Sallie Mae is a private student loan servicer offering student loan options for parents, undergraduate students, graduate students, and those enrolled in career training programs or trade schools. Holding a Sallie Mae private student loan yields some benefits and drawbacks, though some borrowers choose to refinance their loan with another lender to secure a lower interest rate. 

Let’s look at how Sallie Mae loans can be refinanced, why it might be a good idea, what borrowers should consider, and how to compare multiple loan options before refinancing your student loans. 

You can refinance a student loan in two ways: through your current lender or through a different lender. Some lenders allow you to refinance your student loans with them; unfortunately, Sallie Mae does not allow borrowers to refinance their student loans. 

Since Sallie Mae doesn’t offer student loan refinancing services, borrowers interested in refinancing need to look to another lender. Each lender will offer different interest rates, terms, and incentives for eligible borrowers, which is why it’s important to weigh all your options before refinancing.  

Whether or not you should refinance your Sallie Mae loans depends on your circumstances. 

But generally, you will find a few good reasons to refinance your student loans, particularly those held by private servicers like Sallie Mae, including:

Another advantage of refinancing Sallie Mae student loans is that you won’t risk losing any federal student loan protections or benefits. Because Sallie Loans are already private loans, they aren’t eligible for any federal benefits. 

Before taking the steps to refinance, make sure that your student loans are serviced by Sallie Mae, not Navient. This is a point of confusion for some borrowers because Navient is a company created by Sallie Mae. It’s technically a separate brand and used to have a government contract to service federal student loans. 

To confirm who holds your loans, contact your student loan servicer directly. 

One of the biggest reasons why you may not want to refinance your Sallie Mae student loan is that you may lose any benefits tied to the existing loan. Although Sallie Mae loans aren’t eligible for any federal student loan forgiveness programs, the company may offer benefits to certain borrowers or loan types. 

For example, Sallie Mae caps interest rates at 5% for full-time, active duty members of the United States Armed Forces. The Servicemembers Civil Relief Act is a federal law that caps interest rates at 6% – Sallie Mae extends a benefit that’s lower than federal requirements. 

Here are a few other considerations to weigh before refinancing a Sallie Mae student loan:

Because Sallie Mae doesn’t provide refinancing services, you’ll have to work with another lender. 

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A cosigner is someone who also agrees to be legally and financially responsible for your student loan. Cosigners are often required if the borrower has low or no credit history. 

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Many people refinance specifically to lower their monthly student loan payment. This can be helpful for borrowers who are struggling to afford their monthly payments based on their current income. 

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Securing a lower interest rate is another reason borrowers opt to refinance their loans. A lower interest rate could help you spend less overall. 

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Sallie Mae offers borrowers benefits, some of which other lenders may not. Refinancing with another lender may cause you to lose these benefits. 

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Technically, you can refinance all types of student loans, but that doesn’t mean the process for each is exactly the same. For instance, federal student loans cannot be refinanced through the federal government, but they can be consolidated with other federal loans. 

Private student loans can be refinanced with other private lenders. Federal student loans can also be refinanced through private lenders, which turns them into a private loan. They can also be combined with private student loans, like Sallie Mae loans, in a single refinance option. 

Here are the steps to take to refinance your Sallie Mae student loans. 

First, you need to collect information related to all your student loans that you want to refinance. You can access this information online through your servicer’s website, or you can contact your lender by phone. You’ll want all information associated with the loans, including interest rate, current balance, your payoff term, and if you have any cosigners. 

Next, you should research and compare lenders. Comparing rates from multiple lenders, including those online and at any banks or credit unions you might belong to, improves your chances of finding the best rates, terms, or incentives to refinance. 

Another reason to compare lenders is that you can learn about helpful information, such as what credit scores they typically prefer. You can then wait to refinance until you improve your credit score and try to get the best rate possible. 

Related: Learn more about refinancing your student loans on Credible.com

When you complete and submit a refinance application, a hard credit check occurs. These inquiries can negatively impact your credit score; applying for multiple refinance loans can damage your credit, which is why prequalifying is a good idea. 

Many lenders allow you to explore and compare student loan refinancing rates without affecting your credit score.

If you’re having trouble prequalifying for a low rate, or if you think your credit history will make it difficult for you to secure a refinance loan, you may want to consider a cosigner. Your cosigner will be legally and financially responsible for your loan, so consider this option very carefully. 

If you’ve secured a cosigner, it’s time to investigate your loan options again. See what rate quotes and loan terms you’re eligible for with a cosigner.

Choose the lender that best fits your financial needs and fill out the application as soon as possible. Some applications may take a few business days to be approved. 

Even though you’ve been approved for the refinance loan, it might not transfer over immediately. Make sure you’re continuing to make your monthly payments, or more, as you wait for your new loan. Always err on the side of caution: it’s better to accidentally pay your monthly minimum twice than miss a single payment. 

If you’re unsure if you should refinance your Sallie Mae student loans, there’s a lot to consider. This decision can be determined by acknowledging how refinancing will impact you both now and in the long run. 

Yes, you could benefit from refinancing your Sallie Mae student loans if: 

No, you may want to reconsider refinancing your Sallie Mae student loans if:

Ultimately, each borrower needs to do what is best for their financial future. Just be sure to weigh all your options and see if you can save by comparing multiple options. 

Each student loan refinance lender will base your rates and terms on your specific financial background. These lenders also have their own parameters for assessing who is eligible for certain benefits. By comparing multiple loan options, you can evaluate which companies may offer the rates, terms, and benefits that are most useful to you. 

Related: Learn more about refinancing your student loans on Credible.com