Degree School Loan

Bank Introduction

Sparrow Student Loans
Sparrow Student Loans
Minimum FICO Credit Score
No minimum
BBB Rating
A+
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Citizens Disclosures

Annual Percentage Rates (APR) ranges and examples are based on information provided to Sparrow by lenders participating in Sparrow's rate comparison platform. For student loan refinancing, the participating lenders offer fixed rates ranging from 2.50% – 5.69% APR, and variable rates ranging from 1.88% – 5.54% APR. For private student loans, the participating lenders offer fixed rates ranging from 3.26% – 14.50% APR, and variable rates ranging from 1.04% – 12.94% APR. The maximum variable rate for both student loan refinancing and private student loans is 25.00%. Your interest rate will be based on the lender’s requirements. In most cases, lenders determine the interest rates based on your credit score, degree type and other credit and financial criteria. Only borrowers with excellent credit and meeting other lender criteria will qualify for the lowest rate available. The information obtained on this site is based on what participating lenders have provided to Sparrow. We do our best to make sure our rates are up to the minute, but your final rate, if eligible, will be confirmed when you apply for a loan with a lender. Lender eligibility criteria and rates may change at any time. Logos and other trademarked items are properties of the lenders and used by permission on this site. This site is not endorsed or affiliated with the U.S. Department of Education. Please note that Sparrow may be compensated by lenders if you complete the loan process. Sparrow reserves the right to modify or discontinue products and benefits at any time without notice. Sparrow does not charge any fees for using the comparison platform, and no participating lender charges origination fees or prepayment penalties.
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Loan reviews

Sparrow, founded in 2020, is an online marketplace where students and parents can fill out a single application to see whether they qualify for loan offers from a variety of lenders. Although Sparrow is not a lender, the free service allows you to compare rates across lending partners. Sparrow is also available to international students.

Pros

  • Sparrow provides users with personalized loan offers rather than estimates.
  • Complete one application to receive prequalified offers from multiple lenders.

Cons

  • Sparrow provides users with personalized loan offers rather than estimates.
  • Complete one application to receive prequalified offers from multiple lenders.

How to apply for a federal PLUS loan

Difference between Private Student Loan and Federal PLUS Loan

Private student loans and Federal PLUS loans are both options available to students and their families to finance education expenses. However, there are several key differences between these two types of loans. Here are some important distinctions:

1. Source of Funds:

Private Student Loan: Private student loans are offered by private financial institutions such as banks, credit unions, and online lenders. These loans are not funded or guaranteed by the federal government. Federal PLUS Loan: Federal PLUS loans are federal loans available to parents of dependent undergraduate students or to graduate or professional students. They are issued by the U.S. Department of Education.

2. Borrower Eligibility:

Private Student Loan: Private student loans often require a credit check and typically consider the borrower's creditworthiness, income, and debt-to-income ratio. Students may need a co-signer if they have limited credit history or insufficient income. Federal PLUS Loan: Federal PLUS loans do not require a credit check for eligibility. However, borrowers with an adverse credit history may face additional requirements or need an endorser (co-signer) to qualify.

3. Interest Rates:

Private Student Loan: Interest rates for private student loans can vary based on the borrower's creditworthiness and market conditions. Some private lenders may offer both fixed and variable interest rate options. Federal PLUS Loan: Federal PLUS loans have a fixed interest rate set by the federal government for each academic year. The interest rate is generally higher than the rates offered for federal direct student loans.

4. Repayment Options:

Private Student Loan: Private student loans may offer various repayment options, including immediate repayment, interest-only payments, or deferred payments while in school. Repayment terms can vary among lenders. Federal PLUS Loan: Federal PLUS loans typically offer a deferment option while the student is enrolled at least half-time. After graduation or leaving school, borrowers have a six-month grace period before they are required to begin repayment. Federal PLUS loans also provide access to federal loan forgiveness and income-driven repayment plans.

5. Loan Limits:

Private Student Loan: Private student loans often have higher loan limits compared to federal loans. The maximum loan amount varies among lenders and is typically based on the cost of attendance minus other financial aid received. Federal PLUS Loan: The loan limit for Federal PLUS loans is determined by the cost of attendance minus any other financial aid received. The maximum amount is not as high as some private loans but can still cover a significant portion of education expenses.

