BankPurely Review: Checking, Savings, CD and Money Market Accounts
Friday, March 1, 2019
Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.
BankPurely is an online-only division of Flushing Bank, which is headquartered in Uniondale, N.Y. Through this relationship, it is fully FDIC-insured. BankPurely offers checking, savings and money market accounts, as well as CDs, all of which come with high rates.
The bank strives to maintain a minimal carbon footprint, which is why it is all-digital with no branches. It also supports various environmental causes and is PayItGreen®-certified, which means it provides customers the least amount of paper possible in an effort to reduce waste. As an added bonus, the bank will plant a tree in for every BankPurely product opened.
BankPurely’s Most Popular Accounts
APY
Account Type
Account Name
Compare Rates from Similar Accounts
1.90%
Savings
BankPurely SavingPurely
2.10%
American Express National Bank High Yield Savings Account
An interest-bearing account with no minimum balance required to earn the rate.
APY
Minimum Balance to Earn APY
0.75%
None
Minimum opening deposit: $1
Monthly account maintenance fee: None
ATM fee: None on ATMs that are part of the Allpoint network; no charge from BankPurely on out-of-network ATMs, though the ATM owner may charge a fee
ATM fee refund: Only on surcharges from Allpoint machines
Overdraft fee: $30
This checking account is a great option for someone wanting to earn interest on their checking funds without having to worry about monthly fees and minimum balance and deposit requirements. While the account does not offer out-of-network ATM refunds, you shouldn’t have to worry about that, as you will have access to more than 55,000 Allpoint Network ATMs around the world. Other account benefits and features include a complimentary Mastercard iGodebitcard, online and mobile app access, free online bill pay and mobile check deposit. As an added bonus, to go along with its philanthropic support of human and eco-related causes, BankPurely will plant a tree in New York for every checking account opened.
With its lack of fees and balance requirements, and its ability to earn interest, BankPurely’s checking account is a definite contender for some of the best checking accounts out there. While its interest rate isn’t the highest available, it’s not on the low side, either. This account also has an easy-to-navigate mobile app and online user interface, which is key for any online bank. If you’re especially keen on going green and supporting environmental causes, this account’s paperless characteristics and planting trees bonus will likely appeal to you as well.
A savings account offering a high rate and minimal requirements.
APY
Minimum Balance to Earn APY
1.90%
None
Minimum opening deposit: None
Minimum balance to earn APY: None
Monthly account maintenance fee: None
ATM fee: None on ATMs that are part of the Allpoint network; no charge from BankPurely on out-of-network ATMs, though the ATM owner may charge a fee
ATM fee refund: Only on surcharges from Allpoint machines
Overdraft fee: $30
As with BankPurely’s checking account, the savings account is a hassle-free savings option with no monthly fees or balance requirements that also offers a decent interest rate. Other benefits include access to the surcharge-free Allpoint ATM network (which has more than 55,000 ATMs worldwide), a complimentary ATM card, easy-to-navigate online and mobile app access and mobile check deposit capabilities. Falling in line with its support of eco-friendly causes, BankPurely will also plant a tree for every savings account opened. Lastly, as with all savings accounts, this account is subject to Federal Reserve Regulation D, which limits certain transactions and withdrawals to six per month.
The perks that come with BankPurely’s savings account, such as its lack of fees and minimal requirements and its user-friendly online banking capabilities, definitely allow it to compete with some of the best available online savings accounts. Still, there are higher rates from other online banks out there, so if that’s a high priority, we encourage you to review our list. However, if you’re also particularly passionate about supporting environmental causes, then this account might be for you.
These CDs guarantee their rates for the duration of their terms and allow you to adjust the terms once they reach maturity.
Term
APY
Minimum deposit requirement
12 months
2.65%
$1,000
24 months
2.75%
$1,000
36 months
2.00%
$1,000
60 months
2.87%
$1,000
Minimum opening deposit: $1,000
Minimum balance amount to earn APY: $1,000
Early withdrawal penalty: 6 months’ worth of interest on amount withdrawn if original maturity is more than 1 and less than 3 years; 1 year’s worth of interest on the amount withdrawn if original maturity at least 3 years and less than 7 years.
