The Fannie Mae Student Loan: Fact or Fiction?
Looking for a Fannie Mae student loan? Great news – I can help. Below I have some very useful information on how to proceed with that student loan for tuition and books – but it's not what you think.
I'll show you what I have found out, and you'll have a better chance of getting a student loan after you read it.
First – The Name: Fannie Mae Student Loan
Fannie Mae refers to the Federal National Mortgage Association. The abbreviation, FNMA, sounds like fannie mae when you pronounce it.
Here's the thing. Fannie Mae buys mortgages. This company sets the rules for purchase of many of the mortgages in our country. When you go to get a home loan, you have to meet certain rules. If you meet them, the loan can be sold to Fannie Mae.
This company has been in the news so much that many people have seen the name all over the web and newspapers.
The FMLA actually doesn't do what many people think. Fannie Mae doesn't loan money, but buys mortgages and bundles them together for sale to others as an investment.
And if you noticed by now, a Fannie Mae student loan doesn't exist…but I have good news.
You may be looking for Sallie Mae student loans!
But Where Can I Get A Loan?
From Sallie Mae! Like I said, a Fannie Mae student loan doesn't exist, but Sallie Mae student loans do!
You can get a private student loan through Sallie Mae, with a website of the same name, just add .com.
Sallie Mae has been in the student loan business for a long time, and started out doing the same thing that Fannie Mae does – buying student loans and packaging them for sale as an investment.
Later, Sallie Mae started offering guaranteed student loans. Then, the company added direct student loans as well. Now the company also offers consolidation loans.
A Quick Comparison
The concept of a Fannie Mae student loan is a little like buying the deed to the Brooklyn Bridge, or getting a large piece of Florida recreational property – both are likely to be very wet, and very bad investments, since none of them exist.
And if you find someone trying to sign you up for one, best move along. They are probably up to no good.
Just for reference, you can go to Fannie Mae's website and check it out for yourself. I did, and the site referred me to – you guessed it – Sallie Mae.
The End Result
With the changes going on in student loans that President Obama has set up, Sallie Mae has had to change things around, and may not offer the guaranteed student loans any more.
But even so, Sallie Mae will stay in the private student loan business. One other thing is for sure: the Fannie Mae student loan is just a little mix up, and you can't really get a student loan from Fannie Mae.
Share this Page