Can you refinance Sallie Mae student loans?

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Ben Luthi

Sat, Feb 22, 2025, 10:42 PM 4 min read

Key takeaways

Sallie Mae offers private student loans and banking.
Refinancing a Sallie Mae loan with another lender could result in a lower interest rate and monthly payment.
You may want to hold off on refinancing if interest rates are higher or you have a lower credit score.

Sallie Mae used to service federal loans but now exclusively offers private student loans to help college students pay for school. It has variable and fixed rates on loans. You may have applied for this loan after exhausting federal student loan options by filling out the FAFSA.

But can you refinance private student loans that are handled by Sallie Mae? Once you’ve graduated, you may have the chance to refinance Sallie Mae loans with another lender. Refinancing student loans can come with several benefits, like potentially lower overall borrowing costs, but there are some drawbacks to consider.

How can I refinance Sallie Mae student loans?

If you have Sallie Mae student loans, you can refinance with another private student loan company, like a bank, credit union or online lender, that offers refinance loans. Take these steps to refinance your Sallie Mae student loan:

Start the refinance process by shopping around and comparing student loan refinance interest rates and other terms.
One way to compare potential rates and terms without dinging your credit is to prequalify. Some lenders allow you to do this before submitting a formal application.
Once you find a lender you like, submit an application.
If you’re approved, and you accept the loan offer, the lender will pay off your Sallie Mae student loans, and you’ll start making payments to the new lender.

Should I refinance my Sallie Mae student loan?

Whether you should refinance your private student loans from Sallie Mae depends on your unique financial situation. If you can qualify for a lower rate, refinancing might be a savvy financial decision.

Some other scenarios where it might make sense to refinance your Sallie Mae loans include:

You want to shorten your repayment term and pay off your loans faster.
You’re experiencing financial hardship and want to switch to a longer repayment term.
You’ve had a bad experience with Sallie Mae and want to refinance with a lender with good customer service.
You’re a parent who borrowed money on behalf of your child, and you want to transfer the debt to them.

Carefully consider your situation and why you’re thinking about refinancing. It’s best to wait to refinance until you have a solid credit score and income. While the minimum credit score requirements for refinancing can be in the mid-600s, for instance, having a higher credit score will give you the lowest rates.

The prequalification process can give you a good idea of what you qualify for based on your current credit and income situation.

What are the benefits of refinancing?

Refinancing your Sallie Mae student loans can have a positive impact on your student loan repayment plan, depending on your financial needs.

Lower interest rates: If you can qualify for a lower rate, you could save thousands of dollars in interest over the life of the new loan.
Payment flexibility: Refinancing to a longer term could lower your monthly payments, though you may pay more interest over the life of the loan.
Different features: If you find a lender that offers a benefit that you don’t get with Sallie Mae, refinancing and moving your debt to the new lender can give you access to what you’re looking for.
Offload debt: If you have a parent loan, some lenders allow you to transfer debt to your child via refinancing. However, the catch is that your child has to agree to this and qualify for the new loan on their own.

When should you not refinance your student loans?

Although refinancing your Sallie Mae loan could save you a substantial amount of money, it may not make sense if you can’t qualify for a lower rate due to poor credit or economic conditions.

You have a poor credit score: If your credit score has dropped since you applied the first time, you might not qualify for a lower rate.
High interest rates: Interest rates can fluctuate, so if rates are much higher than the rate you are currently paying, it might not make sense to refinance.
Need a cosigner: If you need a cosigner and can’t find a reliable one, that might be another reason to avoid refinancing at this time.

As a general note, you should also avoid refinancing a federal student loan, as you may lose federal protections like deferment and forbearance.

Bottom line

Refinancing your Sallie Mae loans can help you save thousands of dollars. However, before you do this, weigh the pros and cons of student loan refinancing. If you can’t qualify for a cheaper loan, refinancing probably doesn’t make sense. Also, keep in mind that there are other ways to lower your student loan rate, like negotiating with your current lender.

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