How to Get Rid of Sallie Mae Loans

If you want to get rid of Sallie Mae loans, your main options are paying them off early or refinancing with another lender. Since Sallie Mae only offers private student loans, you’re not eligible for federal forgiveness programs—but refinancing could secure a lower rate, reduce your monthly payment, or remove a cosigner.

We’ll explain strategies for paying off your loans faster, how refinancing works, and which lenders offer the best options for replacing Sallie Mae loans.

Table of Contents

1. Best ways to get rid of Sallie Mae student loans
2. Should you get rid of Sallie Mae loans?
3. When to get rid of Sallie Mae loans
4. When you shouldn’t get rid of Sallie Mae loans
5. Student loan forgiveness: Does Sallie Mae offer it?

Best ways to get rid of Sallie Mae student loans

If you’re ready to move on from Sallie Mae, your two best options are repayment and refinancing. Because Sallie Mae only offers private student loans, you can’t consolidate them through the federal government or qualify for federal forgiveness programs. But that doesn’t mean you’re stuck.

Here’s a quick look at the best ways to get rid of Sallie Mae loans:

• Refinance with another lender: This is the most effective way to replace your Sallie Mae loan with a new one that better fits your needs. You might score a lower interest rate, a more manageable monthly payment, or the chance to remove a cosigner. Check out our full guide to refinancing Sallie Mae loans. (Spoiler: SoFi is our choice for the best online lender to refinance your Sallie Mae loans with.)
• Pay off the loan ahead of schedule: Sallie Mae doesn’t charge a prepayment penalty, so if you can afford to make extra payments, you can knock out your balance faster and save on interest.
• Enroll in autopay: While this will not eliminate your loan, it will earn you an automatic 0.25% interest rate discount.
• Use Sallie Mae’s short-term hardship options: If you need temporary relief, you can explore deferment, forbearance, or graduated repayment plans. Just know these won’t eliminate your loan—they simply buy you time.

If you’re considering refinancing, be sure to shop around and compare offers from multiple lenders to find the best rate and terms for your situation.

Because Sallie Mae loans are private, you’re not eligible for federal loan forgiveness programs like PSLF or IDR forgiveness.

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How to refinance Sallie Mae student loans

If you’ve decided to refinance your Sallie Mae loan, here’s how to move forward:

1. Check your credit score. Most lenders look for a credit score in the mid-600s or higher. The better your credit, the better your chance of scoring a lower interest rate.
2. Compare rates from multiple lenders. Use Credible to check your options with a soft credit pull.
3. Choose your lender and loan terms. Look at the interest rate, repayment term, and any borrower perks—such as cosigner release or forbearance options.
4. Submit your application. Once approved, your new lender will pay off your Sallie Mae loan directly, and you’ll start repaying the new loan under the new terms.

Should you get rid of Sallie Mae loans?

Sometimes, it makes sense to get rid of Sallie Mae loans by refinancing with a new lender. Other times, it makes more sense to hold on to them. We’ll dive into the details below, but here’s a summary.

Get rid of Sallie Mae loans to:	Keep Sallie Mae loans if you:
Lower your interest rate	Already have a desirable interest rate
Pay off your loans faster (with no prepayment penalty)	Want to remove a cosigner
Lower your payment	Are close to paying off your student loans
Remove your cosigner with a refinance	Plan to apply for a mortgage soon
Improve your customer service experience	Struggle to afford your monthly payments

When to get rid of Sallie Mae loans

Sometimes, refinancing your Sallie Mae loans with another lender might make sense, especially if you fall into one of the categories below.

If you want a lower interest rate than you have with Sallie Mae

If your interest rate feels too high, refinancing is your best shot at a permanent fix. Many borrowers qualify for better rates after graduation—especially if they’ve built good credit and a steady income. If you took out your loan as a student with little credit history, refinancing could save you in the long run.

If you’re trying to pay off your loans faster (with no prepayment penalty) or lower your payment

If you want to pay off your Sallie Mae loans faster—or lower your monthly payment—refinancing can help. Sallie Mae doesn’t charge a prepayment penalty, so you can also pay ahead on your own.

If you’ve improved your credit since taking out your Sallie Mae loan, you might qualify for a much lower interest rate by refinancing with another lender. A lower rate can help you save money over time—and possibly pay your loans off faster if you stick with the same monthly payment.

If your goal is to lower your monthly payment, refinancing into a longer term can help. Just keep in mind that a longer term usually means paying more in interest over time, even if your monthly bill feels more manageable.

