Our student loan, which we can not get rid of, and we think that they are going to whip us, or it is a burden on our back! Even though we may turn down it, it goes on condemning us to it again! Probably you have heard about Sallie Mae student loans. If you are interested in Sallie Mae student loans or a victim of it, you are on the right path. In this article, we will give all your unanswered questions related to this topic. If you want to know what you have to do with your student loan as called Sallie Mae and get out of your debts and believe in the future when you have happy days, then you should listen to what we’re going to say right now. Let’s started from the beginning!
The history of Sallie Mae
As a public traded company, Sallie Mae (Student Loan Association) is the largest organization that is involved in providing student loans in the United States. Also, Sallie Mae also takes a right to educational loans for a certain amount of money from its original lenders, including the provision of financing services to other educational credit agencies.
The above-mentioned public trade company was founded in 1972 as a government organization. Since 2004, Sally Mae has transferred a fully independent publicly traded company and has appeared on the New York Stock Exchange with the SLM sign.
Which role plays Sallie Mae to student loans?
In 2010, the government introduced significant and lasting changes to its Federal Family Education Loan Program (FFEL). The program traces its roots to at least 1965, and this change officially completed the emergence of student loans by third parties. SLM Corporation, also known as Sallie Mae, was one of the largest developers in the student loan market. Today, it still affects the private education lending market and highlights FFEL opportunities for a new company. Below is an overview of both of these services.
Current situation of Sallie Mae
SLM Corporation since it is officially named in its charter, better known as Sallie Mae. The company has more than four decades and in the early stages of the program FFEL. In fact, from its inception in 1972 until 2004, it was a government-sponsored organization by the federal government (GSE), which meant very close ties with the government. The cessation of statutory and government changes in 2010 forced Sallie Mae to transfer its business to private education loans which are called non-federal loans that are not insured or not guaranteed by FFELP.
What does Sallie Mae offer to students?
Sallie Mae offers a new approach to servicing a student loan that has not been made before. First, the organization helps students in their study of scholarships and existing savings to finance education expenses and supported by the government. When this method does not work, it helps students overcome all remaining needs with the help of private student loans offered by Sallie Mae. According to Sallie Mae statistics, this organization serves about 13 million customers.
Division of corporation
In 2014, Sallie Mae divided into two companies:
- Navient company engages in federal student loans
- Sallie Mae turned to a private lender and servicing agent.
Both companies continue their activity as the largest student service providers in their fields.
Sallie Mae student loans now
Considering that Sallie Mae is one of the largest private student providers in America, undoubtedly, its main activity is related to the student loan sector. It covers not only parental loans, K-12 loans, dental school loans, medical student loans, law school loans, and post-graduate education loans also take responsibility for other student loans.
Since 2014, Sallie Mae is engaged strictly in private student loans. If you have a Sallie Mae student loans, we have news for you. From 2014, your student loan is transferred to Navient.
What are available payment options for Sallie Mae student loans?
Why don’t you show your fancier effort to get rid of your student loan debts in this situation? Because it’s hard to deal with, or because you don’t know what to do? Below we will provide all the information you need related to this topic.
Firstly, be aware of repayment options provided by Sallie Mae. It is also essential to understand how Sallie Mae works as a borrower and what you can do if you have payment issues.
The type of your private loan determines the repayment options of Sallie Mae. Sallie Mae repayment plans depend on the type of private student credit that you have. Let’s look at some of the features of private student loans.
Sallie Mae student loans for undergraduates
Sallie Mae undergraduate student loan service is possible to obtain for bachelor’s degree, and an associate’s degree or degree-granting certificated students. There are available full coverage of all student loans no matter including fixed or different interest rates.
Sallie Male grants a discount of 0.25 percent of the interest rate for automatic payment interest rate. Origination fee or penalty is no longer available.
Deferred payment option can be considered as a benefit for private student loan borrowers. Based on it, after graduating the university, you can make payments.
Remember that if you postpone your monthly payments, the unpaid interest will be included to your necessary amount at the end of the six-month grace period.
Sallie Mae student loans for graduates
Several graduate programs are available from Sallie Mae. Get to know all their requirements. Fixed or different interest rates can be added to graduation loans.
Also receiving of discount of 0.25 percent interest rate chance for the arranging of automatic payments remains for you. In a graduate loan, there is no fee for issuing a credit or a penalty paying before the maturity date.
Available three repayment options granted by Sallie Male graduate loans:
- Deferred repayment option: You are not forced to make any payments during your enrolling and the grace period. All obligations begin after graduation period.
- Fixed repayment option: During your study, you should make 25 percent payments. After that, you pay the principal and interest.
- Interest repayment option: During your education and grace period, you are required to pay monthly interest payments. Repayment of principal and interest begins as soon as you finish university.
These are best suited for those private student loan borrowers who are seeking flexibility in repayment. Sallie Mae offers the option of paying interest only at school and during the grace period, and the rate is 1% lower than the traditional option of deferred payment.
Are you looking for a student loan granted by Sallie Mae?
No matter, what you are going to do, think carefully firstly! Estimate all steps and after investigating options by evaluating federal student debt first. If you see that it doesn’t work for you, pay attention to the private student loan. Afterward, submit the free application at the website of Federal Student Aid.
In other words, you have an option trying to get rid of the student debt swamp. In this article, today we examined ways of getting rid of your Sallie Mae student loans step by step. Take account of all details then make your decision!