who have taken out student loans do so through Sallie Mae.
It is beneficial to understand scholarships and payment plans so you are best equipped to handle your student loan repayment process.
For parents and students, here is the information you need to ensure you make the best decisions about your loan and payments.
(Pro Tip: Wondering if Consolidation is a possibility for your Sallie Mae Loans? Know if you could lower your payment and average out your rates with consolidation in less than 10 minutes with this free guide. Click here to access How To Know If You Should Consolidate Your Loans in 10 Minutes or Less.)
Student Loans Sallie Mae | What Every Student Must Know
What is Sallie Mae and What Does it do?
Sallie Mae was originally known as the Student Loan Marketing Association.
It is a publicly traded private company that deals with student loans.
When students first begin to look at options for paying for college, they often turn first to federal loans.
If you can’t secure enough funds to pay for education this way you can turn to Sallie Mae to help cover remaining costs.
These private student loans are issued by a bank or another financial institution.
What Types of Loans Does Sallie Mae Offer Students?
Sallie Mae offers different types of loans to fund your education. Their loans include options for:
- students pursuing an undergraduate degree
- students pursuing career training
- parents taking out loans for their students
- K-12 education, which covers costs associated with private education
- those working towards general graduate degrees
- MBA programs
- health studies programs
- dental and medical programs
- dental and medical residencies
- those studying for bar exams
You can use the funds secured through Sallie Mae to cover the costs associated with your education.
This not only includes tuition, but also room and board, books and supplies, transportation, and even personal needs that you may have during your studies.
Financial institutions grant approval based on your credit, the credit of any cosigners, and any information included in your application.
Note that these private loans have higher interest rates than federal loans, and thus should only be considered after federal options have been exhausted.
(Pro Tip: Wondering if Consolidation is a possibility for your Sallie Mae Loans? Know if you could lower your payment and average out your rates with consolidation in less than 10 minutes with this free guide. Click here to access How To Know If You Should Consolidate Your Loans in 10 Minutes or Less.)
What Should Students and Parents Know about Taking out Sallie Mae loans?
There are a few factors to consider when preparing to take out student loans from Sallie Mae.
- Compare the interest rates on different loan options, and take into account any hidden fees.
Interest can quickly accumulate on these loans, which can make it harder to pay back.
It’s best to find the loan option with the lowest financial burden. - Some private loans offer various benefits and programs that allow students to lower their interest rates while in school.
For example, they may be able to make smaller payments towards the accruing interest to keep the total amount down. - Also, check for payment plans immediately after graduation.
Some loans may offer low-payment options for a certain amount of time after graduation to let you find a job before you make full monthly payments. - Although it can be tempting to use loans to fund your travel or entertainment whims, it will only end up hurting you when it’s time to repay. Focus on borrowing only what is needed for education.
What are the Options for Repaying Student Loans?
Once it’s time to repay the student loans, setting up automatic payments can be an excellent option for many people.
Not only does it ensure that you don’t miss payments, but it also qualifies you for a .25% interest rate deduction.
Certain types of Sallie Mae loans, including those related to medical or dental residency and bar study, are also eligible for interest-only payments for a few years.
Those who take out these types of loans can take advantage of this plan to find a job and begin earning money.
Keep in mind there is no penalty for paying off student loans early.
And doing so can help reduce interest.
You can log into the online Sallie Mae portal to learn about the terms of their loan services.
If you cannot make the payments, you can call them at 800-4-SALLIE to request payment options, such as interest-only payments for a particular duration.
Check out this video from Sallie Mae to find out how you can save on your student loans.
https://www.youtube.com/watch?v=2Pr-Flx0Rhk
Sallie Mae student loans can provide you with the funds you need to complete your education, but you must know how to manage them properly.
Taking this advice into account can help you feel informed and prepared as you move forward with the student loan process.
(Pro Tip: Wondering if Consolidation is a possibility for your Sallie Mae Loans? Know if you could lower your payment and average out your rates with consolidation in less than 10 minutes with this free guide. Click here to access How To Know If You Should Consolidate Your Loans in 10 Minutes or Less.)
Are you on a Sallie Mae plan? Let us know about your experiences with Sallie Mae in the comments section below.