Sallie Mae’s^® mission is to power confidence for students and families along their unique journey through higher education. As a private student loan lender, we continue to prioritize providing families with the tools, resources and – if needed – responsible financing as they navigate to, through, and immediately after college.

Here are three examples of how we’re doing that:  

1. Simplifying College Planning

Earning a college degree sets students up for long-term success but applying to and paying for school can be complex. Sallie Mae provides students and families a variety of free tools aimed at simplifying that process including Scholarship Search by Sallie, which helps connect students to scholarships.

2. Awarding Scholarships

As part of an effort to support access and completion in higher education, Sallie Mae^® has committed millions in scholarships to support students from underserved communities.

Through academic year 2023-2024, The Sallie Mae Fund is partnering with Thurgood Marshall College Fund to provide $3 million in scholarships to help minority students and students from underserved communities access and complete higher education.

“Higher education transforms lives, and we’re committed to removing the financial barriers that so often prevent students from persisting to degree completion,” said Dr. Harry Williams, President and CEO of Thurgood Marshall College Fund. “That’s why we are thrilled to partner with Sallie Mae^® on this scholarship program.”

Scholarships from Sallie Mae^® continue to open the door to higher education for students and families who otherwise may not have access to these opportunities.

“As a first-generation and low-income student, I would not be able to pursue a legal education without the generosity of others,” said Vanessa Agudelo, a J.D. candidate at Harvard Law School who received a Sallie Mae^® Bridging the Dream scholarship last year. “For students like me, getting accepted into the law school of your dreams is not enough. This scholarship has provided me with the financial resources to allow me to pursue my dream of becoming an education lawyer and increasing educational opportunities for vulnerable communities.”

3. Advancing Financial Education

For many students and families, paying for college is one of their first major financial decisions and research continues to show those with a plan are better prepared and more confident in meeting those costs. Research also shows that families are hungry for more financial education in high school. Last year, Sallie Mae^® offered free financial literacy curriculum to high school students and their families on topics about saving, budgeting, financial aid, student loans, and repaying loans responsibly.

Through our college savings program, SmartyPig, we partnered with various personal finance experts to teach money management and saving tips for students and families with a focus on those from traditionally underserved communities.

In addition, Sallie Mae^® also offers financial education for students after graduation. The program provides lessons on how to budget, manage debt, and build and maintain good credit.  

These are just some of the many ways we’re Powering Confidence – supporting students and families on their journeys to, through and immediately after college. Learn more by reading our Corporate Social Responsibility report.

More than 81% of college-bound students view a degree as their ticket to better jobs and opportunities in the future. Yet, nearly half of students and families feel stressed when thinking about how to plan and pay for higher education, according to Sallie Mae^® and Ipsos’ recent College Confidence: What America Knows About Paying for College report.

Navigating through scholarships, grants, loans, and other financial aid can feel overwhelming—especially for first-generation college students but it doesn’t need to be. That said, those conversations about how to pay for college should start early.  Sallie Mae^® provides students and families with free tools and resources to help them make informed decisions about their higher education.

Here are five findings from the report you should know:

1. Federal Student Loan Options Can be Confusing

Almost half of families expect to borrow money to pay for college, but roughly the same number of families don’t know federal loans need to be repaid. Specifically, less than half of college-bound families correctly identified direct subsidized loans (47%), direct unsubsidized loans (46%), and the Parent PLUS loans (41%) as money that needs to be repaid. More than two-thirds of families, however, know that private student loans need to be repaid.

The benefits of understanding loan options can help significantly once it’s time to start paying them back and avoid could families taking out loans without understanding their long-term impact.

2. The Cost of College Drives Decisions

Many families eliminate colleges based on cost – before researching available scholarships, grants, and other financial aid. However, according to the 2022 What America Knows about Paying for College report, an overwhelming percentage of families agree that investing in their student’s future by earning a college degree will create more opportunities, and are willing to stretch financially to make it happen.

Families where the student is the first to attend college, often called first-generation families, are more likely to face additional financial barriers when it comes to accessing and completing their education.

Two-thirds of first-generation households, for example, earn less than $100,000 annually, compared to just 22% of those families with a parent who attended college. Just 35% of first-generation families feel confident about paying for college and, 44% are unaware of resources available to help them plan and pay for college.

For families looking to understand the breakdown of college costs, Sallie Mae^® offers a free college planning calculator. It allows students to enter savings, scholarships, grants and loans and see the full cost of attending a school, and helps students identify the right school within their budget and responsibly assess college costs.

3. Understanding Financial Aid Packages Can be Challenging

While families may be generally familiar with financial aid, there’s confusion about individual components of financial aid packages. In fact, nearly four in ten families (37%) are not aware of what information is included in financial aid offers from colleges and universities.

