As a parent trying to help your child pay for college, do you ever feel like you’re running out of options? Perhaps you’re running short on college savings or can’t cover college costs with your current budget.
Enter the Sallie Mae Parent Loan, an affordable way to cover college costs now and help protect your child’s financial future. Sallie Mae student loans provide the option for anyone — parents, grandparents, or even friends — to borrow on a student’s behalf.
Our Sallie Mae Parent Loan review can help you decide if this is the solution you’ve been looking for.
Review: Sallie Mae student loans for parents
The Sallie Mae Parent Loan is named for parents, but it’s available to anyone who wants to help pay for a college student’s education. We carefully reviewed these Sallie Mae student loans to highlight what’s great (and not so great) about this option.
Sallie Mae Parent Loan benefits
Here are the biggest pros of Sallie Mae Parent Loans.
You don’t have to be a parent to qualify
Although this loan is called the Sallie Mae Parent Loan, Sallie Mae doesn’t require borrowers to be parents or legal guardians of the student whose education the loan is intended to finance. The borrower can be a:
- Grandparent or other relative
You choose the right repayment option for you
Parents taking out Sallie Mae student loans have two repayment options:
- Principal and interest repayment: Start immediately repaying both principal and interest on your Sallie Mae student loans, which have a 10-year term. These principal and interest payments are higher but will lower the loan’s total costs and get you out of debt faster.
- Interest repayment: Opt to make interest-only payments while your child is enrolled (for up to 48 months). Interest-only repayment will be lower than what you’d pay with principal and interest repayment. It can free up room in your budget to pay some college costs out of pocket. Once your interest-only payment period ends, you’ll make principal and interest payments over 10 years.
Many parent student loans don’t offer a way to keep payments low while your child is in college. Having these options gives you the flexibility to decide what makes sense for you.
You can keep your college student out of debt
A Sallie Mae Parent Loan is not open to students themselves as either primary borrowers or cosigners. (A Parent Loan applicant can add a student loan cosigner, but it can’t be the student.)
As the owner of this student debt, you’ll be fully responsible for repaying the loan. So if your goal is to keep your college student out of debt, this Sallie Mae private student loan will allow you to take on that responsibility.
You maintain control over your debt — and credit
You could cosign private student loans with your child as the primary borrower, but if your child misses a payment, it’ll hurt your credit.
With a Sallie Mae Parent Loan, you’re in control of the debt and can make sure it’s handled responsibly. You’ll protect yourself and your credit from the mishaps of others.
Additionally, you’ll have the power to modify or manage the debt in any way you see fit, such as refinancing your student loans.
Applying for a Sallie Mae private student loan
Many private student lenders perform a soft credit check they can use to generate rate offers. Unfortunately, Sallie Mae doesn’t. The only option the lender gives site visitors is to apply for parent student loans to get a rate.
That said, the process to apply for Sallie Mae student loans is fairly straightforward.
On the Parent Loan page, simply click “Apply for this loan.” It will take you to an online application portal (pictured below). The application asks for the student’s college and enrollment status and the applicant’s contact details and identifying information.
Once you complete the application, the lender will evaluate it. You could receive results within 15 minutes. If you qualify and like your offer, you can follow the prompts to get your Sallie Mae private student loan.
Sallie Mae student loan rates and fees
Sallie Mae student loan rates for these parent-focused loans are competitive, and the lender charges no origination fees or prepayment penalties.
Sallie Mae also offers a 0.25% interest rate discount for enrolling in automatic payments. Parent Loan amounts can range from the minimum $1,000 up to the full cost of attendance.
Well-qualified borrowers can get Sallie Mae student loan rates that beat federal student loan rates for Parent PLUS Loans. Here’s a comparison of the two options:
|Sallie Mae Parent Loans||Parent PLUS Loans|
|Interest rate options||Fixed and variable||Fixed|
|Student loan rates*||Variable rates: 5.37% – 11.74% APR
Fixed rates: 5.74% – 12.87% APR
*Projections based on lowest offered fixed rate.
However, not every applicant will qualify for the lowest rates with Sallie Mae. Some parents will get better rates by choosing Parent PLUS Loans.
To know for sure if a Sallie Mae Parent Loan is a good deal for you, you’ll likely have to go through the application process. You also should shop around so you can compare your offer to quotes from the best parent student loans out there.
Sallie Mae Parent Loan eligibility requirements
To get a Sallie Mae Parent Loan, you must meet the following eligibility requirements:
- Credit background: You’ll have to meet Sallie Mae’s credit criteria or have an eligible cosigner who does.
- Student’s enrollment: Sallie Mae student loans are offered only to students enrolled in a degree-granting program. Luckily, students enrolled less than half time will satisfy this requirement. Parent PLUS Loans, on the other hand, require a student to be enrolled part time or full time.
