Is Sallie Mae Legit? What It Is and How It Works (2025 Review)

Best for Cosigners

4.8 _/5

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Our take: Sallie Mae is a solid private student loan option, especially if you’re applying with a cosigner. Its standout feature is a generous cosigner release policy that lets you apply after just 12 on-time principal and interest payments, earlier than most competitors.

Private Student Loans

• Student loans for undergraduates, graduates, and career training
• Lower interest rates when you choose an in-school repayment plan
• Cosigner release after 12 on-time principal and interest payments
• No prepayment penalties or origination fees
• Part-time enrollment accepted (half-time or full-time not required)

• Doesn’t offer a soft credit check to check your eligibility
• The shortest repayment term is 10 years

Rates (APR)	4.50% – 16.70%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	10 – 15 years

Sallie Mae is one of the most recognizable names in student lending, but that doesn’t mean it’s easy to understand. While it used to be connected to federal student loans, today it’s a private lender offering undergraduate, graduate, and career training loans.

With features like part-time enrollment eligibility and an industry-leading cosigner release program, Sallie Mae may be a good fit for students who need extra flexibility or plan to borrow with help from a cosigner. But it also has some downsides, including the lack of prequalification and limited transparency around credit score requirements.

This review breaks down how Sallie Mae student loans work, who’s eligible, and how they compare to other private lenders, so you can decide whether they’re right for your education plans.

Table of Contents

1. How it works
   1. Loan types
   2. Rates and fees
   3. Repayment options
   4. Cosigner release
2. Eligibility criteria
   1. Credit and income
   2. Cosigners
   3. Citizenship and residency
   4. Enrollment and school requirements
3. Is Sallie Mae legit? Customer reviews
4. Is Sallie Mae federal or private?
5. Loan options
   1. Sallie Mae Smart Option Student Loan for Undergraduate Students
   2. Sallie Mae Graduate School Loan
   3. Sallie Mae Career Training Smart Option Student Loan
6. How to apply
7. Pros and cons
8. Sallie Mae alternatives
9. Final verdict: Is Sallie Mae right for you?

How do Sallie Mae student loans work?

Sallie Mae offers private student loans for undergraduates, graduate students, and those pursuing career training. These loans are designed to cover up to 100% of your school-certified costs, including tuition, fees, housing, and supplies.

While Sallie Mae doesn’t offer federal loans, its private loans come with flexible repayment options, potential rate discounts, and one of the most borrower-friendly cosigner release programs we’ve seen.

Loan types

Sallie Mae offers three main types of student loans:

1. Sallie Mae Smart Option Student Loan for Undergraduate Students: For students pursuing a bachelor’s or associate degree at an eligible school.
2. Sallie Mae Graduate School Loan: For students in master’s, doctoral, MBA, law, medical, dental, or other advanced degree programs.
3. Sallie Mae Career Training Smart Option Student Loan: For students enrolled in professional training and certificate programs, such as coding bootcamps or trade schools.

Each loan type is tailored to match the cost and repayment expectations of that educational path.

Rates and fees

Rates vary by loan type and whether you choose a fixed or variable interest rate. Here’s what to expect:

Loan type	Rates (APR)	Fees
Undergraduate	3.19% – 16.70%	Late payment only
Graduate	3.45% – 14.99%	Late payment only
Career training	3.45% – 16.49%	Late payment only

Sallie Mae doesn’t charge origination fees or prepayment penalties, which is a plus. You may also qualify for a lower interest rate if you choose to make payments while in school.

Repayment options

Sallie Mae offers three in-school repayment plans, plus assistance options if you need more flexibility:

• Deferred: Make no payments while in school and during your six-month grace period.
• Fixed $25 payment: Pay $25 per month while in school to reduce the overall cost of the loan.
• Interest-only: Pay only the interest that accrues while you’re in school.

Graduated repayment and forbearance options are also available to help during financial hardship. Just keep in mind: Deferring payments or using forbearance will increase the total cost of the loan over time due to accrued interest.

Cosigner release

Sallie Mae’s cosigner release program is one of the most generous available. After just 12 months of on-time principal and interest payments, borrowers can apply to release their cosigner from the loan. This can give both students and cosigners peace of mind, and it’s a standout benefit compared to lenders that require 24 to 36 months or don’t offer release at all.

