Being so large, Sallie Mae can offer pretty much any variation of private student loan that exists. Loans are available to students and parents. There are no origination fees or pre-payment penalties and it takes about 15 minutes to apply. For undergraduate loans, variable rates range from 4.37 to 11.23% and fixed-rate loans range from 5.74 to 11.85% APR. Once you make 12 on-time payments, you can qualify for a co-signer release and carry the loans on your own.
Key information to understand student loans includes being aware of the annual and cumulative loan limits, interest rates, fees, and loan term for the most popular private student loan programs. Often the interest rates, fees and loan limits depend on the credit history of the borrower and co-signer, if any, and on loan options chosen by the borrower such as in-school deferment and repayment schedule. Loan term often depends on the total amount of debt.
Refinancing replaces multiple student loans with a single private loan at a lower interest rate. You can choose a new loan term that’s shorter than the one you originally received. That may increase your monthly payment, but it will help you pay the debt faster and save money on interest. You’ll also have just one bill to pay, rather than multiple.
Elaine Rubin is the Senior Contributor and Communications Specialist at Edvisors. Ms. Rubin is responsible for maintaining content, responding to press and media inquiries, as well as serving as the lead contributor for the Edvisors blog and the Ask the Edvisor column. Ms. Rubin volunteers in the local Las Vegas community to help students and families understand the importance of education for success. Ms. Rubin has worked in higher education finance for more than 10 years, including seven years with the U.S. Department of Education's office of Federal Student Aid, and provides information and advice from both personal and professional experiences. She holds a Bachelor of Arts degree in Political Science with a concentration in Public Policy and Administration from Northeastern University.
Overview: Discover stands out, partly for its repayment flexibility. Enrolled students can either defer or begin repaying their loan right away, while graduates might qualify to postpone payments if necessary. The lender is also a top choice for borrowers who don’t have a Social Security number but do have a permanent resident or citizen cosigner. Drawbacks could include Discover’s lone 15-year repayment term option for undergrads and its lack of a cosigner release policy.
Variable Rates: Starting variable rates range from 3.65% to 11.25% APR (with autopay), and will never exceed 13.95% (sometimes lower in certain states as required by law). For variable rate loans, the variable interest rate is derived from the one-month LIBOR rate plus a margin of between 1.58% and 9.98%. The current one-month LIBOR rate is 2.27%. Changes in the one-month LIBOR rate may cause your monthly payment to increase or decrease. Interest rates for variable rate loans are capped at 13.95%, unless required to be lower to comply with applicable law. Zero fees, period.
You can pay off the principal early by making pre-payments while studying. Call your loan servicer to make sure your payments are applied to the principal and not the interest. You can make payments on federal loans while in school, but some private loans will charge you a fee for doing so. Be sure to find out which loans you can pay off without fees.

“Before aggressively paying down your student loans, you should make sure you paid off high-interest debt such as credit cards or personal loans,” said Walsh. “You should also make sure you are saving enough for your long-term goals,” he said ― think retirement ― since, over time, the returns from investing have been higher than the interest rate most people pay on student loans.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

