Sallie Mae student loans originated in 1972 as a government sponsored program intended to increase the general public's access to college degrees by offering financing options to students. The company became private in 2004 after a seven year process of privatizing. Loans under the Federal Family Education Loan Program, which are federally guaranteed, have historically been the main type of financing the company issues. The company also offers private loans for borrowers.
There are a variety of Sallie Mae student loans available to fit a student's needs. Federally insured loans, such as the Stafford or
Perkins loan, are offered to students who fit the government's criteria for financial need. Federally insured loans are also available to parents and graduate students who meet certain criteria. The company offers private loans as an option to students who need additional funding. Private loans are available for undergraduate students, community college students, continuing education students and those enrolled in a vocational training program.
Sallie Mae student loans are designed with the student in mind, as the company specializes in higher education financing. The company offers a variety of college planning tools, including resources to create a plan to pay for higher education. The loans also feature flexible repayment options for students, including deferment of payments until six months after graduation. There is also an option to repay loans based on the borrower's monthly income, as well as an option to extend the repayment terms if the amount of the loan is very high.
Before borrowing money for higher education, it is important to consider other financial aid options. Offers such as scholarships and grants should be considered before taking out a student loan since they do not need to be repaid. A Sallie Mae student loan must be repaid based on the terms agreed upon in the contract. Borrowers should consider all financial aid options, especially those that do not need to be repaid, before taking out a student loan to pay for college.
Sallie Mae student loans can help students afford college despite financial difficulties. Higher education is an investment that can be difficult to finance, but a loan can make college attainable. Also, the company specializes in student loans so its products and services are designed with students in mind. These loans can also help students with little to no credit history build credit, provided they fulfill their repayment terms in a timely manner.