collageIf you’re looking for a way to consolidate your private student loans with federal loans or other private lenders, Sallie Mae will be able to help you do just that! You can even get your interest rate lowered by consolidating with Sallie Mae. In this article, we find out if sallie mae refinance student loans, can you consolidate private student loans with federal, private loan consolidation, sallie mae income based repayment and is sallie mae a federal loan.
Sallie Mae offers an income-based repayment program for borrowers who have federal and private student loans. While this program is not available to all borrowers, it could work out well if it does apply to you. Read on to know more about sallie mae refinance student loans, can you consolidate private student loans with federal, private loan consolidation, sallie mae income based repayment and is sallie mae a federal loan.
What Is Student Loan Refinancing?
Refinancing is when you take out a new loan to pay off old ones. It’s an excellent way to lower your monthly payments and reduce your interest rate, but it will also increase how much money you owe over time.
There are two types of refinancing: federal and private. Federal refinance options include income-driven repayment plans like Pay As You Earn (PAYE) or Revised Pay As You Earn (REPAYE), where payments are capped at 10% of your discretionary income (your income minus 150% of the poverty line). Private refinancing deals with private loans such as those offered by Sallie Mae or another lender.
does sallie mae refinance student loans
We begin with sallie mae refinance student loans, then can you consolidate private student loans with federal, private loan consolidation, sallie mae income based repayment and is sallie mae a federal loan.
You cannot refinance Sallie Mae loans with Sallie Mae, as the company doesn’t refinance its own loans (or any other student loans, for that matter).
Sallie Mae does offer an Income-Based Repayment program that can lower your monthly payment if you have a federal Direct Loan. The Income-Based Repayment plan is available to borrowers who have graduated, left school and are working full-time.
However, if you have been out of school for more than five years and are still repaying a student loan that was borrowed before July 1st 2014 there is no way to lower your monthly payments through Income-Based Repayment.
can you consolidate private student loans with federal
Now we find out if you can consolidate private student loans with federal, private loan consolidation, sallie mae income based repayment and is sallie mae a federal loan.
You can consolidate private student loans with federal loans through a Direct consolidation loan.
But you can also combine them through refinancing. A Direct consolidation loan comes from the federal government and consolidates your federal loans. If you have private loans as well, you can use the Direct consolidation loan to consolidate those as well.
Direct consolidation is only available for federally-backed loans, so if you have private loans and want to combine them with your federal ones, you’ll need to refinance your private loans in order to do so. Refinancing means that you take out a new loan based on your current outstanding balance, which is then used to pay off all of your existing debt—both federal and private—and you start fresh with a single monthly payment rather than two or more payments on each account separately.
private loan consolidation
More details coming up on private loan consolidation, sallie mae income based repayment and is sallie mae a federal loan.
There are many reasons why you might want to consolidate your private student loans. For example, you might have multiple loans with different interest rates and repayment terms. Consolidating these loans into one new loan could result in a lower interest rate and/or a lower monthly payment.
Another reason to consider consolidating your loans is if you’re having difficulty keeping up with the monthly payments on your current loans. By consolidating, you’ll have fewer payments each month and more time to focus on repaying the new loan.
Consolidation can also be a good option if you’re looking for a way to refinance your existing debt at a lower interest rate than what’s offered by other lenders or if you want a longer repayment term than what’s currently available through your lender(s).
If any of these situations sound familiar, then it’s time to start exploring the benefits of private consolidation.
sallie mae income based repayment
Federal vs. private student loan repayment options
When it comes to repaying student loans, there are distinct differences between federal and private student loans.
Federal student loans generally don’t require payments during school and they don’t have in-school repayment options. After your grace period, you can generally request a plan (standard, extended, or graduated) to help you adjust the amount of time you have to pay or an income-based repayment plan that bases your payments on your income.
Private student loans can offer both in-school and deferred repayment options. After your separation or grace period, you’ll be required to make principal and interest payments. There may be programs available for budget flexibility, such as the Graduated Repayment Period.1
To find out the repayment term for your student loans, log in to your Sallie Mae account.
Sallie Mae® private student loan repayment options
Private student loans don’t have the same repayment options as federal loans, and those specific options can differ from lender to lender. We offer a number of repayment options over the life of your loan.
Payment options while you’re in school
When you apply for a Sallie Mae Smart Option Student Loan® or a graduate student loan like the Graduate School Loan, MBA Loan, Graduate Loan for Health Professions, Law School Loan, Medical School Loan, or Dental School Loan, you can choose one of three in-school repayment options2:
- Deferred repayment—Make no scheduled loan payments while you’re in school and during your separation or grace period.
- Fixed repayment—Pay a fixed amount every month you’re in school and during your separation or grace period.
- Interest repayment—Pay only the interest every month you’re in school and during your separation or grace period.
Keep in mind that the Medical Residency and Relocation, Dental Residency and Relocation, and Bar Study loans are designed to cover post-graduate school expenses, so deferred repayment is the only in-school repayment option available.
Repayment programs
When it comes time to repay your student loan, you may have some options. Keep in mind that repayment programs may increase your Total Loan Cost, so we recommend checking with your cosigner first (if you have one) to see if they can help with your payments.
In-School Payment Assistance lets you temporarily postpone your payments while in school and can help you avoid delinquency if you’re struggling.
The Graduated Repayment Period (GRP) lets you make interest-only payments for 12 months after your separation period (Time after school). You can request the program during the 6 months before and the 12 months immediately after you begin principal and interest payments. The GRP doesn’t extend the loan term.
Forbearance lets you temporarily postpone your payments if you’re having trouble and can help you avoid delinquency and default.
Options for our delinquent customers
Your eligibility for any of the following options depends on a review of your financial situation, so please call us at 800-472-5543 and talk with an account manager who will review the repayment options available to you.
- Rate Reduction lowers your loan’s interest rate and monthly payment for a limited time.
- Term and Rate Modification can lower your loan’s interest rate and monthly payment for a limited time, while also extending the term of your loan.
- Payment Extension allows you to bring your loan current by making payments that are equal to or greater than the Current Amount Due for three consecutive months.
- Reduced Payment Plan allows you to make six months of interest-only payments.
Disability or death
Defer your student loans when you go back to school at least half-time or are selected for a program. With a deferment, you can reduce or postpone payments when you go back to school or begin an internship, clerkship, fellowship, or residency.
Deferment or forbearance during military service may be able to postpone payments on your student loans during military service. For more information and eligibility requirements, please chat or call us at 855-534-2668.
is sallie mae a federal loan
Sallie Mae started out as a federal loan provider, but it’s now privately owned—and all new loans are provided through private lenders.
If you took out an Sallie Mae loan before 2014, it was likely a federal loan. Those loans were serviced by Navient until December of 2018, when Sallie Mae took over the service of its own loans.
If you’re a student with an FFEL or Direct Loan from Sallie Mae, head over to the Navient site to see if you have any questions about repayment options or about switching your loan servicer.
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