BankPurely’s CDs rates are guaranteed for the term length you select, which can be for 1, 2, 3 or 5 years. Once your CD reaches maturity, you will have the option to adjust the term, add additional funds, open another CD with the bank, as well as withdraw your funds. These CDs also allow for easy online management, and as with its other products, the bank will plant a tree for every new CD that’s opened.
Although BankPurely’s minimum deposit is pretty average compared with come of the best CD options out there, most of its rates simply aren’t as high — in fact, the rate currently decreases from the 24 month to the 36 month options, but then goes back up for the 60 month option. Even if you are drawn to the bank’s ties to green causes, we still suggest doing your research while considering a product that’s a bit more competitive.
A tiered account that allows you to earn interest on balances over $25,000.
APY
Minimum Balance to Earn APY
2.25%
$25,000-$74,999.99
2.25%
$75,000-$99,999.99
2.25%
$100,000
Minimum opening deposit: $25,000
Minimum balance to earn APY: $25,000
Monthly account maintenance fee: $15 if balance falls below $25,000
ATM fee: None on ATMs that are part of the Allpoint network; no charge from BankPurely on out-of-network ATMs, though the ATM owner may charge a fee
ATM fee refund: Only on surcharges from Allpoint machines
Overdraft fee: $30
BankPurely’s money market account allows users to earn interest on balances of $25,000 and up. If you open this account, you’ll want to make sure your balance never falls under that $25,000 mark (which happens to also be the minimum deposit amount) to avoid the monthly service charge, anyway. Although this account is separated into four separate tiers on the bank’s website, there are currently no differences between the tiers that earn interest, as they earn the same rate, assuming your account has the minimum balance of $25,000. Since this is a savings account, certain transactions are limited to six per month, per Federal Reserve Regulation D. Finally, as with BankPurely’s other accounts, this account comes with online and mobile banking capabilities, mobile check deposit and the planting of a tree.
With its competitive rate, BankPurely’s money market account is definitely up there with the best of the best — it’s even on our list of the best money market rates and accounts available. Its minimum balance to earn the rate is a bit higher than other accounts on the list, but its rate still beats others. Where BankPurely’s money market account does lose points, however, is the fact that it does incur a monthly fee if you withdraw money and fall below that minimum balance requirement.
You can easily open BankPurely’s checking, savings, money market and CD account products online. To do so, you’ll need your Social Security number, a government-issued ID such as a U.S. driver’s license, and a current bank account and routing number to fund your account. If you’re applying for a joint or beneficiary account, you’ll need the other party’s name, Social Security number and form of identification as well.
While none of BankPurely’s products offer the highest rates out there, they’re all still pretty good. Having already made our “best-of” list, we say the bank’s money market account is the standout product, which offers a high rate if you don’t let the balance dip below the minimum requirement. If environmental causes are near and dear to your heart, the many conveniences this online-only bank offers make these accounts worth your while.
Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.
Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.
Some banks don’t like giving second chances to customers who have less-than-stellar financial histories, especially since it could expose them to expensive risks. A record of bounced checks or debit card overdrafts could easily lock you out of the conveniences of modern banking.
Fortunately, banks also like making money, and some offer special “second chance” accounts that minimize their risk while allowing consumers to stay in the banking system. A second chance bank account gives customers with troubled records a fresh opportunity to demonstrate they can bank responsibly.
When it comes to a second chance account, fees are an unfortunate reality. But some accounts offer customers a better deal than others, and we’ve researched our database to find the second chance accounts with the most reasonable fee structures, while also factoring in whether they provide online and mobile banking, and how accessible accounts are throughout the country.
