We will analyze six of the top student loan servicers and give tips for how to pay off private student loans.Note about the updates: Since we first wrote this post, more information about the top private lenders and their repayment programs has become publicly available.
Most importantly, we’ve also added new guidelines presented by the Consumer Financial Protection Bureau.
As in the past, Sallie Mae doesn’t offer up much publicly accessible information about which options are available for struggling borrowers, but it does provide this call to action: If you are experiencing financial challenges, whatever the reason, at the first sign of a difficulty don’t ignore it. We know you don’t want to be in this situation, and we’re committed to working with you to help you get back on track.
In addition, it mentions its forbearance program, which can be used in three-month intervals for up to twelve months.
According to Sallie Mae, “Most participants successfully complete the program and return to current payments.” Sallie Mae also claims that it will extend the reduction period for some borrowers, based on employment status and other financial indicators.
According to a letter from Sallie Mae to the CFPB, this program has a success rate of 78%.