Zina Kumok is a freelance personal finance writer based in Indianapolis. She paid off her own student loans in three years. She also offers one-on-one financial coaching sessions at ConsciousCoins.com.
Zina Kumok ContributorZina Kumok is a freelance personal finance writer based in Indianapolis. She paid off her own student loans in three years. She also offers one-on-one financial coaching sessions at ConsciousCoins.com.
Written By Zina Kumok ContributorZina Kumok is a freelance personal finance writer based in Indianapolis. She paid off her own student loans in three years. She also offers one-on-one financial coaching sessions at ConsciousCoins.com.
Zina Kumok ContributorZina Kumok is a freelance personal finance writer based in Indianapolis. She paid off her own student loans in three years. She also offers one-on-one financial coaching sessions at ConsciousCoins.com.
Contributor Kennedy Edgerton Personal Finance EditorKennedy Edgerton is a personal finance editor, leveraging his passion for writing and personal finance to produce stimulating content that empowers readers to enhance their lives through advised decision-making. He has written for several publication.
Kennedy Edgerton Personal Finance EditorKennedy Edgerton is a personal finance editor, leveraging his passion for writing and personal finance to produce stimulating content that empowers readers to enhance their lives through advised decision-making. He has written for several publication.
Kennedy Edgerton Personal Finance EditorKennedy Edgerton is a personal finance editor, leveraging his passion for writing and personal finance to produce stimulating content that empowers readers to enhance their lives through advised decision-making. He has written for several publication.
Kennedy Edgerton Personal Finance EditorKennedy Edgerton is a personal finance editor, leveraging his passion for writing and personal finance to produce stimulating content that empowers readers to enhance their lives through advised decision-making. He has written for several publication.
| Personal Finance Editor
Updated: Feb 21, 2024, 9:45am
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Sallie Mae is a student loan company offering private undergraduate loans, career training loans and graduate student loans. The lender previously offered federal student loans to applicants.
However, those seeking federal loans from Sallie Mae will find that the lender hasn’t offered federal student loans since 2010, and it exited federal loan servicing in 2014. Now, the company only offers private student loans to borrowers.
Sallie Mae began as the Student Loan Marketing Association (SLMA), a government-sponsored enterprise that serviced and originated federal student loans. In 2004, SLMA was privatized and since 2014, Sallie Mae hasn’t serviced new federal student loans following the company’s split to spin off its servicing arm into a new company called Navient.
If you had federal loans through Sallie Mae, they were transferred to Navient for servicing. Federal loans are no longer available through Sallie Mae.
Sallie Mae issued loans through the Federal Family Education Loan (FFEL) Program , which was discontinued in 2010. In 2014, Sallie Mae split its student loan servicing arm into Navient, a separate entity that continued to service Sallie Mae’s federal loans.
The FFEL Program operated differently from federal direct loans—the most recent iteration of federal loans. The program’s federal loans were offered by private lenders and guaranteed by the government, while direct loans are eligible for more income-driven repayment (IDR) plans and forgiveness options. For example, you’re only eligible for Public Service Loan Forgiveness if you have a direct loan.
FFELP loans aren’t eligible for the same IDR plans and loan forgiveness programs as direct loans. If you have an FFELP loan through Sallie Mae, you can consolidate it with a direct consolidation loan, which is eligible for income-based repayment and forgiveness options. However, make sure you understand that the process is permanent and can’t be reversed.
If you’re unsure whether or not Sallie Mae is your FFELP loan servicer, you can find your loan information through the official Student Aid website at www.studentaid.gov . You’ll need to log in with your Federal Student Aid (FSA) username and password. If you don’t remember your FSA username or password, you’ll have to reset it.
The FSA website will show any active federal loans on your account. Once you determine who your loan servicer is, you can find their contact information here . If you had an FFELP loan under Sallie Mae or Navient, it may be listed under MOHELA, a company that now services Navient’s remaining student loan accounts .
Consider federal loans first when looking for ways to fund your college education. Federal student loans offer more IDR plans, loan forgiveness options and longer forbearance programs.
The downside is that federal loans have strict aggregate limits, so students who max out their federal loans may have to consider private loan options.
Before taking out a private student loan —through Sallie Mae or another lender—compare interest rates and repayment terms with multiple lenders. Try to find the lowest interest rate possible with a monthly payment you can afford after graduation. Adding a co-signer with good credit can help you qualify for a lower interest rate.
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