Second chance account basics
With a second chance bank account, customers shut out of traditional bank accounts get the opportunity to win their way back into a bank’s good graces. Similar to credit bureaus, financial services company ChexSystems maintains records of consumers’ banking histories. Bounced checks, overdrawn accounts or instances of fraud can all end up on your ChexSystems record; if you accumulate enough black marks on ChexSystems, banks could deny your application to open a new account.
Because second chance accounts are meant for customers who have demonstrated bad banking behavior, some lack features of traditional accounts, such as overdraft protection. In the eyes of the bank, you represent too much of a risk for them to extend you such courtesies.
Nobody likes paying fees, and we generally advise consumers to avoid needless banking fees due to the many fee-free banking options available. But fees are the price you pay for access to banking when you have a poor record. Plus, the second chance accounts listed below give you access to online and mobile banking, which is always a plus.
The 7 best second chance bank accounts
1. Tie between BBVA Compass ClearConnect Checking and BBVA ClearChoice Free Checking
Regional bank BBVA’s Compass ClearChoice Free Checking product is available as a second chance bank account. Keep in mind that it’s only available to residents of the states where BBVA maintains physical branches: Alabama, Arizona, California, Colorado, Florida, New Mexico, and Texas. But if you don’t live in those states, you can still avail yourself of BBVA’s Compass ClearConnect Checking account (unless you live in Alaska and Hawaii, in which case you are out of luck).
ClearChoice Free Checking features:
Free online and mobile banking, free customized alerts, free online and paper statements, and a free debit card (with option to personalize)
$25 minimum deposit to open
No monthly service charge to worry about
Fees to watch out for:
BBVA ATMs are free, otherwise a $3 fee will apply
$38 insufficient funds fee ($32 in California)
$15 deposit item returned fee
$32 stop payment fee made over the phone or in person ($30 in California); $25 if made online
No fee for closing your account within 180 days of opening
You can get a full list of Compass ClearChoice fees for each state here.
2. Wells Fargo Opportunity Checking and Savings Accounts
Wells Fargo’s Opportunity Checking and Savings Accounts are tailor-made for folks with a lackluster credit or banking history. With a $25 opening deposit, you’ll get access to a second chance bank account that offers most of the bells and whistles of a traditional bank account. The account does come with a monthly fee, although it’s possible to waive it if you meet a few requirements (see below).
Account features:
$25 minimum deposit to open
Free transfers are available between Opportunity Checking and Savings accounts
You can choose to opt into overdraft protection
Free access to bill pay
“My Spending Report with Budget Watch” is available if you want to pay extra attention to where your money is going
Free debit card with access to more than 13,000 Wells Fargo ATMs throughout the country
Fees to watch out for:
$10 monthly service fee, waived if any of the following are true:
You make 10 posted debit card purchases or payments
You keep a minimum daily balance of $1,500 in the account
You receive $500 total in direct deposits each statement cycle
$35 overdraft and returned item fee
$12.50 overdraft protection transfer fee
$15 fee for excess activity (exceeding withdrawals from your savings account)
3. Woodforest National Bank Second Chance Checking
This regional bank has a checking account aptly named Second Chance Checking, to help people rejected by other banks access — provided they live in one of the 17 states where a physical branch exists and can meet the $25 minimum opening deposit requirement. Those states are: Alabama, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia.
Fees to watch out for:
$9.95 monthly maintenance fee if you use a direct deposit (or $11.95 without a direct deposit), $3.00 monthly paper statement fee (which can be avoided if you sign up for electronic statements)
$9 one-time account set-up fee
$2.50 ATM withdrawal fee when used at a non-Woodforest network ATM
4. First National Bank and Trust Company Renew Checking
First National Bank and Trust Company’s second chance bank account offering is called Renew Checking. You’re eligible for a new account if you live near the bank’s Beloit, Wisc. headquarters, in southern Wisconsin and northern Illinois.