If you want to remove your cosigner with a refinance

If your Sallie Mae loan has a cosigner, you might want to remove them to take full responsibility. If you’re not eligible for Sallie Mae’s cosigner release, refinancing is your best alternative—assuming your credit and income are strong enough on their own.

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Tip

If you took out a life insurance policy to protect your cosigner, you can repurpose it for other uses or terminate it. Terminating the policy can reduce your monthly expenses further, saving you money. 

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If you’re unhappy with the customer service

According to online reviews, Sallie Mae has notorious problems with customer service. As of March 28, 2025, customers rated it on the Better Business Bureau (BBB) at 1.08 out of 5, and 503 complaints were filed in the last three years.

Complaints centered mainly on billing and collection issues. Some specific complaints include inconsistent advice from customer service representatives and an unwillingness to work with borrowers who have problems making payments.

If you’ve had a negative customer service experience with Sallie Mae, you could refinance your student loans with another lender with a better reputation. You may also be eligible for a lower interest rate with a different lender, potentially saving you hundreds or even thousands in total interest.

When refinancing Sallie Mae loans, you don’t need to worry about giving up special protections as you would with federal student loans. Sallie Mae loans are private loans, so refinancing has fewer downsides. However, you might be better off keeping your loan if you can’t get better rates or terms.

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If you’re in one of the above situations and want to consider your refinancing options, you can check out how Sallie Mae compares to the best student loan refinance companies.

When you shouldn’t get rid of Sallie Mae loans

Refinancing can be helpful—but there are times when it’s smarter to keep your Sallie Mae loan as is.

If you already have a desirable interest rate

When shopping for a new loan, you might discover that you already have a good interest rate. In this case, unless there’s some other reason for the refinance—such as wanting to change your repayment term—you’re probably better off keeping your existing Sallie Mae loan. 

If you want to remove a cosigner

You can apply to Sallie Mae to have your cosigner released after graduation or when you finish your certificate program. You must make 12 full payments on time and meet its credit criteria.

As long as you meet these criteria, you can release your cosigner without refinancing your Sallie Mae loan. 

If you’re close to paying off your student loans

As your loan nears the end of the repayment term, more of your monthly payment is applied to the loan balance than to interest. It usually doesn’t make sense to refinance your loan once it reaches this stage, as it resets the payments. 

By refinancing your loan, even if your payments are reduced, you might repay your loan for a longer term. Your total interest costs might be higher than if you kept your existing loan. 

If you’re about to apply for a mortgage

Refinancing triggers a hard credit check, which can lower your credit score. If you’re applying for a mortgage soon, it might be better to wait. Lenders could also view the new loan as a sign you’re struggling with repayment.

If you’re struggling with payments but refinancing isn’t right

Tip

Sallie Mae loans are private, so they don’t qualify for federal forgiveness programs. You’ll typically need to repay the full amount unless you file for bankruptcy and prove undue hardship (which is rare).

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If you’re having trouble keeping up with your Sallie Mae loans and refinancing isn’t an option, there are a few ways to get short-term relief:

• Autopay discount: Enroll in autopay to get a 0.25% rate reduction. It’s not huge, but it’s automatic and adds up over time.
• Graduated repayment period: Sallie Mae lets eligible borrowers make interest-only payments for the first 12 months after their grace period ends.
• Deferment: If you’re heading back to school, starting an internship, or entering a medical residency, you may qualify for up to 48 months of deferment.
• Hardship assistance: If you’re facing a financial hardship, call Sallie Mae. They might offer temporary forbearance, let you change your due date, or adjust your monthly amount.

Student loan forgiveness: Does Sallie Mae offer it?

Sallie Mae does not offer any student loan forgiveness programs. The government offers student loan forgiveness on some federal student loans, but private lenders generally don’t offer these types of loan forgiveness programs. 

If you’re having trouble repaying your loans because of undue hardship and file for bankruptcy, your Sallie Mae loans might be discharged, meaning you won’t need to repay them. However, even in the case of bankruptcy, you’ll most likely be required to repay your student loans. 

For these reasons, most people won’t be able to get their Sallie Mae loan forgiven and will need to fully repay it. If you’re having trouble paying your loan, you’ll need to figure out another option, such as refinancing it or asking Sallie Mae about a temporary loan forbearance.

Ready to move on from Sallie Mae?

Start here. If you’re looking for a lower rate, fewer headaches, or a fresh start, refinancing could be the way to go. Explore top-rated lenders and see what your new loan could look like.