Ascent VS Sallie Mae: Undergraduate Student Loans

When financing your undergraduate education, you need to find a student loan provider that can offer you the best plan for your financial position. While federal student loans offer the same interest rates and terms for all borrowers, private student loan providers can often provide greater flexibility to borrowers. When searching for a personal loan provider- comparison is critical as each company will offer special loan terms, set their own eligibility requirements, and provide different benefits to their borrowers. Here, we will compare two of the most popular private loan providers: Sallie Mae and Ascent.

Interest Rates

Your student loan interest rate is one of the most important considerations when selecting a private loan provider. While federal student loans provide a fixed interest rate for all borrowers, private loan providers often offer both fixed and variable rates.

Fixed rates are beneficial if you have less flexibility in your budget and income and want to have predictable monthly payments at a rate you know you can manage. Fixed rates are a good option if you expect a long repayment period and have the credit to lock in a low rate from the start.  

Variable rates fluctuate with market conditions, so your student loan payment could increase or decrease over time. Variable rates can be beneficial if you expect to repay your loan quickly and anticipate beneficial market trends. You could benefit from variable interest rates in low-interest markets if you have more wiggle room in your budget.

Although Sallie Mae and Ascent offer fixed and variable rates for cosigned borrowers, Ascent offers slightly lower rate maximums. Sallie Mae’s variable interest rate can be nearly 3% higher than Ascent’s maximum variable interest rate for cosigned loans.

• 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%

Of course, other factors like your credit history, whether or not you have a cosigner, and your monthly income will impact your ability to get the best deal, regardless of which provider you choose.

Cosigned Loans

Many high school students don’t have the opportunity to build a strong credit score before they apply for undergraduate student loans, so having a cosigner with strong credit is a great way to improve your odds of being approved for a loan at a lower interest rate. Though most private loan companies only offer loans based on credit score, Ascent is one of the few to provide a Non-Cosigned Outcome Based Loan option for juniors and seniors with poor credit and no cosigner. An outcomes-based loan is given based on factors besides credit score, such as GPA or school of attendance. Ascent offers this Outcome Based loan and a credit-based non-cosigned loan option with slightly lower interest rates.

• 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%.

On the other hand, Sallie Mae does not list separate interest rates for non-cosigned loans. Instead, they maintain the rates listed previously but suggest that applicants will be four times more likely to qualify for a loan if they have a cosigner with good credit.

Not everyone can get a cosigner with good credit to help them get a student loan. Many applicants may be trying to get a higher education all by themselves, without the help of family or friends. If you find yourself in a similar situation, consider the benefits of a non-cosigned outcomes-based loan to help you reach your goals and finance your education.

Find the Best Option for You

There are many options for privately funded undergraduate loans; however, not every company will provide the same opportunities for students with no credit or cosigner. When comparing options for private lenders, consider companies like Ascent that lay out various loan options for people with poor or no credit, making it easy to understand if you qualify. Find the best rate that fits your financial plan and doesn’t stress you out month over month.

Your higher education is one of the best investments you can make in life, and everyone deserves a chance to afford college. Start comparing your loan options today and make your dreams a reality with a privately funded undergraduate loan.