Account Features:
No monthly minimum balance
$25 minimum deposit to open
Free online and mobile banking, bill pay, and e-statements
Access to 70,000 no-fee ATMs worldwide through Allpoint and MoneyPass
Eligible to upgrade account after twelve months in good standing
Fees to watch out for:
$9.95 monthly service fee, or $7.95 with direct deposit
$30 early account closure fee (if closed within 90 days of opening)
$34.50 overdraft fee
$34.50 insufficient funds fee
$34.50 stop payment fee
The fee schedule for personal accounts at First National Bank and Trust Company is here.
on First National Bank And Trust Company (WI)’s secure website
Member FDIC
5. Peoples Bank Cash Solutions Second Chance Checking
This Texas-based bank offers a second chance bank account that is available nationwide, and so long as you don’t have a record of bank or checking fraud on your record, you should be approved for this account. You’ll need to deposit at least $30 before the bank activates your account and provides you with checks and a debit card.
Fees to watch out for:
$4.95 monthly maintenance fee
$27.50 overdraft fee
$27.50 nonsufficient funds fee
$3.95 printed statement fee (which can be avoided with electronic statements)
$2.00 ATM withdrawal fee at machines not owned by Peoples Bank
$25 stop payment fee
$20 account closure fee (if within 90 days of opening account)
Products from online bank Radius are available to customers nationwide, and accessibility is a strong point in its favor. This second chance bank account only requires customers to deposit $10 to open an Essential Checking account, which is lower than some other accounts on this list.
Account Features:
A free debit card
24/7 mobile and online banking
Access to Radius’s budgeting and personal finance tracking apps
Eligibility to upgrade to Radius’s Reward Checking account after 12 months of positive banking history
Fees to watch out for:
$9 monthly maintenance fee
$25 per item non-sufficient funds fee (waived on all overdraft items $5 or less)
Tired of the traditional banking experience? You could opt for a prepaid debit card instead. With a prepaid card, you can load money onto it and spend at merchants that accept major credit and debit cards. But if you try and spend more money than what’s on the card, the transaction is declined — although this prevents you from accruing any overdraft or insufficient funds fees. This is useful if you feel you may still have trouble managing your spending and need an extra layer of security to prevent you from getting into trouble.
Some prepaid cards offer extra perks like advance direct deposit and free ATMs so long as you stay in their network.
Open a secured credit card
You may also have better luck applying for a secured credit card if your credit score is in good enough shape. Usually, this requires depositing cash with the lender, who then gives you the credit card for the same amount. Each month that you make on-time payments, the bank will report that good behavior to the credit bureaus, helping you boost your credit score. At the end of the payment period (generally 12 months, though it varies by banks), you’ll get the full deposit back.
Secured cards can come with high interest rates and many don’t feature the enticing rewards other high-end cards do, but they get the basic job done for consumers who don’t need a card with a high credit limit.
Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.
Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.
Most students who borrow money for their education should start with federal student loans. The federal loan programs offer borrowers a variety of repayment, forgiveness, cancellation and discharge programs that aren’t available from private lenders.
But if you reach your federal loan limits, or examine your options and find you might be better off with a private student loan, you can compare loan offerings from private student lenders. One of the largest private student loan companies, Sallie Mae, has more than a dozen education loan products you can consider.
Started nearly 50 years ago, Sallie Mae has played a variety of roles in the student loan space, including lending federally guaranteed loans and private student loans, and servicing federal and private loans.
Sallie Mae spun off a portion of its student loan servicing business to form a new company, Navient, in 2014. And due to changes in the federal student loan programs, Sallie Mae no longer originates federally guaranteed loans. Now, Sallie Mae only offers and services private student loans, while also offering other banking products, such as savings accounts.
Types of student loans Sallie Mae offers
Whether you’re a parent of a grade school student or about to begin your doctorate, Sallie Mae may have a student loan that fits your needs. Its loans are designed for undergraduate students, graduate students and parents or sponsors of students. It also has loans to cover medical residency or bar exam costs.
