Sallie Mae Student Loans

two students walking with backpacks

Sallie Mae student loans offer an affordable way for people to go to college who do not have grants or other kinds of financial aid available when they enter school.

Sallie Mae Loan Association have been around for several years, and they are the number one lending site of private student loans on the Internet as of this writing.

Sallie Mae student loan options include both consolidation or refinancing student loans, and offer new student loans on both variable and fixed interest rates which are shown below.

Sallie Mae Interest Rates

Sallie Mae has a variable rate of 2.25%-9.37% and a fixed rate between 5.74%-11.85%.

You should think carefully before choosing the variable option, even though it is lower because it may come up to over 11% by the end of your loan.

The fixed rate allows you to be able to depend on your rate is locked in at the same rate every month throughout the life of the loan.

Federal vs Private Student Loans

As a reminder, federal loans come from the federal government and therefore once you take out this money you must pay back what you owe unless you get your loan refinanced or consolidated and new payments are worked out.

It is actually a criminal offense to not pay on your student loan unless there is an arrangement in place.

Defaulting on your student loan with federal money is similar to defaulting on IRS payments. Therefore, it is important that you consider how much you will be able to pay back each month once you achieve the degree that you are working toward while in college. offers a look at some of the most popular careers and their respective job positions as well as the Bureau of Labor Statistics and the Department of Labor of the Federal Government.

You can check these often to see how much people tend to make once you are out of college in your respective career, then consider whether or not you’ll be able to make payments based on Sallie Mae’s loan structure.

How to Compare Student Loans

When comparing a loan, look at the details of a Sallie Mae student loan to others such as College Avenue Student Loans and others who offer private student loans.

Student Loan Hero is a great source for finding private student loans. They have many private companies to compare and consider when planning for your college years.

Private student loans have an advantage in that you’re dealing with an individual private lending institution similar to your local bank but with possibly more options or more capital to loan you. The caveat regarding private student loans is that they will check your credit rating and sometimes ask for a cosigner such as your parent to qualify you for these loans.

Federal loans are based on federal monies in the federal government generally has a larger budget to draw from, so that do not require credit checks. They also have legislation behind them, so they know they will collect on delinquent loans one way or the other.

In the end, you will want to consider whether you want to owe the federal government for several years or a private lending institution.

Either way, you have a debt that you must pay eventually, but you can work out refinancing with both giving certain caveats in their loan structure.