How To Refinance Sallie Mae Student Loans

By Mentor Staff | Edited By Mentor Staff

Updated On September 12, 2022

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If you want to know how to refinance Sallie Mae student loans, this guide can help.

Sallie Mae is one of the largest student loan lenders and has been working with students and parents for decades. Therefore, it’s possible that you may have Sallie Mae loans. In 2014, Sallie Mae split into two companies: SLM Corporation and Navient. SLM Corporation lends private student loans for college and graduate school, while Navient is one of largest student loan servicers.

Whether you choose student loan refinancing or student loan consolidation will depend on whether you have federal student loans or private student loans. While Sallie Mae does not consolidate student loans or refinance student loans, there are many excellent lenders that refinance Sallie Mae student loans.

Top Picks For Student Loan Refinancing

December 2022

Variable APR ?APR, or Annual Percentage Rate, is the price you pay to borrow money. Variable APR means that your interest rate can fluctuate over time, which can increase or decrease your monthly student loan payment. Typically, a variable-rate loan has a lower introductory rate than a fixed-loan rate loan. Variable APR includes a 0.25% discount when you enroll in autopay.
Fixed APR ?APR, or Annual Percentage Rate, is the price you pay to borrow money. Fixed APR means that your interest rate will always stay the same. Even if interest rates change, your interest rate or monthly payment will not. Fixed APR includes a 0.25% discount when you enroll in autopay.
APR
4.49% - 8.99%
4.49% - 8.99%
4.49% - 8.99%

View Details

on SoFi's website

Overview

Variable APR:
4.49% - 8.99%
Fixed APR:
4.49% - 8.99%
Minimum Credit Score:
650
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,000 ($10,000 in CA)

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All states
Hardship Deferment:
Yes
Co-signer Option:
Yes
3.99% - 8.29%
4.39% - 8.99%
3.99% - 8.99%

View Details

on Earnest's website

Overview

Variable APR:
3.99% - 8.29%
Fixed APR:
4.39% - 8.99%
Minimum Credit Score:
650
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5-20 years
Borrower Residency:
All States except NV
Hardship Deferment:
Yes
Co-signer Option:
No
3.99% - 8.29%
4.39% - 8.99%
3.99% - 8.99%

View Details

on NaviRefi's website

Overview

Variable APR:
3.99% - 8.29%
Fixed APR:
4.39% - 8.99%
Minimum Credit Score:
650
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,001 ($10,001 in CA)

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5-20 years
Borrower Residency:
All States except NV
Hardship Deferment:
Yes
Co-signer Option:
No
3.53% - 7.24%
4.48% - 7.29%
3.53% - 7.29%

View Details

on ELFI's website

Overview

Variable APR:
3.53% - 7.24%
Fixed APR:
4.48% - 7.29%
Minimum Credit Score:
680
Minimum Income:
$35,000
Fees:
None
Minimum Loan Amount:
$10,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All States
Hardship Deferment:
Yes
Co-signer Option:
Yes
2.50% - 8.65%
3.99% - 8.49%
2.50% - 8.65%

View Details

on Splash's website

Overview

Variable APR:
2.50% - 8.65%
Fixed APR:
3.99% - 8.49%
Minimum Credit Score:
640
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5 – 25 years
Borrower Residency:
All states
Hardship Deferment:
Varies
Co-signer Option:
No
5.09% - 11.67%
5.39% - 11.87%
5.09% - 11.87%

View Details

on Citizens' website

Overview

Variable APR:
5.09% - 11.67%
Fixed APR:
5.39% - 11.87%
Minimum Credit Score:
Not disclosed
Minimum Income:
$24,000
Fees:
No prepayment or origination fees
Minimum Loan Amount:
$10,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All states
Hardship Deferment:
Yes
Co-signer Option:
Yes
2.50% - 6.80%
4.49% - 6.90%
2.50% - 6.90%

View Details

on Laurel Road's website

Overview

Variable APR:
2.50% - 6.80%
Fixed APR:
4.49% - 6.90%
Minimum Credit Score:
660
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All States
Hardship Deferment:
Yes
Co-signer Option:
Yes
3.27% - 6.87%
3.99% - 10.68%
3.27% - 10.68%

View Details

on LendKey's website

Overview

Variable APR:
3.27% - 6.87%
Fixed APR:
3.99% - 10.68%
Minimum Credit Score:
680
Minimum Income:
$24,000
Fees:
None
Minimum Loan Amount:
$5,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All states, except ME, ND, NV, RI, WV
Hardship Deferment:
Yes
Co-signer Option:
Yes
-
3.94% - 9.08%
3.94% - 9.08%

View Details

on ISL's website

Overview

Variable APR:
-
Fixed APR:
3.94% - 9.08%
Minimum Credit Score:
670
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,000 ($10,000 in CA)

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All states, except OR and ME
Hardship Deferment:
Yes
Co-signer Option:
Yes

In this guide, you will learn:

How to consolidate your Sallie Mae loans

Student loan consolidation is available only for federal student loans. With student loan consolidation, you can combine your existing federal student loans into a new Direct Consolidation Loan. A Direct Consolidation loan has one monthly payment and one student loan servicer.