K-12: For a parent or sponsor of a child who wants to take out a loan to pay for a student’s private kindergarten-through-high school education
Parent: For a parent or sponsor of a child who wants to take out a loan to pay for an undergraduate, graduate or certificate program
Career training: For students at eligible non-degree granting schools
Undergraduate: For students at degree-granting schools who are earning an associate or bachelor’s degree
Graduate: For students at degree-granting schools who are earning a master’s, doctorate or law degree
MBA: For business school students
Health professions graduate: For graduate health profession students, including those in allied health, nursing, pharmacy, and other graduate-level health degrees.
Dental school: For graduate dental degree students, including those in dentistry, endodontics and orthodontics programs
Medical school: For graduate medical degree students, including those in allopathic, osteopathic and podiatric programs
Medical residency and relocation: For medical residency students to help pay for board examinations and residency-related travel and moving expenses
Dental residency and relocation: For dental residency students to help pay for board examinations and residency-related travel and moving expenses
Bar study: For law students and recent graduates to help pay for bar review courses, registration and living expenses while you study
Law school: For students studying for their law degree
Sallie Mae student loans in a nutshell
Most of Sallie Mae’s loans are identical when it comes to fees, cosigner release options and discounts.
Fees
Aside from the K-12 loan’s 3% disbursement fee, none of the loans have application, origination, disbursement or prepayment fees.
Late payments result in a fee that’s 5% of the amount due (capped at $25).
Returned checks carry a $20 fee.
Cosigner release
You can apply to release a cosigner after making 12 consecutive, on-time, full interest and principal payments. However, parent loans don’t offer a cosigner release option.
Discounts
With all but the K-12 loans, you can receive a 0.25% interest rate discount if you sign up for automatic payments.
K-12 loans
Parent loans
Career training
Undergraduate loans
Graduate loans
MBA loans
Fixed APR range*
Not available
5.49% - 12.87%
Not available
5.49% - 11.85%
6.00% - 10.23%
6.00% - 10.23%
Variable APR range*
9.61% - 16.27%
5.74% - 12.37%**
6.87% - 13.96%**
4.37% - 11.47%**
4.50% - 10.11%**
4.62% - 10.23%**
Loan terms
Three years
10 years
Five to 15 years
Five to 15 years
Five to 15 years
Five to 15 years
Loan amount
$1,000 minimum
Borrow up to the school-certified cost of tuition
$1,000 minimum
Borrow up to the school-certified cost of attendance
$1,000 minimum
Borrow up to the school-certified cost of attendance
$1,000 minimum
Borrow up to the school-certified cost of attendance
$1,000 minimum
Borrow up to the school-certified cost of attendance
$1,000 minimum
Borrow up to the school-certified cost of attendance
Repayment plans (both in-school and post-school)
Full interest and principal payments
Full interest and principal payments
Interest-only payments
$25 a month
Interest-only payments
12-month interest-only repayment that begins after your separation or grace period ends
Deferment
$25 a month
Interest-only payments
12-month interest-only repayment that begins after your separation or grace period ends
Deferment
$25 a month
Interest-only payments
12-month interest-only repayment that begins after your separation or grace period ends
Deferment
$25 a month
Interest-only payments
12-month interest-only repayment that begins after your separation or grace period ends
