Federal loans vs Private Loans For Students - Comparison

Parent loan & Smart Option Student Loan Comparison Chart


Borrow responsibly
We encourage students and households to begin with financial savings, grants, scholarships, and federal student loans to pay for faculty. Students and households ought to consider all anticipated month-to-month loan funds, and the way a lot the student expects to earn sooner or later, earlier than contemplating a personal student loan.

Smart Option Student Loan:


This loan is for undergraduate students at collaborating degree-granting colleges. Students who are usually not U.S. residents or U.S. everlasting residents should reside within the U.S., attend a collaborating college within the U.S., apply with a creditworthy cosigner (who should be a U.S. citizen or U.S. everlasting resident) and supply an unexpired government-issued picture ID to confirm their identification. Applications are topic to a requested minimal loan quantity of $1,000. Current credit and different eligibility standards apply.

Sallie Mae Parent Loan:


This loan should be used to pay for eligible student bills at collaborating degree-granting colleges. The student can’t be a borrower or cosigner and isn’t accountable for repaying the loan. The borrower, cosigner, and student should be U.S. residents or U.S. everlasting residents. If the varsity points a refund on to the student, the borrower and cosigner (if relevant) are nonetheless accountable for repaying that quantity. Applications are topic to a requested minimal loan quantity of $1,000. Current credit and different eligibility standards apply.


Loan quantity can’t exceed the price of attendance much less monetary support obtained, as licensed by the varsity. Sallie Mae reserves the proper to approve a decrease loan quantity than the school-certified quantity.


Interest is charged beginning when funds are despatched to the varsity. With the Fixed and Deferred Repayment Options, the rate of interest is increased than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal on the finish of the grace/separation interval. Payments could also be required through the grace/separation interval relying on the compensation choice chosen. Variable charges could improve over the lifetime of the loan. Advertised variable charges replicate the beginning vary of charges and should differ exterior of that vary over the lifetime of the loan. Advertised APRs assume a $10,000 loan to a freshman with no different Sallie Mae loans.

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APRs for the Principal and Interest Repayment Option could also be increased than APRs for the Interest Repayment Option. Variable charges could improve over the lifetime of the loan. Advertised variable charges replicate the beginning vary of charges and should differ exterior of that vary over the lifetime of the loan. APRs assume a $10,000 loan with a 4-year in-school interval.

  Examples of typical transactions for a $10,000 Smart Option Student Loan with the commonest variable fee, mounted compensation choice, 6-month separation interval, and two disbursements: For a borrower with no prior loans, it really works out to a 6.88% APR, 51 funds of $25.00, 119 funds of $136.17 and one cost of $112.58, for a Total Loan Cost of $17,591.81. For a borrower with $20,000 in prior loans and a 2-year in-school interval, it really works out to a 7.06% APR, 27 funds of $25.00, 179 funds of $98.17 and one cost of $66.85 for a complete loan price of $18,314.28. Loans which are topic to a $50 minimal principal and curiosity cost quantity could obtain a loan time period that’s lower than 10 years. Variable charges could improve over the lifetime of the loan.


This compensation instance relies on a typical Parent Loan made to a borrower (on behalf of a freshman student) who chooses a variable fee and the Principal and Interest Repayment Option for a $10,000 loan, with two disbursements, and a 12.99% variable APR. It works out to 4 funds of $75.05, 115 funds of $151.38 and one cost of $80.65, for a Total Loan Cost of $17,789.55. Variable charges could improve over the lifetime of the loan.

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Available for loans used to pay certified increased training bills at a degree-granting establishment. The Graduated Repayment Period (GRP) permits interest-only funds for 12 billing intervals after principal and curiosity compensation begins. At the time of the GRP request, the loan can’t be late. Customers can request the GRP through the six billing intervals earlier than and the 12 billing intervals instantly after the loan first enters principal and curiosity compensation. The GRP doesn’t lengthen the loan time period however does improve the Total Loan Cost. Monthly funds after the GRP can be increased than they’d have been with out it.


The borrower or cosigner should enroll in auto debit via Sallie Mae to obtain a 0.25 share level rate of interest discount profit. This profit applies solely throughout lively compensation for so long as the Current Amount Due or Designated Amount is efficiently withdrawn from the approved bank account every month. It could also be suspended throughout forbearance or deferment, if obtainable for the loan.


Sallie Mae loans are made by Sallie Mae Bank.


Information marketed legitimate as of seven/22/2021.


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