Millions of Americans are struggling to repay their federal and private student loans. If you are one of them, then you may be considering consolidating your student loan debt. Consolidating your student loan debts allows you to combine all your payments into one, and extend the loan term to reduce your monthly payments. Sallie Mae is one of many lenders who offers student loan consolidation options, but there are some limitations.
Federal Student Loans
Sallie Mae does not offer consolidation options for federal student loans. There are a select few lenders who can service Direct Education Consolidation loans (the federal loan consolidation program), but Sallie Mae is not one of them. They do, however, offer consolidation options for private student loans.
Private Student Loans
If you have multiple private student loans, you can consolidate them into one single payment at a variable interest rate. The interest rate will depend on your credit history, so be sure to compare the consolidation loan rate to the one you are currently being charged on our private student loan. You may be charged a fee for consolidation your loans, which will add to the total amount you will have to repay. Sallie Mae offers a variety of repayment plans, so you can select the best option for your specific situation.
Sallie Mae offers three different types of repayment plans: standard, graduated and extended. A standard repayment plan is the best option, because you will be paying less over time in interest. The maximum loan term for a standard plan is 15 years. A graduated repayment plan offers lower payments for up to four years, and then they will gradually increase for the remainder of the repayment period. An extended repayment plan is only offered for people with more than $30,000 n student loan debt. The loan term may be extended for up to 35 years in some cases.
Find the Best Option for You
Because there are limited lenders who offer federal and private student loan consolidation services, it can be difficult to find the best consolidation option for your finances. Of course, if you have mostly private student loans, Sallie Mae is a great option to consider, as they are a reputable lender with competitive rates. Many graduates do have federal student loan debt, so they may prefer a lender who can consolidate all of their student loan debt and not just their private loans.