Your new interest rate is equal to a weighted average of your current interest rates on your federal student loans, rounded up to the nearest 1/8%. Therefore, student loan consolidation does not lower your interest rate, and may even slightly increase your interest rate.

If you have Sallie Mae student loans that you borrowed more recently, they are most likely private student loans. While private student loans are not eligible for student loan consolidation, private student loans are great candidates are student loan refinancing.

Therefore, if you have loans from Sallie Mae, student loan consolidation with the federal government is likely not an option. Likewise, Sallie Mae does not offer student loan consolidation or student loan refinancing.

You can use this refinancing vs. consolidation calculator to determine which option is best for you.

How to refinance Sallie Mae student loans

The good news is that you can refinance Sallie Mae student loans with a private lender. Student loan refinancing is the process of exchanging your existing student loans for a new student loan with a lower interest rate. When you refinance student loans, you combine your existing student loans into a single student loan with one monthly payment and student loan servicer.

So, student loan refinancing simplifies your student loan repayment and helps lower your interest rate. The top reason to refinance student loans is to save money, pay off student loans faster and get out of debt more quickly.

You can use this student loan refinance calculator to determine how much money you can save when you refinance student loans.

If you want to know how to refinance Sallie Mae student loans, the process is simple. You can apply with lenders online, and the application takes about 10-15 minutes. Lenders will evaluate your credit profile, income, debt-to-income ratio and other factors to ensure that you are a responsible borrower. Typically, lenders prefer to refinance student loans for borrowers who have at least a credit score of 650, current employment or a written job offer, stable and recurring income, and a low debt-to-income ratio, among other factors. If you do not meet these qualifications, you can apply with a co-signer who does.

With student loan refinancing, you can choose new loan terms. For example, you can choose a fixed interest rate or a variable interest rate. You can also choose a new student loan repayment term, which typically ranges from 5 to 20 years.

Why you should refinance Sallie Mae student loans

There are several reasons why you should refinance Sallie Mae student loans. The main reasons are to:

  1. Save money
  2. Change loan student terms
  3. Change your lender or student loan servicer

Save money

The main reason to refinance Sallie Mae student loans is to save money. With a lower interest rate, you can save significant money on your student loans and pay off student loans faster. For example, let’s assume you have $40,000 of student loans at an 8% interest rate and a 10-year repayment term. Now, let’s assume you can refinance student loans at a 3% interest rate and a 10-year repayment term. With student loan refinancing, you would lower your monthly payment by $99 and save $11,888 in total payments.

Change your student loan terms

Student loan refinancing also helps you change your loan terms. If you refinance Sallie Mae loans, you can choose either a new fixed interest rate or variable interest rate based on current interest rates, not the interest rates you initially agreed to when you first borrowed your student loans. Of course, you would only refinance your student loans if you can get a lower interest rate. Otherwise, it would not make sense to refinance student loans. The good news is there is no limit to how often you refinance student loans. With no origination fees or prepayment penalties, you can refinance student loans each time you find a lower interest rate.

When you refinance student loans, you can also choose a new student loan repayment term, which typically ranges from 5 to 20 years. A shorter repayment period (such as 5 years) has a higher monthly payment, but it will save you money since you will pay less interest. In contrast, a longer repayment period (such as 20 years) will have a lower monthly payment, but ultimately cost you more in interest payments. You should choose the repayment period that best fits your personal financial situation and goals.

Change your lender or student loan servicer

The ability to change your lender or student loan servicer is another popular reason to refinance student loans. If you are unhappy with your lender or student loan servicer, and you want better customer service, refinancing student loans is a great way to find a better match. When you refinance student loans, your lender and student loan servicer change. So, student loan refinance can be a smart move for more peace of mind.

When student loan refinancing isn't right for you

There aren’t any good reasons why you should not refinance your Sallie Mae loans, particularly if you can get a lower interest rate. Unlike federal student loans, private student loans don't have benefits such as income-driven repayment, forbearance or student loan forgiveness. Therefore, you won't lose these benefits when you refinance.

When you refinance private student loans, such as Sallie Mae loans, you can get a lower interest rate, can combine all your student loans into a single student loan, and you choose the loan terms that best meet your financial situation.

Should you refinance Sallie Mae student loans?

If you have Sallie Mae loans that are private student loans, refinancing can be a great financial option. For example, you can save money, pay off student loans and pay off student loans faster.

Remember, you should only refinance if you can get a lower interest rate, lower monthly payment or if you can change loan terms. Most borrowers refinance student loans to lower their interest rate. If these reasons fit your financial goals, then refinancing your Sallie Mae loans could be a smart financial option.

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