With a Smart Option Student Loan,
you have control over your future
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.
Variable rates
5.62%
to 15.95% APRfootnote 1
Fixed rates
4.50%
to 14.83% 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.
Convenient
Focus on college, not how to pay for it
- Save time—apply once and get money for the whole year.
- Apply again each year—undergraduate students have a 96% approval rate when they return to Sallie Mae® with a cosigner.footnote 2
Comprehensive
We've got you covered
- We’ll work with you to help you 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 3
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 4 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 5
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 a private undergraduate loan 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.
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, how long you’ve had credit, 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.
Variable Rates
5.62%
- 15.95%
APRfootnote 1
APR (Annual Percentage Rate) is your annual cost of borrowing, based on certain factors such as the amount of interest you pay and the expected repayment term of your loan.
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 more uncertainty in exchange for a potentially lower total loan cost than with a fixed rate.
Keep in mind
Your payments may vary over time. If you’re looking for a predictable monthly payment, a variable rate might not be for you.
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 more uncertainty in exchange for a potentially lower total loan cost than with a fixed rate.
Keep in mind
Your payments may vary over time. If you’re looking for a predictable monthly payment, a variable rate might not be for you.
Show MoreLess
Fixed Rates
4.50%
- 14.83%
APRfootnote 1
APR (Annual Percentage Rate) is your annual cost of borrowing, based on certain factors such as the amount of interest you pay and the expected repayment term of your loan.
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 more for your undergrad loan because a fixed rate may be higher 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 more for your undergrad loan because a fixed rate may be higher than a starting variable interest rate.
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. You can also choose to pay off your loan early to reduce the total loan cost—there are no penalties for early repayment.footnote 5
Pay more during school, save more
How the interest repayment option works:
You pay your monthly interest while in school and during your 6-month grace period to lower your loan cost.footnote 1 For example, as a freshman you may save 13%footnote 6 on the total loan cost if you choose this option instead of paying everything after school.
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.
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
How the fixed repayment option works:
You pay $25 a monthfootnote 7 while in school and during your 6-month grace period to lower your loan cost.footnote 1 For example, as a freshman you may save as much as 6%footnote 6 on the total loan cost if you choose this option instead of paying everything after school.
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 7 every month.
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
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
Since most students have little or no credit history, they were 4X more likely to be approved with a cosigner!footnote 8 86% of our approved undergraduate borrowers had cosigners,footnote 9 usually a parent, relative, or other responsible adult, and it may help you get a better interest rate.
Joanne explains the benefits of applying for a private student with a cosigner
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!
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. 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 can take 10 business days or less from application to disbursement.
Whether you study online or on campus, you can borrow to cover the costs at a degree-granting institution, 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 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 $25 payments,footnote 7—or you can choose to defer payments until after school.footnote 7 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 they 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.
Get in touch!
Need assistance? We’re here to help.
Still not sure what you need?
See all the different student loans we offer.