Sallie Mae Competitors and Alternatives

Sallie Mae is one of the largest private student loan companies in America—comprising 55% of the private student lending market share as of the fourth quarter of 2023. However, reviews convey its poor customer service, which might lead some borrowers to choose Sallie Mae’s competitors instead.

When choosing a student loan company, selecting one that offers competitive interest rates and terms is important. Ensure the lender also allows you to borrow the funds you need.  Take the time to see what other unique benefits the lender offers, its customer service ratings, and your options if you encounter financial hardships.

Sallie Mae competitors and alternatives

One of Sallie Mae’s strengths is offering numerous products, including undergraduate, graduate, trade school, and career-training student loans. For undergraduates, it offers student loans and nursing school loans. 

In addition to offering graduate students traditional student loans, it offers several unique loans that help graduate students in transition, including residency relocation loans and bar study loans.

Overall, LendEDU rates Sallie Mae 4.7 out of 5. We’ve deemed it the best lender for cosigners because it offers shorter cosigner release periods than many other lenders.

Here’s how Sallie Mae compares to three top-rated competitors.

Lender	LendEDU rating	Rates (APR)
Sallie Mae	4.7	4.50% – 16.70%
College Ave	4.8	4.07% – 16.69%
Earnest	4.7	4.11% – 16.20%
Ascent	4.7	4.09% – 16.08%

If you want to compare lender options, here are the best Sallie Mae competitors and alternatives.

College Ave – Best overall

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LendEDU rating: 4.8 out of 5

• Select your own repayment term of 5, 8, 10, or 15 years
• Choose from four different repayment options while you’re in school
• Borrow $1,000 – 100% of the school-certified cost of attendance

College Ave is our pick for the best overall private student loan lender in the country. Former Sallie Mae executives founded College Ave in 2014 with a commitment to creating a smooth and straightforward lending experience.

Its fintech platform makes it easy for students to apply for private student loans in just three minutes.

In January 2024, College Ave launched the Ambition Mastercard, a secured credit card designed for students who want to build their credit history. This enables students to transfer cash to the secured card, which creates the credit limit. 

You can then use the card for regular purchases to create a positive credit history by making on-time payments.

Earnest – Best for no fees

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LendEDU rating: 4.7 out of 5

• Borrow $1,000 – 100% of the school-certified cost of attendance
• Borrowers get a nine-month grace period
• You can skip a payment once a year without penalties

Earnest is an online lender that offers student loans to undergraduate and graduate students, including business, medical, and law students. It is also one of the only lenders to offer private student loans to international students studying in the United States. 

At the end of 2023, it launched Student Loan Manager, a free tool that helps borrowers understand the best way to lower their federal student loan payments.

Earnest also offers a skip-a-payment benefit, allowing you to skip one payment per year without penalty. Part-time students are eligible for Earnest loans. If a competitor offers you a lower rate, Earnest will match it and give you a $100 Amazon gift card once you finalize your loan.

Ascent – Best for eligibility

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LendEDU rating: 4.7 out of 5

• Borrow $2,001 – $200,000
• Repayment terms of 5, 7, 10, 12, or 15 years
• 9-month grace period

Ascent is another private student loan lender founded in 2015. It offers unique benefits, including student success coaching, a rewards program, repayment assistance options, and even 1% cash back when you graduate. 

It offers undergraduate student loans, graduate loans, and career-based student loans. Three repayment options are available while you’re in school. 

Ascent will give borrowers a cash reward of 1% of their loan amount when they graduate if they meet specific criteria. It also offers several scholarships to student applicants.

Sallie Mae student loan pros and cons

Here are Sallie Mae’s pros and cons to consider before choosing them as your lender.

Pros

• Large selection of student loans

  Sallie Mae offers loans for several types of schools as well as transition periods, including studying for the bar.

• Options for part-time students

  Students who can only attend school part-time can still get loans for their education.

• Cosigners can be released after 12 months

  Many lenders require cosigners to stay on loans for much longer.

• No application fees or origination fees

  No hidden fees and no prepayment fees.

• Deferred payment options while in school

  Sallie Mae offers four payment options while you’re in school, including full deferment.

Cons

• Customer service is lacking

  Sallie Mae scores 1.08 out of 5 with the Better Business Bureau and 1.4 out of 5 with TrustPilot.

• No prequalified rates

  Unlike other lenders, Sallie Mae does not offer soft credit pulls.

• Limited repayment terms

  Other lenders offer more repayment options and flexibility.

Borrowers looking for lenders with excellent customer service would appreciate Earnest, which has 4.7 out of 5 stars on TrustPilot. And borrowers who want more flexibility with their loan terms might prefer College Ave or Ascent as their lender.

How to choose a private student loan company

Selecting the best private student loan company for you will depend on a few factors. Many private loan companies are available, and some will be better than others, depending on your particular situation. 

For example, if you want to be a nurse, some private student loan companies offer loans for nursing school, while others don’t. If you need to use a cosigner for your student loan, some companies have better policies for cosigners than others. 

If customer service is important to you and you can only call on the weekends, make sure the lender you choose is available when you are.

If you’re considering Sallie Mae for a new student loan

If you’re considering becoming a Sallie Mae customer, here’s what to research.

• Interest rates and terms: Find out Sallie Mae’s interest rates and loan terms for your loan. Check what discounts you might be eligible for, such as autopay discounts. Make sure you understand its policies if you have financial hardships.
• Lender benefits: Many lenders offer benefits, such as career coaching and educational videos. See whether Sallie Mae’s benefits are a fit for your personal needs and goals.
• Loan limits: If you need to borrow a certain amount for school, make sure Sallie Mae offers loans for that amount. Also, find out whether you meet its eligibility requirements, including having a good credit score, before applying. 
• Impact on credit: Remember that Sallie Mae, unlike other lenders on this list, does a hard pull of your credit, which might lower your credit score.

If you already have Sallie Mae student loans

If you already have Sallie Mae student loans and want an alternative, you can apply to refinance your loans with another lender. Before choosing a new lender, use the same methods above, including researching lenders, learning about fees, and reading customer service reviews.

Recap: Sallie Mae competitors

Lender	Rates (APR)
College Ave	4.07% – 16.69%
Earnest	4.11% – 16.20%
Ascent	4.09% – 16.08%