Undergraduate Student Loans

Welcome to the best loan option for school

Our Smart Option Student Loan® gives you the money and tools you need for your undergraduate journey.

Fixed rates
3.49%
to 15.49% APRfootnote 1
Variable rates
4.92%
to 15.08% APRfootnote 1

Lowest rates shown include the auto debit discount. Only the most creditworthy applicants who choose the interest repayment option may receive the lowest rate.
See My Ratefootnote 2
I want to cosign a loan
Benefits
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With a Smart Option Student Loan,
you have control over your future
Convenient
Focus on college, not how to pay for it
  • Save time—apply once to get money for the whole year.
  • Apply again each year-95% of undergraduate students who’ve been approved with a cosigner were approved again when they returned with a cosigner the following year.footnote 3
Comprehensive
Get covered
  • Get the money you need to pay for undergraduate costs—bigger ones like tuition and housing, and smaller ones like books and a laptop.footnote 4
Customized
Repay in a way that meets your needs and save
  • Get a 0.25 percentage point interest rate reduction when you pay by auto debit from your bank account.footnote 5 Lower your interest rate when you choose in-school repayment.
  • No prepayment penalty or origination fees. You can pay off your undergraduate student loan as early as you’d like to reduce your total loan cost.footnote 6

We understand you have questions

Let’s get you answers! Here’s a crash course on loans for undergraduate students, budgeting, and financial literacy.

Consider other choices before private student loans

Before applying for private student loans like our Smart Option Student Loan, students and families should look at savings, grants, scholarships, and federal student loans. Then, choose the most affordable options for college funding.

Get help with college planning

Find the type of interest rate that’s
best for you

Your interest rate is the amount you’re charged for borrowing money. It’s based on factors like your borrowing/repayment history, and your amount of debt.

With a Smart Option Student Loan for undergraduate students, you can choose an interest rate type that’s variable or fixed.

Line graph of a fixed interest rate over time shows how the interest rate does not change month-to-month
Fixed Rates
3.49% - 15.49% APRfootnote 1

Lowest rates shown include the auto debit discount.

How it works
Your interest rate does not change over time.

This might be right for you if
You want a predictable monthly payment to make budgeting easier.

Keep in mind
You may pay less for your loan because a fixed rate may be less than a starting variable interest rate.

Lowest rates shown include the auto debit discount.

How it works
Your interest rate does not change over time.

This might be right for you if
You want a predictable monthly payment to make budgeting easier.

Keep in mind
You may pay less for your loan because a fixed rate may be less than a starting variable interest rate.

Show MoreLess
Line graph of a variable interest rate over time shows how the interest rate may go up or down as the loan’s index changes month-to-month
Variable Rates
4.92% - 15.08% APRfootnote 1

Lowest rates shown include the auto debit discount.

How it works
Your interest rate may go up or down as the loan’s index changes.

For more information about the index of your loan, refer to your promissory note. Changes in the financial markets may cause the index to rise or fall.

This might be right for you if
You're ok with uncertainty with predicting your monthly payments.

Lowest rates shown include the auto debit discount.

How it works
Your interest rate may go up or down as the loan’s index changes.

For more information about the index of your loan, refer to your promissory note. Changes in the financial markets may cause the index to rise or fall.

This might be right for you if
You're ok with uncertainty with predicting your monthly payments.

Show MoreLess

What are your repayment options?

You can start paying back your undergraduate loan while you’re in school to save money or wait until you’re finished.footnote 1 
You can also choose to pay off your loan early to reduce the total loan cost—there are no penalties for early repayment.footnote 6

Pay more during school, save more
Bar chart of overall loan cost by interest compiled and loan amount where interest compiled is significantly less than the loan amount, and overall loan cost is lower compared to other repayment options

How the interest repayment option works:

You pay your interest each month while in school and during your 6-month grace period to lower your loan cost.footnote 1 For example, Freshman students may save 13%footnote 8 on their total loan cost by choosing the interest repayment option instead of the deferred repayment option.

Your grace period is the amount of time after you’re no longer enrolled in school and before principal and interest payments begin.


This may be right for you if
You want to reduce your total loan cost as much as possible and can afford to pay more each month during school and grace.

Keep in mind 
Your undergraduate student loan payments will likely be larger while you’re in school and in your grace period than with our fixed or deferred options.

Pay some during school, save some
Bar chart of overall loan cost by interest compiled and loan amount where interest compiled is somewhat less than the loan amount, and overall loan cost is in between other loan repayment options

How the fixed repayment option works:

You pay $25 a monthfootnote 9 while in school and during your 6-month grace period to lower your loan cost.footnote 1  For example, freshman students may save
6%footnote 8 on their total loan cost by choosing the fixed repayment option instead of the deferred repayment option. 

Your grace period is the amount of time after you’re no longer enrolled in school and before principal and interest payments begin.


This may be right for you if
You want to reduce your total loan cost and can afford to pay $25footnote 9 every month during school and grace.

Keep in mind 
Your total loan cost will be less than with our deferred option, but the unpaid interest will be added to your principal amount at the end of your grace period.

Pay everything after you finish school
Bar chart of overall loan cost by interest compiled and loan amount where interest compiled is greater than or requal to the loan amount, and overall loan cost is higher compared to other repayment options

How the deferred repayment option works:

You don’t make your first payment until both your time at school and 6-month grace period have ended.footnote 1

Your grace period is the amount of time after you’re no longer enrolled in school and before principal and interest payments begin.


