Is Sallie Mae a Federal Loan?

Is Sallie Mae a Federal or Private Loan?

Key takeaways

  • All Sallie Mae loans taken out since 2014 are personal.

  • The greatest option to decide when you have federal or personal student loans is to verify

  • If you should borrow cash for faculty, exhaust federal student loans earlier than taking out a non-public student loan.

All new Sallie Mae loans are personal. But when you took out a Sallie Mae loan earlier than 2014, it may need been a federal loan and is probably going now serviced by Navient.

Sallie Mae began off underneath the federal authorities and offered loans by way of the Federal Family Education Loan program, or FFEL. In 2004, Sallie Mae privatized and commenced issuing personal loans whereas nonetheless providing FFEL loans. Sallie Mae stopped providing federal loans when the FFEL program led to 2010, however continued to service federal loans although 2014. Since then, Sallie Mae not providers federal loans and supplies solely personal student loans.

Most student loans are federal. But when you’re nonetheless uncertain about whether or not your student loan is federal or personal, the easiest way to seek out out is by logging into together with your FSA ID. All federal loan data is housed there. If you don’t discover your loan data by way of, you will have a non-public student loan.

How do Sallie Mae loans work?

Sallie Mae presently affords personal student loans for undergraduate, profession coaching and graduate packages. It additionally supplies mum or dad loans and is without doubt one of the few lenders to supply loans to part-time students.

Applying for a Sallie Mae loan requires a tough credit verify. You’ll usually know whether or not you’re accepted inside quarter-hour. But Sallie Mae doesn’t disclose its minimal qualifying credit scores or earnings, so that you’ll have to fill out an utility to see when you qualify. If your utility is rejected, verify different personal student loan lenders to discover a higher match.

Before you apply to Sallie Mae or any personal lender, file the Free Application for Federal Student Aid, or FAFSA, and exhaust federal student loan choices. Federal student loans have advantages not accessible for personal loans and infrequently include decrease rates of interest.