Two names which come up often when dealing with student education loans are Sallie Mae and Navient. Lots of people have confused over if they’re the exact same business or maybe maybe not.
Listed here is the quick answer: No, however they was once. These days, these are generally two companies that are separate. Sallie Mae is provides student that is private and Navient will act as a servicer for federal and personal student education loans.
a history lesson that is super-quick
Decades ago, Sallie Mae had been created being government entity tasked with servicing federal student education loans. With time, Sallie Mae started providing private loans because well.
Fast-forward 40+ years to 2014 whenever, compliment of federal government laws, Sallie Mae was not any longer allowed to provide both private and loans that are federal. Therefore the business split in 2: Sallie Mae would handle loans that are private Navient would service federal loans for the federal government.
Today, Sallie Mae and Navient run as separate entities.
If you’re trying to get a Sallie Mae loan, realize that it really is a personal loan through a private loan provider. If you are looking to obtain a federal education loan, you will need to fill the FAFSA out. It could be one of the several other federal student loan servicers when you begin making payments, Navient may be the company that services your loanвЂ”or.
Your education loan servicer fundamentally will act as the payment, collections, and customer support for federal loans.
Just What Sallie Mae may do for you personally
Sallie Mae offers personal figuratively speaking such as the Sallie Mae Smart choice Student Loan while the Sallie Mae Parent Loan.
They provide competitive rates (see table below) and also have three different repayment choices you can easily select from.
The Sallie Mae Smart choice Student Loan is actually for pupils who’ve been accepted or that are signed up for a qualified degree-granting organization in the this past year. You really must be a U.S. citizen or resident that is permanent. Non-U.S. pupils can put on with a creditworthy cosigner that is a U.S https://online-loan.org/payday-loans-nd/. resident or resident that is permanent.
See our Sallie Mae Student Loan Review for lots more detailed information on eligibility needs.
The Sallie Mae Parent Loan is really a personal loan that is available to moms and dads, members of the family, or other individuals who intend on helping buy a pupils education. You need to be a U.S. resident or permanent resident and have good credit so that you can make an application for this loan.
What you ought to realize about Navient
Since youвЂ™re in the borrowing end for the education loan procedure, you do not be too concerned with the organization that will program your federal pupil loan.
Most likely, youвЂ™re simply trying to puzzle out exactly what your FAFSA status is and how to see your aid award that is financial page.
But after graduation, Navient could be the one servicing your pupil loansвЂ”which means you’ll be giving your payment per month for them.
With information about different income-driven repayment plans that can help make your monthly payments more affordable after you start paying on your student loan, they will be able to provide you. And with deferment or forbearance if you experience financial hardship or lose your job, N avient may also be able to assist you.
Need to know more about how student that is private work? Get our free student that is private 101 guide.
What is the essential difference between school funding and a grant?
Numerous new challenges await you while you begin college, but one of the primary you will face is finding a method to shell out the dough. And with the price of tuition for degree continuing to go up, securing federal educational funding may be much more important than ever before [source: nyc Times]. But how will you know very well what kind to try to get? frequently, when individuals explore school funding, they are talking about student that is federal, nevertheless the term “grant” is tossed around too. Therefore, what is the distinction?