Sallie Mae eligibility criteria

Sallie Mae student loans are available to a wide range of students, but you’ll need to meet certain requirements to qualify. Most undergraduate borrowers apply with a cosigner.

Credit and income

Sallie Mae doesn’t disclose its exact income requirements. However, it generally looks for a minimum credit score of around 650 and a steady income, which is why most undergrads need a creditworthy cosigner. Applying with a cosigner may also help you qualify for a lower interest rate.

Cosigners

Sallie Mae reports that 91% of its undergraduate loans included a cosigner last year. If you apply with one, you may be eligible for cosigner release after making 12 consecutive on-time principal and interest payments, which is a shorter time frame than many other lenders offer.

Citizenship and residency

To qualify, you must be one of the following:

• U.S. citizen or permanent resident
• International student with a creditworthy U.S. citizen or permanent resident cosigner

Sallie Mae does not offer student loans to international students without a cosigner.

Enrollment and school requirements

You must be enrolled at a participating degree-granting school. Sallie Mae accepts borrowers who are:

• Full-time
• Half-time
• Less than half-time

This flexibility is helpful for part-time students or those in career training programs.

Is Sallie Mae legit? Customer reviews

Sallie Mae has been in the student loan business for decades and is accredited by the Better Business Bureau (BBB) with an A+ rating. However, public customer reviews tell a more complicated story.

Borrowers have reported mixed experiences, especially when it comes to customer service. On review platforms like Trustpilot and the BBB, Sallie Mae’s ratings are noticeably lower than competitors. Common issues include:

• Difficulty reaching helpful representatives
• Trouble accessing hardship options like forbearance
• Aggressive communication practices during repayment

If consistent support and borrower experience are priorities for you, Sallie Mae may not be the top choice. Based on customer feedback, College Ave and ELFI score much higher for borrower satisfaction.

Source	Customer rating	Number of reviews
Better Business Bureau (BBB)	1.08/5	133
Trustpilot	1.3/5	57
Google	1.4/5	134

Is Sallie Mae federal or private?

Sallie Mae is a private student loan lender. It does not offer federal student loans and is not affiliated with the FAFSA application process.

Found out that Sallie Mae is NOT related to Freddie Mac or Fannie Mae and I’m kinda in deep right now. Could really use some advice.
byu/Amazing_Aspect inStudentLoans

That said, the confusion is understandable. Sallie Mae used to be a federal loan servicer and was originally established as a government-sponsored enterprise in 1972. Over time, it transitioned into a fully private company and now only offers private student loans.

If you see a reference to Sallie Mae in relation to federal loans, it’s likely from older forums or outdated materials. Today, any loans you take out through Sallie Mae are private, meaning they don’t include benefits like income-driven repayment or federal forgiveness programs.

Sallie Mae loan options

Sallie Mae offers three main types of private student loans designed for different stages of education. Each loan has slightly different features, but all can cover up to 100% of your school-certified costs and include flexible repayment options.

Sallie Mae Smart Option Student Loan for Undergraduate Students

This loan is designed for students pursuing associate or bachelor’s degrees. It offers:

• Interest rates: 3.19% – 16.99% APR
• Loan amounts: $1,000 up to 100% of school-certified expenses
• Repayment terms: 10 – 15 years
• Repayment options: Deferred, $25 fixed payments, or interest-only while in school

Part-time enrollment is allowed, which makes this loan a good fit even for students attending less than half-time. Most undergraduates apply with a cosigner to boost approval chances and qualify for better rates.

Sallie Mae Graduate School Loan

For students pursuing advanced degrees like a master’s or doctorate, this loan includes:

• Interest rates: 3.45% – 14.99% APR
• Loan amounts: $1,000 up to 100% of school-certified expenses
• Repayment terms: 10 – 15 years
• Repayment options: Same flexible options as undergrad loans

Graduate students may benefit from Sallie Mae’s higher maximum loan amounts and still have the ability to release a cosigner after 12 months of on-time principal and interest payments.

Sallie Mae Career Training Smart Option Student Loan

This option is tailored for students attending non-degree-granting programs, such as trade schools, technical training, or certification courses. It includes:

• Interest rates: 3.45% – 16.49% APR
• Loan amounts: $1,000 up to 100% of costs
• Repayment terms: 10 – 15 years
• Repayment options: Deferred, $25 fixed, or interest-only

This loan offers greater flexibility in enrollment and can be a solid financing choice if you’re pursuing a career-focused program outside of a traditional college or university.