- U.S. citizenship: Both the borrower and the student must be U.S. citizens or legal permanent residents of the U.S.
If you can satisfy the above requirements, Sallie Mae is more likely to approve your student loan application.
Sallie Mae student loan reviews and customer service
Overall, the Sallie Mae application process is straightforward and delivers fast results. On its site, the lender reports that 95 percent of its customers rate the Sallie Mae application process favorably.
Still unclear on how a Sallie Mae Parent Loan would work for you? You can contact the Sallie Mae customer service team through the following channels:
- Phone: 855-756-5626
- Twitter: @SallieMae
Our guide to Sallie Mae student loans provides additional tips on how to manage debt serviced by this company.
As you consider Sallie Mae student loans to help pay for college, continue to pay attention to costs and projected monthly student loan payments. That way, you’ll know for sure if a Sallie Mae Parent Loan is the right fit for your needs.
Need a student loan?Here are our top student loan lenders of 2019!
|1 Important Disclosures for College Ave.
College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
(1)All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
(2)This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7% variable Annual Percentage Rate (“APR”): 96 monthly payments of $179.28 while in the repayment period, for a total amount of payments of $17,211.20. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
(3)As certified by your school and less any other financial aid you might receive. Minimum $1,000.
Information advertised valid as of 5/29/2019. Variable interest rates may increase after consummation.
* The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.
2 = Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.
3 Important Disclosures for PNC.
1. Annual Percentage Rates (APRs): APRs from 4.58% to 11.34% are for the fully deferred repayment option, include the 0.50% interest rate discount for automatic payment and encompass the full range of APRs for the three repayment term options (5, 10 and 15 year). APRs within this range may vary based on the repayment term chosen. See break down of APR ranges by repayment terms below.
Fixed Annual Percentage Rates (APRs): APRs range from 4.58% to 9.81% for a 5-year term. APRs range from 5.10% to 10.47% for a 10-year term. APRs range from 5.61% to 11.13% for a 15-year term. Fixed rates are based on the creditworthiness of the borrower and co-signer, if any. Loan Payment Example: The monthly payment per $10,000 borrowed at a fixed rate range of 5.10% APR to 11.29% APR for 10 years means you would make 120 payments which may range from $128.14 to $196.70. For the fixed rate loan, the monthly payment will remain fixed for the term of the loan. Payments may vary for other repayment term options.
Variable Annual Percentage Rates (APRs): APRs range from 4.99% to 10.18% for a 5-year term. APRs range from 5.47% to 10.82% for a 10-year term. APRs range from 5.93% to 11.34% for a 15-year term. Variable rates are based on the London Interbank Offered Rate (LIBOR) index plus a margin depending on the creditworthiness of the borrower and co-signer, if any. The LIBOR index, adjusted quarterly, is equal to the average of the one-month LIBOR rates as published in the “Money Rates” section of the Wall Street Journal on the first business day of each of the three (3) calendar months immediately preceding each quarterly adjustment date. The LIBOR index is currently 2.50%. If the index increases or decreases, your rate will increase or decrease accordingly. Loan Payment Example: The monthly payment per $10,000 borrowed at a variable rate range of 5.47% APR to 10.82% APR for 10 years means you would make 120 payments which may range from $132.10 to $202.00. For the variable rate loan, the monthly payment may increase or decrease if the interest rate increases or decreases. Payments may vary for other repayment term options.
APRs and loan payment examples are for the fully deferred repayment option for the Undergraduate & Graduate loan programs and include the 0.50% interest rate discount for automatic payments. The lowest APR is available to well qualified applicants. Your actual APR will be based on your credit qualifications, selection of fixed or variable rate option, loan program, repayment term, repayment option and whether you elect the automatic payment feature. Loan payment examples assume 30 days to first payment after the deferment period (37 months in school and 6 month grace period). Payments vary for other rates, repayment terms and repayment options.
In addition to Undergraduate and Graduate loans, PNC offers loans for Health & Medical Professions, Health Professions Residency and Bar Study. Rates may vary by loan program and are subject to change at any time. Visit pnconcampus.com for current rates, additional loan payment examples and more details about the Solution loan products.
2. Automatic Payment Discount: During repayment, an interest rate discount of 0.50% is available for automatic payments. Borrower must be making scheduled payments that include both principal and interest. Interest only payments do not qualify for the 0.50% interest rate discount. Automatic payment can be established through the loan servicer American Education Services (AES). Advertised rates include the 0.50% automatic payment interest rate discount. The rate discount will be applied at the time automatic payment is established. If automatic payment is not established, the available rates will be 0.50% higher than the advertised rates. If automatic payment is established and discontinued at any time during repayment, the borrower will no longer receive an automatic payment discount and the rate will increase by 0.50%. Discount may also be suspended during periods of forbearance or deferment. Payments may be made from a checking or savings account. A federal regulation limits the number of transfers that may be made from a savings or money market account. Please contact your financial institution for more information on transfer limitations on savings accounts.
