Other examples of Sallie Mae products include credit cards and online savings accounts.
How Sallie Mae Works
The Sallie Mae of today is different from the original Sallie Mae. In 1972, the Student Loan Marketing Association, also called SLMA or Sallie Mae, was created by Congress as a “government-sponsored enterprise,” or GSE. In other words, it was a private, for-profit corporation that had to follow specific regulations from the government. The goal of the SLMA was to act as a secondary market for student loans to improve access to education. But in 1983, SLMA became a publicly owned company listed on the New York Stock Exchange. In 1996, Congress initiated a process to convert SLMA into a private company. It was officially named SLM Corporation and commonly known as Sallie Mae. By 2005, Sallie Mae was a private-sector corporation. In 2014, Sallie Mae split into two separate companies: Navient and Sallie Mae. Navient became a servicer for private, FFEL, and other federal student loans previously held by Sallie Mae, as well as newly originated federal student loans, as allocated to it by the U.S. Department of Education. Sallie Mae continues to originate and manage private student loans and other bank products and does not offer or service federal student loans (outside of the outstanding FFEL loans it still owns). As a private lender, Sallie Mae offers a wider variety of borrowing options than students could get through federal student loans. Sallie Mae’s educational loans include:
Undergraduate and graduate school loansParent loans (available to parents who want to help finance their child’s undergraduate or graduate education)Loans for law school and medical or dental school or residenciesLoans for private K-12 schooling
Private student loans like those offered by Sallie Mae require applicants to undergo a credit check to determine their eligibility and specific loan terms (the interest rate, for example). If they aren’t deemed creditworthy, they’ll need a creditworthy co-signer to improve the odds of approval. Even so, these loans provide students who aren’t eligible for federal student aid or loans with a means to borrow money to pay for their education. For example, students who don’t qualify for federal loans because they maintain less than half-time enrollment status would be considered by Sallie Mae. To sweeten the deal, Sallie Mae private fixed- and variable-rate student loans don’t charge student loan origination fees, and in-school deferments are available, along with interest-only payment plans and other repayment plan options.
Types of Sallie Mae Products
In addition to its student loan offerings, Sallie Mae also provides other financial products. Online savings options include “SmartyPig,” a goal-oriented online savings account, as well as other high-yield savings accounts, money market accounts, and certificates of deposit (CDs). Sallie Mae is also in the credit card business. The Sallie Mae Ignite Card is designed for college students looking to build credit; the Sallie Mae Accelerate Card offers a 2% cash-back reward to put toward paying down student loans; and the Sallie Mae Evolve credit card offers a 2% cash back in your two top spending categories each month.
How To Get Sallie Mae Products
The best way to learn more about student loans and other products the company offers is to visit SallieMae.com. Click the relevant product vertical link (student loans, credit cards, or savings) for information on the product, including how to apply for it. Application requirements vary by product. If you have additional questions about these products, reach the team by visiting its contact page and finding the specific phone number or mailing address that corresponds to your question. You can also call Sallie Mae at 855-756-5626 (855-SLM-LOAN) if you’re interested in new student loans, or 800-472-5543 (800-4-SALLIE) if you’re an existing borrower.
