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It should be noted that the government has suspended all repayment on federally held student loans until the end of 2022, during which time no interest will be charged and no loans will be considered past due or in default.
Your loan servicer plays a major role in your repayment. And the good news is that you have a variety of options to make those payments easier on your budget and save money in the long run if you have Sallie Mae student loans.
Here are some things to think about whether you’re looking for assistance through Salle Mae’s rate reduction program or attempting to hack Sallie Mae student loans to pay them off more quickly:
What kind of Sallie Mae student loan do you have?
You may have chosen Sallie Mae as your lender and loan servicer if you decided to apply for private student loans to help pay for college. Given that the business currently oversees more than $22 9 billion in private loans.
Finding out what kind of loans you have and how long your repayment terms are is the first step in repaying them. For more information on the various loan types that Sallie Mae provides, see the table below.
| Loan | Loan type | Repayment length |
|---|---|---|
| Smart Option Student Loan | For students working toward an associate, bachelor’s or certificate from a degree-granting school | Up to 15 years |
| Parent Loan | For parents of and other adults borrowing on behalf of undergraduate, graduate or certificate program students | Up to 10 years |
| MBA Loan | For students pursuing a Master of Business Administration degree | Up to 15 years |
| Medical School Loan | For students attending medical or veterinary school | Up to 20 years |
| Dental School Loan | For dental school students | Up to 20 years |
| Health Professions Graduate Loan | For students studying to become pharmacists, nurses or other health professionals | Up to 15 years |
| Law School Loan | For law school students | Up to 15 years |
| Graduate School Loan | For master’s and doctoral students | Up to 15 years |
You may also have taken out residency loans and bar study loans, which are available to aspiring medical and legal professionals, respectively. If so, review the loan terms to learn about your options for making payments.
How to lower Sallie Mae payments
It’s crucial to comprehend all of your repayment options once you graduate and begin making payments so that you don’t fall behind. What You Need to Know About Repaying Your Sallie Mae Student Loans if You’re Struggling to Keep Up With Your Loans
Sallie Mae recommends borrowers sign up for automatic debit payments. You could be eligible for a 0 if you enroll and adhere to its advice. 25 percentage point discount on your eligible loans’ interest rate.
Even if a reduction in the interest rate doesn’t seem substantial, the savings can add up. If you had a $35,000 loan at 8. You would pay $15,958 in interest over ten years at 00% interest. However, if you opted for automatic debit and received a 7 75% interest rate, you’d pay $15,404 in interest. You could save more than $550 by setting up automatic payments in just a few minutes.
Additionally, setting up automatic payments will prevent you from ever having to deal with Sallie Mae’s late fees, which can be as high as $25.
| Salle Mae’s student loan payment options: |
|---|
| ● Automatic debt from your checking account ● Via the Sallie Mae website or mobile app ● Over the phone ● By mail |
You could make interest-only payments on your Sallie Mae loans for up to a year if you’re just out of school or outside of the student loan grace period. Before making your 12th postgraduate loan payment, you would simply need to apply for the federally similar graduated repayment plan.
However, keep in mind that your amount due will increase once the graduated period is over and you start making principal and interest payments on a regular basis. Additionally, because interest would have accumulated more quickly if you had been making interest-only payments, the total cost of your loan will rise.
Fortunately, Sallie Mae has a forbearance policy if you’re concerned about what would happen if you couldn’t pay your loans.
You may be able to delay payments for up to 12 months — three months at a time — if you’re dealing with an emergency, such as losing your job.
Additionally, you should be aware that interest continues to accrue while you are in forbearance, but it may be beneficial as you reorganize your finances.
To discuss your options, contact Sallie Mae at 800-472-5543.
If you’re returning to school, you might be concerned about how to make your loan payments on time.
Fortunately, Sallie Mae offers deferments, so you can delay or reduce your payments if you’re enrolling in graduate school, returning to school, or beginning an internship or residency. You can receive a deferment for up to 48 months.
When you postpone paying off loans, interest still accrues on the outstanding balance. Your balance could significantly increase if you don’t make payments toward the interest or principal that have accumulated.
Student Loan Deferment Calculator
| Before | After | Savings | |
|---|---|---|---|
| Balance | — | — | — |
| Monthly | — | — | — |
Even so, a deferment may be helpful because it will give you breathing room in your budget while you finish your education.
To request a deferment, complete Sallie Mae’s request form:
Call 855-534-2668 to request a deferment or forbearance while serving in the military.
Modified loan terms for delinquent borrowers
If you fall behind and miss a payment on a student loan, you could try to get caught up by using one of these strategies, such as the Salle Mae rate reduction program:
Depending on your situation, Sallie Mae may temporarily lower your interest rate by as little as 2. 00% to 3. 00%. However, because there isn’t a publicly disclosed one-size-fits-all policy, rate reductions are decided for each borrower individually.
However, you might lose access to some of these assistance programs if your Sallie Mae student loan is past due or in default. For greater detail, contact the lender’s customer service.
How to hack Sallie Mae student loans for an early payoff
Although you might not require a deferment or forbearance, you are prepared to pay off your student loans as soon as possible. If so, follow these guidelines to pay them off before the deadline.
Pay something while in school
Making even small in-school payments can help you save money and reduce interest charges. Besides deferment, Sallie Mae has two in-school repayment options, including:
Make strategic extra payments
Sallie Mae applies any additional payments you make first to outstanding fees and then outstanding interest. Next, any remaining amount is applied to the current balance. The additional payment, unless specified otherwise, will be applied to your following due payment Contact the company and request that it count it as an extra payment in order to expedite your repayment rather than reducing your subsequent payment.
With the help of our lump sum extra payment calculator, evaluate the impact of this decision.
Sallie Mae does not impose a prepayment penalty, so you don’t need to worry about it either.
Consider student loan refinancing
If your Sallie Mae loan has a high interest rate, refinancing your student loans could help you save a sizable sum of money.
Refinancing entails taking out a new loan to pay off some or all of your existing ones. You can do this to obtain a loan with a lower interest rate, a longer term with lower payments, or a shorter term to help you pay off your debt more quickly.
Using our refinancing calculator, find out how much you can save. And if you believe that this is the best course of action for you, compare offers from various lenders who offer refinancing to make sure you get the best possible rate.
Andrew Pentis contributed to this report.
Interested in refinancing student loans?
FAQ
Do Sallie Mae loans qualify for deferment?
If you’re enrolled full-time or part-time, you can apply for a deferment of up to 48 months for a Smart Option Student Loan® or a Sallie Mae graduate student loan.
Are Sallie Mae loans going to be forgiven?
No, Sallie Mae is not participating in the forgiveness program; it only applies to federal student loans. Sallie Mae loans and other private student loans won’t be forgiven under this program.
What happens if you can’t pay Sallie Mae?
Delinquency may result in late fees, which could increase the cost of your loan overall. Any interest-rate reduction plans you were qualified for could be lost. Late payments might be reported to consumer reporting organizations, which could harm your credit report.
Will student loans be paused again after August 2022?
Before payments resume, borrowers of federal student loans — as well as the courts — have more time to understand the debt forgiveness process. The payment pause has been extended through June 30, 2023.