Programs to Help Lower Student Loan Repayments from Sallie Mae

Experience Adds to Reputation

Sallie Mae is the country’s premier financial services company specializing in the needs of college students and their families. Originally founded in 1972 as a government sponsored agency, Sallie Mae began privatization in 1997. By 2004 the company cut all ties with the Federal government, and today Sallie Mae is a publicly held, private sector financial institution.

Sallie Mae specializes in providing affordable loans for college students at every stage of their development. The company offers a variety of student specific loans, including loans for undergraduate and graduate students, loans for career training, loans for medical and dental residencies, and loans for law students preparing for their bar exams.

Sallie Mae also offers extensive 529 College Savings Plans for students and their families, as well as banking services and student friendly insurance policies for health, auto, home and tuition. In addition to their extensive in-house services, Sallie Mae also acts as administrators for their client’s Federal student loans. College students will find that Sallie Mae can address all of their education related financial needs.

Sallie Mae Student Loan Repayment Optionssallie mae consolidation loans for students

Like all private lenders, Sallie Mae’s borrowing limits, interest rates and repayment plans are contingent on the borrower’s credit history. For those students holding Federal loans which are being managed through Sallie Mae, borrowing limits and repayment schedules will be set by the government. However, Sallie Mae understands that students often find themselves in difficult financial situations, and college loans can create sizable debt that can easily become unmanageable as graduates slowly move into the workforce. For those students, Sallie Mae offers five loan repayment options designed to address the borrower’s changing financial situation.

Federal Consolidation Loans

Federal Consolidation Loans allow borrowers to combine multiple Federal student loans into one more manageable loan, resulting in lower monthly payments. Students considering loan consolidation should understand that the process often extends the overall life of their loans, and will result in an increase in total interest costs.

Up until recently, student-borrowers could apply for a Federal Consolidation Loan through Sallie Mae, but recent changes in the Federal student loan program have shifted the application process back to the Federal government. Students interested in securing a Federal Consolidation Loan must now apply directly to the U.S. Department of Education’s Federal Student Aid Division.

Students who have qualified for a Federal Consolidation Loan may still choose to manage their loan through Sallie Mae, and may be eligible to take advantage of the repayment options discussed above.

Private Student Loan Consolidation

Sallie Mae no longer offers private loan consolidation. The repayment options discussed above have been put in place to address the needs of students wishing to lower their monthly payments, without the necessity for writing new consolidated loans. Students may still choose to consolidate their outstanding loans through another financial institution, in which case their new repayment plan will be governed by their new private lender.

Students considering private loan consolidation should refer to our section on Using Private Lenders to Consolidate Student Loans.

Student Loan Information

Sallie Mae is devoted to helping students navigate the murky waters of college finance. Through their website students can find helpful information on Saving for College, Planning for College, Paying for College and Money Management Before, During and After College. Students will find that Sallie Mae can answer all of their education related financial questions, and can provide them with advice and counseling to help them better manage their financial future.