Sallie Mae and SoFi are two reputable lenders in the private loan industry, so you truly can’t go wrong with either. If you’re debating Sallie Mae vs SoFi, here’s what you should know about their private student loans before borrowing with either lender.
Sallie Mae vs. SoFi: A Side-by-Side Comparison
The table below offers an overview of what Sallie Mae and SoFi have to offer.
Sallie Mae
SoFi
Loan Terms
10 to 20 years
5, 10, or 15 years
Loan Amounts
$1,000 to your school-certified, total cost of attendance
$5,000 up to your school-certified, total cost of attendance
Minimum Credit Score
Mid-600s
Mid-600s
Minimum Income
No minimum income requirement
No minimum income requirement
Cosigner Release Options
Yes, the cosigner can be released after 12 months.
Yes, the cosigner can be released after 24 months of timely payments.
Ability to Transfer a Parent Loan to a Student
No
No
Student Status
Students enrolled at a degree-granting institution qualify for student loans.
Must attend an institution that is authorized to receive financial aid
State Restrictions
None
None
Sallie Mae: The Pros and Cons
Sallie Mae student loans are good options for DACA recipients, international students, and individuals who want a short turnaround for cosigner release.
Pros
Offers competitive interest rates.- Has 4 different repayment plans.
- Sallie Mae offers private loans to international and DACA students.
- Cosigners can be released from a student loan after 12 months of timely payments.
- Offers a variety of borrower perks, including career coaching, wealth management, job search assistance, and other personal finance resources.
Cons
Sallie Mae does not offer biweekly student loan payments via autopay. Payments must be paid on a monthly basis.- Sallie Mae does not offer loan prequalification, meaning that borrowers must submit a formal application and incur a hard credit check to see what they qualify for.
- Loans are not accessible to students who are enrolled less than part-time.
SoFi: The Pros and Cons
SoFi student loans are fitting for borrowers who are interested in having a variety of borrower benefits and strong borrower protections.
Pros
- SoFi tends to offer lower interest rates than its competitors.
- Has 4 different repayment plans.
- Cosigners can be released from a student loan after 24 months of timely payments.
- SoFi offers generous forbearance and deferment options.
- Offers a variety of borrower perks, including career coaching, wealth management, job search assistance, and other personal finance resources.
Cons
- Borrowers must have “good” or “excellent” credit scores.
- $5,000 minimum loan amount.
- Loans are not accessible to students who are enrolled less than part-time.
- You will only receive a 6-month grace period if you have the deferred repayment plan.
Sallie Mae vs. SoFi: Which is Better for Student Loans?
In the battle of Sallie Mae vs. SoFi, there is no objectively “better” option for borrowing student loans.
If additional borrower perks like job assistance and career coaching are important to you, you may prefer SoFi. For DACA recipients and international students, Sallie Mae would be the more fitting option.
If you plan to have a cosigner on your student loan, consider asking your cosigner whether they prefer a shorter or longer cosigner release option. Sallie Mae has a cosigner release option after 12 months of timely payments, while SoFi offers the option after 24 months.
Closing Thoughts From the Nest
Both Sallie Mae and SoFi are great, reputable lenders. To compare personalized loan offers from both companies, consider submitting a free form with Sparrow. Your credit score will not be negatively affected by your pre-qualified offers.