Variable Rates: Starting variable rates range from 2.93% to 11.57% APR (with autopay), and will never exceed 13.95% (sometimes lower in certain states as required by law). For variable rate loans, the variable interest rate is derived from the one-month LIBOR rate plus a margin of between 0.86% and 9.76%. The current one-month LIBOR rate is 2.27%. Changes in the one-month LIBOR rate may cause your monthly payment to increase or decrease. Interest rates for variable rate loans are capped at 13.95%, unless required to be lower to comply with applicable law. Zero fees, period.
If you or your recent grad has this type of loan—which makes up 15 percent of total U.S. education debt—this may seem like an odd move. After all, the interest rates on variable private loans (given by banks and credit unions) are currently lower than the fixed rates on federally backed and private loans. But historically this situation is unusual, and if the economy improves, interest hikes are probable in the near future. “Rates could climb 5 to 6 percent over the next four years, making your monthly burden unmanageable,” says Kantrowitz. That’s why it’s wise to unload these balances as soon as possible. If you can, pay twice the required amount until you have eliminated this debt and make only the minimum monthly contribution toward your fixed-rate federal loans, since those rates cannot increase.
We’ve updated our Top 10 List of student loan tips for students preparing to graduate and enter “the real world.” Many students are looking at their student loans more closely now than they ever have before, and wondering how they will handle the burden. Our tips can help young people keep payments affordable, avoid fees and extra interest costs, and protect their credit rating.
For example, you could apply part of your yearly bonus from work or a tax refund to your debt, said Brian Walsh, a certified financial planner and financial planning manager at SoFi. Or you could participate in a challenge like dry January or a no-spend month to come up with the extra cash. It might feel painful to put something fun like a cash windfall toward your student loan debt, but the results can be dramatic.
CommonBond isn’t just a student lender trying to make money. They do a lot of social good, too, much of which happens through a partnership with nonprofit Pencils of Promise. CommonBond also offers a program for businesses to offer student loan assistance as an employee benefit. Wouldn’t it be great if all employers helped with student loans? CommonBond offers four repayment options that start either in-school or after graduation.
Private loans are typically made through private banks, credit unions, state agencies, or financial institutions. They may have rates and terms that are different from federal loans. If you’re considering applying for a private loan, be sure that you’ve taken advantage of all federal aid opportunities first. There are two types of private education loans:
The debt snowball method is ideal for people who need to experience wins right away. “With this strategy, you’ll begin paying the smallest balance off first,” Anderson said. “Continue to make the minimum payments on your other accounts and put as much money as you can towards the smallest balance.” Once the smallest balance is paid off, combine the amount you were paying on that balance with the minimum payment on your next-smallest balance, and so on. “This strategy can help keep you motivated and encouraged since you should start to see some results right away,” Anderson said.

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. As certified by your school and less any other financial aid you might receive. Minimum $1,000. 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. This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 11/4/2019. Variable interest rates may increase after consummation.
Besides the interest savings, automatic payments can be a good idea to make life easier. By setting up automatic payments, you don’t have to worry about late or missed payments when paying back student loans (which matters for your credit score). Plus, you can use automatic payments in conjunction with other strategies on this list, like making payments higher than the minimum.
Next, you’ll receive your Student Aid Report, which outlines your expected family contribution. The form will automatically be forwarded to the schools listed on your application. The financial aid offices of those institutions will send you a financial aid award letter outlining the aid package they will offer. It’s your job to compare those offers and choose the school that best fits your future goals and family budget.
Applying for federal student loans is easy amd takes about an hour to complete. In filing the FAFSA you have already applied for federal student loans. The FAFSA is your application for Direct Subsidized and Unsubsidized Student Loans and for the federal Perkins loan.  Before you begin, make sure to have this information handy to make the process go faster:

Overview: This online-only lender, which was founded by former Sallie Mae executives, distinguishes itself with increased flexibility. Borrowers can expect greater in-school and post-school repayment options than what’s found elsewhere. Also, students and parents alike will appreciate perks, such as no fees and low rates, in spite of a slow path to cosigner release.
What’s the best way to make additional payments to pay off student loans fast? Make your regular payment on time via auto-pay and then schedule another extra payment for the next day. Under federal regulation, lenders apply your payment to late charges or collection costs for your loan, then to any outstanding interest accrued since your last payment, and then to your principal. Private lenders typically follow suit.
Besides the interest savings, automatic payments can be a good idea to make life easier. By setting up automatic payments, you don’t have to worry about late or missed payments when paying back student loans (which matters for your credit score). Plus, you can use automatic payments in conjunction with other strategies on this list, like making payments higher than the minimum.

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

Travis Hornsby, founder of Student Loan Planner, suggests creating a refinancing ladder to maximize your savings. “The way you do this is start with a payment you can afford pretty easily, say, a 10- or 15-year loan. Pay extra when you have extra, and you’ll cut down the amount that you owe rapidly,” Hornsby explained. “After a couple of years, you can refinance again to a seven-year loan, often with the same payment but with a lower interest rate. Finally, you could refinance one more time to a five-year loan before you finish paying off the entire amount.”
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