How Sallie Mae is Helping Expand Higher Education Opportunities
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.
How Sallie Mae Is Helping Make College More Affordable and Accessible for All
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 a series of free online tools make that possible.
Sallie Mae’s scholarship search features 6 million unique scholarships worth up to $30 billion. Last year, 24,000 students received a scholarship using the search tool, covering more than $67 million in college costs.
Sallie Mae also offers a Free Application for Federal Student Aid (FAFSA®) tool to make applying for federal aid easier and faster for students. Our college planning calculator can also help students and families get ahead on saving and paying for college.
In the coming weeks, Sallie Mae will launch a new series of free products to help students research colleges, understand graduation rates and average salaries for their desired career path, and compare average financial aid packages.
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
Addressing Racial Gaps in College Graduation Rates
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.
Higher Education Financing is Complicated. Here’s How Sallie Mae is Helping Students Make Sense of it All.
Millions of students enroll in college, vocational school, or certificate programs each year, eager to learn. Before enrolling, they face a lot of decisions, including where to attend and how to pay for it.
Wading through the details of higher education financing choices (and forms) can be confusing, especially for first time students. Navigating the FAFSA® (Free Application for Federal Student Aid) and comparing multiple financial aid offers from schools can leave many families scratching their heads, not fully aware how the decisions they make today may affect their lives tomorrow.
We get it. And it’s why Sallie Mae® has made a commitment to help students make sense of their financing options – whether or not they end up choosing to borrow from us. By helping students understand their options, we’re not only helping them make smart, thoughtful financial decisions, but also we’re powering them with confidence to achieve their goals.
Understanding Financing Helps Students Achieve Their Dreams
Helping students unlock the power of higher education begins with making it easier for families to understand the full range of financing options available before they apply for assistance and loans.
The philosophy we use to counsel these families is fairly simple:
- Start with money you won’t have to pay back. Loans should never be the first option to pay for college. In fact, they should be the last. Students should supplement college savings and income by maximizing scholarships, grants, and work-study. After all, the best money is what you won’t have to pay back. This is why we provide a free scholarship search tool with access to 6 million scholarships worth up to $30 billion. Last year, more than 24,000 students received a scholarship through our search tool, covering more than $67 million in college costs.
- Explore federal student loans. We encourage students to explore federal student loan options by completing the FAFSA. Too many families skip the FAFSA because of the complicated process, which means they’re potentially missing out on thousands of dollars in financial aid. To simplify the application process, we launched a in 2020 to make filing the FAFSA quicker and easier, helping more families take advantage of the resources available to them.
- Consider a responsible private student loan. Sometimes, after accounting for savings, scholarships, and grants, and federal financial aid, there’s still a gap. That’s where a responsible private student loan can make sense. Often secured with a cosigner, these loans go through underwriting to ensure customers will be able to manage them successfully. Our lending philosophy also encourages students and their families to evaluate all anticipated monthly loan payments and how much the student expects to earn in the future before considering a private student loan.
This approach is working. Roughly 97% of all Sallie Mae loans in repayment are being successfully managed, and fewer than 2% of loans default annually.
When our students are able to make informed decisions about financing their higher education plans, they are empowered and more likely to achieve financial independence after school. The correlation between graduating and future success is clear and unmistakable. People with a bachelor’s degree typically earn 66% more — $1 million more over their lifetime — than those with only a high school diploma.
Tools for Everyone
Earning a degree is critical to success in today’s workforce. It’s why our financial literacy products are available for free to anyone — whether they hold Sallie Mae loans or not. From planning calculators, to estimating monthly loan payments and future costs, to our simplified FAFSA application, we want smart planning and preparation to be part of every student’s higher education experience.
We’re proud of our financial products, and we’re proud of the students and families using them to achieve their dreams. Sallie Mae isn’t just financing private student loans — we’re helping create America’s future.
FAFSA is a registered service mark of U.S. Department of Education, Federal Student Aid