Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Personal Finance Are Sallie Mae Student Loans Federal or Private? Full History and How to Know What Type You Have Updated Sep 10, 2025 6-min read Written by Catherine Collins Written by Catherine Collins Expertise: Budgeting, mortgages, home equity, credit, debt, investing, personal loans, small business, entrepreneurship, student loans Catherine Collins is a personal finance writer and author with more than 10 years of experience writing for top personal finance publications. As a mother to boy/girl twins, she is passionate about helping women and children learn about money and entrepreneurship. Cat is also the co-host of the Five Year You podcast. Learn more about Catherine Collins If you take out a Sallie Mae loan today, it’s a private student loan. However, before 2014, Sallie Mae did offer federal student loans. Because of this, it can be confusing for borrowers trying to figure out what type of loan they have. If that’s you, we’re here to help. In this article, we’ll explain the history of Sallie Mae, where to go to find out what type of loan you have, and some lending alternatives if you want to evaluate your private student loan options. Table of Contents Do Sallie Mae federal loans still exist? Is Sallie Mae a government agency? Is your Sallie Mae loan federal or private? What to do if you thought your Sallie Mae loan was federal 1. Make a payoff plan and accelerate payments 2. Refinance with another private lender 3. Explore other relief if you’re struggling Sallie Mae vs. FAFSA for future borrowers Do Sallie Mae federal loans still exist? Learning about Sallie Mae’s history can help make sense of the types of loans the company offered in the past and what it provides today. Sallie Mae started in 1972, and at that time, the federal government backed it (called a Government-Sponsored Enterprise, or GSE) as a way to expand the availability of federal student loans. Over time, Sallie Mae began to privatize its operations. By 2004, it became an independent company, but it continued to offer Federal Family Education Loans (FFEL) until 2010. In 2014, Sallie Mae split into two separate companies: Navient and Sallie Mae Bank. Navient became a federal student loan servicer, while Sallie Mae Bank focused exclusively on private student loans. Navient later exited federal servicing in 2021, with those accounts moving to Aidvantage, and in 2024 it began transferring its remaining portfolio to MOHELA. So, if you took out a student loan with Sallie Mae before 2014, it’s likely a federal loan (and now serviced by Aidvantage or MOHELA). Sallie Mae loans disbursed after 2014 are private. Read our full review of Sallie Mae private student loans Is Sallie Mae a government agency? No. While it was originally created as a GSE, Sallie Mae became a fully privatized in 2004 and it’s now a publicly traded bank. Some borrowers confuse Sallie Mae with Fannie Mae, another GSE. But Fannie Mae deals with mortgages and housing finance, not student loans. Sallie Mae is entirely separate and focuses only on private education lending. Is your Sallie Mae loan federal or private? If you’re confused about whether your Sallie Mae loan is federal or private, you’re not alone. Borrowers have posted entire Reddit threads trying to sort it out. Determining whether an old loan is federal or private? (Navient, Sallie Mae) byu/carbsornah inStudentLoans The good news is there’s a straightforward way to check for yourself: Log on to StudentAid.gov with your FSA ID. Navigate to your student loans in your portal. 👉 If your Sallie Mae loan is listed in your account, it’s a federal student loan. 👉 If you can’t find your Sallie Mae loans in the portal, your student loans are private. Here’s a video that shows how to navigate your dashboard to see all of your federal loans and financial aid. What to do if you thought your Sallie Mae loan was federal Finding out your Sallie Mae loan is private—not federal—can feel discouraging, especially since private loans don’t come with benefits like income-driven repayment plans or potential forgiveness. But you still have options to take control of repayment. 1. Make a payoff plan and accelerate payments Private loans typically have fewer hardship protections, so the faster you can repay and get rid of your Sallie Mae loans, the less risk and interest you’ll carry. A few steps to make progress: Run the numbers: Use a payoff calculator to see how much faster you can be debt-free by adding even $50–$100 extra per month. Trim expenses or boost income: Small changes like cutting subscriptions or taking on freelance or gig work can free up cash. Use windfalls wisely: Tax refunds, bonuses, or side gig income can go straight to principal. Read more strategies to pay off student loans fast 2. Refinance with another private lender If your credit and income have improved since you borrowed, refinancing your Sallie Mae loan can reduce costs and make repayment smoother. Here’s what to look for: Lower interest rates: Even a 1–2% drop could save you thousands over the life of the loan. Flexible repayment options: Some lenders offer interest-only or extended repayment periods. Better borrower perks: Look for customer support, hardship options, or cosigner release policies that fit your needs. Caution: Once you refinance a private loan, you can’t go back. Make sure you’re comfortable with the new lender’s terms and that you’re not extending your repayment so long that you pay more in interest overall. See our top recommendations for student loan refinancing companies. 3. Explore other relief if you’re struggling If refinancing isn’t possible and repayment feels overwhelming, don’t wait until you fall behind. Options include: Hardship forbearance: Some private lenders, including Sallie Mae, may allow temporary pauses if you lose your job or face financial strain. Debt management help: Nonprofit credit counseling agencies can sometimes negotiate lower rates or structured repayment plans. Income support: Consider whether you qualify for employer repayment benefits, side income programs, or state/local aid. Sallie Mae vs. FAFSA for future borrowers If you’re preparing to borrow for school, the first step is always to complete the Free Application for Federal Student Aid (FAFSA®). This determines your eligibility for federal grants, work-study, and federal student loans. Why start with federal loans (FAFSA)? Federal student loans generally provide: Flexible repayment options such as income-driven repayment plans. Built-in protections like deferment, forbearance, and forgiveness programs. No payments required while in school at least half-time. No credit or cosigner requirements for most undergraduate loans. These benefits make federal loans the most borrower-friendly option. The main limitation is that there are annual and lifetime borrowing caps, so you may not be able to cover your entire cost of attendance with federal loans alone. When Sallie Mae and other private loans come in If your federal loans don’t cover the full cost, that’s when private student loans—including Sallie Mae—become relevant. Private loans can help fill the gap, but they usually require a credit check or cosigner, have fewer repayment options, and your interest rate will depend on your credit. That’s why it’s smart to compare Sallie Mae against other lenders before borrowing. We’ve broken down how it stacks up: Sallie Mae vs. Ascent: Ascent stands out for non-cosigner options, which may appeal to independent students. Sallie Mae vs. College Ave: College Ave offers more flexible repayment plans. Sallie Mae vs. SoFi: SoFi provides borrower perks and member benefits that Sallie Mae doesn’t. Sallie Mae vs. Discover: Discover’s loans are simple and fee-free, making them easier to compare head-to-head. If you want to look more broadly at your choices, check out our full guide to Sallie Mae alternatives and competitors.