Moreover, 42% agree they need help planning to pay for college, with 43% believing there are too few resources to help pay for education and 40% feeling that the available options are overwhelming.

4. Too Many Families Skip The FAFSA

Although nearly three quarters of families have heard of FAFSA, the Free Application for Federal Student Aid, only 62% plan to submit it.

First-generation families are even less likely to submit the form (32%), even though almost half agree an increase in Pell Grants and need-based financial aid would help them pay for college. Even fewer families—20%—feel equipped to complete the application.

Nearly a third of families believe the FAFSA is a waste of time if parents make “too much” money to qualify for financial assistance. The government bases the need for aid on various factors, so it’s crucial for all families to fill out the application no matter what their financial situation looks like.

Failing to complete the FAFSA can mean students and families could miss out on thousands of dollars in free money like scholarships and grants or federal financial aid. 

5. Confusion Over Availability of Scholarships

Scholarships are available for a wide range students and interests — vegans, left-handers, Pokémon players, and Star Trek fans — but nearly half of families believe scholarships are only for star athletes or those with the best grades.

Unlike loans, scholarships do not have to be paid back, making them a vital tool for making college more affordable and minimizing debt. All students and families can use Sallie Mae’s free scholarship search tool to access hundreds of scholarships. Students enter their interests and hobbies and receive a report of scholarships they may be eligible for, simplifying the search process.

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Whether borrowing a federal or private student loan, Sallie Mae^® is here to help any and all students and their families confidently navigate the college planning and payment process. Our goal is to set more students up for long-term success.

Our suite of free tools — available to all students and families — is available at salliemae.com/college-planning

From simplifying the FAFSA to changing the way we approach paying for college—there are pragmatic steps we can take to change the federal college financing system so future students and families aren’t taking on debt they can’t afford. Read from Sallie Mae CEO Jon Witter ways we can improve the system and break the debt cycle for generations to come.

Sallie Mae’s tools aim to demystify the process

Eight in 10 college-bound high school juniors and seniors (81%) view higher education as a path to better opportunities, but only 42% feel confident about financing that education, according “College Confidence: What America Knows About Paying for College,” the latest national study from Sallie Mae and Ipsos, a market research company.

The study examines what college-bound students and their parents understand about financial aid, the FAFSA®, scholarships, and student loans. The research results are based on an online survey Ipsos conducted, in English, with 550 parents of high school juniors or seniors planning on attending college and 585 college-bound juniors or seniors.

Key findings from the study include:

• Nearly three-quarters of families (74%) have started thinking about how they will cover the cost of higher education by the time their child is a high school junior but fewer than half (44%) are very or somewhat familiar with the FAFSA – the gateway to billions of dollars in scholarships, grants, and federal financial aid.

• Just 62% of families plan to complete the FAFSA; 29% feeling it’s a waste of time if the family makes too much money.

• Nearly half of families (45%) believe scholarships are only available for students with exceptional grades or abilities.

• Half of families (54%) are familiar with financial aid offers but 37% of them don’t know what information is included in those offers.

• Nearly half (47%) of college-bound families are planning to borrow to pay for college, but many are unclear on what types of aid needs to be paid back. Less than half of college-bound families correctly identified direct subsidized loans (47%), direct unsubsidized loans (46%), and the Parent PLUS loans (41%) as money that needs to be repaid.

• Only 18% of college-bound families agree that the amount families actually pay is lower than the price advertised by the school.
  
• First-generation college families need additional support as they navigate the financial aid process. Only 35% of first-generation families feel very or somewhat confident about it, compared to 54% of experienced families. Critically, while 42% of first-generation families indicate more Pell Grants and need-based financial aid would help them, only 32% definitely plan to submit the FAFSA®.

To help fill these confidence gaps, Sallie Mae offers a variety of free tools and resources to help families make informed decisions about college.  At salliemae.com/college-planning, they can find tools to calculate college costs, view average financial aid packages from universities around the country, and discover scholarships for all kinds of students. The goal of these tools is to help students and families better understand college costs and encourage them to maximize free money first before borrowing.

To learn more, visit salliemae.com/college-planning.

The private student loan market has stabilized and returned to pre-pandemic norms, according to a new report from MeasureOne, a consumer analytics company.

The study found that the overwhelming majority of students and families are once again making regular payments, despite the continued economic impacts of the pandemic. More than 98% of private student loans are successfully repaid. The report also concluded fewer students and families are relying on customer relief programs, which became popular options early in the pandemic.

As of June 2021, private student loans — which are fully underwritten to assess creditworthiness and ability to repay — make up 7.61% of the $1.7 trillion student loan market. The remaining 92%, or $1.59 trillion in student loans, are federal student loans made by the federal government.