How to apply for a Sallie Mae loan

Sallie Mae makes the application process straightforward, and you can apply with or without a cosigner. Here’s what to expect:

1. Gather your information

Before you apply, make sure you have:

• Your address and Social Security number
• School details (name, enrollment status, degree, and major)
• Your loan amount and expected financial aid
• Employment and income information
• Monthly housing costs
• Contact info for two personal references

2. Start the application online

You can begin your application directly on Sallie Mae’s website. You’ll choose the type of loan you need (undergraduate, graduate, or career training) and provide the information listed above.

If you plan to apply with a cosigner, you can send them an invitation to complete their portion of the application.

3. Get a credit decision

Sallie Mae performs a hard credit inquiry, which may lower your credit score by a few points. In many cases, you’ll receive a credit decision within minutes. If additional documentation is required, you’ll be prompted to upload it.

4. Choose your loan terms

If approved, you’ll be offered available interest rate options and in-school repayment plans (deferred, fixed $25, or interest-only). You can select the one that works best for your budget and preferences.

5. Review and sign

Carefully read through the loan agreement and disclosures before signing electronically.

6. Wait for school certification

Sallie Mae will send your loan details to your school for certification, which confirms your enrollment and loan amount. Once approved, funds are disbursed directly to the school.

Pros and cons

Pros

• Loans for all stages of education

  Loans for undergraduates, graduates, and career training programs.

• Rate discounts

  Get a lower rate if you opt for in-school repayment.

• Generous cosigner release program

  Release your cosigner from the loan after just 12 on-time consecutive monthly payments.

• Flexible enrollment requirements

  Accepts students enrolled part-time, including those attending less than half-time.

Cons

• No soft credit check for prequalification

  Can’t check your eligibility or potential rates without a hard credit inquiry, which can affect your credit score.

• Longer minimum repayment terms

  Shortest term available is 10 years.

• Undisclosed income requirements

  Because Sallie Mae doesn’t publish this information, it’s hard to assess your eligibility without applying.

Sallie Mae alternatives

Comparing Sallie Mae’s private student loans with other student loan companies can help you understand whether it’s right for you. Here’s how it stacks up against several other top-rated student loan lenders.

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As a Managing Editor at LendEDU, I’ve seen plenty of folks looking for ways to get rid of their Sallie Mae student loans. After in-depth research on the options, here are several specific areas in which Sallie Mae compares to the lenders listed above:

• College Ave, Earnest, SoFi, and ELFI all allow a soft credit check. (Sallie Mae doesn’t.)
• College Ave and SoFi offer cosigner release, but the terms aren’t as generous as Sallie Mae’s.
• College Ave, Earnest, SoFi, and ELFI all offer repayment terms as low as five years, unlike Sallie Mae’s 10-year minimum.
• Earnest, SoFi, and ELFi require at least half-time enrollment in classes, but College Ave, like Sallie Mae, doesn’t have a minimum requirement.

Read our resource if you’re interested in refinancing your Sallie Mae student loan.

Final verdict: Is Sallie Mae right for you?

Sallie Mae is a solid private student loan option—especially if you’re applying with a cosigner. Its standout feature is a generous cosigner release policy that lets you apply after just 12 on-time principal and interest payments, earlier than most competitors.

That said, Sallie Mae doesn’t offer a soft credit check, has a 10-year minimum repayment term, and lacks transparency about its credit score and income requirements. These factors may make it harder to assess eligibility upfront.

If you’re not sure whether Sallie Mae is the right fit, we recommend comparing multiple lenders before applying. Marketplaces like Credible can show you prequalified rates from several top lenders with just one form, helping you find the best deal for your situation.

How we rated Sallie Mae

We designed LendEDU’s editorial rating system to help readers find companies that offer the best student loans. Our system awards higher ratings to companies with affordable solutions, positive customer reviews, and online transparency of benefits and terms.

We compared Sallie Mae to several student loan lenders, using hundreds of data points from company websites, public disclosures, customer reviews, and direct communication with company representatives. We weighted, scored, and combined each factor to produce a final editorial rating. This rating is expressed on a scale from 1 to 5, with 5 being the highest possible score. Our take is represented in our rating and best-for designation, recapped below.