Is Sallie Mae a private or public student loan?
Asked by: Mrs. Marlee Crona | Last update: July 22, 2025Score: 4.3/5 (5 votes)
Of the $1.7 trillion outstanding student loan debt in 2023, $1.6 trillion – or about 93% – was made and held by the federal government. The remaining – roughly 7% of student loan debt – was held by numerous private lenders, including Sallie Mae.
Are Sallie Mae student loans being forgiven?
Those who borrowed from Sallie Mae after this 2014 split have private student loans, which aren't eligible for federal forgiveness programs. However, Sallie Mae will discharge debts for borrowers who die or become totally and permanently disabled.
How do I know if my Sallie Mae loan is private or federal?
All Sallie Mae loans taken out since 2014 are private. The best way to determine if you have federal or private student loans is to check studentaid.gov. If you need to borrow money for college, exhaust federal student loans before taking out a private student loan.
Can parents take out a Sallie Mae loan?
Requirements for parents:
You must be a U.S. citizen or eligible non-citizen. You generally must meet minimal credit standards, and the student must meet general eligibility requirements for financial aid. Grandparents and legal guardians aren't eligible to take out these loans unless they legally adopt the student.
What are the disadvantages of Sallie Mae?
The biggest disadvantages of Sallie Mae are that the lender doesn't offer refinancing and that its loan terms are limited to 10 to 15 years.
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What is the Sallie Mae controversy?
After a referral from the CFPB, in 2014, the Department of Justice and the Federal Deposit Insurance Corporation ordered Navient and its predecessor, Sallie Mae, to pay almost $100 million for illegally overcharging nearly 78,000 servicemembers.
Is Sallie Mae a good place to get a loan?
Bankrate's take: Sallie Mae is a great option for those interested in borrowing from a well-established lender with low rates, few fees and a variety of loan options. It is also one of the few lenders that allows borrowers to be part-time students.
Do kids inherit their parents student loans?
If a borrower dies, their federal student loans are discharged after the required proof of death is submitted. The borrower's family is not responsible for repaying the loans. A parent PLUS loan is discharged if the parent dies or if the student on whose behalf a parent obtained the loan dies.
Can you pay off a Sallie Mae loan early?
Enroll in auto debit and you may save money on your loan
If your loan becomes past due while enrolled in this option, we'll withdraw both the Current Amount Due and the Past Due Amount if that amount is greater than your Designated Amount. There's no penalty for paying early or paying extra.
Do Sallie Mae loans go to your bank account?
The money is disbursed (sent) to your school
So, if your loan covers several semesters, your lender may disburse only the money needed for that semester. This can reduce the amount of interest that you'll have. After your school gets the funds, they'll take what they need for tuition and room/board.
Are Sallie Mae loans bankruptable?
Quick Facts. You can file bankruptcy on Sallie Mae private student loans in bankruptcy, but you'll need to prove repayment will cause you undue hardship. But bankruptcy will lower your credit score, limit future loan options, and may even affect your cosigner, so talk to a lawyer before deciding.
Is it better to get a federal or private student loan?
Still, federal student loans are generally the best starting point for most college students and their parents. These loans come with protections and benefits — like fixed interest rates, subsidies and repayment programs — that can't be matched by private lenders.
What kind of student loan is Sallie Mae?
Private student loans are available to undergraduate and graduate students from financial institutions like Sallie Mae®. They're designed to fill the funding gap when savings, scholarships, and federal student aid aren't enough.
Why is my Sallie Mae interest so high?
If you signed up for a Sallie Mae loan when you entered college, you might have a high interest rate because you were a college student with no credit history and no full-time income. You may be eligible for a lower interest rate if you have a stable job and a good credit score.
Which student loans are automatically forgiven?
Any borrower with ED-held loans that have accumulated time in repayment of at least 20 or 25 years will see automatic forgiveness, even if the loans are not currently on an IDR plan. Borrowers with FFELP loans held by commercial lenders or Perkins loans not held by ED can benefit if they consolidate into Direct Loans.
What happened to Sallie Mae's student loans?
Thus, if you ever had a Sallie Mae loan or had Sallie Mae conduct loan servicing, that loan and servicing, likely, was transferred to Navient. Further, Navient then changed its name in 2021 to Aidvantage. See here.
Is there a downside to paying off student loans early?
Getting ahead of your debt is generally a smart move; however, if it comes at the cost of avoiding other debt, or overshadowing other benefits you may be receiving, it could set you back in the long run.
What happens if I don't pay Sallie Mae?
Delinquency and default
Delinquency occurs when you fail to pay all or part of your monthly student loan payment. You may be charged late fees for delinquency, which can add to your Total Loan Cost. You may lose any interest rate reduction programs you were eligible for.
What is the best student loan?
A subsidized loan is your best option. With these loans, the federal government pays the interest charges for you while you're in college. Here are the types of student loans. (Keep in mind that not all students are eligible for every loan.)
What happens to student loans after 25 years?
Federal student loans can be forgiven after 25 years of payments under an income-driven repayment plan. Most federal student loan borrowers are eligible for 25 year loan forgiveness, regardless of their career, provided they meet the plan's requirements.
Do student loans affect your credit score?
If you make your monthly payments on time, student loan debt won't necessarily harm your credit score. On the other hand, if you are late on payments (considered "delinquent"), in default (late on payments for 270+ days) or see your debt go to collections, this can cause your credit score to drop.
Is a surviving spouse responsible for student loan debt?
If you live in one of these states — Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin — a student loan is considered community property and, unfortunately, will be charged against the surviving spouse if it was taken out after marriage and before divorce.
Why is it called Sallie Mae?
When the Student Loan Marketing Association was founded in 1972, it was a government-sponsored enterprise — like Fannie and Freddie. It later became known as Sallie Mae, and by 2004 it had been completely privatized; it is now a 100 percent publicly traded company that markets and funds student loans.
Can Sallie Mae loans be forgiven?
Lender Sallie Mae used to offer federal student loans, and if you received one, you may be able to qualify for loan forgiveness. But federal student loan forgiveness can be hard to get — and if you have a private student loan through Sallie Mae, federal forgiveness is not available.