Private and Federal Student Loans through Sallie Mae and Navient

Private and Federal Student Loans through Sallie Mae and Navient

As you research how you’ll pay for your college tuition and fees, you’ll find a lot of information on federal student loans and private student loans. You’ll find that you need to apply for federal loans with a FAFSA (Free Application for Federal Student Aid) and that you’ll need to approach private lenders if you need further funding. You’ll also learn about the protections built into federal loans, fixed interest rates, variable interest rates, and repayment plans. It’s enough to make your head spin, but a loan provider like Sallie Mae and Navient, their partner company , can actually help to simplify the whole process.

As you read up on all of your options, requirements, and needs, you’ll no doubt be thinking something like, “So I need a federal student loan, and my parents need a federal loan… But those might not cover everything, so am I going to need a private loan too? I might need a higher math degree just to figure out how many loan payments I’m going to have to pay per month when I graduate!”

That’s actually not the case when you choose a federal loan servicer that’s been in business, helping students pay for their educations for over 40 years. Until recently, Sallie Mae handled both federal loan servicing and private student loans all under one name, but they have recently split into two separate entities, Sallie Mae and Navient, to better serve their customers.

“So, Will I Be Working With Sallie Mae or Navient?”

Until the split, Sallie Mae was not only a private lender but also a federal loan servicer, as well. You could choose to handle all of your Stafford, PLUS, and Perkins loans through Sallie Mae, and then you could use them for any private loans you might need, as well.

Today, Sallie Mae only provides private student loans, while Navient has taken over Sallie Mae’s federal loan services. By splitting into two companies, each can focus on better handling the needs of their customers, but what does that mean for you? If you’re only applying for federal loans, you can choose to get the same great service others have gotten from Sallie Mae when you choose Navient to be your loan servicer.

If, on the other hand, you are in need of both federal and private loans, you may work with any combination of loan servicer and private lender you like. Plus, if you are already working with another federal loan servicer, you can choose Sallie Mae for your private loans to take advantage of their experience, customer service, and competitive interest rates.

Private Loans to Bridge the Gap

The people at Sallie Mae understand that federal loans are often the easier and less expensive route when paying for college. That’s why this company doesn’t seek to compete with federal loans. Rather, they know that sometimes gaps can open up in your finances.

Whether you and your parents don’t qualify for enough money to cover all of the costs of going to college or you need more assistance for a semester abroad, Sallie Mae has designed their private student loans around filling in the gaps and giving you the assistance and financial aid you need to be successful in your college career.

Interest Rates and Repayment Plans

Unlike a lot of other private lenders, Sallie Mae offers a choice between fixed and variable interest rates. Whichever you choose, you won’t be charged an origination fee or penalized for prepayments. They also offer a deferred repayment option that allows you to either wait until you graduate or pay as you go through school, depending on your financial needs.

Their other repayment plans include a fixed repayment option that allows you to pay only $25 per month on your loan while you’re in school. Paying just this small amount on your loan like this can save you up to 10% over the life of your loan. Or you can choose to pay only the interest on your loan while you’re in school, which could save you a full 20%.

They also stand out from other private lenders with their rewards programs. Like a few other private lenders, Sallie Mae does offer a 0.25% reduction in interest if you sign up for automatic debits for your monthly payments. However, that’s not the only benefit you can get from going with this company. They also offer a 2% reduction on your monthly payments for continuously paying on time if you sign up for their Upromise® program.

Having helped over 30 million students since 1972, Sallie Mae is a trusted name in the world of student loans. They’re also not afraid to keep up with the competition and help their customers save more money and find easier ways to pay for college.

Compare and Apply for Student Loans works hand-in-hand with the best, most trusted names in private student lending to help students and their families find the money they need for college. Through use of comparison tools and loan searches, TuitionChart provides over 20 different loan options for students. is designed to help students and their families wend their way through the maze of financial aid information.


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