Sallie Mae student loans for undergraduates
Undergraduates can borrow up to 20100% of their school’s E2%80%99s cost of attendance less any financial aid received through the Smart Option Student Loan. The purpose of the loan funds is to cover certified educational costs such as books, supplies, housing, tuition, and fees.
Borrowers must be enrolled in a participating degree-granting institution and pursuing a certificate, associate’s degree, or bachelor’s degree. But since there isn’t a minimum enrollment requirement, part-time students can apply for this student loan option more easily.
Sallie Mae provides a range of repayment options along with competitive student loan rates. For every loan application, a minimum loan amount of $1,000 is requested. However, rather than applying every academic semester, you can apply just once for the entire academic year.
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Sallie Mae Smart Option Student Loan review: Pros and cons
An outline of the benefits and drawbacks of the Sallie Mae Smart Option Student Loan is provided below.
- Available to non-U. S. citizen or non-permanent residents. This includes DACA recipients who live and learn in the United S. However, they must have a cosigner who is a U. S. citizen or U. S. permanent resident.
- No minimum enrollment requirement. Students enrolled full-time, half-time or less than half-time can qualify.
- A variety of programs qualify. accessible for study abroad initiatives, professional certification courses, and U S. students enrolled in a school in a foreign country.
- Flexible in-school repayment options. The options available to borrowers are interest-only, full deferment, or fixed $25 monthly loan payments. You might lower your interest rate by choosing in-school repayment.
- Six-month grace period. Monthly principal and interest payments start six months after you graduate or stop attending school.
- Autopay discount. Receive a 0. There is a 25% reduction in interest rates when you sign up for automatic debit payments from your bank account.
- Fewer fees. Application fees, origination fees, and prepayment penalties are not assessed by the lender.
- Cosigner release. Once the conditions are met, such as 12 months of timely principal and interest payments, apply to have your cosigner released.
- Options for student loan deferment. You may be eligible for a deferment if you go back to school, pursue graduate work, or accept a fellowship, internship, clerkship, or residency in the future. Your loan terms will revert to the original in-school repayment schedule that you selected (e.g. g. interest-only, fixed or completely deferred).
- Additional perks. Sallie Mae also provides financial literacy instruction and a scholarship search tool.
- Requires hard credit check to explore interest rates. Sallie Mae does a hard credit pull in contrast to other lenders who offer a pre-approval process in order to obtain preliminary rate information for comparison.
- Late payment fee. If your payment is received more than 15 days after the deadline, you may be assessed a late fee. You might also no longer be eligible for incentives for repayment or borrower benefits.
Eligibility requirements for Sallie Mae undergraduate loan
Private student loans are credit-based, in contrast to federal student loans for undergraduates. Therefore, when you apply for a loan, Sallie Mae will check your credit.
Your creditworthiness will affect your eligibility and interest rates. This entails reaching the required minimum credit score as well as examining your loan repayment history and other financial metrics.
Sallie Mae advises using a cosigner because the majority of undergraduates haven’t had time to establish sufficient credit to be eligible for a private student loan on their own.
Students who include a creditworthy cosigner have a four times higher chance of being approved, according to Sallie Mae.
Application process: What to expect
You can easily complete the online application for a Sallie Mae Smart Option student loan. As a matter of fact, most applicants can get a credit decision within ten minutes.
However, make sure you have the following information close at hand before opening the application:
- Permanent address. You’ll also need to supply your previous address if you’ve lived here for less than a year.
- Social Security number (SSN). You’ll also need your cosigner’s SSN, if applicable.
- School information. This contains your course of study, degree, and the name of your school, as well as your enrollment status. Additionally, you must include the academic year and enrollment period.
- Loan amount. Prepare a list of the loan amount you’re asking for as well as information about any additional financial aid you anticipate receiving.
- Employment information. This includes your current company’s name and your gross income.
- Financial information. Compile information about your monthly rent or mortgage payments and bank accounts.
When the time comes, you must specify if you are applying as a cosigner or as a student. Indicate that you intend to use the loan money to pursue an undergraduate degree. Then, enter the appropriate state and school information.
After that, fill out the remaining application with general information about the student and cosigner.
If accepted, you will have to select an interest rate type and in-school repayment option (e.g., g. variable versus fixed interest rate) that meets your needs.
Sallie Mae will work with your school to handle the remaining steps, including loan disbursement, after you sign for the loan.
The overall application is user-friendly. However, Sallie Mae’s chat service and 1-877-279-7175 are available for you to use in case you need help during business hours.
Is a Sallie Mae loan right for you?
Prior to using private student loans, college students should look into all other available funding options. Go through all of the options for federal student loans, savings accounts, and grant and scholarship opportunities. Borrower protections and benefits associated with federal loans include income-driven repayment plans and loan forgiveness programs.
But the Sallie Mae Smart Option Student Loan is a good choice if you need assistance paying for college or have run into borrowing obstacles because of your citizenship or resident status or your status as a half-time student.
If you think you might need to take out private student loans, make sure you compare rates and only borrow what you really need.
FAQ
Is Sallie Mae Smart Option loan good?
But since there isn’t a minimum enrollment requirement, part-time students can apply for this student loan option more easily. Sallie Mae provides a range of repayment options along with competitive student loan rates. For every loan application, a minimum loan amount of $1,000 is requested.
What is the interest rate for Sallie Mae Smart Option student loans?
Undergraduate Students’ Smart Option Student Loan®: Variable SOFR 6 interest rates 63% to SOFR + 17. 75% ( 6. 37% APR to 16. 70% APR 5) Fixed 4. 75% to 16. 53% (4. 50% APR to 15. The lowest APRs displayed are the auto debit discount and the origination/disbursement fees, which are both zero.
Which student loan option is best?
A subsidized loan is your best option. The federal government covers the interest on these loans for you while you’re attending college.
What is a smart loan?
Using the equity they have built in their homes, your clients can lower their monthly debt payments and free up cash with a SMART Loan, a debt consolidation loan.
Read More :
Sallie Mae Smart Option Student Loan Review: A Great Supplement for Undergrads
https://www.salliemae.com/content/dam/slm/writtencontent/schoolmaterials/SOSL-informsheet.pdf