As the leader in private student lending, Sallie Mae recommends families follow a three-step approach to financing their education:

1. Start with money you won’t have to pay back. Supplement your college savings and income by maximizing scholarships, grants, and work-study.
2. Explore federal student loans. We encourage students to explore federal student loan options by completing the FAFSA.
3. Consider a responsible private student loan. Fill the gap between your available resources and the cost of college. We encourage students to evaluate all anticipated monthly loan payments, as well as how much the student expects to earn in the future, before considering a private student loan.

Sallie Mae is committed to helping students achieve their higher education goals. Through a free suite of tools and resources, including planning calculators, college comparison tools, scholarship searches, and FAFSA support, we help students and families maximize their options before borrowing. By providing the necessary resources to help students and families confidently navigate their higher education journey, Sallie Mae can set them up for a lifetime of success.

Read the full report here.

Higher education is a proven pathway to opportunity and economic mobility, but each student’s journey is unique. Up until recently, a traditional path through a two-or four-year degree program has largely been presented as the ideal option for students. The reality is, however, that path may not be right for everyone. In fact, today, roughly 70% of students are considered non-traditional students, according to a 2015 report from the Department of Education. Put simply, college can no longer be viewed as a one-size-fits-all experience.

Evolving outlook on “college”

Trade schools and community colleges are a crucial part of the higher education universe. Providing hyper-focused curriculum over a shorter time, these schools can result in highly skilled professionals with a clear path. From culinary arts to coding, the expansion of career training is helping students who may not want a traditional path earn a degree that will increase their employability through hands-on training. Often, though, these programs have limited resources, and scholarship opportunities remain limited. As a result, students at these schools are left with fewer financing options — a significant barrier for many to attend.

Supporting students on different paths

Sallie Mae is working to make options accessible and ensure more students can pursue and achieve their unique goals. That said, Sallie Mae understands the importance of quality when it comes to career programs. That’s why Sallie Mae administers a rigorous review process to ensure programs will set students up for success upon completion.

For example, Sallie Mae’s partnership with United Airlines Flight Academy is helping change the face of the aviation industry by increasing the number of women and people of color in the training program. The academy aims to train at least 5,000 new pilots by 2030, half of which will be women and people of color. Sallie Mae offers responsible private student loans to help highly qualified students who wouldn’t otherwise be able to access the opportunity.

Student loans aren’t the only piece of the puzzle. Although more limited, there are scholarships out there for students pursuing a professional certificate or training program. For example, The Sallie Mae Fund offers gap scholarships, including to students interested in certificate and training programs in 2021.  

It’s time that higher education better meets the needs of today’s students. Sallie Mae is committed to doing our part, providing tailored support and responsible financing to further expand opportunities in higher education that will yield a future students can feel confident about tomorrow.

Students and families across the country continue to believe in the value of higher education, according to Sallie Mae® and Ipsos’ “How America Pays for College 2021” research report. Nine in ten believe college is an investment in the future, 89% believe a degree will create opportunities, and 81% believe graduates will earn more as a result of their degree.

Given the consensus surrounding the value of higher ed, it makes sense that families are prioritizing their plans for how to pay. More than half of families (58%) report having a plan to pay for all years of college, up from 44% just two years ago. Understanding how families are planning and paying for college helps Sallie Mae uncover more ways to bridge gaps in higher education financing, as well as point students and families to existing resources that could help them.

Here are three things we know about how students and families value, plan, and pay for college today — and how Sallie Mae is helping students make sense of it all.

While more families have a plan to pay, fewer are completing the FAFSA® 

The number of families filling out the FAFSA® continues to decline, which means more families are missing out on important federal financial aid opportunities. Just 68% of families filled out the FAFSA in the 2020-2021 academic year, the lowest level in the 14-year history of “How America Pays for College.”

Some of the most-cited reasons for not completing the FAFSA® include concerns about it feeling too complicated and the time required to complete it.  

More than half of families using scholarships – but majority of those who don’t have never applied

Scholarships are an effective way to lower the total cost of college — they covered 16% of all education costs last year — but many families are not taking advantage of these opportunities for free money. According to the report, 44% of families didn’t use scholarships to help pay for college. Of those who didn’t use scholarships, 74% didn’t apply. Many families say they don’t know what scholarships are available, and students said they didn’t have time to apply and didn’t think they’d be eligible to win.  

There is no shortage of scholarship opportunities out there, but finding the right ones can be tricky. Sallie Mae’s free scholarship search tool matches students with scholarships based on their skills, activities and interests.

More families (56%) are making payments on student loans while in school.

The number of families making payments on loans while the student is in school is on the rise, up from 46% last year and 41% the year before. Making loan payments during school helps families save money long-term and lower the total cost of the loan.

To that end, Sallie Mae offers the choice between three in-school repayment plans — deferred payments, fixed monthly payments, and interest-only payments. While everyone’s financial situation is different, these options allow students and their families to make informed decisions about the best path for them.

