Key takeaways

  • All Sallie Mae loans taken out since 2014 are personal.

  • The easiest way to find out when you have federal or personal pupil loans is to verify studentaid.gov.

  • If you want to borrow cash for school, exhaust federal pupil loans earlier than taking out a personal pupil mortgage.

All new Sallie Mae loans are personal. However in case you took out a Sallie Mae mortgage earlier than 2014, it might need been a federal mortgage and is probably going now serviced by Navient.

Sallie Mae began off below the federal authorities and offered loans by the Federal Household Schooling Mortgage program, or FFEL. In 2004, Sallie Mae privatized and started issuing personal loans whereas nonetheless providing FFEL loans. Sallie Mae stopped providing federal loans when the FFEL program led to 2010, however continued to service federal loans although 2014. Since then, Sallie Mae not companies federal loans and supplies solely personal pupil loans.

Most pupil loans are federal. However in case you’re nonetheless not sure about whether or not your student loan is federal or private, the easiest way to search out out is by logging into studentaid.gov along with your FSA ID. All federal mortgage data is housed there. If you happen to don’t discover your mortgage data by studentaid.gov, you’ve a personal pupil mortgage.

How do Sallie Mae loans work?

Sallie Mae at present presents personal pupil loans for undergraduate, profession coaching and graduate applications. It additionally supplies mother or father loans and is among the few lenders to supply loans to part-time college students.

Applying for a Sallie Mae loan requires a tough credit score verify. You’ll usually know whether or not you’re permitted inside quarter-hour. However Sallie Mae doesn’t disclose its minimal qualifying credit score scores or earnings, so that you’ll must fill out an utility to see in case you qualify. In case your utility is rejected, verify different private student loan lenders to discover a higher match.

Earlier than you apply to Sallie Mae or any personal lender, file the Free Utility for Federal Pupil Assist, or FAFSA, and exhaust federal pupil mortgage choices. Federal student loans have benefits not obtainable for personal loans and sometimes include decrease rates of interest.

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