Ascent vs Sallie Mae: Which Student Loan Servicer is Best?

When it comes to financing your higher education, landing a beneficial private or federal loan can be challenging. While federal student loa...

When it comes to financing your higher education, landing a beneficial private or federal loan can be challenging. While federal student loans offer the same fixed interest rate and terms for all applicants, private loan providers can offer greater flexibility when it comes to students with poor credit or who need greater financial aid than the government can offer. However, finding the right private loan provider requires research and careful comparison, as not all private lenders offer comparable terms. Here’s a quick look at two of the most popular private loan providers: Ascent and Sallie Mae.

Ascent vs Sallie Mae: Which Student Loan Servicer is Best?

Interest Rates

Interest rates should be a top priority when searching for the best private loan provider for your undergraduate or graduate student loans. Private student loan companies typically offer two types of interest rates, fixed and variable rates.

Fixed interest rates are consistent monthly and set when you take out your loan. Fixed rates benefit students with set financial plans and monthly budgets because they are predictable, and your loan payment will be the same every month. If you have good credit, you might be able to lock in a low fixed-interest rate from the beginning.

Variable interest rates will change month over a month depending on the market conditions. Your variable interest rate could mean your monthly payment is higher or lower than expected. Variable rates are generally more beneficial if you expect favorable market conditions or plan to pay off your loan quickly.

Regarding Sallie Mae vs. Ascent, both offer variable and fixed interest rates, but generally, Ascent offers a lower range of rates than Sallie Mae.

● Ascent Fixed Interest Rates: 3.89%-13.16%

● Ascent Variable Interest Rates: 2.52%-11.11%

● Sallie Mae Fixed Interest Rates: 3.75%-13.72%

● Sallie Mae Variable Interest Rates: 3.25%-13.59%

Cosigned Loans

Interest rates are only one consideration. Other factors will impact your ability to land beneficial loan terms, such as your credit score, financial history, and whether or not you have a cosigner for the loan. It’s not always easy for high school students to build credit before graduation, and it can be challenging for some to get a reliable cosigner for their loans. Many students may pursue higher education independently without the help of family. For these students, there are non-cosigned loan options available.

While Sallie Mae only lists on their site that students are 4x more likely to be granted a loan with a cosigner, Ascent lists Outcome-Based loans with interest rates for students without a cosigner and good credit:

● Ascent Non-Cosigned Credit-Based Loan: Variable Rate 7.09%-12.87%, Fixed Rate 8.69%- 14/75%.

● Ascent Non-Cosigned Outcomes-Based Loan: Variable Rate 10.37%-12.57%, Fixed Rate 11.96%- 13.24%.

Outcomes-based loans consider other variables such as your school of attendance, GPA, etc. These loans generally have higher interest rates but can benefit students without other options.

Compare Options for Your Best Terms

There are many options available to you for private loan lenders. However, not every company will offer similar terms and interest rates. Take your time and research the options available before taking out a loan with any company. Always look for a no-fee option, as there may often be hidden fees with some private lenders.

Higher education is a serious investment that everyone deserves access to. Start looking for the right student loan provider for your goals today and pursue your dreams of college without breaking the bank.