Comments on: Step-by-Step Guide to Lowering Sallie Mae Interest Rate and Payments

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Mon, 02 Oct 2023 17:10:57 +0000

In reply to Stephanie J Murray. That is a really difficult situation. It sounds like you have gone through most of the cosigner release strategies and not had any success. In this situation, you might be able to cosign a refinance loan for your son. Normally, I suggest people don't cosign loans, but this is one scenario where cosinging could be in your best interests.

By: Stephanie J Murray

Stephanie J Murray — Sun, 01 Oct 2023 21:56:37 +0000

I am the cosigner to my son’s student loans. Unfortunately, he did not graduate from college, and he did not qualify to have me released from the loan because he did not graduate. He is now having difficulty paying his student loans since the interest rate is so high at 16% and he pays close to $600 a month for all his student loans only making $35-38k a year. He’s attempted to refinance his loans several times with no success. His credit score isn’t bad at 670 but not great. I feel like he is at a dead end with no help from anyone. I’m afford he will default on his loans, and my credit will suffer. Any guidance would be appreciated.

By: Michael Lux

Michael Lux — Tue, 27 Apr 2021 17:45:46 +0000

In reply to Iley. That interest rate is brutal. I think getting approved for the rate reduction plan will be a challenge because you have a cosigner on the loan. However, it is definitely worth trying. If the rate reduction doesn't work out, you might also explore student loan refinancing. The problem with the refi route is that a decent credit score and income are normally required. If you have a cosigner, it can help your odds of approval. If Sallie Mae doesn't help and you continue to struggle, there are many resources that can be used to press the issue. Sometimes the customer service rep won't help, but someone higher up in the company that reads a complaint might be able to step up.

By: Iley

Iley — Tue, 27 Apr 2021 13:26:26 +0000

Wow thank you so much for this article, I am 24 y.o. I graduated 2 years ago. My Sallie Mae interest rate is 12.8% on 2 of my Sallie Mae loans and 10.3% on the last one. (Crazy high and my credit wasn’t awful when I applied for the loans, I had a 640 and my cosigner had a 800) so I have no idea where these EXTREMELY high interest rates came from. It is nearly impossible to pay my loans I feel like in drowning. Every time that I have called in the past they have only given me the option of forbearance or to pay interest only for a year. Both temporary solutions that will be detrimental in the long run. I am curious if they will allow me to join the rate reduction plan. I hope so!!! Anymore advice or tips? open to suggestions, thanks!!

By: CF

CF — Tue, 19 Nov 2019 17:53:44 +0000

In reply to The Student Loan Sherpa. Sallie Mae does not offer a Rates and Reduction program. Navient does however. But these are 2 separate companies. Sallie Mae is the worst possible company to have for any student loan. All the comments below are from 5 years ago and do not apply right now in 2019.

By: The Student Loan Sherpa

The Student Loan Sherpa — Sun, 21 Jul 2019 23:29:31 +0000

In reply to Alia Green.

Getting the Rate Reduction is difficult as is securing a cosigner release. Odds are that you will not be able to do both, but doing one shouldn’t directly impact the other…. put another way: the Rate Reduction Plan is for people in really difficult financial circumstances. If your financial circumstances are difficult, you will have a really hard time qualifying for a cosigner release: https://studentloansherpa.com/cosigner-release-option-faq/

Hope that helps!

By: Alia Green

Alia Green — Sun, 21 Jul 2019 11:42:51 +0000

I’m currently repaying my Sallie Mae private loan I had for medical school. My interest rate is 9.75%, and I will see if I’m able to get the Rate Reduction Plan. When I initially signed up for the loan, I needed a co-signer. I read on the Sallie Mae’s website that after one year of making payments on time that I could qualify to remove my co-signer off the loan, and in November I will be at the one year mark. So question for anyone that may know the answer: would going for the Rate Reduction Plan affect my chances of removing my co-signer?

By: The Student Loan Sherpa

The Student Loan Sherpa — Tue, 24 Jul 2018 11:32:45 +0000

Chet – Parent Plus loans are Federal government loans. You can be certain about what federal loans you have by going to nslds.ed.gov to see a full list of all of your federal loans.

By: Chantel Boyd

Chantel Boyd — Fri, 10 Nov 2017 17:59:00 +0000

@The Loan Sherpa, will you run the risk of getting kicked out of this plan if you apply for new credit? My credit cards are exiting the 0% APR period and I applied for a credit card at our Credit Union, but then afterward, I wondered if this would affect our situation with the rate reduction program we’re currently enrolling into? We’ve made our first payment.

By: MITZIE DIBIASE

MITZIE DIBIASE — Thu, 10 Nov 2016 01:45:00 +0000

Good article, Thanks!