How to Refinance Sallie Mae Loans

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If you have Sallie Mae student loans and want to refinance at a better rate and longer repayment term, you will need to find another lender. (Shutterstock)

Sallie Mae is a major player in higher education, providing private student loans, savings accounts and credit cards, as well as financial tools and resources. At one time, Sallie Mae provided federal consolidation loans to borrowers in addition to private student loans and refinancing, but since 2008 this is no longer the case.

If you have Sallie Mae undergraduate, graduate, or parent loans and want to refinance them, the good news is that you can always refinance your student loans. You will just need to do this with another lender. Here’s how to refinance your Sallie Mae loans and how to decide if it’s the right option for you.

Credible can help you refinance your Sallie Mae loans. You can compare student loan refinance rates from various lenders, all in one place.

How to Refinance Sallie Mae Student Loans

If you want to lower your interest rate or change your repayment terms, you can refinance your Sallie Mae student loans in several ways:

  1. Compare lenders. Comparing multiple lenders will help you find the best repayment terms and interest rates. You can also find out if a lender has fees or offers discounts.
  2. Choose the loan that best suits your needs. If you want to pay off your loans faster and can afford higher monthly payments, you can turn to lenders who offer short repayment terms with no prepayment penalty. If you want to reduce your monthly payment, you can refinance a loan with a longer repayment term. Remember that you will pay more interest over the term of the loan this way.
  3. Apply for the loan. You will typically need to provide personal information and documents, such as pay stubs and tax returns, when applying for student loan refinance.
  4. Make payments on your new loan. If a lender approves you for a new loan, they will repay your old Sallie Mae loans. Keep making payments on your old loans until everything clears with your new lender. Once it’s time to start paying off your new loan, consider setting up automatic payment, which can make it easier to manage your payments and may qualify you for a discount with some lenders.

If you have less than ideal credit, you may want to consider add a co-signer at your request when refinancing. This can help you get approved for a lower interest rate on your student loan refinance.

Is Refinancing Your Sallie Mae Student Loans Right For You?

With According to Bloomberg Economy. This alone can make it difficult for many people to repay their student loans.

If you are looking for ways to reduce your monthly expenses, refinancing might suit you. Consider refinancing your loans if you want to:

  • Lower your interest rate. If the interest rates on your current loans are higher than the current interest rates offered by other lenders, it may be time to refinance your loans. Not only will you have a lower monthly payment, but you will also pay less over the life of the loan.
  • Combine multiple loans into one. Right now, you may be making multiple monthly payments on multiple loans. When you refinance, you combine multiple loans into one loan with one more manageable monthly payment.
  • Get better repayment terms. If your monthly payments are too high, you can choose to refinance and extend the repayment period of your loan. If you can afford higher monthly payments and want to pay off your loan faster, you can refinance a loan with a shorter repayment term.

With Credible, you can compare student loan refinance rates from multiple lenders in minutes.

Why did Sallie Mae stop offering student loan consolidation?

Sallie Mae was previously a loan officer for private student loans and federal consolidation loans, but stopped offering federal consolidation loans in 2008.

In the past, student borrowers used Sallie Mae’s consolidation service to combine multiple federal loans into one Sallie Mae loan. By doing so, they could take advantage of a fixed interest rate and a single monthly payment.

But when Sallie Mae split into two separate companies in 2014 – Sallie Mae and Navient Corporation – it became a financial services company specializing in providing private student loans. During this time, Navient continued to focus on servicing federal government loans.

Consolidation vs refinancing

Since Sallie Mae no longer offers refinancing or consolidation, federal student loan borrowers can turn to Direct Consolidation Loans of the Ministry of Education. These loans allow you consolidate multiple federal loans into one loan with a fixed interest rate and a single monthly payment. It is important to note that you cannot consolidate private student loans with a direct consolidation loan.

If you have private student loans or a combination of private and federal loans, you may want to consider refinancing. your loans into one private loan for a lower interest rate and better repayment terms. But keep in mind that if you refinance federal loans with a private loan, you lose federal benefits like Cancellation of civil service loans (PSLF) and income-contingent repayment (IDR) plans.

What to Know About Navient Student Loan Settlement

As of January 13, 2022, if you are one of more than 400,000 borrowers who have Navient student loans, you may be eligible for student loan debt relief.

Several state attorneys general have filed lawsuits against Navient, alleging the company pushed federal student loan borrowers who might qualify for an income-based repayment plan into more costly forbearance. The lawsuit also alleged that Navient knowingly made private subprime student loans to borrowers at high risk of default, according to the settlement statement.

Under the settlement, about 350,000 federal borrowers will receive about $260 each, and Navient is required to forgive any remaining private student loan balances for about 66,000 students.

You don’t have to do anything if you are entitled to relief. On April 22, 2022, the settlement administrator sent a postcard to all federal borrowers eligible for a restitution payment. If you are eligible for private student loan debt cancellation, Navient will send you a notice by July 2022, in addition to a refund of any payments made on loans canceled after June 30, 2021.

You can read more about the details of the eligibility requirements for lawsuits and debt relief on the Navient Multi-State Settlement Website.

The importance of comparing several lenders when refinancing

When refinancing your Sallie Mae student loans, compare several lenders to find the best choice to meet your individual needs. Consider interest rates, repayment terms, discounts, and fees to get the perfect loan for your situation. Keep in mind that if you refinance federal and private loans with a new private loan, you lose federal benefits.

Credible, it’s easy to compare student loan refinance rates from various lenders and find the right loan for you.

About Kimberly Alley

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