Sallie Mae Student Loans Information

Who is Sallie Mae?  She sounds like someone’s very nice aunt or grandmother, doesn’t she?  Well, actually, she’s the nation’s leading provider of student loans.  In fact, Sallie Mae Student Loans are held by millions of college students.

Like many student loan providers, Sallie Mae is the actually lending institution behind many different federal loan programs.  In addition, Sallie Mae offers private loans that are not federally guaranteed.  This description from their website pretty much sums it up:

Sallie Mae®, the nation's leading provider of student loans and administrator of college savings plans, has helped millions of Americans achieve their dream of a higher education. The company primarily provides federal and private student loans, including consolidation loans, for undergraduate and graduate students and their parents.

What Sets Salle Mae Student Loans Apart?

Sallie Mae is set apart from other lenders for a couple of reasons.  First of all, it was originally formed as a Government Sponsored Enterprise in 1972.  Although it became a private entity at the end of 2004, there are still close ties between Sallie Mae and the federal government.  This gives Sallie Mae an advantage in its understanding of the federal student loan process.

In addition, Sallie Mae offers more than just funding for college – it offers a wealth of materials and resources on preparing for and, well, surviving college.  Some of the materials available on their site include:

• Selecting a school
• Finding sources of free money
• Financing K-12 private schools
• Saving for college
• Dealing with debt
• Finding a job
• Starting a small business

Perhaps most useful is Sallie Mae’s 1-2-3 approach to paying for college.  This step-by-step program tells you all you need to know to find all the appropriate funds for financing your higher degree.

How Can I Apply for Sallie Mae Student Loans?

First of all, know that if you’re looking for federal funds, you must fill out the Free Application for Federal Student Aid (FAFSA Form), which is available at the Sallie Mae site.  This will help determine your eligibility for certain federal guaranteed loans (that come with favorable interest rates).  Once you are eligible, lenders like Sallie Mae will serve as the administrators of the loans.

If you find that federal student loans are not enough to finance the full cost of your education, you should consider the private loans options available through Salle Mae and others.  While these do not offer the same favorable interest rates as the federal loans, they are still often much better than traditional private financing.  Private loans should be approached with caution.  As the Sallie Mae site puts it:

You should only use private student loans as supplemental funding after you have exhausted all other sources of financial aid, including grants, scholarships, Work-Study, and federal student loans.  As with any student loan, be conservative and only borrow what you absolutely need.

Once you’ve gone through the Sallie Mae student loan process, you’ll be on your way to a college degree!