**Variable rates are capped at 25%.
Health professions
Dental school
Medical school
Medical residency
Dental residency
Dental residency
Law school
Fixed APR range*
6.25% - 10.23%
6.24% - 9.99%
5.99% - 9.98%
Not available
Not available
Not available
6.00% - 9.99%
Variable APR range*
4.87% - 10.23%**
4.87% - 9.99%**
4.62% - 9.98%**
5.51% - 11.78%
5.51% - 11.78%
5.61% - 12.31%
4.62% - 9.99%
Loan terms
Five to 15 years
20 years
20 years
Up to 20 years
Up to 20 years
Up to 15 years
Up to 15 years
Loan amount
$1,000 minimum
Borrow up to the school-certified cost of attendance
$1,000 minimum
Borrow up to the school-certified cost of attendance
$1,000 minimum
Borrow up to the school-certified cost of attendance
$1,000 minimum
Borrow up to $20,000
$1,000 minimum
Borrow up to $20,000
$1,000 minimum
Borrow up to $15,000
$1,000 minimum
Borrow up to the school-certified cost of attendance
Repayment plans (both in-school and post-school)
Deferment
$25 a month
Interest-only payments
12-month interest-only repayment that begins after your separation or grace period ends
Deferment
$25 a month
Interest-only payments
12-month interest-only repayment that begins after your separation or grace period ends
Deferment
$25 a month
Interest-only payments
12-month interest-only repayment that begins after your separation or grace period ends
Full interest and principal payments
Two- or four-year interest-only repayment
Full interest and principal payments
Two- or four-year interest-only repayment
Full interest and principal payments
Two- or four-year interest-only repayment
Deferment
$25 a month
Interest-only payments
12-month interest-only repayment that begins after your separation or grace period ends
**Variable-rate loans have a 25% APR cap.
How Sallie Mae compares with other lenders
Sallie Mae finished first among MagnifyMoney’s top five private student lenders for 2019. We compared undergraduate student loan products and began with the nation’s 10 largest national lenders. The ranking focused on loans’ APR ranges, discounts, fees and repayment terms, as well as lenders’ policies for releasing a cosigner, deferring loan payments and their online applications.
In addition to having a top-rated undergraduate loan, Sallie Mae differentiates itself by offering its wide variety of different student loans. Many of these other loans share characteristics with the undergraduate loan, including the 12-payment cosigner release requirement, lack of a specific maximum loan amount and a 0.25% interest rate discount for auto debit.
However, as with any lender, there are pros and cons to consider before taking out a loan from Sallie Mae.
You may be able to choose a repayment plan. Depending on the loan product, you may be able to choose from up to three different repayment plans. A plan that requires you make payments while you’re in school could help you save money in the long run; however, deferring your full payments can give you more money to cover education and living expenses now.
12-month payment requirement for cosigner release. With most Sallie Mae student loans, you can apply to release your cosigner once you make 12 consecutive, full, on-time payments. Other lenders may let you apply for cosigner release, but it could take longer to qualify, in some cases requiring 48 full monthly payments before you can apply.
In addition to the payments, you’ll need to pass a credit check and meet Sallie Mae’s requirements for releasing a cosigner.
Discharge due to death or permanent and total disability. Similar to the federal student loan guidelines, Sallie Mae will waive a borrower’s current balance if he or she dies or becomes permanently and totally disabled. The benefit may be especially important to borrowers who have a cosigner or dependents, such as a spouse or child(ren), who could be affected if the debt isn’t waived.
No preset loan limit. While some federal student loans and private student loans set dollar-amount limits on how much you can borrow, most Sallie Mae student loans allow you to borrow up to your school’s certified cost of attendance.
Loans for less-than-half-time students. Some private school lenders require borrowers to have at least a half-time course load to qualify for a student loan. Sallie Mae’s loans for students don’t have this requirement.
Forbearance and deferment options. Putting your loans into forbearance or deferment lets you temporarily stop making payments without getting charged late fees or hurting your credit. Forbearance is generally for when you have trouble making payments, perhaps due to losing a job or a medical emergency. Deferment, meanwhile, may apply to other circumstances, such as returning to school.
Sallie Mae could approve up to 12 months of forbearance in three-month increments and up to 60 months of deferment in 12-month increments. Interest continues to accumulate, and your long-term costs may increase, but forbearance or deferment are still better options than missing a payment or letting a loan go into default.
Extra perks. Many of Sallie Mae’s student loans also come with the Study Smarter benefit. With it, borrowers can get four months of free study tools or 30 minutes of live online tutoring through Chegg Tutors® or a combination of the two.
All of Sallie Mae’s loans also give borrowers and cosigners quarterly access to a FICO® credit score.
Drawbacks of Sallie Mae Student Loans
No additional interest rate discount. Sallie Mae’s 0.25% interest rate discount for auto debit is standard for most federal and private student loans. But other private lenders offer borrowers opportunities to get an additional 0.25% to 0.50% interest rate discount by having other financial products from the same lender or making auto debits from an account with the same lender.
