What is the difference between Sallie Mae and Navient?

Sallie Mae split into two companies in 2014. Today’s Sallie Mae originates private student loans. Navient, the other half, serviced federal loans until those contracts transferred to other servicers. If your paperwork mentions Navient, your loan may be federal — check the loan type (/learn/navient-federal-private/) before assuming private-loan rules apply.

Can I get my cosigner released from a Sallie Mae loan?

Sallie Mae has a cosigner release process, but approval requires 12 or more consecutive on-time payments followed by a credit review — and denials are common. Refinancing into a new loan without a cosigner is often the more reliable path. See cosigner release options (/learn/student-loan-cosigner-release/).

Can I settle my Sallie Mae loan for less than I owe?

Settlement is usually a conversation that happens after default, not while you are current on payments. Results depend on who owns the loan, the account status, and whether a lawsuit is pending. Settled debt may also generate taxable income (1099-C). Read how student loan settlement works (/learn/can-you-settle-student-loans/) before making assumptions about what a lender will accept.

Lender guide

Sallie Mae Student Loans: Repayment, Settlement, Bankruptcy, and Default Options

Sallie Mae is mainly a private student loan lender today, so federal programs like IDR, PSLF, and federal loan rehabilitation usually do not apply to current Sallie Mae private loans. The right next step depends on what your documents show: whether you are current but struggling, in collections, facing a lawsuit, dealing with a cosigner, or considering settlement or bankruptcy.

By Stanley Tate Fact-checked May 20, 2026

Choose your problem

What are you trying to figure out?

I cannot afford the paymentStart with private-loan payment options before you miss payments or refinance federal protections away.Review payment options I want to settleSettlement is usually a default or collections conversation, not a normal in-good-standing repayment option.See settlement basics I am in collections or being suedPrivate loan collection can lead to a lawsuit and then garnishment after judgment.Understand the lawsuit path There is a cosignerCosigners can stay liable even when the borrower files bankruptcy or stops paying.Check cosigner risk I am considering bankruptcySallie Mae private loans can be tested in bankruptcy, but discharge requires an adversary proceeding.Read the bankruptcy guide The loan or servicer changedIf your records mention Navient, Aidvantage, MOHELA, a collector, or a trust, sort out the role before choosing a strategy.Sort the loan type

Quick reference

Lender snapshot

Common loan type: Private student loansOlder paperwork can be confusing because the Sallie Mae/Navient history includes federal servicing.
Federal safety nets: Usually not availableCurrent private loans do not use IDR, PSLF, or federal rehabilitation.
Most common paths: Hardship help, refinance, settlement, lawsuit defense, bankruptcyWhich path fits depends on payment status and who currently owns or services the loan.
Document check: Owner, servicer, collector, plaintiffThose names may be different, especially after default or a transfer.

Resources

Read by borrower issue

If the payment is too high

Use these before a missed payment turns into default or a lawsuit.

hardshipHow to Lower Private Student Loan Payments: A GuideAre you drowning in private student loan debt?refinanceCan You Refinance a Sallie Mae loan?Yes, you can refinance a Sallie Mae loan with another lender. Learn when refinancing helps, when it may not, and how to qualify for better rates.

If you are behind, in default, or in collections

Private loans move differently from federal default. Focus on owner, collector, deadline, and lawsuit status.

collectionsSallie Mae Collections: What Happens and How to RespondSallie Mae Collections: What Happens and How to Respond defaultWhat Happens If You Default On a Sallie Mae Student Loan?When you default on a Sallie Mae student loan late payments will be added to your credit report, but your paycheck and bank account are safe until they sue.charge-offSallie Mae Charge Off: What It Means and How to Handle ItSallie Mae Charge Off: What It Means and How to Handle It garnishmentCan Sallie Mae Garnish Your Wages? What Actually HappensCan Sallie Mae Garnish Your Wages? What Actually Happens judgmentCan Private Student Loans Garnish Your Wages? How It Actually WorksPrivate student loans can garnish wages only after a lawsuit and court judgment. Learn how the process works, limits, and how garnishment is stopped.

If you were sued

Do not treat a private student loan complaint like a billing notice. Court deadlines matter.

start herePrivate Student Loan Lawsuit: What to Expect and How to RespondBeing sued for a private student loan can lead to judgments and garnishment. Learn the process, defenses, and ways to settle or resolve.answerHow to File an Answer to a Student Loan LawsuitLearn how to file an answer to a student loan lawsuit, avoid default judgment, and protect yourself in court.defensesDefenses to Private Student Loan Lawsuits: How to Respond in CourtLearn the top defenses to private student loan lawsuits, from statute of limitations to fraud, and how to use them in court.

If settlement or bankruptcy is on the table

These are separate strategies. Settlement is a negotiation; bankruptcy is a court process.

settlementCan You Settle Student Loans? Yes — Here's When and HowYes, you can settle student loans for less than you owe — but only after default. Here's who qualifies for federal vs. private, and what it costs.forgivenessCan Sallie Mae Loans Be Forgiven? Your Options ExplainedDetermining the type of student loan you have is crucial because it directly impacts your eligibility for various relief programs, including forgiveness options.negotiationCan You Negotiate a Student Loan Payoff? How to Settle for LessYes, you can negotiate student loan payoffs. Discover insider tactics to settle private loans for less, without wrecking your finances.Sallie MaeCan You File Bankruptcy on Sallie Mae Student Loans?Filing bankruptcy on Sallie Mae loans is difficult but possible with undue hardship. Consider the options, like refinancing or getting legal help for relief.bankruptcyPrivate Student Loan Bankruptcy: Discharge Rules & TacticsBankruptcy can discharge private student loans, but it’s not easy. Learn the steps, prove undue hardship, and explore your legal options today.

Before you decide

What to check on your documents

Billing statement

The current servicer and account status.

Servicer contact does not always tell you who owns the loan or who can approve settlement.

Review lower-payment options

Credit report

Charge-off date, owner name, balance, and whether a collector is reporting.

Default timing affects settlement leverage, credit reporting, and lawsuit risk.

Read about Sallie Mae collections

Lawsuit papers

Plaintiff name, court, service date, answer deadline, and attached loan documents.

The plaintiff may be Sallie Mae, a trust, or another assignee. Your deadline runs from the lawsuit rules, not the billing cycle.

What to do after a lawsuit

Common questions about Sallie Mae loans

Ask a question

Not sure if your documents show Sallie Mae, Navient, a collector, or a trust?

Send the names you see and what document they appear on. The goal is to point you to the right issue path, not force you into a consult.