Can Sallie Mae loans be forgiven?

Sallie Mae loans, similar to other private loans, cannot be forgiven. As of 2015, there is no option for private student loan forgiveness, but there are options for public student loan forgiveness. If a person needs relief from his Sallie Mae loans, there are options other than forgiveness that can be used.

Talk to Sallie Mae or Other Private Lenders

When struggling to pay back a private student loan such as a Sallie Mae loan, the first step is to speak directly with the lender. Sallie Mae, for example, has forbearance options for those needing it. By using this option, a person is able to temporarily pause loan payments without facing delinquency. A loan can only be in forbearance for up to 12 months.

Look at Federal Student Loan Repayment Options

For those who have both private and public student loans, it is possible to use the special programs offered to give relief to federal loans, and then apply those savings to the Sallie Mae loan. Some people in this situation apply for a federal income-based repayment plan and use the extra capital to pay off the Sallie Mae loan.

Refinancing the Sallie Mae Loan

Private student loans can only be refinanced or consolidated with other private loans. By consolidating multiple private student loans, a person is able to get a better interest rate, helping him with lower monthly payments. A lower interest rate also saves a lot of money over the entire life of the consolidated loan, reducing long-term financial stress. Also, some lenders allow for unemployment protection that puts payments on pause if a person becomes unemployed.