Sallie Mae assigns loan terms. Many Sallie Mae student loans have a repayment term that ranges from five to 15 years. Most other lenders that offer a range of terms let borrowers choose their term, along with the corresponding monthly payment and interest rate. Sallie Mae, however, will assign you a term.
No loan pre-approval. Private student loans require a credit check. Some lenders will do a soft credit pull, which doesn’t hurt your score, to determine if you can qualify for a loan or need a cosigner and to show you estimated interest rates if you qualify. Sallie Mae will only show you rates after a hard credit inquiry, which could hurt your score slightly.
What it takes to qualify with Sallie Mae
All Sallie Mae student loans have the same basic requirements:
Minimum credit score: Sallie Mae doesn’t disclose a minimum credit score requirement. In 2016, applicants that were approved for a Sallie Mae student loan had, on average, a 748 FICO score at the time of approval. Minimum age for borrowers: Borrowers must be the age of majority in their state (often 18 years old). Younger applicants will need an eligible and creditworthy cosigner. State residency requirements: Sallie Mae student loans are available in every state. Eligible schools: Sallie Mae doesn’t publish a list of eligible schools, but you can search for the name of a school at the beginning of the loan application to see if your school qualifies.
K-12 loans
Parent loans
Career training
Undergraduate loans
Graduate loans
MBA loans
Additional requirements
The student you’re taking the loan out for has to be enrolled in a private school.
The student you’re taking the loan out for has to be pursuing a certificate or an associate, bachelor’s or graduate degree at a degree-granting school.
You must be enrolled at a non-degree-granting school and pursuing professional training or a certification.
You must be a enrolled at a degree-granting school and pursuing a certification or an associate or bachelor’s degree.
You must be enrolled at a degree-granting school and pursuing a master’s, doctorate or law degree.
You must be enrolled at a degree-granting school and pursuing a masters of business administration degree.
Health professions
Dental school
Medical school
Medical residency
Dental residency
Bar study
Law school
Additional requirements
You must be enrolled at a degree-granting school and pursuing a degree in one of the eligible areas of study.
You must be enrolled at a degree-granting school and pursuing a degree in one of the eligible areas of study.
You must be enrolled at a degree-granting school and pursuing a degree in one of the eligible areas of study.
You must either have a half-time course load and be in your last year at an eligible school, or graduated from an eligible school in the previous 12 months.
If you didn’t already earn your medical degree, you must expect to earn the degree in the current academic program year.
You must either have a half-time course load and be in your last year at an eligible school, or graduated from an eligible school in the previous 12 months.
If you didn’t already earn your dental degree, you must expect to earn the degree in the current academic program year.
You must either have a half-time course load and be in your last year at an eligible school, or graduated from an eligible school in the previous 12 months.
You must take the bar exam within 12 months of graduating.
You must be enrolled at a degree-granting school and pursuing a J.D. degree.
What borrower is Sallie Mae best for?
Sallie Mae offers a variety of student loan products that could be a good fit for parents or students. If you, or a student you’re supporting, can’t take out additional federal student loans but need more money for school, Sallie Mae’s lack of a predefined loan limit could make it a good option.
The medical and dental residency programs and the bar study loan do have a loan limit. But even then, it’s higher than the limit of some competitors who offer similar types of loans.
You also may want to consider Sallie Mae if you think you’ll need a cosigner and would like to release the cosigner later. Although you still may not qualify, depending on your creditworthiness, the 12 months of consecutive full payments is shorter than what some other lenders require.
Taking a closer look at the online platform
You can learn a lot of details about Sallie Mae’s student loans on its website. There are specific pages for each loan product that have a lot of the basic information you’ll want to know. And there are pages with generally helpful information, such as how to make a loan payment or options if you’re having trouble making payments.
