Sallie Mae (SLM Corporation) is the primary student loan provider in the United States. Since first establishing in 1972, Sallie Mae has dominated the student loan market by accumulating more than 30 million student loan claims for students in the United States. The company has also become well known for providing loans for other purposes. Examples of this include loans for private school, dental, and medical purposes, and more. Sallie Mae also offers savings accounts and education savings plans.
The History of Sallie Mae Student Loans
Sallie Mae previously worked as a middle man between students and the United States government. They would provide students with Stafford student loans, PLUS loans, and similar federal loans. Sallie Mae established themselves as the primary provider for federal student loans. Sallie Mae continued to fight against legislation developing federal student loan program as it would take away Sallie Mae’s position in the student loan market.
As Sallie Mae continued fighting legislation, and the government worked towards a federal lending program, there grew much controversy with the operation of SLM Corporation. There were a few concerns over how Salle Mae operated. One issue that came about had involved the corporation purchasing collection agencies. The issue with this was that the company would be making the same with punctually paying borrowers as they would with defaulted borrowers.
Another issue that came about was a program that was approved by Congress, which permitted student loan providers to compensate universities for partial administration of the loans. This served as a convenient method to help with the student loan procedure but it allows for universities to influence students to go to a certain student loan provider, so they can be compensated more for administration.
Sallie Mae in Today’s Student Loan Market
Sallie Mae was re-established as a private entity due to the legislation of a federal student loan program. Last year they became classified as a private lender. This has interfered with the corporation’s involvement with providing student loans to borrowers but they are still standing as a prominent student loan provider. Sallie Mae remains as one of the top choices for student loans in the United States to this date.
Sallie Mae have continued to establish themselves as a great choice for student loans by offering generous kickbacks for certain Sallie Mae loans. They have also been recognized for their reduced interest on specialty repayment plans. Their low interest rates are what really set them apart from other student loan choices. Those with bad credit or no credit may also qualify for a Sallie Mae student loan. The ability to consolidate your student loans through Sallie Mae is also very appealing.
As an alternative to the federal student loans that are available, there are many great offers that are available through the Sallie Mae student loan program. Due to the variety of loans available and great benefits, Sallie Mae remains as a great choice of student loan provider in the United States. With that being said, Sallie Mae remains as one of the few choices of providers for student loans that any potential borrowing student should definitely consider.
What to Know About Applying for a Sallie Mae Student Loan
Sallie Mae student loans are credit based. This means that whether you will be approved for the loan, and the interest rate that you will have to pay on it, will mostly depend on your credit status. These loans are available for both undergraduates and graduates. When selecting a Sallie Mae student loan to apply for you will have a number of choices. A common option is a Sallie Mae consolidated loan which allows you to have multiple loans under one for a more convenient payment plan. This also means lowered interest rates and required payments for the loan as well.
Repaying a Sallie Mae student loan can be very convenient if you choose the right student loan and payment plan. For instance, if you choose the Smart Option for a Sallie Mae student loan then you will be paying the interest on the loan while attending school. Once you are out of school, if you pay back the student loan quickly then you may be able to decrease the loan amount by as much as 30%.
Upromise is another great student loan program offered by Sallie Mae which allows borrowers to receive rebates for some purchases. A portion of the amount will also be put into the Sallie Mae student loan balance as well. Another way to save is to choose to pay back the loan with auto debit payments, which decreases the interest rate by approximately one forth of a percent.
Sallie Mae is really a great choice of student loan program. There are many different options that are available through the program as well. If you have decided that you would like to apply for a Sallie Mae student loan then you need to know how to do so. The simplest method to apply for a Sallie Mae loan is to go through their website. There is an online application form available. This form is evaluated by the government to determine if the individual is qualified for the student loan. You should also visit their website if you would like more information on the various types of loans and benefits offered through Sallie Mae.