Sallie Mae Interest Rates

  1. I wanted to see if anyone out there had the same situation. Salle Mae is the only lender that has a relationship with my school- so to cover the rest of my cost past what federal loans will cover I had to use them for a student loan. I have a credit score of 791 and have no negatives on my credit reports and was given almost the highest interest rate from what they told me the range was. They said the range would be between 6-12.87%. I got 12%!!!! I had to accept due to no other options right now for this amount of a loan I need to take out. But I just got off the phone and asked why was I given almost the highest rate with a great/excellent credit score and no issues on my reports. They told me no one would be able to tell me why. Not a single person in Sallie Mae could give me a reason. So I wanted to see if others out there have had the same issue of having a high interest rate. I didn't need a co-signer so I didn't use one, so maybe thats why. And I also don't have a mortgage. But I am 30 years old and have had some credit cards open since I was 18- so I definetly have a long good standing history. I am just baffled.....
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  2. 13 Comments

  3. by   Eru Ilúvatar
    Stay away from Sallie Mae! They have a bad reputation as they have predatory loan behaviors. Cant you qualify for a Parent + loan from the Government? Better interest rates and better terms.
  4. by   Jenbun02
    The loan is already finalized and completed It truely was my only option to get the rest of my school paid for because the cost of the school is more than what I took out from Federal Loans. So half of my loans are Federal and half sallie mae.
  5. by   Eru Ilúvatar
    Quote from Jenbun02
    The loan is already finalized and completed It truely was my only option to get the rest of my school paid for because the cost of the school is more than what I took out from Federal Loans. So half of my loans are Federal and half sallie mae.
    Ouch, well it is what it is. But keep in mind that your priority once you finish school is to focus on paying down those private student loans. They are not as flexible as the one from the Government and can hinder your life if you were to miss a payment due to life situations.
    Good luck on your journey!!!
  6. by   PedsRN2016
    Quote from Jenbun02
    I didn't need a co-signer so I didn't use one, so maybe thats why. And I also don't have a mortgage. But I am 30 years old and have had some credit cards open since I was 18- so I definetly have a long good standing history. I am just baffled.....
    The cosigner is definitely a small factor. I have a similar credit score and applied with and without a cosigner to see the difference, the cosigner brought it down 1-2%! Mine still wasn't anywhere near 6%, but every percent helps!
  7. by   VANurse2010
    Could you try to refinance with another bank?
  8. by   Jenbun02
    Quote from VANurse2010
    Could you try to refinance with another bank?
    Maybe once I am done with school I could look into it.
  9. by   VANurse2010
    Quote from Jenbun02
    Maybe once I am done with school I could look into it.
    I don't think you would necessarily have to wait, but all your interest should be deferred until you graduate. However, bear in mind that the higher interest with SallieMae will be capitalized into the principal once your 6 month post-grad period is up, so if you can find someone with a lower interest rate now, it may be in your best interest.
  10. by   Jenbun02
    Quote from VANurse2010
    I don't think you would necessarily have to wait, but all your interest should be deferred until you graduate. However, bear in mind that the higher interest with SallieMae will be capitalized into the principal once your 6 month post-grad period is up, so if you can find someone with a lower interest rate now, it may be in your best interest.
    The interest accrues the whole time you are in school with sallie mae. You have three options of paying : you can pay the interest each month, a fixed $25 each month, or not paying the interest at all. But unfortunetly it is accruing. With federal subsidized loans those don't accrue interest luckily while you are in school and I have some of those as well as unsubsidized. But I will definetly look into any options off getting a better APR. Thanks!

  11. by   DemonWings
    I refinanced my original student loan as soon as I graduated. My mom was a cosigner on the first loan and she wanted out of it, so I had no choice and got myself into a horrible loan. My loan is a hefty one (15K) and I have to pay 188 a month and every single penny of that is interest. I've been paying on it for 2 years and haven't been able to pay more than the minimum and so it still owe today what I owed 2 years ago. Try really hard to refinance as soon as you can! It's no fun. Mine is financed through Wells Fargo and they have been unwilling to work with me at all regarding the interest. Good luck!
  12. by   Twinmom06
    Sallie Mae's rates are based on prime rate plus a percentage...I have $20K in loans from them and paid the interest while in school...helped with what I owe now
  13. by   SleeepyRN
    Quote from SoonToBeNurse2013

    The cosigner is definitely a small factor. I have a similar credit score and applied with and without a cosigner to see the difference, the cosigner brought it down 1-2%! Mine still wasn't anywhere near 6%, but every percent helps!
    When I was 18 (32 now) my dad co-signed. I've been in school so long I'm just now starting to make payments. My interest rate is 1.5%. I've never had an issue with sallie mae. BTW they are in the process of splitting the company into 2 separate companies.
  14. by   SleeepyRN
    Quote from calinurse11
    I refinanced my original student loan as soon as I graduated. My mom was a cosigner on the first loan and she wanted out of it, so I had no choice and got myself into a horrible loan. My loan is a hefty one (15K) and I have to pay 188 a month and every single penny of that is interest. I've been paying on it for 2 years and haven't been able to pay more than the minimum and so it still owe today what I owed 2 years ago. Try really hard to refinance as soon as you can! It's no fun. Mine is financed through Wells Fargo and they have been unwilling to work with me at all regarding the interest. Good luck!
    What is your interest rate?

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