Some of the informational pages, such as on the one about interest rates and interest capitalization, also have quick video explainers to help you understand the topic and why it’s important to student loan borrowers.
The actual loan application doesn’t have quite as nice of a design as the other parts of the Sallie Mae website, but it’s still relatively easy to navigate and fill out.
The fine print
The Sallie Mae product and informational pages give you a lot of the basic information you’ll want if you’re comparing student loans from several lenders. There are also loan application and solicitation disclosure forms for many of the loans online. In these, you can see fine-print items like the variable-rate loans’ interest-rate cap and late payment fees.
It’s more difficult to find fine-print information on some of the loans, though. The K-12, residency and bar loans don’t have application and disclosure forms on their pages, for example. We were only able to confirm these loans’ fees and interest rate caps by reaching out to a representative from Sallie Mae.
While you would have a chance to review your loan details after agreeing to a credit check but before signing the loan agreement, it would be nice to have that information up front.
We were also disappointed in how difficult it is to understand how loan terms work with Sallie Mae student loans.
Some private lenders only offer one term. Others offer a variety of terms and let borrowers choose their loan term. Most of Sallie Mae’s undergraduate and graduate student loans have a five- to 15-year term, but Sallie Mae chooses which term to offer you.
The loan-term range and the fact that Sallie Mae chooses the term rather than the borrower aren’t clearly disclosed on the loan’s main page.
What to expect during the application process
Sallie Mae has an online loan application system that makes the process fairly uniform for all its student loans. A few questions may differ, but you can expect the process to be similar to the following steps. Applicants with cosigners may need the cosigner’s personal information, including his or her Social Security number and date of birth.
Basic information
General information. Basic information about the student and borrower:
Your name, email address and phone number.
Your date of birth, citizenship status and Social Security number.
Your relationship to the student, if you’re taking out a loan for someone else.
Address. Your permanent address and a previous address if you moved in the last year. If you have a different mailing address you’ll have to fill that in, too.
Student and school information. If you’re taking out the loan for a student, you’ll need the student’s name, date of birth, citizenship status and Social Security number.
Enter the name of the school and your (or the student’s) academic information:
Degree type or certificate of study
Major or specialty
Enrollment status
Grade level
Academic period that the loan will cover
Anticipated graduation or certification graduate date
Loan application
Loan amount. The cost of attendance, which the application can help you estimate, as well as your estimated financial assistance.
You’ll automatically have a loan amount for the difference between your cost of attendance and financial assistance. You can choose to request less money, and even if you’re approved, Sallie Mae could offer you less than what you requested.
Employment info: Fill in information about your work, including:
Employment status
Employer’s name
Your occupation
Work phone number
Years with the current employer
Gross annual income
Financial info: You can list additional income and assets you have, such as:
Income from alimony, child support or a rental property
Investments
Disability
Social Security
Income from a household member, such as a spouse
Your current assets that could be in checking, savings, CD or money market accounts
You’ll also be asked about your expenses, including monthly housing payments (when applicable).
Personal contacts: Unless you’re taking out a loan for someone else, you’ll have to share two personal contacts that Sallie Mae can use as references. These could be a relative or family friends, and you’ll have to have their full name and phone number.
Submit application: Choose to apply on your own or add a cosigner. You’ll be prompted to read and agree to an electronic delivery consent form, and may then get a copy of the loan’s disclosure form and Sallie Mae’s privacy policy.
You’ll have to agree to let Sallie Mae review your credit history to submit your application.
Finalize the loan
Once you’ve completed an application, you may need to send verification information (such as pay stubs or tax returns). But generally, Sallie Mae will offer a quick response based on your credit.
If you’re approved, you can choose your type of interest rate and repayment plan before accepting the loan. Once you accept the loan offer, Sallie Mae will contact your school to verify that you’re eligible for the loan and loan amount.
The school certification process may take several weeks, and it could even be put on hold until about a month before your term begins. As long as everything checks out, Sallie Mae will send the loan to you or your school, depending on the type of loan.
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The fine print