This may be right for you if
You want to have as much money available to you while you’re in school.

Keep in mind 
You’re likely to pay more for the total cost of the loan compared to the other repayment options.

How a cosigner can help you
get the money you need for school

Last year students were 4x more likely to be approved with a cosignerfootnote 10 and 88% of Sallie Mae undergraduate loans were cosigned.footnote 11

Learn more about cosigners

How to apply

It’s easy, just follow these steps:

  • Tell us about yourself

    We’ll need some basic information from you (and your cosigner if you’re applying with one) like your name, address, and date of birth, along with some details about your school.

  • Choose your loan option(s)

    After you’re approved, pick the repayment option and interest rate type that work best for your budget.

  • Sign & accept

    Be sure to review all loan documents so you understand your responsibilities. Once you’ve decided to borrow from us, just e-sign and accept your loan. We'll work with your school to take care of the rest. That's it!

    Apply For Loan

FAQs on undergraduate student loans

Private student loans are credit-based, which means we will check your credit when you submit your application. Last year, students were 4X more likely to be approved with a cosigner.footnote 10 A cosigner is an adult with good credit, usually a parent, who shares responsibility with you for paying back the undergraduate student loan.

You can apply just once a year with a single credit check and funds are sent for each term directly to your school. You can cancel future disbursements as needed with no penalty. No interest is charged until money is sent to your school, so you can relax, knowing you've got the funds when you need them.

It takes about 10 minutes to apply and get a credit decision. After you’re approved, you choose your undergraduate loan rate type and repayment options, accept your loan disclosure, and the loan is certified by your school. We send (disburse) the funds directly to the school. The process takes 10 business days from application to disbursement.

Whether you study online or on campus, you can borrow to cover your school costs, even if you're not a full- or half-time student. The loan's flexibility makes it a good choice for many situations:

  • Attending school full-time, half-time, or less than half-time
  • Online or on-campus classes
  • Winter or summer classes
  • Study abroad
  • Professional certification courses
  • A U.S. citizen or permanent resident enrolled in a participating school in a foreign country
  • Students who are not U.S. citizens or permanent residents, including DACA students, residing in and attending school in the U.S. (with a cosigner who is a U.S. citizen or U.S. permanent resident)

With the Smart Option Student Loan, you can select from three repayment options. While in school, you can choose to make monthly interest payments or fixed $25footnote 9 payments each month—or you can choose to defer payments until after school.footnote 1 The repayment option you choose applies during school and for six months after you leave school (your grace period). After that, you begin to make principal and interest payments.

When you apply, we look at your history of borrowing money and paying it back on time. Lenders want to know how responsible you are with credit before approving your student loan application.

Many college-bound high school students haven’t had time to build up their own credit. That's why it can help to apply with a cosigner, a creditworthy adult who shares the responsibility of the student loan.

You and your cosigner will want to have your social security number, school information, amount needed (remember, you can use it to pay for school-certified expenses for the entire year) as well as your financial and employment information. You or your cosigner may start the application, however, should your cosigner not be with you, we can send along an email with a link to their section of the application so they can fill it in later.

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Need assistance? We’re here to help. 


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Still not sure what you need?

See all the different student loans we offer.

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footnote Borrow responsibly
We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.

footnote Loans for Undergraduate & Career Training Students are not intended for graduate students and are subject to credit approval, identity verification, signed loan documents, and school certification. Student must attend a participating school. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident), and provide an unexpired government-issued photo ID. Requested loan amount must be at least $1,000. 

footnote 1. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent.  Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment.

footnote 2. Loan application must be submitted to see available rates.

footnote 3. Sallie Mae loans cover enrollment periods of up to 12 months. Students must apply for a new loan each school year. This approval percentage is based on students who were approved for a Sallie Mae undergraduate loan with a cosigner in the 2021/22 school year and were approved for another Sallie Mae undergraduate loan when they returned with the same or new cosigner in 2022/23. It does not include the denied applications of students who were ultimately approved in 2022/23.

footnote 4. For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time. 

footnote 5. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. 

footnote 6. Although we do not charge you a penalty or fee if you prepay your loan, any prepayment will be applied as provided in your promissory note: first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal. 

footnote 7. Explore federal loans and compare to make sure you understand the terms and features. Private student loans that have variable rates can go up over the life of the loan. Federal student loans are required by law to provide a range of flexible repayment options, including, but not limited to, income-based repayment and income-contingent repayment plans, and loan forgiveness and deferment benefits, which other student loans are not required to provide. Federal loans generally have origination fees, but are available to students regardless of income.

footnote 8. Savings comparison assumes a freshman student with no other Sallie Mae loans receives a $10,000 Smart Option Student Loan with the most common variable rate as of January 2024.

footnote 9.  Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not.

footnote 10. Based on a comparison of the percentage of students who were approved with a cosigner to the percentage of students who were approved without a cosigner from October 1, 2022 to September 30, 2023.

footnote 11. Based on the percentage of approved undergraduate loans that were cosigned from October 1, 2022 to September 30, 2023.

footnote Information advertised valid as of 11/25/2024.

footnote SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION. 

footnote Sallie Mae loans are made by Sallie Mae Bank.