Sallie Mae was initially created by Congress within the Seventies to service federal student loans. In 2014, although, the bank spun off its federal loan servicing enterprise into a brand new firm, Navient, then centered solely on non-public student loans and different banking and lending merchandise.
No student loan firm is ideal, in order you learn Sallie Mae Reddit posts, chances are you’ll discover each good and dangerous buyer experiences.
If you are contemplating Sallie Mae for personal student loans, listed here are some opinions that can assist you decide whether or not the lender is best for you.
1. Skip the variable fee loans
Sallie Mae is much from the one non-public student lender that provides variable rates of interest, however it’s greatest to keep away from them no matter the place you go.
In one put up, consumer Thedisherofpipe noticed their rate of interest go as excessive as 10.75% as a result of market charges elevated. While mounted charges begin out larger than variable charges, they keep the identical all through the lifetime of your loan.
2. Most debtors haven’t any points
Sallie Mae providers roughly $22.4 billion in student loan debt, which seemingly interprets to tons of of hundreds of shoppers. However, the Consumer Financial Protection Bureau (CFPB) solely obtained 214 complaints in regards to the lender in 2020.
That’s to not say that there isn’t any assure you may by no means run into points. But consumer ANGR1ST was proper on this remark: “Serviced my loans fine without any hassle, just like they do for the vast majority of borrowers that then have no reason to comment it.”
Remember, individuals typically solely write opinions after they had a extremely good or actually dangerous expertise, so take every part you learn with a grain of salt.
3. Your greatest wager is to have a cosigner
Like all non-public student lenders, Sallie Mae reserves its greatest loan phrases for individuals with wonderful credit and a strong revenue — each of which might be troublesome for faculty students to realize.
In one remark, consumer vballboss shared that that they had a 720 credit rating and earned $12 an hour working part-time. While they managed to get authorized for a excessive, variable rate of interest, their utility was initially rejected. Had they utilized with a creditworthy cosigner — which wasn’t attainable for them on the time — they seemingly would’ve gotten a a lot decrease rate of interest and extra inexpensive month-to-month funds.
4. Payment plans for hardship might be rigid
If you are struggling to afford your month-to-month funds on federal student loans, you will get on an income-driven reimbursement plan that cuts your cost to 10% to twenty% of your discretionary revenue.
With a non-public lender like Sallie Mae, although, these choices aren’t accessible. The lender does supply modified cost choices, together with a graduated reimbursement interval for brand spanking new graduates and forbearance. But do not anticipate as a lot generosity because the federal authorities presents.
In one remark, consumer Ms284 shared that on a $32,000 wage, the bottom cost Sallie Mae provided was $749 on their student loans. While they do not share their stability info, it is clear that federal loans would have offered extra flexibility.
5. Rate reductions are attainable, although
In one put up, consumer jayelldub shared a optimistic expertise about getting an rate of interest discount on their loans. You could also be eligible for this system in case you’re delinquent and your monetary state of affairs is eligible. If you qualify, you will get a decrease rate of interest and month-to-month cost for a restricted time.
With a time period and fee modification, you may get a decrease fee and cost for a restricted time plus an extended reimbursement time period.
6. Customer service has improved
In the identical put up, consumer jayelldub shares that their expertise re-enrolling in Sallie Mae’s fee discount program in 2020 was rather more nice than the 2 earlier occasions they enrolled.
They shared: “My experience was VASTLY different than the 40+ calls I have made in prior years. They are so much nicer and much much more knowledgeable. I barely wanted to physically fight any of them.”
One of the commenters, consumer Freeman047, agreed with the evaluation.
7. Still anticipate lengthy maintain occasions
While the lender’s customer support might have improved in some areas, that does not imply it is excellent. Last yr, consumer Semb1ance shared their frustration with making an attempt to contact the lender in a put up. Not solely might they not log in to their on-line account, however additionally they bought no response from the chat function within the Salle Mae cellular app and spent hours on the cellphone making an attempt to talk with somebody, just for the calls to get disconnected.
This might not be each buyer’s expertise, however when you’ve got a query or problem, plan for lengthy wait occasions.
8. If you compromise, get the phrases in writing
In one put up, consumer boncbonc95 shared that they settled a student loan stability with Sallie Mae, solely to have the remaining stability despatched to a set company. They spoke with many customer support brokers and bought conflicting solutions:
“They sold my account to collections in April but any agent I speak with say that they see in the account that it’s paid off. One agent said it’s because I never agreed to the terms of the settlement? But they accepted the money and considered it paid off so Idk.”
If you compromise with any lender, be sure that to get the total phrases and payoff affirmation in writing, so you possibly can battle the gathering makes an attempt.
9. Refinance if you will get higher phrases elsewhere
Whether or not your expertise with Sallie Mae is nice, it is in the end smart to think about refinancing as soon as you’ve got graduated and had a while to construct your credit historical past and enhance your revenue.
In one put up by consumer grad2010aa, they introduced their intention to refinance, and most commenters agreed it was the proper transfer.
Refinancing might assist you decrease your rate of interest and month-to-month cost and likewise provide the flexibility to decide on a reimbursement time period that matches your funds. Juno will help you rating the bottom charges attainable by negotiating with lenders in your behalf.