SALLIE MAE STUDENT LOAN REVIEW – A few friends of mine I came in touch with after my graduating year at NYU, made me realize they all had one thing in common-they all had taken student loans to fund their college education. Nothing noteworthy about that I thought, but one of them was having a sour experience.He told me about this megacorp called Sallie Mae, that was making his life hell and wouldn’t cut him any slack on his repayment options, since he was going through a rough patch. I told him that they were running a business and they were only doing their job. I decided to dig deeper and find out how good a loan sanctioning company they really were.
WHY SALLY MAE
You file your entire application online in a secured server that encrypts your personal sensitive credit information, so only an authorized company representative can review it. The online interface is very organized and easy to navigate,making it extremely simple and quick to send your application across in minutes,instead of all the pesky paperwork
2.The online space also lets you pre check through the list of institutions that will accept a private loan from Sallie Mae
This allows you to precheck how much your monthly outgoings would be once you chose the amount you would require.This is a great tool as it can help to preplan your academic finances and chose a suitable loan plan.
Under the “Smart Option Student Loan” scheme, they have flexible repayment methods, the applicant has the option to pay during school or after the entire course is complete.Needless to say interest amounts would be higher if you shoes to defer the payment after college. For reduced interest rates, they have a small scheme whereby the
student makes tiny payments of $25 a month towards the loan.
One of the outstanding features of a Sallie Mae loan is that they can offer you a 100% loan that covers almost your entire college costs.
Students that apply before October for a loan will get free insurance that will give them cover of about $5000,for tuition,boarding and books.
Origination Fees are relaxed for students that are seeking a loan for a degree granting institution,Under this scheme,even some repayment fees are not charged if they occur in the future.
WHY “MAYBE NOT” SALLY MAE
This has been the primary reason for people not to opt for a Sallie Mae Loan.Consumer Forums are filled with complaints about Sallie Mae’s aggressive collection strategies,so if somehow by chance you do miss your monthly payment your in for a shock.Firs the collection calls start at your home,then your workplace and after that your co signers phone,so be prepared.Also in line will be some threats to blacklist your credit and report you to the credit bureau.
If you cannot afford to pay your monthly payments and want to defer the payments for a few months,Sallie Mae gives you an option and allows you some respite,but at a cost of $150 a month,and that is only a forbearance fee,it does not go towards reducing your balance.
One of the many attributes a loan seeker looks for in a student loan is to consolidate it at some point of time,in the event that things might get tough and he.she may want to refinance through another bank or financial institution. Sallie Mae does not give this privilege to you,only gives you the option to combine you existing loans if you have any.
Private loan providers always have interest rates about 2-2.5% more than federal government rates,which is quite a significant amount in terms of dollars,and this too isn’t fixed, depending on your credit rating and history, your interest rate could be altered further.
Federal government loans allow you a longer period to defer loans in the event of hardship,whereas Sallie mae only offers a 3 months deferment period.
Sallie Mae is not accredited by the BBB
So go ahead,make your choice after weighing the pros and cons of this SALLIE MAE STUDENT LOAN REVIEW