3. Repayment Options: Immediate, interest only payments while in school and full deferment of principal and interest options available. Interest will continue to accrue during periods of deferment. You will receive quarterly interest statements during this deferment period. Paying the interest as it accrues each quarter will save you money over the repayment term of the loan because any accrued interest that you do not pay will be added to the principal balance at the end of the deferment.
4. Co-Signer Release: A request to release a co-signer requires that, as of the date of the request, you have made at least forty-eight (48) consecutive timely payments of principal and interest with no periods of forbearance or deferment within the forty-eight (48) month timeframe. “Timely payment” means each payment is made no later than the 15th day after the scheduled due date of the payment. “Consecutive payment” means the minimum monthly payment must be made for the most recent forty-eight (48) months straight without any interruption. To qualify for a co-signer release, the borrower must submit a request, meet the consecutive, timely payment requirements, provide proof of income and pass a credit check.
5. Tax Deductibility: Interest may be tax deductible. Consult a tax advisor.
Please note: PNC reserves the right to modify or discontinue the terms of these program at any time without notice. You are encouraged to explore all scholarship, grant and federal borrowing options before applying for a private loan. Private loans are subject to credit approval.
PNC is a registered service mark of The PNC Financial Services Group, Inc.
© 2019 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association.
4 Important Disclosures for Discover.
5 Important Disclosures for SunTrust.
Before applying for a private student loan, SunTrust recommends comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans. To view and compare the available features of SunTrust private student loans, visit https://www.suntrust.com/loans/student-loans/private.
Certain restrictions and limitations may apply. SunTrust Bank reserves the right to change or discontinue this loan program without notice. Availability of all loan programs is subject to approval under the SunTrust credit policy and other criteria and may not be available in certain jurisdictions.
©2019 SunTrust Banks, Inc. SUNTRUST, the SunTrust logo and Custom Choice Loan are trademarks of SunTrust Banks, Inc. All rights reserved.
* Offer valid for new Custom Choice Loans for which applications are submitted for a credit decision between 12:00:00am EST on June 1, 2019 and 11:59:59pm EST on August 31, 2019. A 0.50% interest rate reduction will be included in the loan options presented to an applicant during the online application process, upon passing the initial credit review. The interest rate reduction will be applied as of the first disbursement date and will be effective for the life of the loan.
6 Important Disclosures for CommonBond.
A government loan is made according to rules set by the U.S. Department of Education. Government loans have fixed interest rates, meaning that the interest rate on a government loan will never go up or down.
Government loans also permit borrowers in financial trouble to use certain options, such as income-based repayment, which may help some borrowers. Depending on the type of loan that you have, the government may discharge your loan if you die or become permanently disabled.
Depending on what type of government loan that you have, you may be eligible for loan forgiveness in exchange for performing certain types of public service. If you are an active-duty service member and you obtained your government loan before you were called to active duty, you are entitled to interest rate and repayment benefits for your loan.
A private student loan is not a government loan and is not regulated by the Department of Education. A private student loan is instead regulated like other consumer loans under both state and federal law and by the terms of the promissory note with your lender.
If your private student loan has a fixed interest rate, then that rate will never go up or down. If your private student loan has a variable interest rate, then that rate will vary depending on an index rate disclosed in your application. If the interest rate on the new private student loan is less than the interest rate on your government loans, your payments will be less if you refinance.
If you don’t pay a private student loan as agreed, the lender can refer your loan to a collection agency or sue you for the unpaid amount.
Remember also that like government loans, most private loans cannot be discharged if you file bankruptcy unless you can demonstrate that repayment of the loan would cause you an undue hardship. In most bankruptcy courts, proving undue hardship is very difficult for most borrowers.
7 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
8 Important Disclosures for LendKey.
1 – Terms and Conditions Apply
|3.99% – 11.98%1||Undergraduate, Graduate, and Parents|
|4.50% – 11.35%*,2||Undergraduate and Graduate|
|4.99% – 11.34%3||Undergraduate and Graduate|
|4.84% – 11.99%4||Undergraduate and Graduate|
|3.27% – 10.80%5||Undergraduate and Graduate|
|3.69% – 9.67%6||Undergraduate, Graduate, and Parents|
|3.99% – 11.64%7||Undergraduate, Graduate, and Parents|
|4.46% – 9.43%8||Undergraduate and Graduate|