Preparation is the key to both financial planning and academic success, which is why Sallie Mae is committed to providing students and families with the information and tools needed to be successful on both fronts.

FAFSA is a registered service mark of U.S. Department of Education, Federal Student Aid

The latest Private Student Loan Report from MeasureOne provides a helpful glimpse into the private student loan industry — and some of the findings may surprise you.

Contrary to student debt-related headlines, students and families continue to effectively manage private student loan payments today. In fact, the overwhelming majority are back to making regular payments despite the pandemic, and fewer than 1% of loans are defaulting annually.

Private student lenders have an approach anchored on strong underwriting, assessing a borrowers’ ability to afford a loan. High rates of cosigner participation also help keep delinquency and default rates low. This year was no different, with these rates at their lowest since 2015 — accounting for less than 1% of all private student loans across the industry.  

Private student loans make up approximately 8% of outstanding student loans. The remaining 92% — roughly $1.59 trillion — are federal loans that are owned or guaranteed by the Department of Education. Recent stories have shed more light on some of the issues around federal student loan repayment.

Sallie Mae is committed to helping students achieve their higher education goals — and the last year-and-a-half was no exception. By empowering students with the knowledge, tools, and resources to make smart financial decisions, Sallie Mae can set them up for a lifetime of success and confidence.

Click here to view the full MeasureOne Private Student Loan Report. 

The benefit and value of a higher education has never been greater, but the reality is not all students have the same opportunities. About 78% of high school students from the highest economic class enrolled in college, compared to 28% of their low-income peers. And minority students finish their degree programs at significantly lower rates than white students.

Sallie Mae® believes all students who desire to achieve a higher education deserve the support they need to make it happen. Higher education is a great equalizer, but only when students from all backgrounds have the opportunity to access and complete it.

Advancing diversity in higher education

Sallie Mae launched a variety of initiatives to help drive equity in higher education, including a partnership with Thurgood Marshall College Fund to provide minority students scholarships to not only access and begin their education journey, but also complete it. Over the course of the next three years, $3 million in scholarships will be awarded to students through The Sallie Mae Fund’s Bridging the Dream Scholarship Program:

Specifically in 2021:

• The Bridging the Dream Scholarship for High School Seniors will provide $250,000 in scholarships to help make the dream of higher education a reality for minority students who are finishing high school.
• The Completing the Dream Scholarship will award $650,000 in scholarships to minority students and those from underserved communities who are on track to graduate but are at-risk of not completing due to financial emergencies or unpaid school bills.
• The Bridging the Dream Scholarship for Graduate Students will provide $100,000 in scholarships to students from minority and disadvantaged communities who are looking to use their degrees to advance social justice.

Addressing unmet needs

In addition to scholarships, Sallie Mae is distributing $1.5 million — $500,000 a year — to nonprofit partners who remove obstacles to higher education for minorities and underserved communities.

In 2020, Sallie Mae supported:

• The Point Foundation, which helps LGBTQ students access and complete college, and offers services that counter bullying, promote confidence, and build experience through internship programs.
• Colin Kaepernick Camp, which promotes leadership and empowerment for social change in Black and brown communities.
• National Urban League, which is working to understand how the digital divide is a barrier to Black and brown students’ ability to access and complete college.
• Hispanic Association of Colleges and Universities, which supports campuses with high Hispanic enrollment.

Providing tools to students and families

Sallie Mae aims to help students and families access, afford, and complete college, and we provide free online tools to make that possible including Scholarship Search by Sallie, which helps connect students to a wide variety of scholarships.

Much more work is needed to close achievement gaps and increase access to, and completion of, higher education. College should be affordable and accessible for all students, and Sallie Mae is dedicated to finding and implementing solutions.  

FAFSA is a registered service mark of U.S. Department of Education, Federal Student Aid

Increasing financial support for students of color is an important first step.

Students of color are not graduating from college at the same rates as white students, and they are more likely to experience financial hardships that make it difficult to complete their degrees. In an op-ed published in The Hill, Sallie Mae® CEO, Jon Witter, and Thurgood Marshall College Fund President and CEO, Dr. Harry L. Williams, address the growing racial gap in college graduation rates and how Congress can begin to fix it.  

Addressing disparities in educational attainment will require Congress to enact a number of reforms, and a good place to start is increasing financial support for Black, Hispanic, and Latino students at risk of delaying their degrees or dropping out. To that end, Sallie Mae and Thurgood Marshall College Fund launched the Completing the Dream Scholarship to support thousands of students at risk of not returning to school or graduating due to a financial situation.

“This is our nation’s moment to get this right and to invest in graduates, not just in attendance,” Witter and Williams said.

Click here to read the full op-ed in The Hill.