6. Loan Forgiveness and Discharge:

Private Student Loan: Private student loans generally have fewer options for loan forgiveness or discharge. However, some private lenders may offer loan discharge or forgiveness in specific circumstances, such as death or permanent disability. Federal PLUS Loan: Federal PLUS loans are eligible for certain forgiveness and discharge programs, such as Public Service Loan Forgiveness (PSLF) and Total and Permanent Disability (TPD) discharge. It's important to carefully review the terms, interest rates, repayment options, and benefits offered by both private student loans and Federal PLUS loans. Compare the options available to you based on your specific financial situation, loan needs, and future plans to make an informed decision about which type of loan best suits your needs.


Bank Introduction

Sallie Mae

Sallie Mae

4.4 4.4

FIXED APR4.50% to 15.49% with autopay

VARIABLE APR6.12% to 16.45% with autopay

MAX. LOAN AMOUNTCost of attendance, minus aid

MIN. CREDIT SCOREMid 600s

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Citizens Disclosures

Rates displayed are for undergraduate and career training students:

Lowest rates shown include the auto debit discount: Additional information regarding the auto debit discount: Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. *These rates will be effective 06/26/2023.

Terms:

Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years.

Loan reviews

Sallie Mae is a publicly traded consumer bank that offers private student loans to pay for undergraduate, graduate and professional degrees, among other educational needs. Congress started Sallie Mae in 1972 as a government-sponsored entity that serviced student loans. The lender went private in 2004 and today provides a range of student loan products. Additionally, Sallie Mae Bank offers savings products and other tools to help families plan and pay for college, including a credit card that earns bonus cash back to help you pay off any student loan.

Pros

  • Student loans can completely cover school-certified expenses, such as tuition and fees, books, and other related costs.
  • Borrowers pay no loan origination fee.
  • Autopay enrollment qualifies you for a 0.25-percentage-point interest rate discount.

Cons

  • Sallie Mae does not refinance student loans.
  • The lender strongly encourages adding a creditworthy co-signer.

    • Difference between Private Student Loan and Federal PLUS Loan

    Private student loans and Federal PLUS loans are both options available to students and their families to finance education expenses. However, there are several key differences between these two types of loans. Here are some important distinctions:

    1. Source of Funds:

    Private Student Loan: Private student loans are offered by private financial institutions such as banks, credit unions, and online lenders. These loans are not funded or guaranteed by the federal government. Federal PLUS Loan: Federal PLUS loans are federal loans available to parents of dependent undergraduate students or to graduate or professional students. They are issued by the U.S. Department of Education.

    2. Borrower Eligibility:

    Private Student Loan: Private student loans often require a credit check and typically consider the borrower's creditworthiness, income, and debt-to-income ratio. Students may need a co-signer if they have limited credit history or insufficient income. Federal PLUS Loan: Federal PLUS loans do not require a credit check for eligibility. However, borrowers with an adverse credit history may face additional requirements or need an endorser (co-signer) to qualify.

    3. Interest Rates:

    Private Student Loan: Interest rates for private student loans can vary based on the borrower's creditworthiness and market conditions. Some private lenders may offer both fixed and variable interest rate options. Federal PLUS Loan: Federal PLUS loans have a fixed interest rate set by the federal government for each academic year. The interest rate is generally higher than the rates offered for federal direct student loans.

    4. Repayment Options:

    Private Student Loan: Private student loans may offer various repayment options, including immediate repayment, interest-only payments, or deferred payments while in school. Repayment terms can vary among lenders. Federal PLUS Loan: Federal PLUS loans typically offer a deferment option while the student is enrolled at least half-time. After graduation or leaving school, borrowers have a six-month grace period before they are required to begin repayment. Federal PLUS loans also provide access to federal loan forgiveness and income-driven repayment plans.

    5. Loan Limits:

    Private Student Loan: Private student loans often have higher loan limits compared to federal loans. The maximum loan amount varies among lenders and is typically based on the cost of attendance minus other financial aid received. Federal PLUS Loan: The loan limit for Federal PLUS loans is determined by the cost of attendance minus any other financial aid received. The maximum amount is not as high as some private loans but can still cover a significant portion of education expenses.

    6. Loan Forgiveness and Discharge:

    Private Student Loan: Private student loans generally have fewer options for loan forgiveness or discharge. However, some private lenders may offer loan discharge or forgiveness in specific circumstances, such as death or permanent disability. Federal PLUS Loan: Federal PLUS loans are eligible for certain forgiveness and discharge programs, such as Public Service Loan Forgiveness (PSLF) and Total and Permanent Disability (TPD) discharge. It's important to carefully review the terms, interest rates, repayment options, and benefits offered by both private student loans and Federal PLUS loans. Compare the options available to you based on your specific financial situation, loan needs, and future plans to make an informed decision about which type of loan best suits your needs.